It is always attractive to have your own Construction equipment, no doubt, but renting it rather than buying comes with a lot of advantages. By reading this article you might change the decision of buying your own Construction equipment and rather rent it out. Equipment Rental Business is Booming and Building a Equipmental Website is easy with Equipment Rental Software
1.You need not pay for it when you are not using it
Your construction project may require particular equipment only for a specific number of days only. After that, it might stand idly adding to your expenses. Unnecessary maintenance costs can also add to your headache. If you rent it out, you have no such headache as the rental company will take care of it once your period of lease is over
2. Access up-to-date technology
Due to the competition present in the rental business, you will get the opportunity to get your hands on the latest technology machinery helping you increase your efficiency. Latest machinery means compliance with emissions regulations for working without any hindrance
3.Avoid storage space and costs
Bigger equipment means more storage space and when you are not using your equipment you need to find storage space for it. This can add to the expenses. You can simply avoid it by renting your equipment
4.Minimize the cost of transportation
Avoid any kind of major transportation costs by renting your equipment near to your work site. This can considerably add to your profitability and eliminate headaches associated with transportation
5.Explore more of your project
There will be times when your project is in need of specific equipment to carry out tasks efficiently. Buying them is not a viable option always. On the other hand, renting them out will help you to explore more options from your project and at the same time remain profitable too
6.Pursue more opportunities
When you are deciding to buy a particular equipment you are blocking a lot of your finances which you can otherwise use for different projects meaning missed opportunities. By renting out you will have more control over your finances and helps you to keep your options of pursuing new projects wide open
7. Be eligible for tax deductions
You can add your rentals to business expenses and get tax exemption whereas when you buy equipment the tax will be present for the entire life cycle of the equipment and calculated based on its depreciation.
8.Add more profits to your balance sheet
Add to your firm's borrowing power and eliminate the liability of your balance sheet as renting out is definitely more economically viable when compared to buying your own equipment
9.Buy instead of lease/rent
When you take equipment for rent before actually buying you can get to know about the Usage of that equipment and also get an idea of how much it suits your project. Also if you decide to buy the equipment once you start your rental tenure, you will always have an option to deduce the rental amount from the actual price of the equipment.
Long story short
From the points mentioned above, it is clear that renting out construction equipment is way more viable than owning one. You need to buy one, only if you are sure that you will be using it for the entire year. To have a better idea on whether to buy or rent, you can take the help of your construction management software and come to a conclusion based on your project requirements as different companies have different construction equipment needs based on their mode of operations.
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