Renting offers a convenient solution for your temporary construction applications. You can obtain the right machine for your task’s duration, all while seeing what features and specifications best align with your regular projects. You also don’t have to devote additional costs to equipment ownership, such as long-term storage and maintenance.
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- 8 Myths About Equipment Rentals
- 7 Facts About Renting Equipment
- Find Quality Rental Equipment for Your Projects at MacAllister Rentals
That said, certain misinformation about renting equipment can deter companies from pursuing this route. Some believe they are an ill-fitted candidate for rental equipment due to factors like business size, financial state and project timelines. In reality, many businesses can find great value in renting construction equipment.
8 Myths About Equipment Rentals
Skeptics shy away from renting equipment for a few reasons. They believe:
- It doesn’t make financial sense for their business.
- It won’t align with their project schedules.
- All rental equipment is outdated and in poor shape.
- There is a lack of rental equipment options.
- Rental equipment fees are nondeductible.
- They won’t receive the necessary support during their rental duration.
If you’re on the fence about renting equipment, we’ve listed some of the most common fallacies about this topic and why they’re inaccurate.
1. Renting Equipment Isn’t Cost-Effective
One of the most common equipment rental myths is that it’s too expensive and a waste of capital. This makes it seemingly impossible for smaller startups and construction companies with budget limitations.
The truth is renting equipment can be a budget-friendly option if you carefully consider your project and rental term. You’re only using the equipment for as long as necessary. That means you don’t have to think about long-term ownership costs like maintenance, repairs and storage.
For example, say you purchase an aerial lift but only end up using it about once or twice a year. The lift spends most of its time in storage, seeing hardly any use and occupying valuable space. When you don’t consistently need a specific unit, renting it makes more sense financially.
When planning your equipment rental budget, list each task you’ll need to complete. Take inventory of any equipment you already own and determine whether you can perform these tasks with any of your existing machinery. Certain parts of the job may be easier to complete with a machine you don’t currently own. In some cases, you may be able to rent attachments for specialized tasks as opposed to entire machines.
Instead of purchasing niche equipment for a specific job, renting lets you tackle these short-term project needs and return the equipment once you’re done. You can also test out the equipment to decide if it’s worth purchasing down the road. Whether you require the equipment for a day, week, month or longer, renting provides flexible terms that meet your temporary project needs and budget.
2. Rentals Must Be Long-Term
Many businesses believe that rental equipment dealerships offer hard-and-fast terms. In other words, they think they must rent equipment for a set minimum, such as a week, month or longer.
This rental period might be overkill for their short-term projects, resulting in wasted money. As a result, these companies may think twice about renting equipment. Even a week-long contract can be excessive if you only need the unit for a day or two.
Truth be told, most rental companies offer adaptable rental terms. These terms can accommodate virtually any project timeline and schedule. In most cases, you can return the equipment early or swap it out if your anticipated needs change during the project.
3. Rental Equipment Is Old and Poorly Maintained
Another myth is that rental equipment inventories only include older, beat-up models. You can actually rent newer, expertly maintained equipment, often with low service hours. Most rental dealerships are very diligent about maintenance, ensuring machines are in the best possible shape for clients who rent them.
Additionally, many rental companies include repairs in rental agreements. If you experience an equipment malfunction during your rental term, you can reach out to your dealer and they’ll rectify the issue. You can also access many modern features and technology when renting equipment.
4. Renting Equipment Gives You Fewer Options
Many believe there’s a limited inventory to choose from when renting equipment. You can only pick from a handful of units, and the specific one you’re looking for may not even be available.
While this might be true in some cases, most renters have an extensive selection of rental equipment to browse. You can find everything from skid steer loaders and telehandlers to trenchers and dump trucks. Most of this equipment comes in a range of sizes, from compact to full-sized units.
This multitude of options lets you take on numerous tasks and projects. Renting equipment doesn’t mean missing out on the latest models and features. You can try out newer models and technology for enhanced productivity and safety. When browsing rental equipment, you’ll find details about size, features and power. This information can help you make a more informed decision for your project.
You’ll have no shortage of options at your disposal when it comes to renting equipment, especially when you work with a qualified equipment dealer.
5. You Can’t Deduct Rental Equipment Fees
Another misconception is that rental equipment isn’t a tax-deductible business expense. However, the truth is you can deduct rental fees from your company’s income tax return.
Unlike owned equipment — which is considered a business asset — rental equipment is a business expense. You can deduct costs from any construction equipment rented during the fiscal year if you solely used it for business purposes. All of these expenses are applicable:
- Rental costs and any additional costs for reserving the equipment
- Equipment delivery fees
- Any insurance fees incurred while the equipment was in your possession
In addition to equipment, you can also deduct construction tools like drills, hammers and saws. Make sure you keep and store all equipment and tool receipts so you can reference them if needed.
