How to Rent Office Furniture

Co-authored by Michael R. Lewis

Last Updated: January 21, 2022 References

Whether you’re starting a new business and need to outfit an office from scratch or you just want to upgrade the tired old furniture in your current office, deciding whether to rent or buy office furniture can be tough. Each option has advantages and disadvantages that are particular to each business’ situation. Nonetheless, when all of the pros and cons of buying and renting are explained, the right decision for you should be clear.

Part 1

Part 1 of 3:

Determining Your Needs

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Determine individual pieces needed. Think about what furniture you and your office workers (if any) will need to complete your jobs. This will likely include, at minimum, desks and office chairs for each person. From there, your furniture needs will vary widely based on the type of business. For example, a business that will be entertaining clients might need a meeting place with a table and chairs. You might also need storage space or specialized furniture for various purposes.
- Consider what you need first if your budget is small. You can add furniture you want as time goes on.^{[1]
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Most furniture rental companies charge much more for short term rentals (less than 30 days) than long term rentals. If you can figure out how to get use out of rented furniture for longer than a month, you'll save a great deal of money.^{[2]
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3
Decide on used or new furniture. Having good furniture is important to maintaining worker productivity and projecting a professional image to clients (if necessary). That said, your specific furniture needs will vary based on your business. An office that is never visited by customers will not need to appear as spotless as one that is, so you can probably get away with used furniture.
- However, a modern or technology-focused company will likely want new future.
- Used furniture will be cheaper, but consider the downsides before going that route. For one, employees may be less inclined to work if they think management doesn't care about their workspace.^{[3]
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Part 2

Part 2 of 3:

Reviewing Acquisition Alternatives

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Understand different alternatives. You have several options when it comes to acquiring furniture for your office. The simplest is just to buy the furniture you need. However, this can sometimes be cost-prohibitive when a business is starting out. So, your other options are to either rent or lease the furniture. These options allow you to pay a monthly fee to use the furniture.
- You might also consider rent-to-own. Ask the company what their options are for rent-to-own pieces of furniture. Sometimes renting-to-own can be a good deal, just make sure you aren't paying the extra price premium of leasing while getting a set of used furniture for your trouble.
- If you're that intent on buying, it might just be a better option to finance a purchase instead.
2
Identify sources of financing. You will have options when it comes to paying for your furniture. If you have the money, you can avoid a lot of headache by simply using your own money. However, if funds are short, you may also use a bank loan or supplier financing. Most suppliers offer easy financing for a furniture purchase. This will allow you to spread out the cost of buying the furniture over time.^{[4]
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- If you need a bank loan, you will have to have good enough credit to quality for one.
3
Obtain costs of each alternative. For most business owners, the decision will come down to cost. In short, this depends on your goals for the furniture. If you plan to use this furniture long-term, buying will likely be cheaper. However, if you need furniture temporarily, it might make more sense to rent. This is useful for temporary office locations or to accommodate seasonal workers.
- In either case, contact various suppliers and get quotes for purchases or rentals of the furniture you need.
4
Consider your cash flow. While purchasing office furniture outright is usually cheaper than leasing it, it comes with a large up-front cost. If cash flow is an issue for your business, leasing could be the smarter option for you.^{[5]
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- For instance, if you financed $10,000 worth of furniture for 36 months at 11.24% interest, you’d end up paying $1,124 more than you would have if you’d purchased the furniture outright (which doesn’t even take into account what you might recoup by reselling your furniture). Nonetheless, if you think you can make more than $1,124 over the next three years with a $10,000 investment today, it would be the smarter option to lease the furniture.
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Look at the tax advantages of each option. There are tax advantages that come with buying and leasing, but some advantages are more valuable to some companies than others.^{[6]
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- For example, many small businesses can deduct up to $500,000 toward the cost of new furniture for the year they bought it (even if they bought it with their own line of credit). Lease payments are also deductible, but since lease payments for a year will typically be less than the whole cost of the lease, there’s a smaller total deduction.
- If your business is making a lot of money the year to purchase the furniture, buying might put you in a more advantageous position.
6
Identify impact of each alternative on Net Profits. One important difference between leasing and purchasing office furniture is the impact is has on a company’s overall balance sheet. Owned furniture is always an asset, while leased furniture is a liability.^{[7]
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Research source} Renting, however, is treated as an expense. Your choice can have important implications for your business's financial health.
- For example, if you were planning on applying for a new line of credit or other type of loan, you might want to make your assets appear to be as numerous as possible, which could improve your chances of approval for the loan.
After considering the costs and various effects on your finances, choose the option that makes the most sense for your business. If you are undecided, you might try to find a short-term rental or lease to try it out before committing to a longer-term one.

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Part 3

Part 3 of 3:

Leasing or Renting Office Furniture

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Consider online and storefront sources. Like a lot of businesses, different furniture rental companies cater to different price points and style sensibilities. If you need to go for higher end furniture, look at companies like BureauOne, CORT, and American Furniture Rentals. If you need something more economical, Rent-a-Center is a good option.^{[8]
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- If you need furniture for a specific event, like a convention or a reception, it's a good idea to search exactly for that type of furniture rental company. Chic Event Furniture is a good example of an event supplier.
- Don’t forget about delivery, set-up, and pick up costs. Many furniture rental companies will try to get you to add the charge for delivery, set-up, and pick-up to the lease itself. While this might be right for you, not taking it into account can really distort the actual cost of the lease.^{[9]
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- Remember, you’re going to be paying interest on everything that’s included in the lease. So the $500 charge for delivery, set-up, and pick-up can cost you far more than the sticker price.
- Deposits are another way the cost of furniture rental can be disguised. The deposit amount will vary based on the amount of furniture you rent, but even for one piece of furniture, it could range from $100 to $1000.
Tap your connections in the community of local business owners to see if there are any local furniture rental places that stand out or come highly recommended. Be sure to ask if there are any companies or promotions to avoid, as well.
Basically, you need to read the fine print. Be sure to look through the entire lease agreement, ask questions, and do your best to negotiate the best deal.
4
Watch out for fees and penalties. Depending on your insurance coverage, a damage waiver can be a perk or a needless charge. That’s because some insurance policies will cover certain types of damage even to a piece of leased furniture.^{[10]
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- The best way to find out what’s covered and what isn’t is to call your insurer. Be sure to call the insurer before you sit down with the furniture dealer, so you aren’t pressured into accepting coverage you don’t need.
5
Ensure term of lease meets needs. For example, you might want to look for a lease allowing you to add and subtract pieces as needed. Depending on your creditworthiness and the furniture dealer, you might be able to secure a lease allowing you to add and subtract pieces as needed.
- These kinds of deals sometimes add a surcharge the month you subtract the piece, and charge an additional amount to your monthly payment when you add a piece.
6
Beware of a lease period that’s too long. Generally, the longer the lease period, the more you’ll end up paying. Furniture companies typically offer leases anywhere from three to sixty months, so this cost of an extended lease can really add up.^{[11]
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- For example, that same $10,000 in financed furniture will end up costing more over the life of a sixty month lease versus a lease for thirty-six months, even if the monthly payments are more than a third less.
- So $10,000 financed over sixty months at a $200 per month payment ends up costing about $700 more than the same $10,000 financed for thirty-six months at $300.^{[12]
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Your termination options might include ending the rental or lease or buying the furniture at the end of the contract term. Depending on your contract terms, you may also be able to end the lease early for a fee. Be sure to ask the rental company about these options before signing.

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