Should You Rent or Buy Equipment for Your Seasonal Side Hustle?
How to decide whether to buy or rent construction equipment for a seasonal side hustle
It’s the holidays, and you want to start pressure washing or landscaping side hustle to take you through the summer. It is a lucrative chance that you don’t want to think twice about grabbing. With every detail about whatever you want to do, including equipment well-articulated in your notebook, you are set to begin making some money. But one thing is holding you back.
You don’t know whether to buy the equipment or rent, especially since you see yourself working just for the season. While renting equipment is a more cost-effective option, purchasing the equipment could also prove worthwhile in the long run. Let’s look at whether renting or buying equipment is the best way to go for your seasonal side hustle.
What Should I Consider Before Deciding To Buy Or Rent Equipment?
You’ll have to factor in several things before deciding whether to rent, lease, or buy equipment for your seasonal business. Such things include:
- Your budget. Businesses, even side hustles, start and run on a budget. If you don’t have enough capital to purchase your own equipment, just rent. Otherwise, you can buy and become an owner or renter yourself.
- Cost of equipment. There is no need to spend millions of dollars buying an earth-mover or landscaping machine, yet construction and landscaping aren’t your official work. The ROI on purchasing such equipment could be zero, putting you and your seasonal side hustle into unwanted debts.
- The period that your business will be operational. For how long do you intend to run your side hustle? The operation will determine things such as storage costs and maintenance, which you have to factor in if you want to remain profitable for the season.
- The cost of renting vs. buying. Depending on how long you will be operational, you might find out that purchasing affordable equipment such as a drywall machine, saws, or plumbing machines is cheaper than renting in the long run.
- Terms of renting or leasing. Machines tend to break down. Some end up needing expensive repairs that hurt your pocket. Consider if the renting company has a provision for maintaining their rented equipment. If not, you’d rather own the equipment and maintain it yourself. You can, in turn, rent it out to others.
Why Rent Equipment for a Seasonal Side Hustle?
You have considered some factors above and decided that renting an earth-mover, generator, or welding machine is the best option for your seasonal side hustle. Well, renting equipment comes with several advantages:
- You’ll save some money to run the business.
- You enjoy a large pool of high-standard equipment, which might be too expensive for you to buy.
- It is easier to forecast your returns since renting costs on equipment are usually fixed.
- You don’t have to worry about loans for purchasing expensive equipment.
- Most companies carry the risks of equipment breakdown.
- You can easily upgrade the equipment to meet your needs by making a small and manageable adjustment to your current payment.
However, renting equipment has some cons:
- Some renting companies require deposits or advanced payments before giving out their equipment.
- Renting can end up being more expensive in the long run than purchasing the equipment, especially if you plan to be around for long.
- Tax reliefs and other benefits go to the renting company, yet they don’t give any discounts.
- Renting also saves you additional costs such as storage and transport costs.
Why Buy Equipment for a Seasonal Side Hustle?
Some perks of buying equipment include:
- Ownership, where you can also rent other people
- Several benefits from the government, such as depreciation deduction and tax benefits, depending on the equipment you buy.
- Lower overall costs in the long run.
However, buying equipment is expensive and will you cost a lot. Additionally, becoming the owner exposes you to risks if the equipment breaks down. You also have to cover other additional maintenance, transport, and storage costs, making renting the best option.
Rent Your Equipment From the Best
Getting high-quality equipment available can be tricky when renting. But don’t worry. Vandalia Rental is you’re here for you. We provide you with the best and most current equipment to ensure your seasonal side hustle runs as desired. We are always there for regular servicing and maintenance when you rent our equipment, ensuring your work proceeds smoothly.
Please contact us today for any queries or to learn more about our services.