Building a fitness centre within your apartment complex can be a great way to attract and retain tenants while increasing your building’s amenities and supporting higher rental rates. Indeed, your tenants will love the fact that they will not have to pay for a gym membership or commute to get their daily dose of fitness.
However, this investment can get expensive. That is why many multi-family residential property owners opt to finance or lease the fitness equipment for their apartment gym. Financing or leasing allows you to incorporate state-of-the-art machines and weights at a fraction of their retail price. This can save you extravagant upfront costs while still offering a top-notch building amenity.
To lower your monthly costs even further, consider financing or leasing with First Capital Leasing Ltd., a leading financing and leasing company in Calgary. Boasting an impressive 95% approval rate, we take pride in our flexible payment plans and competitive interest rates. By partnering with First Capital Leasing Ltd., creating a world class fitness facility in your building is easier than you think.
Why You Should Finance Or Lease Your Fitness Equipment For Your Apartment Gym
A quick search on Amazon shows that you can get a serviceable treadmill for as low as $500. With this in mind, you may be thinking that your apartment gym may end up costing you a couple thousand dollars at most. So why finance or lease the equipment when you can shell out the money for it in one go?
That is because you are looking at the wrong equipment. An apartment gym is considered a commercial gym. And a commercial gym needs durable, resilient, high-performing, commercial-grade fitness equipment, which certainly does not come cheap.
Assuming that your apartment complex houses 100 units, you would probably need 5 to 7 cardio machines of various types, at least 1 multi-gym machine for weight training, and 1 full set of free weights. All together, these pieces of equipment could easily top $35,000. Financing or leasing suddenly makes more sense, does it not?
You may be questioning the necessity of fielding commercial-grade equipment in your apartment gym. After all, your personal treadmill in your basement does the job just as well.
While you are not necessarily wrong, the law stipulates that a commercial gym needs to be outfitted with commercial equipment一unless you want to be responsible for the accidents your tenants may get into. If a tenant gets hurt using non-commercial equipment in your apartment gym, you could be liable for their injuries. The damages you could be reimbursing would far exceed the cost of building and maintaining a commercial gym in your apartment complex.
Why Financing Or Leasing Your Fitness Equipment Makes Sense
Not only is financing or leasing the more affordable alternative for your apartment gym, it is also the more sensible practice.
The major advantage of monthly installments over a lump sum payment is that you get to conserve more capital upfront. Saving on an upfront capital expense can provide a safety net when it comes to other unexpected expenses, such as emergency repairs.
While the perception is that leasing will cost you more, the additional costs are often offset by the ability to charge higher rent and by reducing the expense of high tenant turnover. This, in conjunction with low initial costs, make financing or leasing the superior option for building your apartment gym.
Finally, you should consider the cost of depreciation. The value of fitness equipment and machines does not improve over time. If you buy them outright, you may have to operate them for years before you get your money’s worth. In the meantime, you could be losing prospective tenants who expect a more up-to-date fitness centre.
This is where leasing excels. This procurement method allows you to upgrade your equipment every 2 or 3 years so that you have the latest technology in your apartment gym at all times. The pull of a modern, well-maintained apartment gym that rivals neighbourhood fitness facilities should not be underestimated.
Access to Healthy Living
Financing or leasing is an appealing option if you are planning on building a fitness centre in your apartment complex. Having more capital set aside for contingencies, especially as a real estate proprietor, can be invaluable.
Leasing, in particular, is an effective way of building the foundations of a high-quality apartment fitness facility. In addition to its initial low costs, leasing lets you upgrade fitness equipment every few years ensuring that your gym can always compete with the best facilities.
If financing or leasing the fitness equipment for your apartment gym sounds compelling to you, you can partner with First Capital Leasing Ltd.. We can procure any commercial gym equipment for you and finance or lease it to you under a flexible amortization schedule combined with competitive interest rates. Come see the difference of working with a premier financing and leasing company with a 95% approval rate! Call us at 403-255-5508 or fill out the online contact form to get started.
FAQs
Q: Why can’t I lease my gym equipment directly? Why work through First Capital Leasing Ltd.?
A: You certainly can lease your equipment by yourself, but your supplier may not be as flexible as we are. We offer tailored financing solutions at superior rates that perfectly align with your budget and timeline.
Q: What if I want to lease my equipment after having purchased it?
A: First Capital Leasing Ltd. offers sale-leaseback plans. You sell the equipment you own to us, and we lease it back to you at advantageous rates. This frees up significant working capital which can be invested in expanding your business.
Q: Does First Capital Leasing Ltd. offer financing or leasing solutions to start-ups?
A: Yes. We have worked with start-ups and Fortune 500 companies (and anything in-between) since our establishment almost 30 years ago.
