Rent-to-own is a fantastic opportunity to get a metal carport, garage or storage unit without having to fund the full cost of the unit upfront. Some people are already renting an offsite storage facility and for the same basic cost you can put your money into something that will ultimately become yours rather than spending your monthly rental to improve someone else’s financial position.
What do I need?
Most rent-to-own schemes require some form of down payment. This could be a percentage of the unit cost (e.g. 10%) or a figure calculated on the basis of 2 months rent. Whichever way this initial figure is calculated it will work out to be a fraction of the cost of the unit. As this is not a credit facility but a rental scheme, there are no credit checks required and as long as the initial payment is made, the building can be erected within a few weeks of order.
How does the monthly rental work?
Monthly rental costs are calculated based on the cash cost of the unit and the rental period. Most rent-to-own schemes offer rental periods between 24 and 48 months depending on the original cash price of the metal building. Typically, these costs are similar to the cost of renting an offsite rental facility of a similar size. If at any stage, you desire to cancel the rental agreement, the rental company will remove the unit at no cost to yourself and there will be no further financial implications for you provided your rent payments are up to date. Monthly payments can normally be made through electronic payments, debit orders or checks.
Can I purchase the unit and end the contract early?
If you find yourself in a position where you would like to pay the remaining rental period off in a one-off payment and terminate the rental agreement early, this is encouraged by the rental companies. There are no financial penalties associated with this early payment as this is not a credit scheme but a rent-to-own scheme. Generally speaking, there will probably be a discount offered should you desire to terminate the contract early and this can be negotiated directly with the
rental company concerned.
Can I rent any type of custom metal building?
It is important to verify with your steel building rental company; which units are available on a rent-to-own basis. Some companies will only rent out steel buildings up to a certain size or for certain uses (e.g. RV covers, barns and garages). These specific requirements can be worked out directly with the rental company you choose.
What about insurance?
Most rent-to-own schemes come with the offer of an additional insurance option to cover you for various circumstances. These would include accident or death cover and the provision for future outstanding payments in the event of death or disability. Many companies also offer incentive schemes that include local benefits with medical practitioners or restaurants etc.
Is it going to cost me more in the long run?
All schemes where there is a delayed payment versus paying the full amount upfront in cash will cost more over the duration of the contract. You can calculate the exact cost by adding together the deposit amount with the total monthly payments. It is important to remember that you can exit the rental scheme at any time without penalties and you can pay off the remaining amount early if you become able to do so.
Rent-to-own is a viable option for many people who need the space immediately but cannot afford the lump sum payment upfront. It also makes sense to go this route instead of renting offsite storage as you will own the unit yourself once the rental contract is complete.