Rent To Own Storage Sheds – Should You Think Twice?

In his article: Rent To Own Storage Sheds – Why You Should Think Twice, Michael W. Mathis covered some of the reasons why he thinks rent-to-own storage sheds are a bad idea for homeowners. He makes some good points along the way. It is obvious that purchase leases are not the “be all, end all” to buy anything and of course you should think twice before buying anything using this medium. The main point of his article seems to be that renting your own storage sheds is expensive, paying about twice what the building would cost in cash. He ends by saying, “If they can’t get reasonable financing or save and pay properly, then they probably don’t need it.” While I agree that lease and purchase contracts are not the best options and will cost more than an outright purchase, there are times when renting your own storage shed makes sense. When is renting to own a bad idea? When you have the money to pay it directly. You will save money if you buy the building with cash, but there are also cases where this is not true. When is it a good idea to rent with option to buy?

1. When the building is necessary to create or preserve wealth. In such cases, the building is really a tool, like a truck or a table saw. If it is needed and cannot be obtained in any other way, it is better to have it for the purpose of creating wealth than not to have it and lose the opportunity.
2. You intend to use the building for business and taxes are an issue. This is related to number 1. In some situations, renting offers tax advantages. In some states, a portable building is not taxed as part of the property on which it resides. In many situations, commercial rent can be deducted from income taxes and that can level the playing field.
3. If you are renting space in a public warehouse. If you’re already paying rent for something you need to preserve, it makes sense to rent storage space that you’ll eventually own. You’ll rent something for a few years and look forward to the day it belongs to you instead of leasing space forever. Spending $200.00 per month forever makes much less sense than paying $200.00 per month for 36-48 months.
4. You have credit problems. If you have credit problems, bank financing may not be possible for you. In fact, you may need the building to alleviate the cost of public storage.
5. You want to avoid credit problems. If the possibility of defaulting on a loan and ruining your credit has crossed your mind, and it’s a risk you don’t want to take, a rent-to-own storage shed may be the best option. Most rent-to-own storage building dealers have contracts that will allow you to return the building without ruining your credit. Will your banker do that?