More about the Equipment Rental San Francisco
Equipment rental San Francisco is more and more popular method. The primary advantage in renting equipment is the ability to obtain the right part of equipment for the job when the unit is needed. Renting allows for more specific equipment selection as more choices are usually available from renters than the contractor’s presently owned fleet. Using owned equipment also encourages inefficiency through use of the wrong size or type of unit for a given job. Renting can eliminate that problem. In addition, pieces of equipment can be selectively acquired so as to be available only during the time they are needed and removed soon after work is completed. In this way, costs associated with idle equipment can be eliminated.
Equipment rental rates vary throughout the country with larger cities normally having lower rates. Most rental equipment firms compute their rates generally on 30 days basis. Monthly rental rates vary from 2 to 5% of the cost of equipment. Monthly rates usually run about three times weekly rates, and weekly rates usually run about three times daily rates. These rates are based on late-model, high-quality equipment in excellent condition rented from equipment dealers. In addition, the rental rates are based on single shift operation, 8 hours per day, and 40 hours per week. Premium rates are charged if usage exceeds a single-shilt operation basis. Apart from renting from equipment dealers, a contractor may choose to rent needed equipment from other contractors. It is also important to note that rental rates from other contractors may be substantially lower than rental rates from equipment dealers. Equipment rental rates do not include transportation costs, creating and dismantling costs, insurance, or taxes. These costs must be determined and added to the rental costs in order to determine the total cost of acquiring equipment.
Cost of Leasing Equipment
The distinctive factor between leasing and equipment rental San Francisco is the duration of time. Leasing equipment is often considered when a piece of equipment is needed for more than six months. A lease is a contract conveying to a business (the lessee) the right to use, for a stated period of time, specified property, plant, or equipment owned by another party (the lessor) in exchange for periodic rental payment. Although the lessor owns the piece of equipment, the lessee can fully use it without any restrictions as if he or she were the owner. At the end of the contract term, usually more than one year, the lessee may choose an option from different alternatives, such as to buy, renew the lease, or turn over the asset to the lessor. Leasing is a substitution for debt. Unlike purchasing a piece of equipment with large upfront capital, a company pays for the acquired piece through small periodic payments.
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