Renting office furniture
Mie-Yun Lee, Editorial Director, BuyerZone.com
July 16, 1999
Until very recently, the lion's share of our office's furniture came from previous tenants
and local office furniture store. The idea of renting furniture never came to mind, primarily
because our company size was fairly constant. All of that changed this past month, when
we expanded into temporary office space and turned to a furniture rental company to outfit
it.
Why rent furniture? Certainly, if your company's size and revenue are stable, purchasing
office furniture is the way to go. It's cheaper in the long term, and you can always
sell the furniture when it's no longer needed.
Nevertheless, in cases where your office has a temporary need, or it's apparent that
your employee size will expand or shrink dramatically, renting furniture makes sense.
Not only does renting preserve capital by minimizing upfront expenses, it can often be
written off as an operating expense when tax season comes around. Also, particularly
for a short-term rental, you'll get much better quality furnishings than you might be
able to cobble together from an office supply store.
Furniture rental companies can do much more than simply rent you furniture. In our case,
several sales associates came in to diagram floor plans for us at no charge to help us
set up our new space most effectively. And while you could decide to install your furniture
on your own, the majority of rental companies will handle installation for you. Installation
and breakdown costs are typically bundled into the delivery and pick-up charges, which
should definitely be included in the contract.
Before locking into a rental agreement, there are some points to keep in mind. First,
learn what happens if you decide to terminate the rental agreement early. While most
rental companies will readjust your rate to reflect the shorter lease term, some companies
will hold you responsible for all payments, even if you return the furniture.
Second, investigate how flexible or open the rental agreement is to change. Unless you
know for sure that the furniture you rent will be sufficient, choosing a rental company
that allows you to easily add, subtract, or change rental items will work to your advantage.
Finally, make sure that the company has a decent service guarantee and that damaged items
are replaced in a timely manner. The last thing you need is to have to wait a week before
that non-opening drawer is fixed.
So how much does it cost to rent furniture? Expect to pay anywhere from $100 to $300
a month for each person that you outfit. Whatever you do, make sure to get quotes from
several furniture rental companies. Pricing often depends on the amount of inventory
sitting idle in a warehouse. Unless your costs will be really low (below $500 per month
and very temporary), don't be afraid to try to negotiate costs, line item by line item.
Even if there doesn't appear to be room to negotiate, see if the desks quoted you are
top-of-the-line; if so, ask to see pricing on those of less-than-executive quality. As
with almost any office purchase, second-best is, quite often, more than good enough.
Quick tips
Option to buy? If there is a possibility
you may want to buy the furniture at term's end, ask the price of the furniture
upfront.

Watch the bait and switch. Make sure the furniture that is delivered is exactly
what the salesperson promised. If not, it's well within your rights to demand a replacement,
or at the very least, a discount.

Note any dings and dents. The furniture should come to you in good condition,
but it not, you'll want to make sure that you're not being charged for damages that
you didn't create.

Waive the waiver. Rental companies may try to charge you a damage waiver;
this responsibility can typically be assumed by your businessowner's insurance policy. |