When you rent a storage unit, it seems like a simple and convenient solution to your space issues. However, as with any agreement, obligations come with it—one of the most critical being regular payments. But what if you can’t pay or simply forget? What actually happens if you fall behind on your storage unit payments?
This article will explore the consequences of non-payment, what options you might have, and how to avoid losing your belongings.
Missed Payments and Late Fees
If you miss a payment for your storage unit, the first consequence is typically a late fee. Most storage unit companies have clear terms in your rental agreement regarding due dates and grace periods. Once you’re past the grace period, expect to incur additional charges. These fees can stack up fast, making it even harder to catch up on payments.
Locked Out of the Unit
The next step in the process is usually restricted access. Many facilities use a system where your unit is locked within their property until payments are reconciled. This means you won’t be able to access your belongings—and for many, this is the wake-up call that payments are overdue.
Risk of Auction
Storage facilities have the legal right to auction off the contents of units with overdue payments. Once you’re behind by several months (the exact timeline varies by state and facility), the storage company is permitted to sell the contents of your unit to recover the owed balance.
The auction process usually looks like this:
- You are given a formal notice of delinquency, warning you of a potential auction. This notice often includes the amount you need to pay to avoid this step.
- If payment isn’t made, the storage company schedules a public auction. Often, these auctions are announced online or through local postings.
- At the auction, your items are sold to the highest bidder. While this may sound extreme, it’s an industry standard to protect the financial interests of the facility.
Additional Costs
Even after your items are auctioned, you may still owe money to the storage facility. If the sale of your belongings doesn’t cover the total amount due, the facility might seek legal action to recover the remaining balance. Unpaid balances could show up as a negative mark on your credit report, making future financial decisions more challenging.
Can You Prevent Losing Your Belongings?
If the thought of losing your belongings makes you nervous, don’t worry—you still have options, even if you’re a little behind on payments.
- Contact the Facility Immediately: If you know you’re going to miss a payment, inform the storage company. Many facilities are willing to work out payment plans or give you an extension to avoid escalation.
- Catch Up During the Grace Period: Use the grace period wisely to bring your account back into good standing without accumulated late fees.
- Retrieve Essential Belongings: If access to the entire unit is restricted, ask the company if you can pick up some critical items before further actions are taken.
- Downsize or Cancel: If the unit is no longer affordable, ask if you can downsize to a smaller one or move your belongings elsewhere. This can help reduce your monthly costs.
How to Avoid Payment Issues in the First Place
- Set Payment Reminders: Use apps or calendar notifications to ensure payments aren’t missed.
- Automate Payments: Many facilities offer auto-pay options, so you’ll never risk forgetting a payment.
- Be Realistic About Costs: Only rent a storage unit that comfortably fits your budget. Going for a bigger or pricier space than needed can lead to long-term financial headaches.
- Consider Insurance: Some renters’ or storage insurance policies cover losses, including auctioned goods. Check your plan to see if this is an option.
Final Thoughts
Falling behind on storage unit payments can bring real consequences, from late fees and restricted access to losing your belongings in an auction. But with good communication, proactive budgeting, and quick action, you can avoid the worst-case scenarios.
If you’re currently in a tough spot with your storage unit payments, reach out to the facility as soon as possible to explore a resolution. A little effort now can save you a lot of stress (and your belongings) later!