Rent To Own Storage Buildings

In a recent article titled: Rent To Own Storage Buildings Why You Should Think Twice, by Michael W. Mathis, Mr. Mathis talks about the dangers involved in the rent to own storage buildings industry. While we may disagree with some of his reasons, we still understand that he makes some valid points on the issue of lease purchase, and felt obliged to include his article on this site in it’s entirety. You may read it at: Rent to Own Storage Sheds – Why You Should Think Twice

This offers a unique opportunity for us to offer a differing point of view, and let the two ideas fight it out in the public market of ideas.

Should you think twice about rent to own storage buildings?

Well, of course you should! In fact, you should think twice about any major purchase, so let’s do a little independent thinking:

First of all, no one that I am aware of is making the argument that renting to own anything is the first or best option. It is obviously not, but is it a reasonable option in the face of other less reasonable possibilities? The answer is yes!

A the conclusion of the article, the author states:

“If they can’t obtain reasonable financing or save and pay for out right, then they probably don’t really need it.”

Think about this: Anyone who needs storage and can’t afford to pay for a building outright is probably already paying high fees to a self storage company. It is doubtful that they are just tossing the things that they can’t find room for in the local dumpster. That money would be much better spent on something they would eventually own. Rent to own storage buildings offer the same sort of rent that the self storage units offer, with the same problems, like the potential for losing your deposit and your stored items, but, with one important, and this is the most important difference: You will eventually own the building yourself.

Remember, those who purchase storage buildings through rent to own programs are not paying interest, they are paying rent, and as noted above, it is probably about equal to the rent they are already paying for self storage.

Rent to own storage buildings, is that a good option for my family?

That is an excellent question. There is so much information floating around about rent to own programs, and most of it is bad, that it can be difficult to decide if this is a tool you should use, or a problem to avoid like the plague. We think we can help you to make the right decision.

This is the situation where many families find themselves: There are a few pieces of furniture, a few family heirlooms, a box of important family records, and several boxes of things they just can’t stand to lose or toss out. The spare bedroom and garage are full of items that are no less important, and every closet is filled to the brim with some things that may be needed in the future.

Here are the options:

They can continue to live with the clutter
They can get rid of the excess
They can rent public storage space
They can purchase a storage building

Living with the clutter is not a good option. Clutter can become both a physical and mental health hazard! It becomes disorganized, and then encourages disorganization throughout the home. It seems to teach disorganization by example, acts a s a hiding place for bugs and rodents, and causes stress on the family.

Getting rid of the excess is probably not going to happen, since it is at the root of the problem to begin with. There might be some things that could be done to become more efficient in the way things are being stored inside the home, but that will offer only limited relief.

Public storage is an option, but it is not a very good option. Paying someone to hold your stuff for a lifetime can add up to a whopping amount in a very short time. Consider that a years worth of storage fees at $100.00 per month is $1,200 per year multiplied by the number of years you continue to use the service, and I am sure we can all think of a better way to spend that money. Besides, driving back and forth to your mini storage site can be costly in these times of high fuel prices.

Buying a storage building for your own backyard storage is the best of the options, in fact, it is about the only one that makes sense. The problem is, that it can be a little expensive if you buy a building from a lot that will be delivered to your site. There are kits that can be purchased that can save quite a bit of money, but that is another story. So, how can you buy the building you need, without breaking the family budget?

You can buy a building outright
You can get financing through your bank or other lending institution
You can use a credit card
You can rent to own

If you have enough cash in reserve, buying a storage building outright makes the most sense, but most of us don’t have that much discretionary income. Laying out a few thousand at one time, would knock a hole in our budgets that is bigger than we could manage.

Your lending institution might be willing to loan you the money, if you have great credit, and are willing to pay the high interest rates, but most of us don’t have perfect credit scores, and we may not want to take the risks involved.

Using a credit card to make the purchase may be the worst idea of all, unless you have a low interest rate, and a good plan. Credit card debt can get you into serious financial peril.

Rent to own storage buildings may be the best idea under such circumstances. Keep in mind, that a lease purchase will probably cause a substantial increase in the total cost, but it may just be worth looking into in many cases.

Advantages of rent to own storage buildings

Most lease to own programs do not report defaults to any credit bureau. This can be an important factor if your financial situation becomes an issue.
Most rent to own programs do not perform credit checks, so if your credit is less than perfect you won’t be rejected on that account.
Most rental purchase agreements can be terminated early without penalty, in case you no longer need the building, or can no longer afford to make payments. You simply remove your stored materials, and place a call to the dealer. Do you think your bank or credit card company would do that?
Most rent to own storage building programs will allow you to pay the building off early with no penalty. If you have a windfall, you can usually pay the building off without paying the remaining rental costs, saving you a substantial amount of money.
If you use your new building for business storage, or to operate a home business, you may be able to write the rental costs off of your federal income tax.