If you are a contractor, you likely know that the cost of heavy construction equipment can be exorbitant. Perhaps you are a new contractor who is just starting your business, and you may not have the revenue to buy all of your equipment yet. Construction equipment rentals could bridge the gap until you are able to raise revenue or secure financing for your business. Renting equipment has several perks. The following are a few reasons renting is sensible for today's contractors.
Rarely Used Equipment
Even if you are an experienced contractor, there are likely certain pieces of equipment that you may rarely have a need to use. This means that buying the equipment would likely mean that it sits most of the time unused. It is more sensible to rent these pieces and focus your leasing and buying options on equipment that you frequently use.
Access to Quality Equipment
Owning the equipment you need is one thing, but if the equipment does not work, there is little use in owning it. Contractors who opt to rent equipment can rest assured that they will have high-quality equipment that works. Most rental equipment is also up-to-date, which means that it is less likely to breakdown and need servicing in the middle of a job.
Low Upfront Cost
Buying new equipment may come with a need to put a down payment on the equipment. This payment will most likely exceed the money you can expect to pay for a rental. Many new contractors cannot afford to make a high down payment, but they can likely secure the funds to pay for a rental even if they rely on the deposit they receive from their clients.
Reduced Repair Liability
If you own equipment that is not under warranty and it malfunctions due to normal wear and tear, you will be responsible for the repair costs unless you know how to do them yourself. The cost of parts may still be on the expensive side even if you can do the labor. However, if a construction equipment rental breaks down due to normal wear and tear, you will likely not be held liable. The company may even pick up and deliver a replacement to ensure you do not have excessive downtime. If you are the cause of the damage, you may have to pay if you do not get the optional insurance that many construction rental companies offer.
Potentially Tax Deductible
One of the most amazing things about renting construction equipment is that your tax professional may be able to use it as a deduction for your business. It could be considered an operational expense.