The ULTIMATE “Self-Storage” Solution!

RentAShed.com:
How does it work?

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The technical term for this type of arrangement is “Lease-purchase.” Some other terms that apply are Rent-to-Own, rent-to-buy, lease with option, rent with option to buy, and a few others. Here’s how it would work in a typical scenario:

John Doe wants to rent a shed. He surfs the website, finds a RentAShed store just down the road from him, and pays them a visit. Larry, the sales consultant at the shed store, helps John design his shed. He needs a 10X16 barn-style building with a 6’ wide double door (to get his mower in) and one window (for light and ventilation).

Larry quotes the building, and the cash purchase price comes to $2119, including deliver and setup, but no sales tax.

Then, Larry figures John’s rental amount based on the $2119 cash purchase price. It comes out to $98.11. John laughs, “I’m paying a hundred bucks for a 10x15 unit just down the street!”

Next, Larry adds in Virginia state sales tax ($4.91) and the Liability Damage Waver ($6.00) that John opted for (he’s setting the building between two dead pine trees.) That brings the total monthly rental amount to $109.02.

Larry does some more math, and shows John that if he rents for the full 36 months, he will pay a total of $3531.96 in rent, not including the LDW or sales tax. John laughs again. “I reckon I’ve been renting that storage unit for about 5 years now, and it’s cost me almost $6,000!”

John picks his colors and orders the building. He pays Larry the $212.04 deposit needed to get the building ordered and delivered. The initial deposit is simply the first month of rent ($109.02), and a deposit of $103.02 (rent+tax, no LDW), which will be credited on the end of the contract.

Four weeks later, the building shows up in John’s backyard. He rents it happily until his next tax return, and then calls Larry to find out what his cash payoff is. Since he has rented for 8 months, he has paid a total of $784.88 toward the total “contract amount” of $3531.96. The amount left on the contract is $2747.08, which Larry multiplies by 0.6 to get the cash payoff amount ($1648.25). John writes a check for $1730.66 (cash payoff + VA sales tax), and now owns the building free and clear.