If you’ve rented a storage unit, you probably know how convenient it can be for storing your belongings. Whether you’re downsizing, in transition, or just in need of extra space, storage units are a lifeline for keeping your possessions secure. But what happens if you miss a payment on your storage unit? Whether intentional or accidental, failing to pay can lead to some serious consequences. Here’s everything you need to know about missed payments and what to expect.
1. First Things First: A Grace Period
Most storage rental companies offer a grace period after your payment is due. This is typically a short amount of time (e.g., 5–10 days) during which you can make your payment without facing penalties. Grace periods vary between companies, so it’s important to read your lease agreement or contact the storage facility if you’re unsure.
If you’re within this grace period, there’s no need to worry. Simply make the payment as soon as possible to avoid further issues. However, once the window closes, late fees and stricter policies kick in.
2. Late Fees Begin
If you miss your payment after the grace period, the storage facility will usually impose late fees. The specifics of these fees depend on the company, but typical late fees might include:
- A percentage of your rental cost (e.g., 10–20% of the monthly fee).
- A flat fee added to your monthly bill.
These fines are meant as an incentive to pay promptly, and failing to settle them only increases the amount you owe.
3. Access to Your Unit May Be Restricted
One of the first significant consequences of missed payments is losing access to your storage unit. After a certain period of non-payment (often 30–60 days), many companies will deny access until your account is brought up to date.
This policy ensures that customers settle their accounts while protecting the belongings inside the unit. However, for someone who urgently needs access to stored items, this can become a frustrating experience.
4. The Risk of a Lien Process or Auction
If your account remains unpaid beyond a particular timeframe (usually around 60–90 days, depending on state laws and the company’s policies), the facility may start the lien process. This involves:
- Notifying you of the overdue balance and timeline for payment.
- Giving notice that your belongings may be sold if payment isn’t made by a specified deadline.
Should the debt remain unpaid, the storage facility typically auctions off the contents. These auctions are often open to the public, with bidders purchasing the items in your unit to cover the owed balance.
It’s important to understand that storage companies are legally required to follow state-specific laws around this process. Rest assured, they can’t suddenly auction off your belongings without proper notice.
5. Your Credit Could Be Affected
Missing payments could eventually result in negative financial consequences beyond losing your belongings. Some storage companies may report delinquent accounts to collection agencies, which can harm your credit score. A lowered credit score makes it harder to obtain new loans, credit cards, or even rental agreements in the future.
To protect yourself financially, it’s always a good idea to settle overdue accounts before they escalate further.
Final Thoughts
Missing a storage payment doesn’t have to mean disaster, but you should act quickly and communicate with your facility if you find yourself falling behind. From accruing late fees to risking an auction of your belongings, the consequences of non-payment can escalate quickly. Understanding the terms of your agreement and staying proactive are the keys to keeping your account in good standing.