6. Your Business Can Lose Money Due to Equipment Depreciation
Construction equipment depreciates the moment you start using it and tacking on hours. Certain units hold their value better than others, but all equipment gradually becomes less valuable than its initial purchase price.
Another myth is that renting equipment can be impractical due to depreciation. While rental equipment does depreciate, this loss in value won’t affect your company financially. That’s because you don’t own the equipment and won’t be responsible for selling the unit when you’re finished with it.
7. You Won’t Receive Support Beyond the Initial Transaction
Another prominent myth is that once you rent the equipment, you are on your own. Many businesses believe they won’t receive any help or support, which could steer them away from renting construction equipment. If your team has never used a certain type of equipment — such as telehandlers or aerial lifts — you may assume renting them is out of the question.
However, many rental companies offer operator training as part of their standard support services. Many of these dealerships have qualified instructors who provide training courses based on federal standards, such as those from OSHA and ANSI. These courses cover essential topics such as:
- Pre-operation inspection
- Basic operation
- Start-up and shut-down procedures
- Emergency procedures
- Written testing
- Hands-on operation
Your staff will receive operator’s permit cards upon program completion. This extensive training gives you peace of mind that your employees are fully trained on safe, proper equipment use. That way, you can rent equipment with confidence.
Many rental companies offer support in other areas, as well. A Rental Equipment Protection (REP) plan can remove the liability of equipment damage from your shoulders. In the instance of a covered equipment damage or loss, REP will cover the cost of repair or replacement. When renting equipment, you’ll receive comprehensive support before, during and even after your rental period.
8. Renting Is Only Feasible for Certain Types of Businesses
A common falsehood about renting equipment is that it’s only sensible for a certain clientele, such as small businesses, companies with restricted budgets or those newly entering the industry. The truth is that any company can rent equipment, no matter the type of industry, business, size or budget.
For example, you might own a startup with little to no equipment. Renting lets you temporarily expand your fleet and capabilities. That means you can take on several types of projects even before you have enough capital to purchase your own fleet.
In comparison, you could be a large, multi-service construction company with a huge equipment fleet. Renting can still be practical for your specialized or short-term projects. This option isn’t limited to specific businesses and contractors. Anyone can reap the benefits of rental equipment.
7 Facts About Renting Equipment
We’ve covered the different myths about renting equipment. Now, let’s look at the concrete facts about rental equipment that make it a worthwhile avenue for your business.
1. Rental Equipment Dealerships Have Extensive, High-Quality Inventories
When renting from a reputable dealer, you can access equipment that offers the performance and efficiency you demand for projects. Most rental equipment companies have well-rounded selections in terms of equipment type, size and features. Countless construction equipment is available, including dozers, excavators, trucks, trailers and aerial lifts.
In addition to heavy equipment, you can rent products like attachments, portable air compressors, power generators and light towers. This rental equipment is well-cared for and maintained by experienced technicians, giving you access to quality, reliable units.
You can find rental equipment from industry-leading manufacturers, such as:
2. You Can Find the Right Solutions for the Job
Having the wrong type of equipment for your project is one of the last things you would want. It can lead to lost time, productivity and revenue.
Undersized equipment lacks the power needed for heavier-duty tasks. This results in excessive strain or even damage to the equipment. Meanwhile, using oversized equipment for smaller-scale tasks can be a waste of money.
Additionally, a confined job site may not have the space for a large machine. It can also be hazardous for personnel. For example, if a large excavator arm swings out too quickly in a compact space, it could damage or take down a nearby structure. If you have to swap out a larger unit for a smaller one or vice versa, it can delay project schedules, resulting in lost time and productivity.
That’s where turning to a knowledgeable rental equipment company helps. An experienced dealer can point you to the best equipment for your projects, job site size and work conditions. That way, you can rest assured you’re making the right choice for the job.
3. You Can Access the Latest Models, Features and Technology
Construction equipment has evolved significantly over the past few years. New developments have introduced a host of features to help contractors handle tasks with greater speed and accuracy. Manufacturers like Caterpillar have built innovative technology features into their equipment — such as remote monitoring and grade control — for maximum safety, efficiency, precision and performance.
Many rental equipment dealerships offer the most up-to-date models and technology. Using the latest equipment and features gives you a competitive edge. You can perform higher-quality work faster, giving you the upper hand over companies that use more outdated equipment for their projects. You can also ensure your rental equipment complies with the most up-to-date industry and safety standards.
