rent_vs_buy

Great Things To Rent Instead Of Buy

Posted on 16. Jul, 2013 by in Business

There are many reasons to rent rather than to purchase. Some don’t want the commitment and the upkeep it takes to be an owner of something, while others just don’t have the credit or the resources to be an owner. Regardless of what the reasons, sometimes it is just better to rent than to purchase.

Take for instance a home. Owning a home is the American dream, but this dream comes with many realities. For example, a homeowner has responsibilities those who rent doesn’t have, like taxes, home insurance, upkeep and of course the mortgage payment. When renting a home the only thing the tenants have to do is pay the rent payment. Upkeep, property taxes and all other ownership related responsibilities belong to the landlord. So the reasons to just rent are vast. Let’s say the water heater goes out or worse yet the HVAC system, as a tenant you don’t have to pay for this replacement. The owner is responsible for all maintenance items.

While the most common rental item is a home, but there are smaller items that are for rent rather than purchase. What if you want to rent a tool or a piece of equipment? Bull dozers and backhoes are great pieces of equipment that are used for construction. Homeowner’s may want to do some excavating or add a spectacular pond to their home, but would they go out and buy a piece of equipment for a short term use?

The answer is probably not and renting a bull dozer makes much more sense. Rather than spend the absorbent amount of money it takes to purchase a bull dozer, renting it is more economical. The other advantage, when renting the equipment you don’t have to pay for repairs and the insurance it takes to own such an expensive piece of equipment. So, actually renting can save money, especially if it is an item that is not needed all the time.

What about a rental chiller? Owning a restaurant or establishment that depends on refrigeration may find it beneficial to rent a chilling system rather than to purchase. Again, renting a chiller means that if something happens to it that you are not responsible for the repairs. Chillers have lots of parts to make then cool properly, like the condenser. Replacing a part like this can be very expensive and then there are labor costs. When you are the owner you have to pay for everything from the lease on the item to the upkeep. Sometimes renting just makes sense.

If you do the math you will see that renting sometimes just makes better sense than purchasing. Even if you have the credit and resources to be able to purchase, why would you want to?

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