The use of DHCP is highly recommended and there are a number of obvious reasons why you should use it. As mentioned before, there are two ways you can configure client addresses on a computer network, either manually or automatically. Manual configuration requires the careful input of a unique IP address, subnet mask, default router address and a Domain Name Server address. In an ideal world, manually assigning client addresses should be relatively straight forward and error free. Unfortunately, we do not live in an ideal world; computers are frequently moved and new systems get added to a network. Also if a major network resource, such as a router (which interconnects networks) changes network addresses, this could mean changing EVERY system's configuration. For a network administrator this process can be time consuming, tedious and error prone. Problems can occur when manually setting up your client machines, so if you have the option to set-up your client machines automatically, please do, as it will save you time and a lot of headaches.
DHCP has several major advantages over manual configurations. Each computer gets its configuration from a "pool" of available numbers automatically for a specific time period (called a leasing period), meaning no wasted numbers. When a computer has finished with the address, it is released for another computer to use. Configuration information can be administered from a single point. Major network resource changes (e.g. a router changing address), requires only the DHCP server be updated with the new information, rather than every system.

Some machines on your network need to be at fixed addresses, for example servers and routers. The DHCP server you choose should be capable of assigning pre-allocated addresses to these specific machines.
You need to be able to assign a machine to run the DHCP server continually as it must be