Renting a storage unit is a cost-effective and convenient option for people who want to keep their belongings in a safe and secure place but don’t have enough space at home. Storage units are kept in high-security areas to prevent theft. Moving and storage service businesses ensure that units are maintained regularly so your items are protected from environmental hazards and kept in mint condition.
While most storage facilities are affordable, paying the monthly rental fees could be difficult for people burdened with other debts. Just as when you miss paying your home mortgage or credit card bills, falling behind on your monthly rent can also lead to unfavorable consequences.
You can expect the following to happen when you’re unable to pay for your monthly storage unit rental.
Your Unit Will Go into Default
The point of default is usually between five to thirty days after your rent is due. You should check your lease agreement for the exact period as not being able to settle your payment within the default period will lead to lien enforcement.
When you default, the storage facility owner will prohibit you from accessing your storage unit. You will only be able to regain access once you pay the past-due amount.
You Will Receive Notification
Self-storage businesses are bound by lien laws that they need to strictly follow to avoid small claims court cases. The storage facility owner will try to contact you at least once to let you know that you’ve missed a payment. Communication is done either through phone or snail mail. Many states also use email as a valid mode of communication since some homeowners may have changed addresses and may no longer receive the notification on their last known mailing address.
Your Unit Will Be Advertised for Public Sale
When you fail to settle your rent within the default period, your facility owner can advertise the sale of your unit. Advertisements are usually published in newspapers for two consecutive weeks. In remote areas where there are no local publications, advertisement may be through flyers and announcements.
Your Credit Score Will Be Affected
Unpaid storage rent can also affect your credit score. This can happen even when your unit has been auctioned off but the auction price was not able to cover the full past-due amount. You can settle this amount with your storage facility owner, however, you won’t be getting any of your items back. When the balance remains unpaid, the facility owner can turn over your debt to a collections agency, which will eventually hurt your credit rating.
Your lease contract contains all the information you need to know in case you are unable to pay your storage unit rent. As a tenant, it is important that you read through and understand the contents of your lease contract before signing it so you would know what will happen if you miss any payment. This will also save you from the stress of facing an embarrassing situation when your unit is auctioned off.
