What Are Rent-To-Own Storage Sheds and How Do They Work?

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Storage sheds are a handy solution for your home. Whether you’re looking for extra storage, need a garage, want a large dog kennel, or the perfect playhouse, a storage shed can do the job.

Once you decide on a storage shed with enough space for your needs, it’s time to start shopping for the right model to meet your needs. Smaller units are available that are simply a room, as well as larger units with lofts or porches. As you start shopping, you’ll find pricing varies by model and payment method. Many storage shed sellers offer both cash and rent-to-own options.

What Is A Rent-to-Own Storage Shed?

Essentially, a rent-to-own storage shed is the same as any other storage shed. The only difference is how you pay and when you actually have ownership of the shed. Often, a rent-to-own storage shed is an alternative to a storage unit, PODS unit, or warehouse, none of which will result in you owning the space.

The down payments on the shed are often quite reasonable, costing only a few hundred dollars upfront. Plus, you get substantial flexibility with the rent-to-own payment option. Choosing a rent-to-own storage shed can get you the extra space you need right away or may help you get an upgraded model that better suits your needs.

How Do Rent-to-Own Storage Sheds Work?

When you visit a reputable storage shed dealer, look at the various models and features to determine which one suits your needs and is within your budget. Buying a rent-to-own storage shed requires a small upfront payment, followed by monthly payments until the total cost of the shed has been paid in full, plus the cost of financing.

With this option, you rent the storage shed on a month-to-month basis. While there may be an initial period where you must keep the shed (often the first three or four months of your contract), the rent-to-own payment option gives you the flexibility to return the shed at any time and stop payments. However, you’ll want to confirm with your contract that there is no penalty or requirements for returning the unit. Many rent-to-own contracts also allow you to pay the shed off at any time without any early payment penalties.

As for delivery, every dealer offers different delivery options. Although, you’ll find that many dealers are willing to deliver and help level your storage shed within a specified radius of their location. Otherwise, you’ll have to factor the delivery fee into your initial cost to stay within budget. Some dealers will even come to pick the shed up for free, should you decide to return it.

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How Much Do Rent-to-Own Sheds Cost?

The cost of a rent-to-own shed varies on many factors, including the manufacturer, the quality of materials, the model, available facilities (pre-wired electrical), different finishes and trim, etc. While some dealers offer customized storage sheds, the rent-to-own program may only be available for the units on the lot.

Depending on the specs, storage sheds can cost anywhere from $1,200 to $12,000. But, because you only have to pay a fraction of the cost upfront, you can find rent-to-own storage sheds for as little as $100 a month. Keep in mind, however, that there is a cost to having the rent-to-own payment option.

While this payment method provides convenience, it is often the most expensive way to purchase a storage shed. A portion of your monthly payment will go towards payment on the shed, with the remainder of your payment going to the rental company for releasing the building to you (often a 50/50 split). So, if you take the entire term of the contract to pay off the shed, you’ll pay substantially more (in comparison to a cash purchase).  

Another thing to remember is that while you are making monthly payments, you are putting money towards the shed. If you decide to return the shed, you will lose any money you have paid toward ownership of the shed. This can be a significant loss depending on how long you have been paying on the unit.

Rent-to-Own Shed Terms

Most rent-to-own storage sheds will have a 36 or 48-month term contract. After your initial down payment, you’ll have the length of the term to pay off the shed. Many times, you can even pay the shed off early without any early payment penalties. As soon as you pay for the shed completely, ownership will transfer to you. While there are varying terms you can choose from with rent-to-own sheds, remember that the longer the contract, the more you will end up paying for the shed in totality.

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Pros and Cons of Getting a Rent-to-Own Shed

Rent-to-own sheds help you quickly and conveniently get more storage on your property at an affordable price. Still, it doesn’t mean they are the right solution for everyone. Here’s a quick look at the pros and cons of a rent-to-own storage shed.


  • Rent-to-own agreements are easy to get into and easy to exit
  • No credit check is required, except in cases of missed payment
  • Instant approval with low down payment
  • A portion of your monthly payment goes directly towards ownership
  • Finish paying for your shed whenever you want (cashout option)
  • No penalties for paying off shed early
  • Gives you an opportunity to lock in the price of the shed
  • Quickly get the extra storage you need on your property or job site


  • A rent-to-own agreement is one of the costliest types of financing
  • Only part of your monthly payment goes towards ownership
  • If the shed is returned, you lose any money put down on the shed
  • A credit check will be conducted in the case of missed payments
  • Dealers have a limited radius where they will deliver storage sheds for free

Should I get a Rent-to-Own Shed?

So if rent-to-own sheds aren’t for everyone, who should get one? If you have the option to pay cash for your storage shed, it’s highly recommended to avoid a rent-to-own program, given the cost of such financing. However, if you’re short on cash, rent-to-own is a viable option for those that plan on paying off the shed in the first six months to one year after making the down payment. By paying off the shed early, you’ll save on financing costs while also taking advantage of the low cost of getting storage right away.

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