With companies looking to save cash and consumers tightening their purse strings in these times of uncertainty, more people are turning to renting items instead of purchasing them outright. While you can’t treat the products as your own and there’s often a time limit before you need to return it, there are several reasons why renting an item could be the right move for you or your business. Here are just a few.
When you head to the shop to hire an item, you’ll leave with a top of the line product that’s serviced and ready to go. When you’re done with it, you simply return it. When you need to use it again, you’ll probably end up with a newer model. However, if you’d bought the same item, it would likely be gathering dust while it’s not in use. It would also cost more money to upgrade it.
Purchasing an item is one considerable lump sum cost. It can be a lot of money for people to outlay, especially if it’s not expected to be used frequently. Instead, you’ll pay a fixed-rate at a frequency of your choosing. This can be better for cash flow and doesn’t eat up a business’s capital. There might even be a tax benefit in it for you.
For electrical equipment or items that require servicing, this becomes an additional cost on top of the money you’ve handed over for the purchase of an object. But when you hire a product, the fee you pay covers maintenance and ensures that your item is in perfect working order. The agreement also covers insurance costs, which can be significant for some objects. If your product happens to break, you don’t need to worry about going out and buying a replacement. The rental company will do that for you. They might even give you a newer model.
The sharing economy continues to grow rapidly, and hiring products is an extension of this industry. Sharing items makes their use more efficient as people hiring it are actually using it. Products purchased outright and no longer needed are often discarded if they can’t be sold. This leaves no other option but to send them to the landfill.
You should ask yourself a lot of questions before you decide to buy or rent an item. While some situations will call for purchasing an item, it’s worth exploring if renting a product is more beneficial for your circumstances and your bank account. If you’re considering getting into the rental market and looking for software to handle your quotes, contracts, and invoices, then you need CloudRent. Our rental management application is available anywhere and anytime for your scheduling, sub-rentals, damages, and logistics. Contact us today to find out how we can help your company today.