There is always a raging debate concerning whether it's better to own or rent a skip bin. People who purchase skips argue that owning a skip results in ease of use and cost savings in the long run. On the other hand, those who rent find it easier to leave much of the ownership costs to the skip bin company.
Owning your own skip does come with many different benefits. However, there are several hidden costs that you should be prepared to incur when purchasing a skip bin. Being aware of these costs will allow you to plan more effectively and to even mitigate some of these costs moving forward.
1. Pickup and drop off costs
When renting a skip, the waste disposal company typically won't charge you extra for emptying and retuning the skip on your premises. These costs are typically included in your rental fee. However, owners of skips will often have to pay a separate fee for pickup and drop-off services.
Because there is no rental cost when you own a skip bin, you will need to pay a fee for the waste disposal company to come out and haul away your garbage when the skip is full. You may also have to pay a bit extra depending on the type of waste you're disposing of.
Hazardous waste- such as chemical or biological waste- requires a careful disposal process to ensure minimal damage to the environment. Plan for these costs in advance to avoid last-minute surprises.
2. Installation costs on your premises
After purchasing a skip, remember that you will need to prepare a dedicated site where it can be installed. You may need to spend money to prepare the site, such as clearing out nearby bushes or designing an enclosure that limits access from unwanted persons.
In addition, you may need to rent/purchase extra space for larger skip bins (such as commercial skips). Make sure you consider installation as part of the cost of purchasing your skip.
3. Tax depreciation expense
Purchasing a skip also comes with tax and accounting expenses. In most cases, your skip bins can be claimed as a business asset on your balance sheet, thus increasing your overall asset ration. However, all assets need to be considered during depreciation calculations.
Depreciation refers to the decrease in value of an asset after every year. Depreciation is considered a business expense that reduces the overall asset value over time.
4. Maintenance costs
Finally, consider how much you will need to set aside for repairs, site maintenance, and other related expenses.
Take these points into consideration when deciding whether it'd be better for you to rent or buy skip bins.