Equipment rental has been readily accepted in the cleaning industry for many years. But are building service contractors (BSCs) and in-house service providers (ISPs) missing out on some of its advantages? Should they consider rental for more than unplanned machine breakdowns or when supplemental equipment is needed? The short answer is: Yes.
Long-term rental can help BSCs and ISPs gain financial and operational improvements. Plus, a long-term agreement can be a cost-effective alternative to ownership.
Long-term equipment rentals typically range from 12 to 60 months, with discounted rates for the longer agreements. If a long-term rental agreement needs to be terminated, rental providers can adjust the rate based on the shorter time frame. This reduces the risk and burden compared to acquisition methods such as leasing, making the choice even more attractive.
Applications that require a higher level of service and uptime, along with those with tight deadlines, are especially well suited for long-term rentals. The rental provider can offer the best options for the job, along with immediate service and replacement, if necessary.
While long-term rental itself has many benefits, there are also additional advantages when telematics are incorporated into the machine. The combination adds to the cost savings and improves utilization and efficiencies.
The True Value of Long-Term Rental
Rental providers offer a variety of equipment to support BSCs and ISPs, including walk-behind scrubbers, ride-on sweepers and scrubbers, and autonomous mobile robot (AMR) cleaners. Long-term rental of this equipment yields similar benefits.
1. Fixed cost. Rental is a fixed operating expense, as opposed to a capital expenditure, making it easier to budget for the cost monthly and eliminating the need to be financially tied to a piece of equipment. That is especially beneficial considering site requirements may change leaving the end user with unutilized equipment.
Rental also lowers the total cost of ownership associated with purchasing equipment, since there is more than the upfront acquisition cost. When a BSC or ISP purchases equipment, there are maintenance and repair costs to consider, along with costs for short-term rental if the owned equipment breaks down. These factors can negatively affect the profit margin for a given project. In essence, long-term rental mitigates the risk of ownership and puts the responsibility on the rental provider.
2. Flexibility and scalability. If the scope of work changes, long-term rental offers the flexibility to adjust equipment needs. That may mean returning the equipment early in the case of changes to the scope of work or increasing the rented fleet if more work is available. In fact, long-term rental makes it easier to grow into new markets and take on or bid for more business for BSCs. The rental provider can fulfill the new equipment request and provide immediate delivery.
3. Reduced overhead. With long-term rental, there is no need to invest in vehicles to transport equipment, hire technicians to conduct repair or maintenance, or purchase parts or consumables. The rental provider manages all these aspects, so BSCs and ISPs can reduce their overhead.
4. Greater uptime. With a long-term rental agreement comes service and support. If a piece of equipment breaks down, the rental provider can quickly deploy a technician to make repairs or exchange the equipment, typically in the same day. Emergency support is typically available 24/7 year-round to help reduce downtime. There is no need to incur extra charges for these services or to pay for a separate rental. This support not only reduces costs, but it also helps BSCs and ISPs stay on critical cleaning timelines.
5. New technology. Long-term rental allows BSCs and ISPs the opportunity to try new technologies without risk. Rental providers keep up with the latest technologies for the cleaning industry and take on the responsibility of the investment.
Supporting Long-Term Rental with Telematics
Rental providers have scrubbers and sweepers equipped with telematics, which provides even more advantages to long-term rentals, including cost savings. Machines that are telematics-enabled provide usage reports that show proof of performance. BSCs and ISPs can gain visibility as to whether the equipment is being utilized efficiently and within the scope of work. Telematics reports on which equipment was used, when it was used and for how long.
Essentially, telematics offers a pathway to maximize utilization. It provides enhanced visibility to the equipment runtime to ensure it is being used to the extent that it supports the investment in a long-term rental. If a piece of equipment isn’t being used frequently or to its capacity, it can simply be returned. This shifts the risk to the rental company, in turn eliminating the need for storage and maintenance of unutilized equipment.
Telematics also gives visibility to hours and intervals of equipment usage to ensure maintenance upkeep, which again the rental provider will manage.
Making the Decision
For BSCs and ISPs who may still be uncertain if long-term equipment rental is right for them, consulting with a rental provider is a good first step. A rental provider can assess equipment needs based on current scopes of work and help if that scope changes in the future.
