What Happens if You Don’t Pay Public Storage? Let’s Find Out

Storage facility tenants are just like any other tenants. Upon signing the contract, you’re committed to paying storage unit rent for a particular period. The payment terms are explained in the rent agreement.

But what happens when you don’t pay the storage company on time? We’ll talk about storage unit auctions and the consequences of having outstanding debt for better guidance.

What Happens if You Don’t Pay Public Storage?

The consequences depend on how long you don’t pay the storage solutions company. The worst-case scenario is that your belongings will get auctioned off to cover the company’s losses.

Basically, if you don’t pay the self-storage unit on the agreed date, you’ll get a reminder to make a payment. The lease agreement outlines the grace period, payment policies, and auction process. Your storage space won’t automatically be emptied and auctioned off immediately because the storage manager has to follow the legal process of handling payments.

Getting Reminders

If you fail to make payment on time, the property manager will be legally obligated to contact you with a reminder to pay rent. This can done through various means, including a written notice, e-mail, or phone call. This is why you must keep these details updated.

This reminder would detail delayed payments and late fees. You can contest if the property manager is making you pay fees that are not detailed in the contract.

The storage company will probably contact you as best they can because the lien process can be more expensive. As much as possible, they’d want you to pay the storage fee to avoid extra work.

Payment Policies and Grace Periods

Not all storage unit contracts are the same. There are monthly contracts, short-term contracts, which usually range from three to six months, and long-term ones, which can extend for at least a year. The contract should indicate your due date and the amount to be paid.

It should also indicate how you’re supposed to pay the storage company accordingly. The most common payment terms are in-person, online, and by mail.

The contract should indicate how long you would have until your storage unit content is to be sold. You would likely have a 30-day grace period to pay your outstanding debt. It would be very costly for the storage company to sell your belongings, so they would give you enough time to sort out payment.

Being Locked Out From Your Storage Unit

Let’s say you missed paying during the grace period. This is when the storage manager will deny you access to your unit. This is officially when your unit defaults.

If you enter your storage unit through a lock and key, the locks must be changed with a red lock so you can’t enter your unit. If it’s electronic, the access code will be changed. There’ll also be a sign outside the unit indicating that you cannot enter.

Storage Liens Auction

Storage facility managers and landlords can auction your belongings if you fail to pay to cover missed payments’ losses. The property manager won’t automatically auction your belongings stored in a unit. Depending on the law governing lien regulations, there should be a 30 to 90-day grace period between the default and auction.

During this period, the property manager will try to contact you to make payment. They are legally obligated to tell you their intentions of selling your belongings during this period.

Why is this so important? The entire process of selling a unit’s content can be costly for companies. That’s why they’d want to avoid this scenario as much as possible. However, they must sell the content to make up for their losses.

In most cases, the profit from the auction isn’t enough to cover the costs of overdue rent and the cost of having the sale in the first place. If the profit from the sale doesn’t cover the amount the customer owes, a collection agency usually handles the remaining amount due.

If the auction brings more money, the excess must be sent to you through a check as mandated by the law. Any checks deemed undeliverable are considered abandoned property and disbursed as the law requires.

Special Considerations for Service Members

However, there are special considerations for active-duty military members. The Servicemembers Civil Relief Act (SCRA) stipulates that a storage company can’t enforce a storage lien on military tenants while on active duty unless that company gets a court order. This protection applies up to 90 days after the active duty period ends.

While the company can still charge late fees, it cannot follow the abovementioned standard protocol.

Consequences of Violating the SCRA

What happens if the company doesn’t honor SCRA protections? While violating the SCRA won’t warrant jail time, it can be expensive. Violators of the SCRA are required to pay thousands of dollars in fines. While the amount may be manageable for conglomerates, this can be very costly for small businesses.

What To Do If You Can’t Pay a Storage Facility on Time

If you don’t have the means to pay your storage unit within the allotted period, you can explore different options, including the following:

1. Read the lease agreement thoroughly: Your contract might contain provisions to help you better manage your outstanding debt.
2. Advise the storage facility manager: The manager might be flexible and give you more lead time to pay for your self-storage unit.
3. Negotiate for flexible payment terms: You can request better payment plans that suit your budget.
4. Consider moving to a smaller unit: It might be more cost-efficient to move your belongings to a smaller unit. However, you’ll have to move out of your current unit immediately because you’ll be breaking your lease.
5. Activate SCRA rights if eligible: If you’re an active duty service member eligible for SCRA protections, you should take advantage of this federal law. It can make focusing on your military duties easier.

Conclusion

Non-payment to a storage facility can be stressful for tenants and the owner. If you don’t pay on time, you risk losing your belongings. Fortunately, the SCRA protects military tenants from the stress of losing their belongings.

However, the law mandates that one prove one’s eligibility for SCRA protections. This is where SCRACVS can help. Click here to sign up at SCRAVS and verify the active duty status.

FAQs

What happens if you stop paying for storage?

The facility will contact you about your missed payment and default your unit if you don’t pay within the grace period. After 30 to 90 days, the company can sell your belongings.

What are the requirements for SCRA notice?

The SCRA notice must specify which SCRA protection you’re requesting. It should also indicate your active duty period because certain SCRA protections are applicable only for a specific period.

How do I apply for SCRA benefits?

You must present evidence you’re eligible for SCRA protection. You must also provide a written notice of your request to uphold a specific SCRA right.

How long do I have before my belongings are auctioned off?

It depends on the state regulations that govern storage liens. In most cases, you’ll have between 30 and 90 days after your unit goes into default before your belongings are auctioned.

Can unpaid storage fees affect my credit score?

Yes. Unfortunately, a storage facility can report your outstanding debt to credit bureaus, which may affect your credit score. The severity of the consequences depends on how much rent is owed.

What should I do if I can’t afford my storage payments anymore?

You can negotiate the payment terms with the manager or break the lease. Alternatively, you can move to a smaller unit to better manage expenses.

Are there any legal rights protecting me from losing my belongings?

It would depend on state laws that govern storage liens. However, the law stipulates that the facility should contact you several times before selling your things.

How can I avoid late fees on my storage unit?

You can set automatic payment to avoid paying late fees. Alternatively, you can negotiate for better payment terms that suit your budget.