Long-term rental or leasing of gym equipment It has been a reality for some years now. It is a widespread formula in markets such as the automotive industry, and it is increasingly gaining ground in the fitness sector, where more and more entrepreneurs are opting for this approach instead of traditional purchasing.
This type of contract can make our gym much more profitable … or less so, if it's not done with the right advice. This is the warning from Marisol Rodríguez, head of the legal department at Bodytone, who points out that leasing offers “substantial” advantages to fitness industry businesses, but can also “lead to problems.”
In this article we're going to talk to you clearly about the Renting to set up a gym: benefits and drawbacks. Furthermore, we'll tell you in which cases we believe the leasing option (which we also offer at Bodytone) can be beneficial. Let's get started!
What is gym equipment rental and how does it work?
He gym equipment rental It's a rental model that involves leasing the professional equipment needed to outfit a sports center . Instead of having to purchase all the machines upfront, the gym owner pays a recurring fee, usually monthly, to have access to all the equipment for a specific period.
In the leasing process, the gym owner or manager, with guidance from the distributor, selects the machines necessary to meet the demand and needs of their members. Once selected, a rental contract period is established , which can vary but generally sets a minimum term of one year. During the stipulated period, the gym not only has access to the machines, but also has right to technical maintenance and possible repairs.
Renting involves a A flexible alternative for gyms that cannot afford to fully equip their center , while also providing modern and up-to-date machinery without a large initial investment.
What happens when the rental period for your machines ends?
Once the rental agreement has ended, the gym has the option to renew it under the same conditions, upgrade the equipment it has leased, or even purchase it. permanently at a reduced price that was already established at the beginning of the contract. In this way, the gym enjoys the necessary flexibility to choose the rental or purchase option, according to its specific needs.
Benefits of leasing the equipment for my gym
The leasing formula for professional sports equipment It is becoming increasingly widespread thanks to companies like Bodytone, which offers these types of services. Marisol Rodríguez, head of the legal department at Bodytone, tells us about some of the "substantial" advantages that leasing offers to entrepreneurs in the fitness sector.
Having more flexibility
Leasing offers gym owners and managers complete freedom of action. Depending on their specific needs, they can decide whether to acquire the machinery through a rental agreement, or whether you can afford to cover the cost of acquiring all the necessary parts to equip your gym.
“With Bodytone Renting, unique in the market,” says Marisol Rodríguez, “you decide whether with the last installment the goods become your property or continue paying the installment for renewal to new available models.”
Dealing with obsolescence
The accelerated pace of design for new advancements, both digital and in the machinery itself, has brought the concept of obsolescence to the forefront of the fitness industry. Faced with this reality, more and more clubs and Sports centers are forced to upgrade their equipment to remain competitive , even before recouping their initial investment. Therefore, leasing is increasingly gaining traction as a more economical solution for maintaining competitiveness with customers .
In fact, Rodríguez tells us, “The idea is gaining ground that Training with the latest technology offers greater benefits , not only in terms of cardio equipment and technological devices, but also strength training equipment.” He admits that initially, “we thought that the businesses most likely to invest in leasing would be medium-sized facilities making their first purchases.” But, he continues, “we’ve found that large facilities are also embracing it, even when they’re upgrading their equipment.”
Having quality equipment
As with the housing market, renting gym equipment allows lessees to access superior equipment than they could afford to buy. In this way, leasing enables gyms to offer their clients a superior training experience with state-of-the-art, modern, and up-to-date machinery.
Maintenance and technical support service
The gym equipment rental contract also includes the Maintenance services for the machinery, technical support, and repairs in case of any breakdown. This guarantees the gym owner that their machines are always operational and in perfect working order, minimizing downtime and avoiding unexpected expenses resulting from a breakdown.
Preserve capital
By not having to face a large initial payment to equip the center, gyms can preserve their capital, having a larger financial cushion that allows them to face unexpected expenses, or allocate the capital to other aspects of the business such as hiring staff, marketing actions, etc.
Enjoy tax advantages
As our legal representative explains: “Since it is not a purchase, but a long-term rental, leasing offers a number of tax advantages, such as the fact that The transaction is fully deductible from corporate tax .” Furthermore, “it is not included in the company’s debt report, which lightens the accounts,” Marisol Rodríguez emphasizes, adding that, moreover, “it is more economical compared to a traditional purchase.”
