Renting pricey possessions was frowned upon by Generation X, born between 1965 and 1981. GenZ, on the other hand, doesn't subscribe to this notion since they find packing their furniture to a new apartment a tedious job.
Millennials also move an average of 10 times before settling down and purchasing a home. Buying furniture like beds, dining tables, sofa sets, etc., can be expensive if you change jobs frequently and move to different towns. There is relocation cost, plus one piece of furniture in one house may not fit in another. For instance, typically, the size of houses in Mumbai will be smaller than in Delhi at the same cost. In this case, you may be unable to accommodate all the furniture you may have bought for your Delhi house.
Renting furniture has some benefits, but the decision needs to be made carefully after a cost-benefit analysis. Here are the pros and cons of renting furniture.
Pros Of Renting Furniture
Saves Time & Money: Packing and moving furniture take time and money, even through professional movers. You have to take extra care when moving the furniture pieces to make sure they don't get scratched and abraded.
Free Delivery, Maintenance, & Relocation: Furniture rental services usually offer free delivery, set-up, and maintenance. But it also depends on the floor you are living in. Ground floor delivery is typically free of cost.
Some rental services also offer free relocation. Says Rentalmojo, a furniture rental service, "During the tenure of the contract, if you are relocating within the same city, we will relocate the rented products free of cost." Customers must request two weeks before moving out to the relocated place. Another similar company, Renttickle, offers a one-time relocation service if you inform it 15 days before the move.
Free Upgrades: There are rental services that offer no-cost upgrades when your current rental cycle ends. If you get bored with your furniture, you can get something new. Furniture can also be changed to match trends.
It is also possible to upgrade or replace your furniture with a higher-end model at an additional cost. However, constantly changing furniture isn't practical if you're a furniture buyer.
Package: When rental services offer packages including furniture such as beds, wardrobes, bedside tables, etc., together at a discounted price, it can be economical to newcomers in a city. Renters can also use discount coupons if they rent above a certain level.
Resale Value Of Furniture Is Low: Furniture has low resale values because of its high depreciation. If you resell the furniture, you're lucky if you get 30 per cent of its cost. The age and current condition of the asset also matter.
In some countries, you can rent furniture for a long time and buy it later. The rental price is added to the purchase price. Such an option is probably not offered by any companies in India.
Cons Of Renting Furniture
Companies charge different penalty amounts for late payment of rent, damage and repairs. If you are considering renting to avoid paying a lump sum, think again. Most platforms require an upfront fee, which won't be refunded entirely if you don't complete the lease period.
For example, CityFurnish quoted Rs. 629 per month for one of its queen-size beds. However, the security deposit is Rs. 1,258 for a minimum lease period of three months. Payment for three months has to be made in one go, and if you return the bed after two months, they'll refund the security deposit but not the last month's rent. No security deposit is required for a six-month, nine-month, or 12-month rental tenure.
The lack of a refund can result in significant losses if you have to move within a few months.
Says Suresh Sadgopan, Principal Officer - Ladder7 Wealth Planners P. Ltd, "Renting furniture may appeal to Gen Z as this can bring variety to the furniture they use, which otherwise can be monotonous. For those in a city for a short stint, or those whose career takes them to various locations, this option may be cost-effective - instead of buying things and paying for transportation. But if a person stays in one place for long, this option can be expensive financially."
Another problem with advance rental payments may involve nonresponsive customer service later. Customer service can become a headache if it delays accepting returns or performing repairs as previously promised.
How To Rent Furniture?
Most rental services require basic KYC before delivering the chosen product to your doorstep. If you are looking to rent for three months, Cityfurnish, a rental service, requires temporary and permanent address proof, landlord contact information, and your salary slip or bank details for three months. If your tenure exceeds this, they don't require any financial information from you.
Delivery time varies with the cities you choose. Rentmojo's website indicates that products can be delivered in Delhi within four days. Select the product from any of the rental services' websites. A refundable deposit is required in addition to the monthly rent.
For example, Rentmojo can rent you a bed for as little as 249 rupees or as much as 1,319 rupees per month, depending on your chosen product. The refundable security deposit for the Rs. 249 'Metal Single Bed' is Rs. 379. To get the bed at Rs. 249 rent, you must rent it for 12 months. If
you choose a minimum rental period of 6 months, the rent is Rs. 279, while if it is for three months, the rent is Rs. 309.
