Mahaffey Blog

Lease vs Purchase: Decisions in Obtaining Portable Structures

When deciding if you should buy or lease  portable structures, a hundred pros and cons might circle in your head. Perhaps you have experience with a temporary structure, but not a permanent building. Or maybe you don’t know where to start.

At the end of the day, it’s simple. Focus on what matters most to you. The purchasing or leasing decision comes down to your structural needs, business requirements and financial priorities.

For those in the market for a construction site tent, customized fabric structure or temporary warehouse tent, we’ve created a list of questions to ask yourself when considering to lease or buy.

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Is flexibility important?

Think about how your needs for covered structure needs might evolve. Is it possible you may want to move the building or tent, add to the structure, or attach it to a facility? For an industrial storage tent and temporary warehouse tents, the answer is likely yes. Your organization may need to change the design based on a variety of factors in the future. A conventional building is rigid in nature, offering little leeway with expansion or reduction without major financial investment. A temporary structure is flexible and can easily be modified, moved, or attached to a conventional building at a low cost.

What’s my budget?

Look into your budget and financial obligations. For a designated time frame, leasing is generally the lowest cost option for temporary warehouse tents and other covered structures. Consider taxes into your financial equation. In most cases when you lease a structure, you're not obligated to pay property taxes, like you would by owning a permanent building. Start the process by asking for a thorough quote from your vendor. The good ones will offer a thorough review of your projects with experts who will listen to your needs and evaluate the cost options with you.

How quickly do I need the structure built?

Timelines are critical to any project, but especially with covered structures and buildings with an immediate need. Permanent building construction can take months to complete, leaving you without a facility for longer than necessary. A leased customized fabric structure can be built in days. In fact, these structures can be created at a rate of up to 10,000 square feet per day, depending on your structure type. The entire project takes a fraction of the time compared to new construction, not to mention the decreased cost.

How will I maintain the structure?

Once a permanent building is installed, the crews are gone, leaving you to figure out maintenance and upkeep. With a leased structure by Mahaffey, all maintenance is handled on-site by our highly-trained expert staff, so you can focus on the work at hand. This continues throughout the entire lifecycle of your leasing agreement. But not all temporary structures are the same. Look at the materials and think about how they will hold up against weather and other conditions. Mahaffey structures are built with durable, dependable fabric that can withstand harsh weather environments

Do I want a short-term or long-term financial commitment?

Consider how big of an investment you want to make. Temporary structures offer an economic alternative to the heavy upfront costs of purchasing a building. Renting a temporary structure or Clearspan tent provides an inexpensive means to utilize or try out a structure without a long-term financial commitment. Payments are fixed for the term and can include total costs including maintenance. Also, consider the structure’s overall value. Will it appreciate or depreciate? If it’s a temporary tent or other customized fabric structure, the answer is likely depreciate.

What are my financial deal breakers?

Evaluate the financial risks and benefits of both purchasing and leasing a covered structure, then decide which are the prioirities to consider for your business or organization. Leasing relieves responsibility to maintain costly accounting records and eliminates structure and depreciation controls. This simplifies accounting. If a structure is purchased and the money is borrowed, liabilities increase and liquidity decreases. Is capital a concern? When capital (cash) is conserved by financing or leasing equipment, it can be used for other company expenditures.

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Interested in learning more about industrial storage tent and leasing for your next project?

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Topics: Clearspan Fabric Structure