Renting-to-Own or Leasing Commercial Kitchen Equipment: Benefits & Considerations

/ Commercial Kitchens, Foodservice Tips, Restaurant Tips / October 23

Renting-to-Own or Leasing Commercial Kitchen Equipment-Benefits and Considerations

Whether you’re opening a new restaurant or reformatting your current commercial kitchen space, having the brand-new equipment offers a wide variety of major benefits. New units offer greater efficiency and the latest technology than older models, helping increase performance and reducing energy costs. However, they can be very expensive upfront, costing you thousands of dollars. Fortunately, renting-to-own or leasing commercial kitchen equipment is always an option to help ease the burden. Below are some benefits and considerations to think about before deciding.

Benefits of Leasing Commercial Kitchen Equipment

As stated above, new restaurant equipment can be pricey. Instead of opting for a used, outdated unit, both leasing and renting-to-own allow you to get the newest unit without an upfront financial burden. Below are some key benefits to exploring either option:


  • Saving cash for other expenses – This is important if you’re just starting out. Leasing and renting-to-own lets you keep cash on hand to pay for other expenditures that require upfront spending, such as POS systems, dinnerware and decor.

  • Spreading out payments – Most of the payments are spread out in manageable installments. Also, many financing options either require a small down payment or don’t need money down.

  • Updating equipment frequently – By renting for a fixed period of time, you have the flexibility to update the unit when the lease is up. That means you can transition to a piece of equipment with the latest technology and efficiency features.

  • Using it as a tax benefit – That’s right! Some leasing agreements qualify for tax deductions because equipment payments are part of your operating expenses, and the taxes are paid on a monthly basis instead of upfront.


Other Considerations for Leasing Commercial Kitchen Equipment

In addition to those benefits, you need to factor in a other considerations to think about. Ask yourself the following questions before choosing to lease or a rent-to-own option:


  • What are the interest rates? – If the interest rates are high, this will raise your monthly payment. Make sure that you can afford it.

  • Can you handle an early termination fee? – Many lease agreements bake in an early termination option. If you decide to sell the unit or opt to buy something else, you might have to pay a penalty for breaking the agreement.

  • What requires leasing? – Ask yourself which units should be leased, and which should be paid in full. You don’t want a kitchen mostly stocked with rented equipment because your monthly expenditures could get out of hand. It’s best to consider leasing or renting-to-own on only one or two major units.


Maintenance & OEM Parts are Necessary

If you go the rental route, routine maintenance will be crucial. You want to make sure the unit always stays in peak condition, whether you conduct thorough daily cleaning or replace worn down parts in the unit. Make sure you use OEM equipment parts and attachments that are designed to function with your exact model. OEM parts not only ensures that your unit stays safe and efficient, but they also help keep it protected under the manufacturer’s warranty and lease agreement.


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