Man with house for rent sign
The Guide on Renting-to-Own

Recently, you had a new business idea, or perhaps you see big lifestyle changes on the horizon. But there's only one problem: your current housing doesn't have enough space to make it possible. If you find yourself in need of a potting shed, barn, or garage to make those dreams come true, then here’s a way you can begin using a new space within days.

What's a Rent-to-Own Building?

When you don't have the cash to purchase a structure immediately, and don't want to waste monthly payments on a commercial storage unit, rent-to-own is a smart way to quickly gain added space. RTO is better than renting because, within a short period of time, you own the structure outright. The power to keep, return, or pay off the shed is in the hands of you, the renter.

Rent-to-own contracts are often fully negotiable when it comes to the length of time, payment amount, and sometimes even features included in the structure. Select the length of time you want to make payments. The seller may allow a variable amount for the down payment. And you should ask if the structure's features are negotiable too. For example, you may be allowed to specify window or door placement before delivery.

When to Rent-to-Own a Shed, Cabin, or Horse Barn

  • You are currently renting a storage unit.

  • You are moving or remodeling your home and need storage space. Generally, rent-to-own is less expensive than a POD and when you are finished renovating (or moving), use it as outside storage.

  • Move things out of your garage and into the shed to make it safer and more accessible.

  • Family members are in transition and are moving into your home.

  • You are starting a business and need a home office, art or music studio, horse barn, or repair workspace.

Advantages of Rent-to-Own

Instant Approval

No credit check is required to purchase a storage building with this method. Your credit score won’t dip because no hard credit inquiry is made on your account. Purchasing through a rent-to-own program will not negatively affect your credit rating, because it's a rental program, not a loan.

Budget

Rent-to-own buildings fit within your budget. You need little money up front and the monthly payments stay consistent. If you find a little extra income one month, most plans allow you to pay off the contract early without penalty.

Quick and Mobile

In a matter of days, you could have a shed or barn on your property. The contract setup is quick. And housing the structure on your own property gives you 24/7 access to storage, increasing its practical use. Most importantly, sheds are portable! If you move, you can take it with you.

No Obligation

If you discover that you do not need or cannot afford your shed or garage, you may return it. There is no obligation to buy. However, if you pay off the balance of the contract, after 36, 48, or 60 months, you own it. Rent-to-own allows you to give the shed a trial run. Select the building size and style you believe you need and if it's not enough space, upgrade (or downgrade) your shed without breaking the contract.

Smart Money

If the shed is used for business purposes, claim the monthly payments as an expense on your annual tax filing. It may be tax deductible. And there is no chance of damaging your credit score as it's a rental and not a loan.

Replace your current self-storage unit with a rent-to-own shed. Self-storage often feels like throwing money away because the payments never end. With rent-to-own, you own the unit outright within months. Not to mention, it adds value to your property.

Protect your investment by maintaining the care and repair of your shed during the contract. Add the shed to your home or renter's insurance to ensure it's replaceable due to unforeseen circumstances.

What to Know

There may be a cost limit to what the company will rent-to-own (eg. buildings costing over $15,000.) Ask about the down payment. Do they want first month's rent, last month's rent, a security deposit? Make sure that delivery to your property is included in the cost. Ask about distance, there may be a limit.
     
You'll want a month-to-month contract which includes the option to return the structure. However, understand that the investment you've made toward the purchase of the shed will be non-refundable. It benefits you to make all payments up to the point of ownership.
     
You may qualify for a better interest rate on a loan somewhere else. Review the contract so you know how much you pay in interest. Ask about payment options. Contract lengths can be 36, 48, or even 60 months.
     
Don't let a shaky credit history or lack of workspace stop you from pursuing personal goals. Reputable businesses, like Raber Portable Storage Barns, offer many outdoor structures available rent-to-own. Smart ideas like claiming the monthly payments as a business expense make owning a shed or barn an achievable goal.