Construction equipment rental companies are businesses that rent out various types of construction equipment to construction companies. Most construction companies may not be able to purchase an entire collection of construction equipment, and thus, they opt to rent the equipment they need from construction equipment rental companies.
Thus, utilizing construction equipment rental companies has become a more viable option for both small and large construction companies because of the following reasons.
Renting is Cheaper than Buying
Buying construction equipment often requires a hefty down payment followed by substantially high monthly installments. If you are running a construction company, you need to consider the effects of such a financial undertaking on the rest of your business operations.
Remember, you still have to buy construction raw materials and pay your workers. With that in mind, purchasing construction equipment may be too much of a financial burden on your company, and thus using a construction equipment rental company may be your best option.
Construction equipment rental companies charge a significantly small rental fee for using their equipment. Thus, you can use their rental equipment for months, and the amount of money you pay in rental fees may not amount to the sum of money you need to deposit when buying construction equipment.
Hence, using a construction rental company is cheaper than buying the equipment you need, especially if your construction company has limited financial capabilities.
Rent What You Need When You Need It
Different types of construction projects require varying types of construction equipment. Thus, the construction equipment you buy may not always get used in every construction project you get. Therefore, there is a likely hood that you may spend tens of thousands or hundreds of thousands of dollars on construction equipment that you rarely get to use.
However, using construction equipment rental companies provides a more straightforward solution for accessing construction equipment. Construction equipment rental companies have all the various types of construction equipment you may need.
With a construction rental company, you get to rent the specific construction equipment you need when you need it. Hence, you do not have to invest much money in construction equipment you may not get to use very often.
Minimal Downtime
If the construction equipment you own breaks down while in use, it means that your construction project may experience downtime until the equipment gets repaired. If the repairs needed are significant, you may have to delay the progress of the construction by the number of days the repairs will take to complete.
However, if you are using a construction equipment rental company and a piece of equipment breaks down, you don't have to experience extended downtime. When a rented piece of construction equipment breaks down, a construction equipment rental company is willing to provide you with another piece of equipment so that you don't have to halt the work.
Additionally, the construction equipment rental company will cover the costs of the repairs. Thus, you will not have to spend a dime on repairs, unlike when you own the construction equipment.
Depreciation Doesn't Affect Your Books
When you own construction equipment, its depreciation is considered a liability on your books. Suppose you own a collection of construction equipment that is depreciating. In that case, the total amount depreciated will get deducted from your company's value. Thus, owning construction equipment continuously drives down your company's value as the equipment depreciates.
However, if you use a construction equipment rental company, the depreciation of the equipment doesn't fall on your books. Thus, you get to maintain a high and unfluctuating company value by renting construction equipment instead of owning it.
Share15 July 2021
My name is Autumn, and I'm glad you are here. I am one of very few women who work in construction. Yes, I operate heavy machinery. I also use power tools and climb up on planks high in the air. I am a construction worker, and I am just as good at it as my male co-workers. In fact, I often consider myself even better. I hope this blog will help people understand that women can choose to do anything that interests them, and that it is okay for a women to pursue careers that are traditionally reserved for men.
