Warren Buffett recently admitted he could’ve made heaps more money if he’d rented his house instead of buying it, as long as he’d invested the difference.
This led us to wonder: what else could we be renting instead of buying?
And how might it change how we use our time, money, energy, and homes?
What can you rent instead of buy?
At home
Driving: Owning a car is expensive: parking, insurance, petrol – it’s a whole thing.
So if you don’t need a car for regular driving, you could instead consider a car share service that lets you rent a car by the hour.
This can mean you can tailor your vehicle to your activity too: smaller cars for city driving, and vans for when you’re moving house.
Furniture: You can rent everything from a couch to a bedroom suite. Some places also offer installation, which means someone who isn’t you has to deal with lugging your couch up the stairs. You’ll generally need to be confident you can return it in the same place as you received it – so if you have pets or young children, this may not be for you.
Art: If you’re refining your taste, or it’s more expensive than your budget, you can still get the experience of having beautiful art in your home.
One way is through Artbank, which is an Australian Government initiative to support artists – and there are plenty of alternatives you can find through Google, too.
Appliances: If you’re at a stage in your life where you don’t want to commit to a fridge or a washing machine – perhaps renting one could be the way.
Spill something on the carpet? You could hire a carpet cleaner machine, which can be cheaper than getting a professional. Just be careful about not making it worse, so you get your bond back.
Lawnmowers and other tools: Lawnmowers can be pricey and hard to store, so renting them when you need to use them might make more sense than owning them outright. Same with ladders, drills, and other power or craft tools. You should probably only rent them if you know how to use them, though.
When you have houseguests
Furniture: You could rent bedroom furniture including double beds – and some places even deliver to the room of your choice. Sure, it could be more pricey than a $40 blow up mattress from Kmart – but you won’t get stuck with furniture you only use a couple of times a year.
Linen: If you only have a temporary need for more bed linen, towels, or tablecloths – think Christmas time, or when your nieces and nephews are all staying over – this could be something you rent instead of buy.
Tableware: Similarly, if you don’t have enough glasses or table settings for your guests, these can be an easy and temporary hire.
Houseplants: If you need to cosplay as someone who can keep a plant alive, there are companies who’ll lend you something green to help you get away with it.
When you have a young family:
Most parents would agree: kids grow quickly, can be picky, and cost a lot of money.
Baby furniture: If you have a short term need for a car seat or a pram, you could consider a baby goods rental place. This can also come in handy if you’re travelling and don’t want to cart bulky belongings around with you – you could rent from your destination.
If you choose to go this route, make sure you do your research to find a reputable company and read the reviews.
Toys & books: We love toy and book libraries for kids of all ages – but when you’ve a more specific need, it could be more cost-effective to rent than to buy.
When you’re heading outdoors:
Your tent: Camping is fun, but you need a lot of stuff to pull it off, not least the tent. So if you’re not going very far, or for very long, you could consider renting your gear instead of buying it outright. That way you’re not stuck with a too-small tent if your family expands; or you don’t commit to a fancy-pants van before moving somewhere with no street parking to store it.
Your camera: Renting photography equipment means you could tailor it to your experience; you could get a better camera than you currently own for cheaper; and you could travel with more travel-friendly gear.
If you’re going on the trip of a lifetime and think it’s worthy of more than just an iPhone photo – this could be something to consider.
When you’re going to an event:
Your outfit: Renting your outfit for an event can work if you’re fashion focused, and have to be seen in the latest styles; or if you’re not, and haven’t bought anything new since pre-Covid.
Some outfit rental places offer designer styles for a fraction of the price; and you don’t need to worry about dry cleaning them before return.
Renting your clothes can also be a way to try out a style without committing to it.
Your handbag: If you’re not the kind of person who wants to own a Chanel handbag outright, or you want a statement handbag to bring your outfit to life, handbag rental might be the move you’re looking for.
Some businesses offer luxury handbag rental, connecting the people who own them with the people who want to borrow them. Think of it as Airbnb for bags.
You might not want to be someone who owns a $3,500 Gucci handbag, but you could be someone who rents one for $130.
When you’re travelling:
Your luggage: And last but not least, speaking of bags: every holiday is different, your luggage requirements will change, and travel bags are both expensive and can be bulky. If you’re an infrequent traveller, it could make sense to rent your travel luggage.
So, when should you rent instead of buy?
Some reasons to rent instead of buy may include:
When the cost per use is too expensive:
If you won’t actually use a product enough to justify its cost, you could find it better to rent.
Here’s an example. You rarely drive your car, but it’s costing you insurance, parking, and rego.
So when it comes time to get a new one, should you? Or should you just rent one when you need it? (Check out more on cost per use.)
When the cost per hassle is too high:
Finance writer Nick Maggiuli wrote about the Return on Hassle Spectrum, which is when people consider ‘the time and work associated with an investment’ to be part of its cost price.
When it comes to buying vs renting, you could consider that yes, you can buy a cheap campervan and fix it up so you’re ready for #vanlife; but at the end of the day it could be easier and much less of a hassle to just pick something on Camplify.
When you can’t justify the waste:
It’s wedding season and you can’t be snapped in the same outfit twice.
Or you’re about to graduate and you’re questioning how to reuse your graduation gown after the ceremony.
So you consider participating in the sharing economy, and renting outfits from places like Glamcorner or Churchill Gowns, so you can get the look without the superfluous purchase or fast fashion guilt.
And when should you buy instead of rent?
Sometimes it does make more sense just to buy:
When it’s a long-term purchase:
You’ve finally found some housing stability and can commit to buying – and using – a lawnmower now. Or your new woodworking habit has stuck and it’s time to buy instead of rent your tools. The key here is that you can commit to using the purchase long-term, which will make the cost per use stack up.
For health or safety reasons:
You can rent a bed and mattress for your short-term rental, but the thought might give you the ick. Or the costume hire place has the perfect sparkly wig for the disco party, but you can’t bring yourself to wear it. It’s OK to have and defend your personal boundaries even when it comes to shopping.
If the cost per value is there:
OK sure, you’re only going to wear your wedding tux once. But it’s worth it to you to buy and alter the perfect one for the perfect fit. They say true love lasts a lifetime and you want to say the same about your wedding outfit too.
So should you do it?
Up to you. You should definitely read the terms and conditions of each service if you’re considering it, so you know what you’re getting yourself into. If you damage or break a rental, you’ll generally have to replace it – and that’s when renting a pricey handbag or camera can really cost you.
But we hope we’ve shown that by thinking longer-term than your immediate needs, and considering more than just the price tag of an item, you may be able to find more cost-effective ways to use your money to maximise your experiences.
After all, if you save $2,000 on a handbag and invest it long-term instead? Your future self could be very happy with the result.
