There are many lease to own programs offering everything from home electronics and appliances to automobile tires and wheels. Almost anything from homes to computers can be rented with an option to buy. While some of these programs may not be desirable, there are some that can be of huge benefit under the right conditions.
Rent to own storage sheds
Renting to own utility buildings is one place where lease purchase makes sense, especially if any of these conditions exist:
- You are currently renting storage space in a public storage unit.
- You need the building for business purposes.
- You have credit issues.
- You want to avoid credit issues in the future.
When is lease to own a good option?
To avoid perpetual rent
If you are renting something that you really need, it would be better to pay a little more to rent that product with the option to own it rather than renting it to perpetuity. Leasing storage space at a self storage, public storage, or mini storage facility costs money that will never be regained. However, a rent to own storage building will eventually belong to you, and you will come to a point where the building is paid for, and there will be no further costs.
Business and taxes
Lease purchase also makes sense if you are using the product for business. Rent to own storage buildings, if used for home office, or home business purposes can, in many cases, be written off as a tax deduction for business.
Past credit issues
If your credit is less than perfect, you can rent to own without having a credit check, and without worry of further credit problems in case of default. In most cases, if you realize you cannot continue to pay for the building, or no longer need it, you can call the supplier, and have them remove the building at no further expense to you.
Future credit issues
Most rent to own companies do not report to credit agencies unless you ask them to. Some rent to own programs will allow you to pay the remainder of the buildings cost off at any time, without having to pay the remaining rent. This offers a big advantage over most banks and home improvement loans.
Keep in mind that a lease purchase agreement will probably require you to pay almost double the cost of the building. If this seems excessive, you should also keep in mind that you would be paying interest if you borrowed the money from a lending institution, and that most programs will allow you to pay the building off early without penalty, and without paying the remaining rent. This makes the higher cost of the rent a little more palatable.
Please take note: If you are considering the purchase of a storage building through rent to own programs, or any other way, be sure to check your local Storage Building Regulations.
There are many other situations where rent to own may be the best option. Feel free to mention any that you can think of in the comment section.
