Quality and aesthetically-pleasing furniture does not come cheap but it’s not something to skimp on, which is why renting furniture on a long-term basis is a sensible (and viable) solution.
Consider the price of a basic office chair. Now add the cost of a desk, filing system, and whatever else comes to mind when planning your office cubicle or employee working space. Multiply that by the number of people in the office and it’s clear how fitting an office with quality furniture and equipment can be very costly.
If this hasn’t made you think twice about purchasing office furniture, also consider that furniture doesn’t hold value particularly well and depreciates every second you sit on it. Think of it this way… If you’re willing to rent an entire fleet of vehicles or even a printer, why wouldn’t you circumvent the risks of capital expenditures by renting office furniture, which depreciates at a much quicker rate than other assets?
At the end of the day, there are many reasons to opt for renting instead of purchasing – but not all of them are always obvious. Here’s why you should rent your office furniture:
1. It’s an Opex outlay rather than a Capex
For the non-accountants, Capex is an abbreviation of capital expenses, and Opex for operating expenses. The two differ in that Opex is an ongoing cost of day-to-day expenses that keep the business going, while Capex is usually used to purchase major physical goods or services that will be used for more than a year.
Having your office furniture as an Opex element helps maintain a lean balance sheet, which is especially important for smaller companies and companies that are just starting out. Renting also means that you’ll be able to keep capital in the business, meaning that money that would otherwise have been spent on furniture could be put behind operational costs instead.
2. Renting means you’ll get more for your buck
Any office design project will have a budget but what most don’t know is that, if you buy rather than rent, approximately 50% of your budget goes to office furniture. This means that you might not get everything you imagine from the fit out. When you choose to rent your furniture you can ensure you get quality – ensuring your staff are comfortable and productive – and have more money to spend on the fit out, giving you access to those special finishing touches.
3. Your staff will be more productive
When it comes to the cost, many companies choose to go with the cheaper option, which generally means that the level of comfort is down. Furniture may not be the best financial asset, but it is a major asset in contributing to the comfort, culture, and work ethic in an office environment. Poor quality and uncomfortable furniture directly impacts employee motivation and productivity (as well as the general look and feel of an office space).
Here at time&space, if a client has a tight budget, we always recommend renting your furniture rather than going the cheap route. On the surface you might find a cheaper option that looks nice but it’s so important to keep comfort, function, durability, and practicality in mind. Remember, your staff will be using this furniture EVERY DAY.
4. Upgrades and reduced rates!
One of the biggest perks of renting office furniture is the freedom to make a change without the need for outright payment. When you pay insurance on a depreciating asset you don’t expect to pay the same for something which is no longer valued the same. And furniture should be no different.
When you rent furniture with time&space design consultants, you can get the right furniture for your office space from the start, and when the lease term ends, you can opt for an upgrade as part of the agreement or continue to rent the furniture at a reduced rate. Otherwise, return the furniture if you don’t want to extend the agreement.
Take a look at our Furniture Rental page to find out how renting your office furniture works and the benefits you’ll get by renting.
We recommend that you include financial planning early on in the project management phase. A professional office design company, like time&space, can advise you on the best furniture suited to your office environment, business needs, and budget.