While renting a self storage unit can be a convenient way to keep extra belongings safe and secure, if you regularly fail to pay your self-storage bill, you may risk having the items in your storage unit sold at auction by the owners of the facility. In most states, the owners have a legal right to sell property to recoup financial loss due to unpaid storage bills. This is because most storage contracts act as a lien on the belongings that you store in the storage unit. Here are five tips to make sure you are able to make your payments on time and avoid an auction of your belongings.
Opt for Online or Automatic Payments
If you rent a storage unit that you only use once or twice a year, it can be easy to forget to go to the storage center and make your payments. Also, if you are renting at a small storage center, the owner may not always be available to accept your payments. To make your payments more convenient, you should look for a storage center that offers either online payments or automatically recurring payments. Many systems that accept online payments will send an email or text message to remind you each month when your payment is due but you have to sign in to approve the payment. Alternatively, automatic recurring payments are deducted from your approved bank account or credit card each month on an agreed date.
Check the Status of Your Storage Unit Regularly
It may be possible for you to miss a payment without realizing it. For example, if you have recurring payments set up on a credit card that is lost or stolen, you may forget to change your payment to your new card and miss a payment. Because of occasional issues like this, it is important to regularly check the status of your account, either online, in person, or over the phone.
Know the Auction Laws In Your State
Each state has different laws regarding the right of the owner of the storage facility to auction items in storage. For example, many states require multiple notices be sent to you or placed on your storage locker. Other states require that a notice be put in a public place, such as a newspaper. Many states also limit how soon after a missed payment an owner can auction your belongings. If you know the rules in your state, you will be better prepared to prevent your items from going to auction in case you miss a payment.
Choose a Storage Company With Lenient Payment Regulations
Just as each state has its own laws regarding storage auctions, each storage center has its own contract regarding when it will auction your belongings. Many storage centers have rules that are more lenient than the state regulations. If you are concerned that you might miss a payment on your storage unit, then you may want to opt for a storage center that has a more lenient late-payment policy. For example, look for a center that locks you out of your unit as opposed to auctioning your belongings or look for a facility with a longer grace period.
Communicate With the Owners of the Storage Unit if You Expect to Miss a Payment
If you expect to be late with one of your payments, it is best to let the owner of the storage facility know as soon as possible. Depending on your rental history, they may allow you to make a partial payment or a late payment with no penalty. Additionally, they can inform you of the exact amount of time that you have to make your missed payment before you are locked out of your storage locker and how long you have before your contents are auctioned.
While you do not have to be worried about storage auctions if you pay your storage bill on time, it is important to know what will happen if you miss a payment and how to prevent the auction process.Share
29 April 2016
After I realized that my finances had hit an all-time low, I started looking into my accounts. I realized that one of my biggest bills was my monthly storage unit since I was renting a large unit. To save some money, I decided to talk with a storage unit manager to see what I could do. They were able to give me some great tips, and I was able to transfer to a smaller unit. This blog is all about lowering your storage unit bill so that you can get a handle on your finances. With a little research, you can free up some of your cash flow.