This post is for anyone with questions about buying out a used modular building that is currently under a lease agreement (rented) with a modular building supplier or third-party leasing company. In the modular building industry businesses, schools, and churches lease modular buildings to solve temporary space needs. In many instances, a "temporary" modular building becomes a "permanent" facility as time passes. This also means that the monthly lease payments continue unless the structure is bought out of the lease agreement. Does this sound familiar?
If you are in a similar situation, it may make sense to either buy the modular building from the leasing company or replace it with a new model. In either case, several considerations can save your organization thousands of dollars and days of downtime.
If you are currently leasing/renting a modular building and are considering buying it out of the lease agreement, think about these questions and concerns:
1. Is the modular building in good condition, and will it be needed long term?
2. Is the modular building the ideal size for your space needs, or is there a possibility that you will need more offices, bathrooms or classrooms in the future?
3. Is the modular building in a location where it can easily be removed and/or replaced in the future?
4. Have you tried to negotiate the current lease or rental rate with the supplier?
5. Is the supplier willing to offer you a reasonable sales price to buy out of the lease and take ownership of the modular building?
6. If you decide to remove and replace the modular building, be sure you can terminate the lease agreement without an early termination or buy out penalties.
7. If you need more space and want to replace the modular building with a larger model, be sure you can obtain a new building permit from your local building and safety office for the replacement model.
8. Always calculate the total costs of buying out the current modular building and compare that to the total expenses to remove it, purchase a new model, and have it delivered, installed, and connected to utilities.
If you have questions or want to speak to a modular building expert call the Modular Building Help Line for nationwide assistance. We can also help you negotiate the best possible purchase, whether it's for a buy out or a new modular building. Dial (800) 806-7485 or email matt@iModular.com.
This blog post was approved by iModular.com, a GBM Marketing, Inc. web property.