What happens if I don’t pay my self storage charges?

By Angus on October 12th, 2010 | 2 Comments

What happens if I don’t pay my self storage charges?

When you sign up a storage unit you may not think about what happens in the longer term. Some people do end up finding it hard to pay for their storage, or they don’t make the payment for some other reason. We look at what happens in these situations.

“I’m behind with my ‘rent’ – might my things be sold or thrown out?”

Yes! Most self storage companies will be letting space to their users on a licence which gives them the legal authority to dispose of your stuff a short time after you fall into arrears.

Very few storage companies will throw out your stuff without waiting some extra time and making at least two attempts to contact you, and usually several attempts more.

If at all possible you should pay up and then consider seriously whether you can afford to keep on your storage. If you cannot pay all the arrears, you should talk to the storage manager. He or she may even do a deal where you pay some of what’s owed (maybe half) and agree to move your things out on that day.

If you owe money, your storage unit will probably be blocked by having a manager’s padlock put on the door in addition to yours. This not only makes it impossible to move out without paying, but can prevent you selling items to pay the charges owed.

Remember that this won’t be the first time this has happened, and you simply need to explain the situation to the manager and a suitable arrangement can be made – after all, their interest is in getting their money or use of their space.

Access Storage publish their terms and conditions online and make clear that they will send you a letter first before disposing of your goods. They say that before selling the goods to pay storage charges they will give you notice in writing by registered or recorded delivery to your address on the storage agreement (or other address that you’ve given them) telling you what you owe, and that if payment is not made within seven days of this they will sell the goods without further notice.

No messing about then. Indeed they say earlier in their licence agreement: “prompt payment is … an extremely important part of this agreement”.

“My storage is costing too much: what should I do?”

Probably you should review whether you need the space. Many people pay for storage to save them having to think about their belongings. It may be that the passing of time has actually changed things – the furniture you were storing for a flat isn’t needed any more, or the accounting records that you kept for 7 years don’t have to be kept any longer.

A visit to the store with a friend and a car will often be enough to prompt you to move your stuff out, or at least downsize to a smaller storage room. Getting into a situation where you regularly pay late is depressing but also expensive – most storage companies charge a late payment fee to encourage prompt payment and to contribute to their administrative costs.

“What can I do to make sure my things aren’t disposed of?”

The obvious answer is to pay the storage fees but there are things you can do in addition. You should make sure you give the storage manager your address (including new address if you are moving), your email and your landline and mobile phone numbers. But you can also follow the example of Swiss storage companies and give contact details for a close family member or a close friend.

In practice, storage charges are a nuisance and are sometimes overlooked. For this reason a standing order is a sensible way of paying your fees for the store room.

The commercial interest of the storage firm is in keeping your stuff and collecting the fees, so – once they have contacted you – the important thing is to reply promptly and let them know your intentions. If for example you are abroad and making an immediate payment is impractical, simply tell the storage manager when you will be back and how you will pay when you get home, and make sure that this message is acknowledged in some way.

“How do the storage companies get rid of unpaid-for stored goods?”

Skips, recycling centres, selling to house clearance companies, or even selling privately are all routes that companies may use to clear their space.

If your stuff has been disposed of and there was something really irreplaceable, you can ask your company manager exactly how he or she disposed of it – it may not be too late. Unsurprisingly, they may be more helpful if you pay off your arrears. 

“But the storage company could have got a better price for my stuff!”

OK, so you’ve just got in touch and the manager tells you your stuff has been disposed of and your storage room has been re-let.

Your first reaction is probably anger and frustration. Your next response might well be to challenge the storage manager over how much money he/she sold the stuff for. The chances are that they didn’t get anything for it or, if they did, it may have been very little.

It is not their job, as they may well tell you, to make great efforts to maximise the money that can be raised by selling your stored possessions. Whilst you might have listed your things on ebay, their focus is on getting their unit back to re-let it.

The other problem is that the items were maybe valuable to you but the market value of them is likely to be very low.

At the point where you hear the news of the disposal you may be very annoyed, but experience suggests the self storage operator may have done you a favour which you will later come to appreciate – you’ve less stuff to organise and no more storage fees to pay.

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2 Responses to “What happens if I don’t pay my self storage charges?”

  1. John Baker says:

    What happens to the contents of a UK customers unit if he/she dies?

    -Does the storer have to seal the unit and inform the authorities
    -keep invoicing
    -How would the company know that customer has deceased

  2. Erik Littles says:

    Great question, John, and definitely a valid one to ask! There are some legalities that are involved in the event of the death of a tenant in lien. Usually, a deceased tenant’s relatives will inform the storage company of what happened, if they know that the person even owned a storage unit. Yes, the unit will have to be sealed, as the company, once informed, does not have the right to just sell the contents or hand them over to any relatives, unless written in a validated will. The best option for the operator would be for the estate to go through probate (the validation of the authenticity of a will), for it will be the probate court that will pay for the unit and the contents.

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