4. You Can Save Money
Renting equipment helps reduce expenses in a few areas:
Upfront Costs
Renting equipment is a great way to minimize overhead and avoid high upfront purchase costs. Rather than paying a large sum for equipment you won’t regularly use, renting can be a more cost-effective resolution for your short-term equipment requirements.
Transportation and Storage
The more equipment you purchase and own, the more transportation and storage costs you will incur. There are also costs associated with insurance. Transport permits are sometimes required for larger equipment classified as oversized loads. You’ll also need to ensure ample storage room for when the equipment isn’t in use. In some cases, that means costly facility expansions, renovations and upgrades.
Since you aren’t permanently responsible for rental equipment, you can save significantly in transportation and storage expenses. Your dealer can incorporate drop-off and pick-up fees into your rental contract, and you don’t need long-term storage space for the equipment.
Repairs and Maintenance
When you buy and own construction equipment, you’re automatically responsible for malfunctions, breakdowns and repairs. REP removes much of the obligation by helping cover damages, repairs and replacements.
Renting equipment can also reduce various maintenance-related costs. Some examples include:
- Buying or leasing workshop space
- Service labor fees
- Replacement parts for equipment
- Tools and equipment needed to complete repairs
5. You Can Boost Productivity on Your Job Site
Optimizing productivity and project completion times is important for driving revenue. However, if you’ve ever experienced an equipment shortage, you know how challenging it can be to accomplish these objectives. Equipment downtime can be costly and inconvenient, disrupting your schedule and warranting expensive repairs.
If your primary equipment breaks down and is out of commission for the foreseeable future, renting lets you obtain backup units on short notice. In turn, you can give your customers the timely results they expect. A reliable rental company can equip you with the units needed to meet deadlines and optimize productivity. They’ll ensure you have the proper equipment type, size and features for the job, helping you work smarter instead of harder.
Well-maintained, high-performing rental equipment also lowers the risk of unexpected breakdowns and downtime on the work site. Quick and flexible equipment rentals can help you stay efficient in today’s competitive business environment.
6. You Can Try Before You Buy
One of the biggest benefits of renting equipment is the ability to experiment with different features and technology. Many contractors and construction companies integrate a hybrid approach into their fleet, combining rented and owned equipment. This strategy allows you to “try before you buy” by renting some of your equipment before committing to a purchase. It can help you stay flexible and competitive throughout your projects.
If you’re reluctant about purchasing a specific unit, consider renting a similar one to test it out on some jobs. You can see how it performs, whether your crew likes it and if it’s a good fit overall. Trying before buying helps you avoid buyer’s remorse from purchasing the wrong unit for your needs. It keeps your workflow smooth and efficient until you’ve settled on a decision.
Renting can also help you figure out what features you’re looking for in construction equipment. Try renting equipment for a day or week. When you go to purchase equipment, you’ll have a better idea of what you’re looking for.
7. Renting Can Support Fluctuating Project Demands
Every contractor knows that each project differs in scope and requirements. A project can encompass various tasks, such as:
- Paving roads
- Digging holes to install posts, piers, trees or fencing
- Creating trenches to lay pipes or cables
- Clearing large material loads from the job site
Many construction companies manage several jobs simultaneously, but using the same equipment for these different projects can be tricky. These jobs can also bring obstacles like equipment breakdowns, the addition of new tasks to the project and unforeseen do-overs.
Certain obstacles can set back completion times and increase overall project costs. Fortunately, renting offers the flexibility to handle multiple short-term projects at a time and adapt to changing demands.
The ability to source the right equipment for specialized tasks is a valuable benefit. Whether you’re taking on new project types or facing urgent equipment needs, a reliable rental dealer can help keep you on course to on-time project completion.
Find Quality Rental Equipment for Your Projects at MacAllister Rentals
MacAllister Rentals is your one-stop shop for reliable rental equipment in Michigan’s lower peninsula and Indiana. We partner with Caterpillar and other respected industry names to provide high-quality rental products at competitive rates. You can also get a quick, free quote for rental equipment by contacting us online or calling 877-700-1945.
We have nearly all the solutions you might need, including:
- Earthmoving equipment like bulldozers, excavators, skid steer loaders and motor graders
- Aerial lifts
- Landscaping equipment like straw blowers, mulch blowers and hydroseeders
- Equipment attachments like buckets, augers and forks
- Power generators
- Dump trucks
- Forklifts
- Carry deck cranes
Choose MacAllister Rentals for your temporary construction equipment needs and unparalleled customer support. Browse our extensive rental selection, then find one of our dealers near you to get in touch about renting equipment.
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