How Late Can You Be on a Storage Unit?

Storage unit agreements are contracts outlining terms for renting storage space. They detail responsibilities, including timely payment. Failure to pay can lead to escalating consequences for the tenant. Understanding the typical progression of events following a missed payment is important. This article explains the standard procedures and tenant considerations when payments fall behind.

Understanding Late Payments and Fees

When a storage unit payment due date is missed, late fees are assessed. Many storage facilities provide a brief “grace period” before these charges are applied, typically five to ten days after the due date. This grace period allows payment without penalty, but not all facilities offer it.

Once this period expires, late fees begin to accrue, varying in structure. Late fees can be a flat charge, a daily fee, or a percentage of the outstanding balance. These fee structures and grace period details are outlined in the rental agreement. Tenants should review their contract for these terms, as they dictate the financial impact of a missed payment.

The Lien and Notice Process

If a tenant’s account becomes delinquent, a storage facility establishes a lien on the stored property. A lien grants the facility a legal claim over the contents for unpaid rent, as stipulated in the rental agreement. The timeline for a lien varies, often occurring after 14 to 30 days of missed payments, though it can extend up to 90 days.

After a lien is established, facilities send formal notices to the tenant. These notices are typically sent via certified mail, or email if explicitly agreed upon in the rental contract. The initial notice informs the tenant of the overdue amount and specifies a payment deadline, frequently around 14 days. It itemizes the claim and includes contact information for the facility.

If the outstanding balance remains unpaid after this initial notice period, the facility will send a notice of intent to sell the property. This communication reiterates the amount due and explicitly states that the contents will be sold at public auction if the debt is not settled. Maintaining updated contact information with the storage facility is important for tenants, as these notices are the primary way they are informed of the impending loss of their stored items.

Auction Procedures and Tenant Rights

After lien and notice requirements are met, the storage facility advertises the auction of the unit’s contents. Public notice of the auction is required, typically published in a local newspaper for one to two weeks. The advertisement must include:
General description of the items.
Facility name and address.
Unit number.
Date, time, and location of the auction.

The sale cannot take place sooner than 10 to 15 days after the first publication. Storage unit auctions are commonly conducted as “blind” sales, where bidders purchase the contents of a unit without prior inspection. Auctions can occur in-person at the facility or online.

Tenants have a “right of redemption,” allowing them to pay the full outstanding balance, including all accrued fees and costs, to reclaim their property before the auction begins. If the auction proceeds exceed the amount owed by the tenant, the surplus funds are typically remitted to the former tenant. If these funds remain unclaimed for a specified period, they may be turned over to the state as abandoned property. Items of sentimental value, such as photographs or legal documents, if identified, are often returned to the facility for the former tenant to reclaim. Unsold items from an auction may be re-auctioned, disposed of, or become the property of the facility.

Preventing Default

Tenants can avoid the escalating consequences of late payments. Understanding the rental agreement before signing is important, paying close attention to payment schedules, grace periods, and late fee policies. This review establishes clear expectations.

Implementing automatic payments or setting up regular reminders can reduce the risk of missing a due date. Maintaining open communication with facility management is also important if financial difficulties arise. Some facilities may discuss options such as payment plans or brief holds, though this is at their discretion and not a guaranteed right.

Exploring possibilities like partial payments, if allowed, or vacating the unit before a lien escalates, can mitigate financial and legal complications. Keeping contact information, including address, phone number, and email, updated with the facility ensures important notices are received in a timely manner.