A Rent To Own Storage Building Makes Sense | 12 Reasons Why
When considering whether or not to buy a rent to own storage building, there are a lot of things that you have to take into consideration. In fact, I’ve previously covered 30+ important facts about buying a rent to own shedthat everybody should know before buying one.
However, there’s even more to a rent to own shed than important facts about how rent to own sheds work (e.g. no credit check), the differences between the types of sheds, knowing how big you want (or need) the shed to be, how much it costs to finish one out, etc.
In addition to all that, you should also know why buying a rent to own shed makes sense – maybe event above and beyond your initial reason for wanting to purchase one.
Here are just a few benefits of buying a rent to own storage building:
1: Storage Units Are Expensive
Listen, I don’t know when the last time was that you looked at pricing for a storage unit, but it’s a wild world out there. In 2021, the average cost per square foot for a storage unit was $1.16 (per SpareFoot data).
However, that cost average includes all sizes, climate and non-climate controlled, self-access, and limited access facilities and more.
How much does a storage unit cost?
In Central Texas, just a small 25 square foot, climate controlled, 24-hour access storage unit near me right now costs approximately $75 per month.That means the storage unit costs $3 per square foot.
Let me repeat that… $3 per square foot.
And the cost of storage units only continues to go up. Based on independent date from companies like SpareFoot, the cost of storage units only continues to increase year over year in excess of 20%.
How much does a rent to own storage shed cost?
So, $3 per square foot for a regular storage unit rental is pretty steep. But how much does a rent to own storage shed cost?
Well, there are a LOT of variables at play such as the height of the roof, the style of the building, how many windows and doors you want it to come with, and any other customizable options available to you.
But if we’re just talking a basic building with no add-ons, and just apple to apple comparisons… it’s not even close.
For example, a 160 square foot rent to own storage building near me is priced at $6,313.
That is the cash price.
On a 48-month RTO (Rent To Own) agreement, the monthly payment would be about $263.
That comes out to roughly $1.63 per square foot on a rent to own agreement for that storage shed.
At the end of that 48-month agreement (or if I do the early purchase option), I would own the building outright.
So, let’s say you paid $263/month for 48 months – you paid a total of $12,624.
Next, let’s assume you use that storage building for 10 years (likely much longer, but we’ll low-ball it), then you can average that cost out over the course of 120 months which is just $105/month.
At $105/month for 160 square feet, you’ve only paid $0.65 per square foot, and your total cost is still only $12,624.
In comparison, at $3 per square foot for the storage unit near me in Central Texas, if I were renting a 160 square foot storage space, I would’ve spent $23,040 over the course of just 48 months, and $57,600 over the course of 120 months. Factor in a 20% YOY increase in storage rental rates, and it’s even higher.
In that scenario, the difference in cost for a 160 square foot storage unit rental versus a 160 square foot rent to own storage building over the course of 10 years would $57,600 vs $12,624.
Granted, you could probably find a storage unit rental near you for less than $3 per square foot, but the point remains the same… Unless you just need a really short-term storage space, it’s cheaper in the long run to buy a rent to own storage shed.
2: Easier Access
Not only is it generally going to be cheaper to buy a rent to own storage shed – it’s also a lot easier to access it.
Because in most cases, the only time you’d buy a rent to own storage shed is if you’re placing it on your own property.
Which means you’ll live next door to it.
No long drives to and from your storage unit anymore!
A lot of storage rental facilities have limited business hours that you can access the rental. This can be especially frustrating if you’re trying to run a business out of a storage unit (e.g. storing products for delivery as they’re ordered) and you need to make late-night runs after a day of processing customer orders.
Being able to go to your storage rental whenever you want is nice!
4: Better Security
Storage units across the US are broken into all the time which is why nearly all the new ones are built with 8 foot fences, cameras, code-access, and sometimes even on-site guards.
And even then that doesn’t stop the burglaries and theft.
I’m guessing your property is a lot safer than the average storage rental property in that regard.
Let’s be honest… going to a storage facility after dark can be pretty sketch in some areas.
And because it’s a large business open to the public, it can be difficult to know whether or not the other people at the storage facility with you are supposed to be there or not.
On your property… you know who belongs there and who doesn’t.
Accessing your belongings or products in storage shouldn’t be a stressful event. And it doesn’t have to be if you have it all stored on your own property to begin with.
6: No Auction Concerns
If you pay your monthly rental bill every month at a storage unit, you generally don’t have to worry about having your personal property auctioned off to the highest bidder.
But that’s not always the case.
It doesn’t take much effort to find tons of examples of times where (even though the customer paid their rental payment on time) rental storage companies accidentally auctioned off the belongings from the wrong storage units.
