To Buy or To Rent. The age-old dilemma that many grapple with when considering what would be best for them. Essentially, if you’re only going to use an item a few times, and your personal gain from it does not reach the level of money you spent buying it, then you’re at a loss.
As a business, you have to realize that in order to maintain healthy cash flow you need to minimize large purchases. Essentially, huge purchases are a big blow to their cash flow. So, there are circumstances that would favor renting rather than buying. A good example is office space. Majority of businesses rent office space, instead of buying it. It just makes more sense, especially for small to medium-sized businesses.
One of the biggest myth about renting is that you’re “throwing away money” every month. Not so. You need a place to live, and that always costs money, in one way or another. While it’s true that you aren’t building equity with monthly rent payments, you also aren’t building equity with much of the money you’ll put into owning a house.
Contrary to popular belief, renting doesn’t mean you’re “throwing away money” every month, and owning doesn’t always build wealth “in the long run.”
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Renting allows flexibility in finding what you want
Will you just be using an item for a short period of time? Then renting is the right one for you. You have the flexibility of extending the rental contract or giving up the item anytime.
Financial considerations
Other than a security deposit and renter’s insurance, which is typically very affordable, there are no extra or hidden costs with renting. Maintenance fees, in most items, is also being covered by the item rentee.
Less Stress
You don’t have to worry about maintenance or item storage.
Buying
Buying, is almost always cheaper than renting. There are a lot of financial advantages of buying an item, for example, a house, if you’re in a position to do so, and top among them is your equity. But it would depend on factors such as capacity to buy the item, usage in the long run, depreciation value, etc. For items which is cheaper when bought, then it’s a better deal to buy it, otherwise, rent.
The same goes with expensive items such as laptops or computers. If you’re not ready to commit to a big investment, then renting a laptop can be a good option for you. It helps you save on initial costs and gives you the flexibility you need.
If you’re still debating whether to buy or to rent, iRent Mo offers a rent to own option, which allows you to own the item by renting. You can check out their rental items and get in touch with them through their facebook page here. You might also want to check out their rental items available for a short term or long term basis. Aside from businesses, iRentMo also caters to personal rentals. Know more about them here.
