How Do Rent To Own Sheds Work? – The Complete Guide
Wondering how rent-to-own sheds actually work? This guide covers everything you need to know, from what a rent-to-own shed is and how payments are structured, to questions about early payoff, credit impact, and how it compares to self-storage.
If you’re exploring your first shed or weighing payment options, this article offers clear, honest answers to help you decide if rent-to-own is right for you.
A rent-to-own shed is a storage building that is leased on a monthly basis with part of the rental fee going toward leasing services and the rest toward the base price of the building, accruing until full ownership at the end of the rental term.
Basically, the rent-to-own agreement provides monthly payments in order to pay off the desired shed. Once the original price of the shed is paid off through these monthly payments, the shed is fully owned by the renter/buyer.
Rent-to-own sheds don’t charge interest like a loan. Instead, the extra cost comes from leasing service fees built into your monthly payments. These fees cover the flexibility and services provided during the rental period, like no credit checks and easy returns. You can estimate the total leasing cost like this:
10×12 Barn Shed: $125.38/mo for 48 months = $6,018.24 total
One-time price: $3,009
Leasing cost: $2,967.44
If you can pay upfront, you’ll save more in the long run.
Rent-To-Own vs Self-Storage
Compared to renting a unit, a rent-to-own shed is often a better deal, especially long-term. That same 10×16 shed could cost less over 4 years than a smaller 10×15 storage unit in Pittsburgh, which runs $139 – $239month. And when you’re done paying for your shed, you own it.
Quick Comparison:
Rent-To-Own Shed
Self-Storage Unit
Yours after final payment
No ownership at all
Unlimited access
Limited hours
On your property
Off-site travel required
Build equity & property value
Ongoing expense with no return
Think of a rent-to-own shed as an investment. At the end of your payments, you’re a shed owner.
If you’re thinking about going the rent-to-own route, here’s what the full process typically looks like from start to finish:
Step 1: Look At Your Budget
Start by deciding what you’re comfortable paying each month. This will help determine the size of building you can afford and the term length (typically 24, 36, 48, or 60 months). If you’re unsure what fits your budget, we’re happy to walk you through options. Let’s talk through your budget together. Start with a Quick Quote
Once you’ve selected a structure, it’s time to finalize the details. This includes siding and roofing colors, door and window placement, and any upgrades like lofts, ramps, or shelving. Your shed dealer can guide you through every choice.
Step 4: Sign Rent-To-Own Agreement
After finalizing your order, you’ll review and sign a rent-to-own agreement. This outlines the monthly cost, total term, responsibilities, and what happens if you return the shed early. At Gold Star, this agreement is handled through a trusted partner who specializes in rent-to-own services, ensuring your experience is smooth and transparent. Once you’ve reviewed the contract, your signature is required to finalize the rent-to-own agreement. (You can see a sample copy of our rent-to-own contract here.)
Step 5: Make First Payment
Your first payment usually includes one month’s rent, sales tax, and any required fees. Delivery is free within 25 miles, and some wider buildings may require a refundable security deposit. Your dealer will provide a full breakdown.
Once the paperwork and initial payment are complete, your shed is scheduled for delivery. Delivery times can vary depending on whether it’s in-stock or custom-built, but most sheds arrive within a few weeks.
Is Rent-To-Own the Same as Financing?
No, rent-to-own is a lease, not a loan. Financing involves a credit application and affects your credit score. Rent-to-own requires no credit check and won’t impact your credit, even if you return the shed early. It offers more flexibility, especially for those who may not qualify for traditional financing. If you’d prefer traditional financing, we also offer that option through a trusted lender. Contact us to explore both choices.
The cost of a rent-to-own shed depends on two main factors: the initial price of the building and the length of the agreement you choose. Most rent-to-own contracts are available in 24, 36, 48, or 60-month terms.
Shorter terms mean higher monthly payments, but a lower total cost in the end. Longer terms give you lower monthly payments, which may be better for your budget, but you’ll pay more overall due to the leasing service fees built into the agreement.
Here’s a quick example of how monthly rent-to-own payments can vary depending on shed size and term length:
Yes! You can pay the remainder of the price of your shed anytime during the term. Some rent-to-own companies charge an early purchase fee if you want to pay off the remainder of your building price early. (Gold Star Buildings and our rent-to-own partner, Scotts RTO, do NOT charge such a fee.) Be sure to review the details of your rent-to-own contract, prior to signing, to see what options are available for early purchase.
What Drives Your Search for a Rent-To-Own Shed?
Do you need extra space? Maybe you’re inspired to start a backyard business or simply declutter your home. Maybe you’re renting a storage unit across town and would like a more convenient and flexible solution. At Gold Star Buildings, we understand that finding space for the things you already have makes it easier to make room for other things you want to have and achieve in the future. Our buildings can serve as storage, workspace, hobby areas, or future retreats, and with rent-to-own, you don’t have to sacrifice financial stability to get started. Whatever your reason, we’re here to help!
Your experience matters. At Gold Star Buildings, we believe every customer deserves fair pricing, honest terms, and quality craftsmanship. From the moment you choose your shed to the day it’s delivered and beyond, we’re committed to providing support, clarity, and service that exceeds expectations. We also stand behind our sheds with solid warranties, including 40-year coverage on metal roofing and siding, and a limited lifetime warranty on treated wood. Rent-to-Own should never feel risky, it should feel empowering.
No, a rent-to-own shed does not affect your credit score. Rent-to-own agreements do not require a credit check because they are not loans.
No, not during the rent-to-own period. Most contracts prohibit use as a dwelling until full ownership is achieved.
No. Most rent-to-own agreements specify that the building is not to be used for housing animals until it is fully owned.
No problem. If your payments are current, you can return the building without penalty.
Yes! Used or repossessed rent-to-own sheds are occasionally available at a discount.
It dependson what you’re comparing to! A rent-to-own shed always costs more than buying the same shed with a one-time payment. However, the overall cost is usually the same or less than renting a self-storage unit for the same time period.
If you’re in the area, stop in and visit us at one of our dealer locations and see our rent-to-own buildings for yourself. We’re happy to answer any other questions you have about how rent-to-own sheds work!
