When you are ready to invest in a security system for your business or company, you need to know the ins and outs of security system contracts. These contracts are usually long-term but they can also present a month-to-month option, depending on your service and equipment needs. Security systems are vital in maintaining the safety of your company and the protection you and your employees. Investing in a security system is an important decision that should not be made haphazardly. Signing security system contracts are crucial in the process because it will help in making sure your needs are met at a price you can afford.
Average Contract Length
Alarm monitoring contracts can last anywhere from 12 months to 60 months. However, the industry standard for contracts is about 36 months. The length of the contract often dictates the amount of your monthly payments, to an extent. The longer you are in the contract for, the lower your monthly fees should be. What makes this possible is that because of being in the contract, you are spreading its initial costs, such as equipment and installation, to be paid over time.
Average Monthly Payment
Other than paying for a continuous monitoring service, one of the main reasons in signing a contract with an alarm monitoring company is to subsidize the costs of equipment so the company can regain its investment of time, equipment, and manpower over time. If a company does not offer this type of contract, then you may be expected to pay for the equipment in a up front lump sum.
Your monthly bill is split up into different parts. One part shows the monthly monitoring fees. Another part is the partial reimbursement of the initial investment of equipment and installation which includes parts and labor. Third part shows the potential cost of maintenance for the equipment, which lasts the duration of the contract. Another is all of the general office overhead, such as vehicles, computers, staff, phone, rent, lights, and so on. Add all of these up, and you have your contract’s average monthly payment.
Month-to-Month (No Contract)
There are also security companies who will offer their services without giving out contracts. This is most often true especially of smaller and local security companies, although large companies may also offer the same deal. You can pay for the service monthly on an as-needed basis, so if you need to suspend service for a few months and reinstate it again later, you can do so freely and easily.
There are several security companies who can make this offer but the question of equipment still lingers. Because you won’t be locked into paying for the equipment you would lease from the company in a standard long-term contract, the company will not be able to return their equipment and installation costs if you were to cancel the contract after one month. So this usually means two things:
- You will have to pay for the equipment upfront either all at once or in a few larger payments.
- You will have to own your equipment already and only need the company to monitor them for you.
The length of your contract will ultimately depend on how you want to pay for the equipment, whether upfront or over time. Security companies offer different security system contracts and contract lengths. If you have any more questions or comments, you can submit your message below or you can contact us today!