It’s awful, really.
And it’s one thing if it’s commercial products you’re storing for future deliveries that can generally be replaced and you can be compensated for.
But it’s quite another when it’s personal belongings, heirlooms, collectibles, or other things with sentimental value.
Those cannot be replaced.
The peace of mind of knowing that your belongings aren’t being auctioned off at any given moment makes a rent to own storage building purchase well worth it.
Most storage rental companies don’t want you drilling or nailing anything into their walls, and others may have limited options for customizing your storage space.
Some allow you to install bracket-based shelving with their shelving rails, but many storage rental units don’t have anything at all.
When you buy a rent to own storage shed, you have the ability to customize it pretty much however you want.
Everything from painting, shelving, lighting, etc.
In fact, a lot of people even build livable sheds out of rent to own storage buildings.
You can build a nice in-law suite, she-shed, man-cave and whatever else you fancy – you can’t do any of that at a storage rental facility.
8: It’s a Portable Building
Unless you’re going with a traditional foundation, or a metal storage building (which is actually even cheaper than a wood one) with a concrete floor, then most rent to own storage buildings are portable.
That means, you can move it pretty much whenever you want.
I’m actually about to move one of mine in the near future because I want it closer to our electric utility pole so it won’t cost as much to run the line.
It’s cheaper to move it than it is to pay an electrician to run the line further than it needs to be.
9: Animal Shelter
We live out in the country, and so we have cats because cats take care of mice, snake, and other critters. Also, our girls love cats.
But, my wife does not.
Which means they’re not allowed to be inside the house.
For most of the year, they love just being out and about. They sleep on the front or back deck, on the ground, on the playscape, or wherever they want. And they get to roam and hunt at night – they love it.
But during the Winter, they need some place warm. So, our shed is a great place for them to do just that. A rent to own storage building is actually a GREAT way to have an animal shelter outside of your house.
If you made a mess of your storage unit, it’s not exactly easy to clean up when you decide to upgrade or downgrade to a different storage unit, or cancel altogether.
You probably have to bring a broom, trash bag, gloves, sprays, etc., in order to make sure it’s back in move-in ready condition in order to avoid being charged any cleaning fees by the rental storage company.
It’s also a pain to do Spring Cleaning when you don’t have access to a dumpster or your own trash nearby. You might have to load it all into your car and haul it off.
Owning a rent to own storage building makes that entire process a thousand times easier.
Walk out your door and there you go – clean up is a breeze.
11: Catch-All Clauses
Something that you generally don’t pay attention to until it’s too late are the clauses in the rental agreements for storage units.
There are usually “catch-all”, or “CYA” clauses to protect themselves.
Clauses like, “Don’t store anything of “value” in your storage unit”.
Which is kind of funny, because if I’m going to be spending hundreds, or thousands of dollars per year to store something outside of my house… there’s a good chance it’s not trash.
It’s probably something of value worth, I don’t know… paying to store it.
So if you think that the storage company’s insurance will cover your losses when your rental unit goes up in flames, is broken into, accidentally auctioned off, or any other number of things… you’re sadly mistaken.
Chance are – none of your belongings are covered at all. You weren’t supposed to store anything of “value” there to begin with.
12: Make Money With Your Storage Building
In addition to all of the benefits listed above – such as saving money on storage – you can also MAKE money with your rent to own storage building.
ADU (Additional Dwelling Unit)
ADU’s are on the rise across the country, especially as the mortgage rates increase, and inflation keeps ticking up.
People are adding ADU’s onto their properties for many reasons.
Sometimes it’s for a family member to live in (re: college student or grandparent(s)), and sometimes they’re built to use as a rental – either short-term or long-term.
An ADU (Additional Dwelling Unit) is a great way to both save and make money.
A lot of ADU’s are made from rent to own storage buildings!
Starting a Business
The year 2020 inspired a lot of people to pursue their dream of starting their own business. But, sometimes the lack of space can make that difficult.
In come rent to own storage buildings.
Because they are widely available, affordably priced, and easy to acquire, it’s easy to expand your space to start a business by getting a rent to own storage building.
It’s substantially cheaper than what it would cost you to rent or buy a retail or office space in most cities.
It’s also convenient because it’s located on your property.
In fact, the benefits of running your business from a rent to own storage building on your property are the same as many of the same reasons listed above.
So, go ahead… Start that business you’ve always dreamed of doing!
Which Rent To Own Storage Building Are You Buying?
And all that leads us to the final question… what rent to own storage building are you buying? And what will you be using it for?
Hopefully you got a lot of great ideas from this article. If you haven’t had a chance yet, read all my other content about storage buildings and real estate in general!