Should I Buy Or Lease My Alarm System?

While shopping around for a home security system, you will find that most security companies will either sell or lease the equipment (cpu, keypads, sensors, etc) of the security systems they install. Some companies base profits on the sale and installation of the equipment and require a 3 to 5 year lease/monitoring contract; their profit comes from your ongoing monthly payments. That’s why the up-front cost of an installed "sold" system is considerably higher than for an identical leased or "free" system. To attract customers, some companies will offer a "free" or very low priced alarm system. But be careful, these ultra low cost systems are often very basic. By the time you add the items necessary to provide adequate protection, you may pay substantially more than if you had chosen a comparable traditional installation package.

When a company sells you the equipment for a security system outright, you own it forever. Once the warranty expires, you’ll have to pay for any service or maintenance required. However, if the system works just fine but you become dissatisfied with the monitoring service, you can easily change companies without replacing the equipment. So if you decide to purchase your security system, insist on equipment that is standard, and not "locked out" to other security companies. "Locked out" simply means that a four or five digit installer’s code is required to access the alarm’s programming features. Some companies (especially the "free" alarm companies) charge ultra high service fees to unlock your system.

Leased systems remain the property of the security company. Your monthly bill usually combines the fees for lease of the equipment and 24 hour monitoring. If you cancel the service, the security company can come and remove the system from your home. Security lease and monitoring contracts vary widely from company to company. Some allow you to cancel anytime without penalty. Others obligate you to pay the entire remaining balance of the contract immediately if you cancel for any reason. This almost always applies to the "free" alarm system option, as well.

Above all, be sure to read any security contract carefully, and make sure you understand all the terms before you sign.

About the author:
M Adley has over 10 years experience in the security industry and is webmaster at alarmsystemreviews.com, an unbiased resource for reviews and information about burglar alarm systems and monitoring. Home Security System and Personal Alarm.