With summer right around the corner, it’s no wonder so many people are considering finally putting in that new backyard shed they’ve always wanted.
But even with the best of the prefab structures out there, there are always custom details you’ll want inside to truly make it your own, not to mention a proper foundation—and these things inevitably drive up the cost. This often leads people to seek out a loan to make their dream projects into a reality. And yet, conventional bank loans for external structures such as backyard sheds are often time consuming to set up, risky to carry in today’s volatile financial climate, and can even be difficult to attain depending on one’s personal financial situation and history. This is where so many homeowners simply give up, move on, and try to forget all about it.
Fortunately, it doesn’t have to be that way…
Rent-to-own (or lease-to-own) is an emerging viable option for homeowners who may spend anywhere from $1,000 to $10,000+ for one of these backyard “home away from home” retreats. In this post, we’ll take a look at who rent-to-own (RTO) sheds are for and what benefits they can bring to your family.
Why Homeowners Choose Rent-to-Own to Purchase Their Sheds
There are many homeowners who believe that RTO is the only smart way to own a shed. In fact, the overall rent-to-own market is expanding fast, with a growth rate of 8 percent from 2015 to 2016, and this is expected to continue right through to 2020.
When it comes to sheds, there are so many reasons why rent-to-own is a great fit:
- It reduces off-site storage costs
Forget storing your extra items in an off-site facility. Everything you want and need can be securely stored right on your property, and at practically no upfront cost to your pocketbook. No more paying a monthly fee for something you will never own, and no more fuel costs back and forth to the off-site storage.
- It provides extra living space
Sheds are being transformed into personalized getaways. From detached “man caves” to “she sheds,” these structures can be turned into a much needed escape into your extracurricular activities, without any need for expensive and disruptive home renovations.
- It requires little to no permits
If you are looking to build onto your existing home yet do not want to go through the lengthy and expensive permit process, look no further than a shed. You can often install your own room away from the home without the cost of permits, plumbing, and electricity.
- It’s inexpensive
Not only can you save on storage and permit fees, but having an RTO deal allows you to purchase and build a shed at a price you can afford on a monthly basis.
- It’s flexible
RTO shed payments are often very flexible, allowing homeowners to pay off contracts early and transport their shed with them wherever they may go.
How a Rent-to-Own Agreement Works
The majority of RTO shed agreements run anywhere from 24 to 60 months in total. Once your contract is complete, you then fully own your shed! This can be done by paying off early, usually at a discounted price, or going full term, all based on each individual’s needs!
In a typical RTO agreement, you should look for the following features:
- Find a company that will fund your shed. The average shed these days can cost upwards of $5,000. But if you are building your dream escape, you want to go with a RTO institution which can support up to $10,000 for building, furnishing, and other details.
- Choose a reputable RTO Company to handle your deal. RTO puts you in control, allowing you to get what you need when you need. The RTO process should be easy to understand and give you the flexibility you deserve.
- Pay off anytime without being penalized. You want to have the option of gaining ownership of your shed as quickly as possible. Find deals that allow you to exercise an early purchase option if you choose to own rather than continue paying rent.
- An agreement you can terminate. Reputable companies should also allow you to terminate the contract at any time and for any reason so long as you give ample notice (i.e. fifteen or thirty days).
Get Your Own Shed Today
Sheds come in many different shapes and sizes. Depending on its use and decor, your shed may range anywhere from a 6’x8′ plot to an extensive 32’x32′ square.
What you choose to do with your shed is up to you, but finding the right RTO agreement is paramount. Find an agreement which is flexible, has the right terms to meet you needs, and which allows you to pay the payments early if you wish. That way you can get the most out of your shed without the accompanying worries about your finances!