Trends in ownership versus renting face a pendulum swing. One day you will see recommendations for home ownership, the next for renting only. The things you put in your home or apartment face similar swings in opinion.
The first step many nesters take is an evaluation of the pros and cons of rent to own items. This $9 billion industry exists for a reason, after all.
Your reasoning for considering this path may be about betting on a temporary dwelling, working out of a debt, or a try if you like it mentality.
No matter your reason, this list will provide information to shore up your decision-making acumen.
Weigh the Pros and Cons of Rent to Own
While this information is sourced and reasonable, it isn’t power-weighted. If you have yourself set leaning for or against a plan of action, more info does little to change a stance.
The largest benefit of renting furniture is the low up-front cost. If you have recently moved to a new climate, the rent to own benefits of a heater or air conditioner are high.
These types of systems can be extremely expensive to install and maintain. Rent to own really helps to fight off extreme temperatures in a pinch. If you have pets, you know how important it can be to make them comfortable.
Picking up some solid (read ‘adult’) furniture represents a long-term choice on how you present a home. Rent to own vs. buying furniture lets you live with a few options before making a longterm decision. Companies like Okinus offer many options to find decor that fits you.
Furniture, much like vehicles, depreciates in value each year no matter what kind of care you take of it. Look at a depreciation calculator to understand how long you need to keep something to make a full purchase worthwhile.
What about the drawbacks? Well, there are some definite downsides.
Depending on the leasing, you will pay more than an upfront purchase price on items. Because leasing is not a loan, interest rates come at a premium. Rates as high as 60 percent to 100 percent are common.
Damages to items isn’t always covered. Read contracts carefully to understand the full price and coverage.
Speaking of coverage, fees for cleaning, delivery, retrieval, and insurance are all common. These monthly costs help raise the price of a rent to own item.
If you need furniture on a temporary basis for whatever reason, used items are a better value. You can purchase and find cheap furniture you won’t feel bad abandoning in many areas.
If money is tight because work is transient, late payments can damage credit.
The notion of the pros and cons of rent to own end with a decision. Remember that feeling comfortable with your decision beats any mathematical advantage. The reenergizing and destressing you gain from a properly furnished home pays for itself.
If you want to understand more about how to budget and save in your financial life, check out our toolkit.