Need a modular building but, for whatever reason, you don’t want (or can’t afford) to buy one? The right solution for you may be to consider leasing a modular building. The principles, advantages, and disadvantages of building leasing are similar to those of automobile leasing.
Usually, you can have more building for the same or lower cost, than when purchasing a building. The same leasing principle applies: you’re only paying for the amount of building you use, not the entire building cost. Obviously, this can save a ton of money if your building needs are for only a limited time. Say you have need for a building for only three or four years or so. Why buy the entire building, with a typical lifespan of 25 or more years, when you know you will not need a building that long? Essentially, you can “own” the use of the building for a specific time period. Paying for only the time you use the building can pare thousands of dollars from your budget.
Modular buildings lend themselves especially well to the leasing concept. Why? When you’re finished with the building and the lease has expired, a modular building can be relocated relatively easily. A trained building crew can dissemble and move the building from the site, freeing your land for other use. Try doing that with a site-built structure.
With today’s low interest rates, monthly payments for a fixed lease period are very manageable. An even greater advantage to leasing is the significantly reduced up-front costs. If leasing, your front costs are reduced to an initial payment (often negotiable), delivery and installation expenses, and move-in costs. You do not have to amortize the entire cost of the building, or to pay for the entire building at time of purchase.
There are some disadvantages. Foremost is that you won’t actually own the building. So, depreciation is not applicable, and you will have no real asset when the lease period is up. But you also don’t have the problem of what to do with an aging or obsolete building. And you’ve saved a lot of money, while having the use of the building to fill your needs.
Whether to lease or purchase is a decision requiring careful consideration of your objectives, needs, and cost. Carefully analyze all the costs of either option before making a decision. But, in the right circumstances, leasing may be the right solution for your building needs.