Let’s face it, we all would love to live in a house that feels complete. Actually, a house which IS complete without a thing or two amiss. If that were to come true you would either have to make a significant dent in your savings. Or, take on the greater liability of a loan that you might later regret. Or, you could just rent them. If you have chosen to rent here are few things you would have gotten quite frequently.
“Bro should have just bought them. EMI would have cost you less!”
“Someone else has already used that bed!”
“Dude, the quality is definitely going to be bad.”
To those nodding in agreement, are you sure you want to romanticize the idea of owning something which will light up your eyes for a week of your life, fill you with pride for the next 6-8 months only for your want of something else to supersede your want of today? Leaving you at best, an option to kill a little more in your savings, at worst, a commitment you won’t be able to escape without facing the repercussions.
The growth of consumerism in the past century attached the consumers with a sense of entitlement to own goods it was a social indicator of wealth and status one held. This led to better services, goods, and bigger liabilities which were exposed by the economic depression of 2007 resulting in the uprising of the sharing economy globally.
The impact of the sharing economy has been enormous with trends changing from owning a car to calling a cab on-demand from living in luxury hotels to comforting homestays. The growth of such services has made our lives simpler. Renting furniture, appliances and other products for your home is no different. Renting for long was a scattered unorganized sector but, the industry has rapidly grown and evolved to present a solution that makes your life simpler, better and free of liabilities.
Over the past two and half years of GrabOnRent, we’ve come across many opinions, concerns and a few misconceptions towards renting and we still do today. So, we thought we’d address those very concerns for you to make a more informed decision
EMIs Cost Lesser Than Rental Value.
Cutting right to the chase, EMIs do not cost lesser than rental value. Let us assume you’re moving in a 1BHK semi-furnished apartment, you’ll probably need a single bed with mattress (INR 15,000), a fridge (INR 11,000), washing machine (INR 13,000), and a study table with chair (INR 15,000).
The cumulative cost of all those items would add up to about INR 54,000.
If you choose to buy all of these items on credit card assuming an interest rate of 18% for 12 months, you’ll pay an additional INR 9,720. With your effective payout amounting to INR 63,720.
Considering the same products, a single bed with mattress (INR 680/month), a fridge & washing machine (INR 1,300/month) and a study table with chair (INR 580/month), would amount to INR 30,720/year.
Thus effectively helping you save more than INR 30,000. (Refer table below)
|Products||Spend of renting1||Spend on buying|
|Single Bed with Mattress||INR 680||INR 15,000|
|Fridge||INR 650||INR 11,000|
|Washing Machine||INR 650||INR 13,000|
|Study Table with Chair||INR 580||INR 15,000|
|Total2||INR 30,720||INR 54,000|
|Interest to be paid3||INR 0||INR 9,720|
|Effective total4||INR 30,720||INR 63,720|
|1. Spends are monthly rental value. 2. Total for renting is the amount to be paid per year. 3. Assuming an interest rate of 18% for 12 months. 4. Effective amount paid at the end of the year.|
Even if you choose for a longer EMI tenure to reduce the amount to be paid each month it, however, will increase the effective payout. It’s a commitment once made can’t be escaped, and affect every decision you’ll have to make personally or professionally.
Products Are Unhygienic and Of Poor Quality.
Again, not true! As the rental industry has evolved over the years realizing the actual need for a good rental solution, providing high-quality hygienic products is not an option but a priority. For us here at GrabOnRent, making sure that every product that is dispatched meets our quality standards is of utmost importance. The products go through stringent quality checks. The products are serviced, deep cleaned and polished before dispatch to give a feel of a brand new product. You can watch our quality and hygiene check process here.
But we understand that there are those who’d prefer brand new over refurbished we provide that option too. For us, renting isn’t just about making an economic impact but a social one too. The thoughtless buying of previous decades and technological advancements have led to an exponential rise in e-waste. Refurbishing and recycling the products helps us in making sure the products are used to their complete life cycle resulting in lower e-waste accumulation.
You Will Always Lose Your Security Deposit.
Actually, your security deposit is always entirely refunded. For normal wear and tear of the product, no deductions are made. We understand that it’s not your fault, overtime products do wear out. Deductions are only made in case the product needs to be repaired because of external damage details of which are shared with you. The process of renting is that transparent, you know exactly how much you are paying and for what you are paying.
Yes, the rental industry has come a long way but there is still a long way to go. A lot of things for us to better over the course of this journey. Today, renting furniture and appliances has made it simple, time-saving and affordable to furnish your home without the obligations of ownership.
We hope that we’ve addressed your concerns, if not, do write to us in the comments section below. We’ll be more than happy to help you better understand how beneficial renting can prove to be. And to all the renters, share it with your friends, and help them own happiness.