Rent to Own
Rent to Own FAQ's
Q. What is the interest rate on my loan?
A. Your rental contract is a lease, not a loan. The difference is that a lease allows you to cancel the agreement at any time for any reason, return the building, and owe nothing further. A loan is a commitment to pay the entire amount, while your rental contract is simply a month by month agreement that can be ended at any time with no further obligation.
Q. Last month my payoff was $400. I sent a payment of $100, but my new payoff is still almost $350. What’s going on?
A. First, we are required to collect sales tax, so that has to be deducted from your $100 payment. Secondly, for each month’s rent, there are rental charges, and after they are deducted, the balance is subtracted from the cash payoff. The payoff amount represents a savings of 40% versus paying rent for the remaining months of the contract. Also, if there were any late charges due, they further reduced the amount being applied to the payoff.
Q. If I send extra money with my payment, will it applied to the principal?
A. There is no principal in a true lease. If you send extra money, it will simply pay extra months of rent ahead, and those rental payments do include our rental charges. The best deal for you is to make your monthly rental payment on time each month, and then when the payoff amount reaches a comfortable level, you make a single payment to purchase the building. The payoff includes no rental charges or fees whatsoever. It is simply the remaining balance of the cash price, plus your state’s required sales tax. There is no penalty for early payoff, and we recommend that you take advantage of that option.
Q. Can I have a printout showing the interest I paid last year so I can deduct it from my taxes?
A. We can provide you with a printout showing your payment history. However, since you are renting this storage building, there is no tax deductible interest included in your rental payments. Sorry, Uncle Sam set that policy, so don’t blame us.
Q. I love my new barn, but it’s too small. Can I trade it in for a larger one?
A. You have the right to end your lease and return your current building. Whether you are eligible for a discount on a larger barn will be determined on a case by case basis. We have to deduct our hauling and delivery costs, but if your history on the current account is good, we may offer you a discount on a larger building. Call us when you’re ready to upgrade, and we’ll review your account and make you an offer.
Q. My payment history with you has been very good. Will you help me improve my credit by reporting that?
A. We appreciate your excellent payment history, but unfortunately we do not report to any credit agencies. Our rental agreement is not legally defined as a credit transaction, so whether the payment history is good or bad, your transactions with North Country Storage Barn Rentals do not affect your credit score.