Which Is Better: Renting Or Buying A Modular Classroom?
There is no set answer to whether it is smarter to Rent or Buy a modular Classroom. The following questions can help you decide which is best for YOU!
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1. How many years do you think you will need your modular?
Five or six years of rental payments will usually equal the cost of buying the building outright. Since most rental buildings stay on site beyond the initial lease term, the math gets a little tricky on a three or four year lease. If you are certain you will need the building for three years or less, you should seriously consider renting.
2. How much are your mobilization costs?
Most modular projects are quoted and billed in two parts – “The Building” (purchase or rental price) and the “Mobilization” (delivery/set-up/utilities, etc). Mobilization charges are usually the same whether you buy or rent. If your mobilization charges are a significant portion of the overall project, it may make sense to purchase in order to maximize the return on this investments.
3. Removal Cost
When you are done with your rental building, there will be a cost for removal of the building. Don’t forget to add these costs to the rental payments to determine the total cost of renting. It could tip the scale in favor of a purchase.
4. Financial Flexibility
Sometimes, it makes sense to buy, but you just can’t afford a large cash outlay up front. If this is the case, ask about company financing, third party financing, and buy out options at the end of a lease agreement.