Office Equipment Rental Key Terms
Understand exactly what you're getting when you rent office equipment
Renting office equipment is just like entering into any other lease agreement. You need to be absolutely certain what the terms of your lease are and know what the lease includes. Though it's always a good idea to have your business' lawyer look over any contracts and lease agreements, knowing the office equipment rental key terms will help you locate the right broker and begin to negotiate terms suitable for your business needs.
Flexible or Seasonal Lease
If your business fluctuates throughout the year rather than providing you with a steady stream of income, you are a candidate for a flexible or seasonal lease. Though brokers design flexible leases for businesses dependent upon season-based work, such as agricultural or tourism businesses, you can seek a flexible lease regardless of the seasonal nature of your work.
One thing you protect against when you rent office equipment rather than purchase it is equipment obsolescence. With manufacturers constantly updating computers and copier models, new models can quickly become obsolete--making investment in them a potentially losing battle. With leasing, you can often build an upgrade option into your lease or choose short lease terms so you can always have the latest equipment.
Hard Assets vs. Soft Assets
When it comes to office equipment, "hard assets" are the actual equipment, while "soft assets" are items such as the software. Soft assets can also include intangibles like training and other services. When you obtain an equipment lease, understand whether it includes soft assets or you may end up paying more than you intend.
Capital Equipment Lease vs. Operating Equipment Lease
The two major types of office equipment leases are the capital equipment, or true, lease and the operating equipment, or the operating equipment lease. A capital equipment lease outlines terms where you simply lease the equipment without the intent to purchase it. With an operating equipment lease, the lessee leases the equipment in order to eventually purchase it.
Short-Term vs. Long-Term Rentals
You can rent office equipment such as copiers for short-term use, such as during events or initial office start-ups, or you can rent equipment for long-term use, such as for permanent use in your office. Companies offer short-term rentals in terms of days or weeks, while they offer long-term rentals in monthly or yearly increments.
Casualty insurance covers damage to the equipment, as well as injuries that people may incur using it. When you lease equipment, you need to determine whether the broker includes casualty insurance in your lease or whether you need to purchase it.
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