Should you buy a building outright, finance through a bank, or rent to own? Storage sheds can help to simplify your life, but you don’t want to complicate your financial situation. So, should you rent to own storage buildings, or not? What is the truth?
Rent to own, in spite of what you may have heard, is a great way to purchase a building. Keep a couple of things in mind when thinking about it:
Things you should know about Texas rent to own buildings
These things apply to rent to own in Texas. Keep in mind that laws and regulations may differ somewhat from state to state.
- If you are paying a monthly fee for a public storage rental, the lease to own storage shed price per month will probably be about the same as you are paying for an equal amount of space with public storage, but in the end you will own something you can continue to use!
- Even if your payments are a little more than the payments for a public storage cave, you don’t have to drive across town to get to it. This saves you both time, and money for fuel, which can add up to a significant amount if you value your time, and with current fuel costs.
When you purchase through most lease purchase programs you have several advantages over bank financing:
- You don’t have to worry about your credit before the purchase. Most storage shed lease purchase programs don’t require a credit check. Be sure to ask your dealer about this.
- You don’t have to worry about your credit after the purchase. Most rent to own programs don’t report to credit agencies in the event of default, so your credit will not be hit if you do have a problem, or no longer need the building. Once again, you should ask your dealer about this, and if this is not true of them, you can search for a dealer that will meet your needs. We have a list of quality storage shed dealers in Texas who will.
- Most lease purchase programs allow you to pay the building off early without penalty, actually saving the cost of the remaining rental if you do. This gives you lots of options that most banks won’t offer.
- If you find yourself in a tough financial circumstance, you can return your building without any financial suffering, and no hits on your credit, and you won’t be responsible for paying off the remainder of your rental contract. Would your bank do the same with a loan?
- If you purchase a high quality storage shed of the type we recommend, you will have more than 25 years of service from the buildings with no maintenance costs. If you average the cost of the building over the lifetime of the building, it will only cost you a few dollars a year, compared to renting public storage, which will be several hundred per year!
- In many cases, if you use your storage building for business purposes, you can use the rent as a tax “write off”.
There are a few things you will need if you want to lease to own a storage building.
- Your own personal and contact information. This would include email addresses, phone numbers, etc.
- The money for the first months payment, and a deposit.
- Your banking information if you plan to do an automatic draft.
Lease to own is also known as; rental purchase. Standard rental purchase agreements have many things in common, but there may be some variations. Check with your utility building dealer for the exact details.