If you have had anything to do with real estate whether as a buyer or renter, you would definitely have heard the term rent –to –own. The thing is that we may just assume that everyone knows what this concept means. We can just conveniently say that it means you rent a property until you can pay for it; but there’s more to this concept.
The rent-to-own concept is an agreement in which a person agrees to rent a property for a particular duration with an option of purchasing the property before the lease expires. There are some contracts that are known as lease- options while others are lease- purchase. With the lease option, you have the right to purchase the property at the expiration of the lease. But with the lease-purchase, you are required to purchase the property at the expiration of the lease.
This concept is a broad one which we cannot do justice to in a few paragraphs. So you can check out this article for more information.
What Are Storage Sheds?
Storage sheds are detached buildings on a property that creates additional space for a number of things. They help the owner to have space for storage or other purposes that a home may not have space for. These sheds became even more useful when the pandemic (COVID 19) hit.
These buildings can be used as home office, fitness or yoga studio, music room, playhouse, garden shed or pretty much anything you desire. There are different types and designs of these sheds and what works for one person might not work for another.
These sheds are commonly made of wood, resin, plastic, metal or vinyl. You can either buy a readymade one or a prefabricated kit. Conversely you can decide to build one by yourself if you are handy with tools.
Rent –To-Own Or Renting Storage Shed?
Seeing that this structure is something that would add value to your property and even create more space for you, it is worth having. There are different means by which one can have a storage shed. Some people decide to rent storage unit outside of their homes while others go with a rent to own option or outright buying.
When you rent to own or buy, the storage shed would be in your backyard but if you rent a storage unit, it would not be in your yard. You have to go to the location where the storage units are kept. This wouldn’t work well for you as it can only be useful for storing stuff that you do not need at the moment.
The option of rent to own gives you the benefit of actually having a shed in your backyard. This is different from the regular storage unit that will require you leaving your home to get to the location where it is.
This option is also great for people that don’t have good credit because there are no credit checks. In the process of making your payments regularly on the storage shed, you can even end up improving your credit score.
The benefit of having your own shed trumps renting because you can use the shed for a lot of things. Imagine that you have to remodel your home; you have space to keep your stuff conveniently. And if you decide that you want the open space in your yard, you can return the storage shed when the lease expires.
Note however that the option of renting to own is only viable when you do not have money for outright purchase. If you have the funds to buy a storage shed, go ahead and do so as that would be by far cheaper for you in the long run.
Factors to Consider Before Signing A Contract
If you have decided that the rent to own option is best for you, you need to consider all the rent to own storage sheds that are available. Then you consider the following factors before signing a contract with anyone/company.
Choose the Terms That’s Right for You
It is recommended that you get a lease-option deal than the lease-purchase option. This is because the lease-option deal allows you to walk away after the lease expires if you are no longer interested in buying. This however, is not the case with lease-purchase; this deal mandates that you buy the shed when or before your lease expires
With the latter option now, you must buy the shed whether you can afford it or not. Failure to buy would still attract many penalties that would not be economically viable for you.
Get Professional Help
It is always a bad idea to wade into the waters of legality without the help of professionals. Following from the preceding point, you can see that you need a real estate lawyer to explain all the intricacies of the deal to you.
These professionals are in the best position to show you all the options and help you make an informed decision that would be in your best interest. They can also help you with the negotiation process since they understand the industry better than you.
Read The Contract Carefully And Understand It
You need to be sure that you understand all that your contract entails. You need to understand the following:
- All the deadlines that you have to meet
- How the payments work- what would be the rent and whether it contributes to the overall purchase price of the storage shed.
- How would you exercise your option to buy? Do you have to write the seller in advance of the expiration of the lease indicating your intention to buy the property?
- Find out the person that would be responsible for the maintenance of the property during the lease period.
Ensure That You Read And Understand The Fine Print
It is often said that legal documents are usually printed in tiny fonts so that the reader would get tired of reading through. While this may seem like an anecdote, it actually is true; at least the part about people not reading through especially because of the tiny fonts.
Well this is where a legal practitioner comes in. with the help of a real estate lawyer, you can be sure that they would read every word on your contract agreement before you append your signature.
You should also find out the conditions that can nullify your option of buying the property at the end of the lease. Is it a late payment or failure to notify the selling party in writing? These and more are the things that a careful perusal of the fine prints would bring to light.