Self-storage is a convenient way to safely store items you don't have space for but don't want to part with yet. It's an inexpensive solution, but it's not free. You generally pay by the month, and this amount is debited from your bank account or credit card. Alternatively, you can be sent a monthly invoice. What happens when you stop paying?

An Unwise Decision

It's extremely unwise to stop paying storage fees. If your circumstances mean that you're unable to keep paying your monthly fees, it's in your best interests to terminate your contract, empty the storage unit, and make other arrangements for the items in question. 

First Steps

When payment is not received, late fees will typically be added to your account. If you are not making your payments on time, facility management will attempt to contact you. If no resolution can be found (such as if you cannot be contacted), the storage facility may declare that the unit has been abandoned. The precise time frame for this to happen will be outlined in the terms and conditions in the contract of your rental agreement.

Recovering the Debt

The storage facility will attempt to recover the money they are owed. They may refer your account to a debt collection agency, which will then try to make contact with you. Depending on the amount owed, and the conditions of your rental agreement, you may be able to repay your debt in installments.

The Contents of the Unit

Another way for the storage facility to recover the money owed is to auction off the contents of the storage unit, because once a certain period has elapsed, you have given up your rights to what was stored, as per your rental agreement. The contents will be sold as-is, with whoever purchases them then taking responsibility for removing them from your former storage unit. The unit will then be cleaned and leased to another customer.

Reassessment of the Debt

The amount raised by the auction may cover your debt, but the outstanding amount may again be referred to a debt collection agency when the amount is insufficient. Depending on the size of the debt, the storage facility may take other forms of legal action. 

When you stop paying for a storage unit, you are basically giving up ownership of the contents of the unit. You can also still be liable for any outstanding debt, and this matter will be pursued accordingly. It's really unwise to stop paying storage fees, and it's best to make other arrangements if you find that you're unable to keep paying your monthly storage fees.

For more information, contact a local self-storage company to learn more.