So, you’ve leased a Multi-Function Printer (MFP) for your business, and it’s been a great run. The machine has served its purpose; it’s cranked out the umpteen last-minute jobs you needed, stapled and hole punched according to plan, and you’ve only threatened to kick it three or four times (or more, but you don’t have to admit it).
Overall, it has been a good machine…but now the lease is ending. What comes next?
There are two likely outcomes for this – you may have had a good experience and want to keep your MFP by renewing your lease or buying it out completely. If this is what you decide to go with, you should hop over to another one of our articles ‘’Options at Copier Lease Expiry: Renew lease vs Buy-Out (Pros & Cons)’’ to explore further.
The alternative outcome is where you decide NOT to renew your lease agreement and that is exactly what we will be diving deeper into. In this article, we’ll walk you through the important steps to take at the end of your MFP lease if you choose to bid farewell to your copier leasing relationship. There’s a lot that needs to be done so let’s get into it.
Notify Your Intent to Cancel the Lease in a Letter
Every lease requires written confirmation of your intention not to renew the lease agreement. The requirements for making sure this is done correctly may differ depending on the type of lease. Read through your lease carefully to find out what is required.
Timing is another important factor that gets relayed into this requirement. Make sure to send the letter in the correct time frame. This time can be anywhere “between 120 – 60 days before the term of the lease” or even “between 90 – 30 days before the term of the lease”. To be safe, we think it’s always best to send this letter 45 days prior to the renewal date. If you send this letter of cancelation too early or too late, they won’t consider it valid, and you could find yourself trapped in a year-long renewal. This renewal is called the “Evergreen Clause” and can even result in additional fees.
Let us do the leg work! We’ve created a sample letter where you can fill in the fields to send to your existing office equipment provider or leasing company.
Please note that this is just a sample letter, you may need to make changes to suit your individual needs. Click HERE to download.
Ensure the Equipment is in Working Order
The leasing company requires that all equipment being returned is in ‘’good, working condition’’. This means you have to ensure that the equipment will turn on, pass paper, and has no cosmetic damage. Minor blemishes here and there is nothing to be worried about.
One way to prevent any unexpected bills for damage is to take photos and/or videos to keep as a record in case you need to dispute an issue later. Return Departments can take up to three months to review the condition of your machine and a lot of dings and dents can happen during that time.
Returning the Equipment
After you have turned in your letter of intent, the leasing company will contact you with information on your final payments and instructions on how to return the copier. From this point, you are responsible for arranging freight transportation of the equipment and make sure it is insured and packaged properly.
The costs of removing a copier can quickly add up. Often weighing at over 300lbs, a copier needs to be moved carefully. Even before it can be packaged, the following steps need to be completed:
- Removal of all liquids
- Any parts that may come off in transit need to be secured
- The hard drive needs to be withdrawn to remove any sensitive data
Once these tasks are complete, the copier must then be securely packaged and transported. You should expect to budget between $300 – $1200 for a single copier. There are many variables when it comes to finding out the exact cost to ship your copier, but the two most obvious and important issues are its weight and how far you’re shipping it. By understanding your lease agreement and planning ahead, you can be prepared for this expense.
Contact an Expert at Office Interiors
If you’ve made it to the end of this article and you still have some questions, you can contact one of our leasing specialists at Office Interiors. We are here to help you at every step of the way to make the right decision for your business. With nearly 30 years in the office furniture and technology industry, we have learned the ins and outs of the ever-changing end of lease process to help facilitate a smooth return process on your behalf. (This really should have been #1)