There are many projects that are undertaken both commercially and around the home. Rarely does one person or one company have every conceivable tool, knowing this to be the case there are two solutions when you need this specific tool; buy it or rent it.
If you feel that the tool will become commonly used, then it may make sense to purchase it, however even that is not always the best solution. Air tool rental is a good example; these tools are usually quite expensive so it makes sense to conserve the company’s capital. Capital purchases often show up on the asset register of a company and need to be either expensed or amortized. When a tool is rented, the cost is immediately expensed and they do not have to be purchased from the capital equipment budget.
Tool rental companies pride themselves on their tools, they are normally the most modern and they are kept in perfect operating condition. When you purchase your own tool, it ages, requires maintenance and eventually becomes obsolete, not so with rentals.
There are very few tools that cannot be rented; air tool rental is popular in heavy industry which usually has compressed air available. For the home tools that are rarely used, perhaps a lawn aerator or a concrete mixer it would make no sense to buy these types of assets. The cost of tool rental all depends on the tool and the time it will be out. Most tool rental companies have their own form of contract but the common denominator is the time frame. Most tools that are rented for use around the home are taken on four hour time bites, the rental charges are then easily calculated on four or eight hours. For commercial tools the contracts are different as the tools may be out for weeks or months on end.
Air tool rental does make a lot of sense. If it is known that the tool will not be called for again, just storing the tool will be a problem. A good rule of thumb, especially for domestic tools is; if the rental is less than 50 percent of the new tool price and you know you will never need it again, then rental is the best bet.