Some drawbacks of renting gym equipment
As with everything, The leasing option also involves some drawbacks. which might lead us to believe that it's not the best solution for certain gyms. Let's look at some of them.
Taxation
Marisol Rodríguez explains that “the main problem may stem from taxation. At the time of establishing the contract, Care must be taken to ensure that the tax authorities do not perceive it as a lease and leave it in limbo.”
Sense of belonging
Not all business owners see leasing as an attractive option. “Some are hesitant because they have a deeply ingrained culture of homeownership. Spain is one of the countries where homeownership is most prevalent; it's deeply ingrained. Internally, we feel more satisfied if we own property, even though we'll probably never stop paying the bank. Only managers with a more progressive vision are able to adopt leasing as an option ,” warns Marisol Rodríguez.
Higher long-term costs
Extending the lease for a long term will be more expensive. Generally speaking, it's better than if the machines had been purchased outright from the start. However, this is where we enter the realm of assumptions or personal predictions. It's difficult, at the outset, to plan based on the uncertainty of whether the business will be profitable in the long run.
What types of gyms should opt for equipment leasing?
Now that we are familiar with the conditions of the rental option, as well as its advantages and disadvantages, let's see in what types of situations it is advisable for a gym to opt for the rental option .
For new gyms
Leasing can be ideal for gyms that are just starting out . Leasing allows this type of business to... Equip the entire center without the need for a large initial investment . This way, you can dedicate a significant portion of the budget to actions that directly benefit the business, such as marketing initiatives to attract new customers.
Gyms with limited budgets
For those For gyms with limited budgets, this option allows them to access all the equipment through monthly fees. This way, they don't have to make a large upfront payment or go into debt to equip their facilities. Furthermore, they can upgrade or downgrade the equipment, adjusting the fee amount as they renew contracts, based on their available budget at any given time.
Gyms that always strive to be at the forefront
The evolution of fitness equipment in sports centers is constant. Therefore, always having the most advanced equipment can be costly, requiring significant ongoing investments. A leasing service offers the option of constantly updating equipment by paying monthly installments , which is perfect for gyms whose selling point is having state-of-the-art facilities and equipment.
Gyms that want to reduce their management burden
Proper facility maintenance involves keeping an eye on the machinery, its upkeep, and any necessary repairs. This necessarily requires time and dedication to managing these tasks. Therefore, The rental option provides relief for those responsible for or owners of sports facilities who wish to delegate these responsibilities.
What is the price of renting gym equipment?
It's difficult to establish an approximate price. of the monthly payment for a gym equipment rental contract. There are many factors that come into play to determine the cost of the installments. For example, a relevant factor when determining the monthly contract payment is the distribution of the types of machines. Due to its cost, cardio equipment is the most in demand under the leasing model , although at Bodytone we are also seeing a surge in demand for strength equipment, and 30% of the brand's sales are already through leasing.” Here is a list of the most relevant factors for setting the price:
- Square meters of the facilities to be equipped.
- Number of gym machines needed.
- Type of equipment requested: Fitness, cardio, accessories…
- Range of installed machinery (there are higher ranges and more affordable ones).
Do you want to calculate the leasing cost for your gym? Here's a form where you can fill out your information and request details. Once you've completed it, one of our advisors will contact you to discuss your needs and explain the different options available to you. We look forward to hearing from you!
Enjoy the professional advice from Bodytone.
Given the lack of knowledge in the sector and regarding the equipment options available for gyms , Marisol Rodríguez sees the role of specialists as fundamental. “Not everyone needs to know about the law; that's what specialists are for—they can advise you.” At Bodytone, we established our own legal department more than seven years ago, which offers Legal advice and support to clients . In addition to sales and financing systems for machinery purchases, this department also offers advice on social security matters and other related issues.
Among the most frequent inquiries they receive, Marisol Rodríguez mentions: the warranty for Bodytone products and other brands, noise and sound emission regulations for opening or expansion licenses, and the self-employment status of personal trainers. “These are issues that cause a lot of concern because people aren't always aware of all the legal requirements. Furthermore, regulations always set minimum standards, and each region usually has its own specific laws that also need to be understood,” she concludes.
While we must consider the regulations of each region, a careful analysis of the advantages and risks of leasing clearly shows that the benefits far outweigh any potential drawbacks. That's why we recommend you fill out the form and consult with our experts to ensure you don't overlook any important aspects. Let Bodytone advise you.