Why Rent to Own?

Is Rent-to-Own a sound sales tool for the shed builder?

The answer is clearly, Yes! It is true that Rent-to-Own contracts require some extra time and effort, but it is also true that increased sales and customer satisfaction more than make up for the extra effort.

Rent-to-Own provides the shed builder with an opportunity to greatly increase sales to a customer base that is already present in their local market. Rent-to-Own is a storage solution for customers who do not have cash available or access to credit for standard financing. These individuals become potential customers as soon as Rent-to-Own is made available. Offering even a simple Rent-to-Own plan will increase the size of your local customer base, without needing to increase the number of sales lots or adding dealers in other geographical areas. There is no increased risk to the builder since the Rent-to-Own company assumes that risk. A little more time is required to help a customer understand RTO and then complete the needed application. The builder or dealer receives full retail price for the structure and frees up capital to allocate in other areas or build more sheds.

What about returned sheds?

Returns are not necessarily a financial loss. The returned shed will attract new customers since there is a segment of shed buyers looking for a bargain. A rental return brings customers to the sales lot eager to buy, sometimes this leads to the sale of a new storage shed or barn.

Rent-to-Own is also good for the customer.

RTO can solve storage problems quickly for customers with a genuine storage need but an unsure financial future. Now, these customers can receive immediate benefit from a storage building even though their budget does not allow for an outright purchase. Customers can earn ownership one day while enjoying the convenience of secure, dry storage on their property today.

There is little to no credit hassle with an RTO contract unlike traditional retail financing. And there is no real or lingering financial liability since the RTO contract can be cancelled and the building returned. The Rent-to-Own company handles, manages, and minimizes the risk associated with the RTO contract while serving the retail customer’s needs, and maintaining ownership of the rental building until the contract is completed or terminated.

Many people face financial challenges due to a job loss or when moving for work. The rented building can be returned or moved if needed. RTO offers flexibility for the customer as life’s circumstances change, without the damage to personal credit and being locked out of future shed ownership. Later, this same customer may become a repeat customer when their circumstances change.

Teaming with the right Rent-to-Own Company.

For both the shed builder and the rental company, many of the perceived negatives of Rent-to-Own can be eliminated by partnering with a rental company that is knowledgeable, professional, and has the financial resources for long-term growth. The Rent to-Own company with excellent customer service is going to add value to a builder’s overall success because customer satisfaction with the RTO financing company is going to be reflected back on the builder as well.

There is more to running a successful RTO company than having some money and buying some sheds. A Rent-to-Own company needs to understand details and should comply with Rent-to-Own laws. “Flying by the seat of one’s pants” is a recipe for disaster. No one can be sure how long they will be able to survive. This is means all parties, builder, dealer, customer and RTO company. There is no substitute for maintaining a high degree of legal and financial excellence. This practice develops a healthy business environment for all. Trust the independent members of NBSRA who have taken steps to educate and inform themselves about providing the best Rent-to-Own program for builders and dealers, and how to work with retails customers professionally and ethically.

Why Rent-to-Own? It is good for each party involved. The customer has their need for storage met while they work toward ownership. The builder increases sales and improves cash flow in their already working marketplace.

By | 2018-04-04T16:30:42+00:00 April 4th, 2018|NBSRA Articles|164 Comments

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