Differences between long-term and short-term crane rental agreements

Cranes are essential pieces of construction equipment that are used on a variety of construction sites. The rental of cranes is a popular choice among many companies because it gives them more flexibility and permits them to use the crane only when required. To make renting a crane for a business more successful, one must know the top practices of companies that rent cranes for their next project.

Still, choosing a crane can be a challenge? As it comes down to choosing between short-term and long-term rental agreements.

This ultimate guide provides everything you need to know about renting cranes and the benefits of both forms of crane rental Virginia.

Long-Term vs. Short-Term Leases: What's the Difference?

The length of a short-term lease agreement is usually three to six months; however, the rental agreement will end if the owner of the crane decides to move out after three months. An example of a long-term lease would be anything that lasts longer than six months and may last up to fifteen months before you sign the agreement for the new crane rental.

The owner of the product commonly prefers long-term leases since they guarantee a steady stream of rent payments for a longer period, but it should be kept in mind that the lease term duration can vary based on the goals you are trying to accomplish during the lease term.

Benefits of Long-Term Crane Equipment Rental

Savings on cash

Buying a new crane is significantly more expensive than renting the same equipment long-term. Don't waste your money on opportunities that don't yield a high investment return. With pile driving equipment rental options, you can get various long term perks. 

Using what you have paid for

It is essential to understand what long-term rental agreements require based on the number of hours and conditions under which you will be using the crane. Consider this compared to purchasing a piece of equipment: as soon as you buy an asset, you have to pay 100% regardless of whether you plan to use it a lot or a little.

It is 100% tax deductible to make rental payments.

Rent payments are considered operating expenses by the IRS and are, therefore, fully deductible as a business expenses. It is unnecessary to be confused by depreciation schedules or to worry about damaging tax consequences at the end of the year.

No surprises regarding maintenance payments

Make sure there are no unpleasant surprises associated with your material handling costs! Maintenance is typically included in long-term crane rental agreements, meaning the expense's responsibility belongs to someone else.

Ensure that your parts and service departments are eliminated

As an owner of a crane and one who takes care of it, you will require mechanics, tools, and replacement parts. The storage of parts and the provision of service space will be reduced by eliminating the need to stock parts in warehouses and plants.

Short terms benefits of renting a crane

You are responsible for maintaining, inspecting, coordinating cranes, getting insurance, and providing fuel when you purchase a mobile crane. It is often better to hire a crane for a specific period to have the peace of mind and simplicity needed for the crane project.

There are a few reasons why renting a crane gives you short term benefits:

Anytime, Anywhere

With the help of a crane rental company, you are assured of having access to the equipment you require, regardless of the location of the job site. Owning a crane means you have to worry about transporting that piece of equipment from one job site to the other, which may be very challenging for companies that work in various states at different times of the year.

Construction companies that do multiple projects can also benefit from renting cranes. It can cause costly delays and inefficiencies to wait for your crane to finish work at one site before it comes to another.

Spend less money‌

Some models can cost up to $500,000, depending on your needs. Along with the substantial up-front cost, owning a mobile crane is expensive in the long run since you must continue to spend money on maintenance and other expenses. Any equipment failures require regular maintenance and repair by a qualified mechanic. Furthermore, some cranes must be transported in several truckloads, assembled on-site, and taken apart when done.

You can keep your operational costs low if you rent a crane for specific jobs.

Getting rid of paperwork

Mobile cranes with operators require less paperwork and logistics. In addition to DOT compliance (Department of Transportation) and OSHA requirements, crane maintenance and repair and secure storage are all things you need to worry about when owning a crane. The crane must be insured, and your crew must be licensed to operate it.

‌Taking care of all these responsibilities can be a hassle. If you are considering hiring a mobile crane rental company to handle the finer details of the project, consider the benefits of doing so.

Support from professional

Cranes requires a lot of action on the part of a team, and the operation can be quite complex. Upon purchasing a crane, you must find a qualified driver and operator and a qualified mechanic who can assist you in case of a problem. A crane's delivery, operation, and maintenance are time-consuming and costly.

Failure of the equipment is covered.

If you buy a crane and it breaks halfway through a project, it's a total waste. If the crane you buy stops working, your work site can halt until it's fixed.

Conclusion

Now you have access to the benefits of long and short benefits of crane rental agreements. Choosing either is mainly based on your needs and use. If you are struggling to decide, Geo Quip is here to help. Visit the website and speak with the experts to get the cranes on rent and get back to smooth construction.