Is Rent-To-Own the Right Choice for Your Shed Acquisition Needs?

December 20, 2023 ReachingWorld

People love to buy, especially during sales and off-seasons, to save bucks. However, these items need proper storage to last long. Hence, an effective solution is to invest in a storage unit. But not just any storage sheds, the most robust and durable ones. Yes, we are talking about none other than metal sheds.

Now, you may say that a metal shed costs like 1000 bucks, but you don’t want to spend that much right now. That’s okay. We get it! That’s the reason we are going to discuss the rent-to-own option for buying your favorite steel building. Let’s see what it is, how it works, and the pros and cons of rent to own sheds.

What Are rent to own shed financing options?

A rent to own is a legal agreement between a metal building buyer and seller. It allows you to use the shed for a specific period, during which you can buy it until the lease ends. Here, you have to pay a fixed monthly amount to the dealer till the lease ends.

The time period can range from a few months to years. It gives a buyer the right to buy the metal shed when the lease ends. This purchase is not mandatory in the contract between the buyer and the metal dealer.

Note: Since this is a legal document, ensure you read all the documents carefully and take legal advice before signing up for the deal. If the purchase is mandatory (generally for lease to own), you may be forced into buying the shed even if you don’t want it.

Things That Are Included in Rent to Own

Initial fee
A portion of the rent going to the purchase of the shed

We will take an example to simplify these two points. Suppose that you want to buy a metal shed worth $8,000.

Down payment: $2,000 approx.

Monthly RTO: $295 approx.

Let’s assume that your contract states that out of $295 of the monthly payment, $100 goes into buying your metal shed, then after a year, you will have $1,200 in equity.

When Should You Choose Metal Building Financing Options?

It is a good option for people who want to buy a steel shed but are unable to make the full payment.
If you don’t have enough money for a down payment or if you don’t have a good credit score, it is an option.
If you have a non-traditional income or want to test out the neighborhood before settling, it will be a great choice.

When You Should Not Choose Steel Building Financing Options?

If you can’t pay monthly rent until you own. If you miss a few payments, all the money will be gone along with the building.
If your rent is too high, you shouldn’t consider RTO as an option.
If you can’t arrange for a mortgage by the end of the RTO lease, you may end up losing the steel building and all the money that you paid in rent.

Are There Any Alternatives to RTO For Storage Sheds?

Lease to own: It is similar to RTO but with a fixed sales price for a future date.
Layaway: It is similar to RTO, but the builder holds your item until you pay the full price.
Owner Financing: It is similar to RTO, but you pay less down payment than mortgage companies.
Bank Loan: You have to pay a fixed monthly fee with interest until you fully pay the steel building cost.

Some Common Steel Sheds Sizes

Type of Metal Building	Size (in ft.)	Height (in ft.)
Utility Garage	20 x 36	10
Vertical Roof Utility Building	24 x 45	12
Combo Utility Building	20 x 50	9
Vertical Roof Metal Garage	26 x 40	10
Utility Carport	30 x 65	12

Pros Of RTO Metal Sheds

There is no credit check necessary when applying for RTO metal sheds.
Some builders may offer a return option if you need to change without any penalties.
Your RTO may get approved the same day you apply for it. It’s a smooth and hassle free process with no obligation to purchase at the end.
You have to pay a small upfront amount, and afterward, the payment method is flexible.
You can pay on an easy monthly basis once your contract is approved.
When you complete all the scheduled payments, you get to own the steel structure.
Some dealers may offer delivery and installation along with the final payment so that you don’t have to pay extra, nor do you need to wander around looking for a construction team.
You can use it to build equity. That’s the main reason why most people prefer the RTO option.
There is no compulsion to buy the metal shed at the end of the

Cons Of RTO Steel Sheds

You may end up paying higher rent than usual.
There are no refundable fees. Suppose you decide not to buy, then you may not get a full refund.
Due to fee or rent credit, you may lose the money that you have paid on a monthly basis if you don’t buy.
You stand a chance to void the agreement if you miss payments.
Most RTO contracts favor sellers than buyers, so read your agreement details carefully.
There is no guarantee of financing.
Some sellers may take advantage and make it difficult to buy it in the To avoid this scenario, ensure that you buy only from a reputed metal dealer with industry experience.

If you have no ultimate need for a steel shed, you can delay your purchase and buy it later.

As Demonstrated

We can say that rent to own is a less liability contract between buyer and seller. Depending upon how the contract is made, it can serve to favor both parties. Hence, if you are sure about buying a metal shed for your home, but somehow you are unable to pay for it now and not getting a bank loan, you can opt for RTO as an alternative. We hope this was helpful to you in getting an insight into how RTO for metal building works.