What happens if you stop paying for storage

Many people use storage everyday, whether it is to put furniture in storage while moving, store company stock, or simply create more room at home.

However, what actually happens if you don’t pay your account?

Understanding what happens when you stop paying your storage unit should help prevent the loss of your possessions and keep late fees down and preserve good relations with your storage facility.

This article explains the process step-by-step and gives the information on how storage facilities usually handle missed payments, what rights they have and the options that are available if for any reason you can’t pay your rent.

What happens when you miss your first payment

Normally, the process starts with a simple reminder. If you forget your payment or can’t pay, most storage facilities will contact you to let you know your account is overdue.

This contact can be done via phone, email or formal letter.

Most people miss a payment because of the expiry date on a card or a direct debit problem, so this can often be resolved in a couple of days.

At this stage your storage unit is still available for your use. The number one goal of the facility is not to have your possessions forfeited but to get the rent paid. However if your account is still in arrears for too long of a period of time, all will not be the same.

What happens when you miss multiple payments

When the missed payments have extended for a number of weeks, most self storage providers will lock your storage unit so that you don’t have access to it.

This means that you will be prohibited from accessing your unit of storage until the outstanding payment is made. This prevents a person from being able to stand there and pay nothing but yet take the goods belonging to him in the storage unit.

This clause is necessary in order to induce people to pay and also to protect the rights of the storage facility in regard to the possessions which are stored in the storage unit.

If you are behind in your payments by 30 to 60 days your storage facility will usually send you a legal notice in writing. This will inform you of the amount you owe, the penalties that will occur and what other steps will occur if you do not pay within a certain time, which is usually 14 days to 30 days from the date of the notice.

The storage facility may also charge you additional charges for penalties of non-payment, late penalties or at the discretion of the rental agreement given to you by the facility where you remain behind.

It is most important therefore that you read your agreement carefully and see what the penalty is for not paying on time and what time you have to make good the late payment before further steps are taken.

The Legal Right of Lien

By the law of the United Kingdom, any storage facility you are in charge of has what is called a lien over the goods you have in storage. This lien gives it the right to have the legal possession of your goods and the right to take good care of of your goods or to dispose of them in case you do not pay your rent which is due.

If your storage facility is determined to enforce its lien, a very definite procedure will be followed to accomplish its purpose. You will receive a letter from them with the warning that if you do not pay within a certain time, that the goods which are in your self storage will be sold or otherwise disposed of.

This is not an idle process for it is well within the power given to them by law in the event that you remain in default of payment.

The assurance that you may have is that you must always receive due notice of at least 14 days, but storage facilities have sometimes given longer notice than that, according to the management of their actual facility.

During this period you will still be able to pay off the outstanding charge and re-gain access to your self storage unit in full.

When Your Goods are Sold by Auction

If you don’t respond to the Letter itself, the storage company is entitled to commence the process for the sale of your goods.

This usually refers, but is not limited to, putting up for auction the items in the storage facility in order to recover unpaid rental on the unit and any additional amounts attached. The auctions are either held on the internet or actual sales are held governed by the method in which the company chooses to conduct their affairs.

The auction normally refers to the auctioning of all items in the storage facility, goods ranging from furniture or electrical goods, photographs, videos etc.

Once these goods are sold, usually the proceeds are used to settle the balance of rental and any other charges made. If there is any balance of money after the payment of these debts has been discharged, the company at its discretion, may pay the excess back to you, although this is a very rare occurrence.

Loss of Access to your Storage Facility.

Once you are in arrears on your account, access to the storage unit involves limited facilities, often after one or several payments have been missed, dependent upon each storage agreement.

Some storage facilities even go to the extent of putting on locks or codes which are automatically deactivated when the account is overdue.

Loss of access means you will be unable to remove your goods from the storage unit until the charges and additional payments involved have been discharged.

The facility protects the belongings until they are resolved, but does not release yours until they are paid in full.

Possibilities Before Auctioning

If you will be unable to meet a payment, contact the storage provider without delay. Most storage facilities will discuss the possibilities for avoiding an escalation of the situation.

Some are able to put you on a temporary payment plan to spread the balance out over a matter of weeks which gives you breathing room and retains your storage problem.

You can downsize your storage area or reduce your usage of it in order to find a smaller rent.

These are approaches that show good faith and ward off additional fees.

Don’t ignore letters or calls, communication lets you keep your belongings safe and your account in good standing.

If a change in your economic situation, a job or illness, has changed your status, be truthful about it.

The timeline

Every facility has its own chronology, but the facilities operate along the same lines in most cases.

After the first failure to make a payment you will receive notice. After 30 days your access to the goods may be cut off. After a time period of 45 to 60 days, a firm and final notice will be sent to the Owner advising them of the amount due as rent and the legal steps which will be taken regarding the storage space and the goods stored, in the event he fails to make payment.

At which time, the various contents of the space will be listed and readied for sale. Some storage facilities take photographs of certain stored goods and use them as an aid to fully establish proper record of their sale and for classification of goods for sale by their owners and management.

The Emotional Side of Losing a Storage Unit

To many, losing a storage unit may affect you emotionally. As you may be storing family heirlooms, cherished photographs and other personal belongings.

If you can't pay for your unit, let the self storage staff know, as a payment plan could be used to stop you from losing your most precious items.

Know Your Rights

While storage companies are permitted to enforce payment through lien, they are bound by certain laws. They may not sell the goods of owners without first giving notification that payment is overdue.