When you purchase a new storage shed or garage for your home and need to break up the total cost into monthly payments, a Rent To Own program is a way to do just that. This method has some pros and cons.
Before we jump into the benefits and drawbacks of these programs... Let's discuss what 'Rent To Own' actually is. Rent To Own is a type of transaction where the customer receives the item (a building in this case) and 'rents' it from the Rent To Own program provider until the total cost (of the item and the program) is paid in full. Once paid in full, the customer then officially owns the item. Let's look at the pros and cons of getting a new storage shed or garage with a Rent To Own program.
Why Rent To Own Is A Good Option:
- No Credit Check - Most Rent To Own programs do not require a credit check. This means that you are not required to have a good credit score in order to be eligible for a Rent To Own program. This makes Rent To Own programs available to most anyone! It also means a credit check will not show up on your credit score (which can have a negative impact).
- Affordable Monthly Payments - Rent To Own programs make purchasing you new building affordable by charging monthly payments instead of requiring the cost upfront. This means you can factor the same payment into your budget each month. It makes financial planning easy and more predictable.
- Low Down Payments - Instead of a down payment of 10%, 25%, or even 50%, Rent To Own programs often offer a low down payment or or even no down payment. This makes getting your new storage shed easier because you do not need to save up and have access to a large amount of money to place the order and have your new building delivered to your backyard. For example, some programs may require first and last month's payment as your down payment.
Why Rent To Own May Not Be Your Best Option:
- Higher total amount paid - Monthly Rent To Own payments are part the building cost and part the 'rent' for using the building/program. This means you will pay more in the long run compared to paying for the building outright.
- Building is rented (not owned) until payments are complete - The program provider owns the building and 'rents' it to you until all payments have been completed. Then ownership of the building transfers to you. This is not a problem for the average customer! If you fail to may your monthly payments, your building can be repossessed. Rent To Own programs may have rules you must follow during the program. For example: Some programs may stipulate that a building may not be altered during the program. If you plan to finish the interior, install lofts/shelves, etc, the program may not allow this until all payments are complete.
- May not be available on all types of buildings - Some Rent To Own programs may not be available for all types of buildings. For example: At Pine Creek Structures, Rent To Own is not available on cabins. This is just one example. Some Rent To Own programs may also have a cap on the maximum cost of the buildings being purchased. This may limit your options if you want a larger building or a very customized building.
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