Renting V Buying Modular Cabins: What’s The Best Option?

Modular cabins are a fast, convenient and affordable way to expand the physical space of your business or organisation, or to provide a portable on-site solution. However, it is not always clear whether renting or buying a cabin would be the best way forward. Both these options can have advantages and disadvantages.

Here’s a look at whether portable cabin hire or buying a modular cabin is the best option for you.

The advantages of hiring a portable cabin

Renting a cabin involves a lower upfront investment than buying, as you would simply need to arrange a deposit and pay the ongoing hire charges. This may be a consideration if you are a small business or a start up with a limited amount of capital.

It also gives you the flexibility to end the lease or extend it according to your changing requirements, without the long-term commitment of making a purchase. Another advantage of renting a cabin over buying is that the provider will generally deal with the maintenance and repairs of the structure as part of the rental package.

This may be a consideration if you are a small organisation without a dedicated estates manager, and do not want the added burden of arranging a third party to carry out maintenance. It also means that no unexpected expenses will crop up, as all you need to do is meet the monthly rental fee.

This makes budgeting easier because you will have no costs above the rent and any customisation expenses for the cabin.

The advantages of buying a portable cabin

Many businesses and organisations choose to buy a modular cabin because it is less expensive and easier than investing in a bricks and mortar building. While the upfront cost is considerably higher than renting, over the long term it can make more financial sense because you do not have to meet the monthly rental payments.

It also gives you full control over any modifications and customizations you want to make to the cabin, so you can have exactly the design, colours, and fittings that you want without the need to fit in with the specifications of a rental agreement. The modular building will become a fixed asset on your business account, which may be beneficial for tax purposes.

Assess your needs

Having considered the pros and cons of both options, the next logical step is to determine your exact requirements. For example, consider how long you are likely to use the cabin for: is it for a short-term project such as a marketing suite for a construction site, or a washroom facility for an event?

If there is a defined end to the use of the cabin and you would not need to relocate it to another site, then renting could be the best option. On the other hand, if you have a permanent business premises that is experiencing rapid growth and you need extra space on an ongoing basis, then buying could make more practical and economic sense.

Modular buildings can be customised to blend seamlessly with bricks and mortar structures, and they are constructed of high quality materials that are designed to last, so they needn’t be viewed only as a temporary solution.

Portable buildings can also be stored when not in use and transported between sites so it can be a very affordable option for businesses such as construction firms who need a flexible storage solution.

Hire purchase or finance agreements

The decision as to whether to buy or rent a cabin may not need to be set in stone. Many providers will offer deals such as hire-purchase, which is a credit agreement whereby you pay monthly instalments towards the purchase of the cabin, but you don’t own it until the payments are made in full to cover the whole amount.

This can give you flexibility over the repayment terms, so they can be tailored to suit your budget. You will also have the option to return the cabin at the end of the deal, or to make a final payment to cover any shortfall in the purchase price.

There are other types of financing agreements available, and this more open-ended approach might be suitable for you if you are a start up and are not able to make accurate projections about demand and cashflow. It could also work if you are a business that is subject to seasonal fluctuations and find it difficult to predict the level of demand.

For more information on Renting V Buying Modular Cabins: What’s The Best Option? talk to Cabinlocator Ltd