Equipment hire is a service that involves borrowing a machine or tool for a specified amount of time, after which it is returned. It might be an excavator for a 3-week construction site project, refrigerator and sinks for a restaurant fit-out, or a generator for a weekend event.
Renting equipment is a business across Canada in building and construction, manufacturing, farming, retail, and hospitality/transport.
There are times when renting is better than buying.
Renting is an accommodation choice that is best suited to people who only need something for a short period of time. These might be one-off projects, seasonal rushes or a machine you will only use a few times a year. But even if you have an item of equipment that is not used for the majority of the year, it still costs you to store it, insure it and service it while it is idle.
The other key factor is cash. Heavy equipment has a significant initial expense. Renting will keep that money to pay wages, materials and all other expenses a job requires.
Renting also allows you to get the machine that is suitable for the job. You could have a large loader in the first month, and a smaller one in the second, without having to be committed to one that is not suitable.
When buying or leasing, is it the better call?
If you use the same machine most weeks of the year, rental costs pile up quickly. A simple way to check is to add up what you’d pay in rentals over twelve months, then compare it with the monthly cost of owning the machine, including insurance, storage, servicing and repairs. Once rental costs get close to the cost of owning, buying starts to look sensible.
Many businesses end up in the middle. They finance the purchase or choose a lease-to-own arrangement, so the cost is spread out, but the equipment eventually belongs to them. If renting starts to add up, equipment financing is another way to spread the cost.
What a rental usually covers
This varies between companies, so read the agreement. In most cases the rental company handles routine maintenance and repairs, and if a machine breaks down through no fault of yours, they’ll often send a replacement. That cuts downtime, which is one of the biggest hidden costs on a job site.
Fuel, operators, delivery and insurance are less predictable. Some are included; others are extras. Ask before you sign.
Costs beyond the daily rate
The advertised rate rarely tells the whole story. Here are the charges worth asking about:
- Rate periods. Daily, weekly and monthly rates are priced differently. Longer periods usually cost less per day.
- Delivery and pickup. Moving heavy equipment can cost a lot, especially for remote sites.
- Fuel. Some companies want it returned full; others charge to refill it.
- Damage waiver or insurance. This may be optional or built in.
- Hour limits. Many rentals cap the hours you can run a machine each day or week and charge extra after that.
- Cleaning and repair fees. These can show up when the equipment comes back.
- Late returns. A missed deadline can be charged as a full extra day.
- Taxes: Applicable sales taxes may be added to the rental cost, depending on where the equipment is rented and the terms of the transaction.
Check your insurance first.
A lot of business owners assume their existing policy covers rented equipment. Often it doesn’t, or it covers it only partly. Call your insurance broker before the machine arrives.
Also ask the rental company what happens if the equipment is stolen overnight or damaged on site and what the deductible is. These questions are much easier to settle before a problem than after one.
Safety, training and inspection
When equipment is delivered, walk around it before you sign for it. Look for existing damage and take photos with the date visible. Check that safety guards are in place and that a manual comes with the machine.
Some equipment, including forklifts, aerial work platforms and cranes, needs a trained or certified operator under provincial workplace safety rules. These rules differ across provinces, so check what applies where you work. Don’t assume the rental company will cover the training.
Choosing a rental company
Price matters, but it shouldn’t be the only thing you compare. These questions tell you more about how a company behaves when things go wrong:
- How quickly do they respond to a breakdown?
- Do they have replacement machines available?
- How old and well maintained is their fleet?
- How long does delivery take, and do they serve your area?
- What’s their cancellation policy?
Local reviews from other businesses are useful, and so is asking people in your trade. Spring and summer are busy seasons in most parts of Canada, so book early for popular equipment.
Plan the rental period carefully.
Estimate how long you’ll need the equipment, then add a buffer. Canadian weather can push a project back by days or even weeks. Ask whether you can extend the rental at the same rate, because some companies raise the price for extensions.
A rental that ends early is usually less of a problem than one that runs out before the job is done.
Quick Answers
Can I rent equipment for just one day?
Yes, with most providers. For anything longer, ask for the weekly or monthly rate, which is usually cheaper.
Who pays for repairs?
Normal wear and mechanical failure are generally the rental company’s responsibility. Damage caused by misuse is usually the renter’s. The agreement spells it out.
Are rental costs tax deductible?
Rental costs are generally treated as a business expense, but your situation may differ. Confirm with your accountant.
What should I do if the equipment breaks down on site?
Stop using it and call the rental company straight away. Don’t try to repair it yourself, since that can void the agreement or leave you paying for the damage. Ask whether they’ll send a replacement, and note the time you reported the problem in case there’s a dispute about downtime later.
