Having the right tool is key to completing a job efficiently, safely and in a high-quality manner.

While purchasing tools represents a significant expense, in many circumstances, renting provides the best value proposition. When evaluating whether buying or renting the right piece of equipment makes the most sense for your business, ask a few key questions:

How much does the piece of equipment cost?
Perhaps the most significant variable is cost. If the equipment’s cost exceeds the financial budget or available cash flow for a job, renting the equipment provides an extremely economical alternative that may allow for a project that was otherwise beyond financial means. While the cost of renting equipment varies, the rate typically represents a very small proportion of the equipment’s cost.

How often will this tool actually be used?
If the maintenance team will use a tool only a handful of times during a year, it is probably more cost effective to rent than to pay for the product and have to find a place to store it.

Keep in mind that more than one tool may be needed on the property at any given time. Consider whether renting additional units of the same tool or piece of equipment will help to complete the project more quickly. If one tool is in use and you need another one at the same time, renting the additional tool often is a good option. Don’t buy two new machines when you can rent to scale up without worrying about maintaining equipment.

How much maintenance is required?
Maintenance costs are another consideration that can be overlooked. If staff doesn’t have the time or skills to regularly maintain or repair the equipment, it is wise to outsource.

Renting gives access to tools that are professionally and regularly maintained by experts. Maintenance expenses are one of the largest controllable elements in an operating budget. While most of those expenses are related to payroll, tools and equipment required by the maintenance team may also be a line item, depending on your management model.

Is there ample storage space?
Storage is an important factor to consider when deciding to rent or buy. It isn’t in the best interest of the community to have a rarely used, large-sized piece of equipment taking up space. In this situation, it is best to rent whenever that tool is needed. That said, if the product is small or is frequently used, buying might be the better route.

How difficult is it to transport?
Take into account transportation costs if the piece of equipment needed is particularly large. Remember that the tool will need to make it to different areas of the property, so factor that in. If the tool requires a large truck or special/oversized trailer, consider renting to make it less of a hassle.

Take all of these factors—price, maintenance, storage and transportation—into consideration to determine whether it is more cost effective to buy or rent tools and equipment. With some good decision-making, maintenance costs can be kept at a minimum and the community can free up other parts of its operating budget.

—Contributed by Tony English Senior Tool Rental Merchant, The Home Depot