What's in this article?
- What Will Happen When You Fall Behind On Your Storage Unit Payments
- The Unit Will Go Into Default
- The Management Will Reach Out
- There Will Be Some Waiting Period Before Your Belongings Are Auctioned
- Auction
What Will Happen When You Fall Behind On Your Storage Unit Payments
If you are moving to a smaller apartment, storage units will come in handy because they will give you somewhere to store the items that won’t fit in your new apartment as you figure out what to do with them. However, it’s important to remember that you will be paying monthly rent for the storage unit so it’s a good idea to settle-down quickly after the move and decide whether you are going to sell or toss the extra items to ensure that you don’t end up losing money in the long term.
Let’s take a look at what will happen if you fall behind on your payments.
The unit will go into default
If for one reason or another you are unable to pay your rent on time, you will usually get a grace period within which nothing will happen. This period ranges from a few days to a couple of weeks. When you pay within the grace period, nothing will be done to your belongings.
If you don’t, then that’s when things will start to get ugly. Each rent contract has a point of default defined. This is the longest time you can go without paying your rent. For most of them, it is 30 days. If you take longer than the 30 days, the storage unit will go into default and the management will cut your lock and replace it with one of their own.
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The management will reach out
Once your unit is in default, the management of the facility will try to get in touch with you. That’s why it is important to ensure that you update your contact information with them when you move because their attempt to reach you could be going to the wrong address and that could cost you your belongings.
There will be some waiting period before your belongings are auctioned
Usually, you will get anything between 30-90 days after your unit is in default before they have to auction your belongings. During this period, they will try to reach you and this is a good opportunity to explain yourself to the facility manager. Explain what is going on and you could get yourself a deal that works for the both of you.
Auction
If the facility is unable to reach you or you are not able to make a deal with them, they will have to auction your stuff. They will post an announcement in a local paper with the date, time and location of the auction. You will also get a letter notifying you of this.
The important thing to remember during this process is that the managers want to work with you so that they won’t need to auction. Explain yourself. You’ll be surprised to find out that you can strike a deal to help you keep your belongings and pay the arrears at a more convenient time. You will probably need to move your belongings out immediately after the settlement to make room for another tenant.
Worried about doing this on your own? You may be able to get free legal help.
A storage place can sell your property to pay off any past due amount you owe. But before it sells your property, it has to follow certain steps. The manager has to tell you about the past due amount by certified mail, email or in person. The notice has to include:
- A statement that says how much you owe and the date it became due,
- The name, address and phone number of the storage place,
- A statement that says you have at least 14 days to pay, and that if you don’t pay, the manager will sell your property,
- The time, location and type of sale (for instance, at an auction),
- A statement that tells you if you can get into the unit, and
- Contact information of someone you can talk to to respond to the notice.
If you don't pay within 14 days, the manager can put an ad in the newspaper advertising the sale. The ad must run for at least two weeks before the day of the sale. If there is no local newspaper, the manager can put signs around the neighborhood 10 days before the sale. The ad must describe your property, and the address, time, and place of the sale.
You can stop the sale of your property at any time. You will need to pay the past due amount plus any reasonable costs paid by the storage place. But once the sale happens, your property is no longer yours.
Sometimes the storage place makes more money at the sale than what you owe. Then the manager must pay you whatever is left over after taking out the past due amount. You have one year to claim it.