Renting vs. Owning Landscaping Equipment: Pros and Cons

Landscaping is a highly competitive business requiring hustle and commitment to succeed. Keeping costs under control is essential for profitability, whether yours is a new operation or you've been around for many years. 

Equipment acquisitions represent a significant expense for any landscaping operation. One of the most important decisions a company must make is whether to purchase or rent mini excavators, compact track loaders, backhoes, and other essential machines. Weighing the advantages and disadvantages of each process can guide you through the process. 

The Pros and Cons of Renting Landscaping Equipment

The benefits of renting landscaping equipment include:

• No winter storage: If you're a landscaper in a cold-weather climate, the business is typically seasonal — unless you focus on snow removal in winter. Renting enables you to avoid unnecessary storage costs for several months of the year.
• No upfront costs: You don't need to take out a loan or make a substantial investment to obtain rental equipment, which is especially important if you're just getting started. 
• No upkeep: The dealer typically takes care of maintenance, repairs, and associated costs, which can benefit your company's bottom line.
• Excellent results: You can acquire project-specific equipment that allows you to achieve the most favorable outcomes, including attachments that enhance a machine's versatility and productivity.
• Fast scaling: The weather and other factors can impact a landscaping business's volume. Renting enables you to ramp up or cut back quickly as the demand changes. 

The potential downsides of using landscaping rentals are:

• No equity: You won't build up equity when you rent equipment or have the opportunity to apply its value to a future trade or purchase.
• Unfamiliarity: Depending on the dealer's inventory, you may need to rent a machine brand or type you're unfamiliar with, which could negatively impact jobsite productivity and safety.
• Inconvenience: While many rentals are available immediately, you still have to allocate time and labor to pick them up or bear the expense of the dealer delivering them to your site.
• No ownership: Renting might not fit your operating style if you prefer having your own equipment instead of using someone else's. 
• Uncertain condition: Rental equipment changes hands frequently and can take a beating, so it's important to partner with a reputable dealer that implements a comprehensive maintenance and inspection program.

The Pros and Cons of Buying Landscaping Equipment

Reasons to consider purchasing your landscaping equipment include:

• Availability: If you use the same equipment types for most or all of your projects, buying it ensures it's there and ready to perform whenever you need it.
• Return on investment: You can sell or trade in your equipment whenever you wish, allowing you to get at least a partial return on your original investment.
• Customization: If you buy a brand-new model, you can have the dealer and manufacturer include the features that you and your team will get the most value from. 
• Affordability: Compact machines used in landscaping, like mini excavators and skid steer loaders, are relatively inexpensive to buy and operate, which could make purchasing them more cost-effective in the long term.
• Product-specific: You're free to purchase any product that meets your needs and budget, whether you prefer a new, used, or older product or a specific equipment brand.

The possible pitfalls of buying equipment are:

• Financial obligations: You'll likely need to finance your purchase, which can mean coming up with the funds for a down payment and meeting a lender's borrowing and credit requirements.
• Storage: You'll need a secure area to store equipment over the winter or other times when you're not using it. 
• Ownership costs: You're responsible for all the associated expenses of equipment ownership such as maintenance, repairs, and insurance.
• Cash flow drain: Unless you're an established landscaping business with extra cash on hand, the cost of buying and owning equipment can hinder your company's operations.
• Potential performance issues: If you choose to buy an older used model, it might not have the modern features you need to keep up with your competitors, putting your business at a disadvantage.

The Cat^® Rental Store Can Help You Decide

The knowledgeable team at The Cat^® Rental Store in your area can help you weigh all your options and make an informed equipment acquisition decision. We offer high-quality, well-maintained rental equipment from over 70 leading manufacturers. You'll also receive exceptional support throughout the process, including on-site service to maximize equipment uptime. 

Call us at 1-800-RENT-CAT or contact us online to request product and pricing information today.