Pros & Cons of Renting Heavy Equipment
Purchasing and renting heavy construction equipment are two ways to procure the desired equipment for any construction project or any other application. However, both approaches have their own set of advantages and disadvantages.
After labor expenses, equipment is generally the second biggest capital investment for a construction company or contractor. Based on how you obtain it, this equipment has the potential to significantly increase the efficiency of your work. Alternatively, it may also prove to be a financial burden.
RENTING CONSTRUCTION EQUIPMENT
Equipment rental In Maryland provides a lot of perks and few disadvantages. It is determined by the type of tasks you work on.
Advantages Of Renting Construction Equipment
Financial Benefits Renting specific pieces of equipment when they are required for a given task may make economical and practical sense. You do not have to make a hefty, up-front investment with a rental, and affect your financial reserves. The payments are easy and predictable. Equipment rental MD is a fantastic choice for cash-strapped businesses or startups that do not want to spend their own money. These days, all sorts of equipment can be rented.
Avoid The Risk of Obsolescence Renting allows the client company to access cutting-edge technology, and rental agreements may be set up for shorter periods of time. Instead of purchasing new machines, the company can rent them from time to time. Renting protects you from getting stuck with an outdated machine. By following this approach, the company can avoid the possibility of depreciation as purchased construction-related equipment's worth can rapidly depreciate, as can its trade-in or reselling value.
Tax Benefits When computing taxable earnings, the periodic rental payments made by the renting business or contractor are considered revenue costs. This favors the rentee since it allows him to actually decrease his tax liabilities. Renting is usually 100 percent tax-deductible as an operating expenditure.
More Flexibility To Work Equipment rental In Maryland is more flexible and provides more choices with regard to the kinds of equipment you acquire. You are not at all constrained by hefty upfront expenditures or other reservations about trying something new that could benefit your company.
No Additional & Unforeseeable Expenses As maintenance is included in the rental price, you will not incur any expenditures for maintaining the equipment in good shape. If the equipment breaks down, the rental company will usually have to pay for the repair works or provide you with instant replacement. Furthermore, because rental equipment is typically delivered directly to job locations, you will not have to pay for safe storage or bear transportation costs.
Disadvantages Of Renting Construction Equipment
No Scope Of Making Alterations Because the rentee is not the owner of the equipment, he is not permitted to make any changes to it. While purchasing a machine, the owner has the freedom to alter or modify the equipment to fit his unique needs.
Penalty Charge If the rentee cancels the Equipment rental MD contract before the agreement expires, he is usually obliged to pay a penalty charge to the equipment rental provider. The rentee is at a loss as a result of the penalty payment.
Evaluate the potential revenue generated by employing equipment acquired through either of the procurement methods, the rate at which the equipment will become obsolete, the size of the equipment, and the total expenses. Each option involving equipment renting or purchasing should be carefully reviewed in order to best match your business's position and requirements.
If you require equipment rental In Maryland, choose the best rental equipment provider that will serve you professionally at every step of your hefty projects. Partner with RentEquip for a professional service to fulfill your heavy construction equipment requirements fast and conveniently.
Contact Us:
RentEquip
Location: 9020 Molly Pitcher Hwy,
Shippensburg, PA 17257 United States
Tel: 717–530–1200
Email: greg@rentequiphere.com