What Happens If I Miss A Payment On My Storage Unit?
If you miss a payment on your storage unit, you could face late fees and lose access to your unit and items.
Depending on your contract, different things could happen if you miss payments on your storage unit - from having your lock cut to your belongings being sold at auction.
Missing payments on a storage unit can have long-term negative effects - both legally and financially. However, it can be avoided.
Choosing a flexible storage solution with The Box Co. means you only pay for as long as you need storage, rather than locking you into a fixed long-term contract. That way, you can avoid missed payments altogether. For affordable storage solutions, contact us today.
What Happens To Your Storage Unit If You Miss a Payment?
If you miss a payment on your storage unit, it is likely that the storage facility will limit your access. This could include removing your lock and replacing it with a new one or disabling your access code.
This could happen between 5-30 days of the missed payment, depending on the terms and conditions of your contract. However, storage companies will try and get in contact with you long before this, and many will be open to payment plans if you need a bit of extra time.
However, if your debt continues to not be paid, the storage company has the right to your belongings and they are entitled to sell them at auction to cover the owed debt.
What Legal Implications Are There If You Miss A Storage Unit Payment?
Before renting a storage unit, you will sign a lease agreement - this will lay out the terms and conditions of the rental including the payment amount and due date. If you fail to adhere to the terms of the contract, including missing a storage payment unit, you are in breach of the contract.
First, the storage facility will need to attempt to contact you to advise you that the payment is overdue. Until the debt is settled, the storage company is legally entitled to keep your belongings - this is known as the legal right of lien.
If the payments remain unpaid, the storage facility can legally auction off the items that were in your storage unit in order to recover costs.
The period of time it takes for the storage company to do this will depend on your lease agreement and the company’s process. Any grace period offered by the company will be laid out in your lease agreement.
Legally, a storage company must publicly announce the auction, including the time and place it will be held, and provide you with a certified letter.
Can Missing Payments On A Storage Unit Affect Your Credit Rating?
Missed payments on a storage unit can negatively impact your credit rating.
One of the first things that will happen if you miss a payment on your storage unit is that you may be charged a late fee - the exact price of this will depend on the storage company and will be specified in the initial contract.
If you continue to miss payments, the storage company may report you to the credit bureau. In that case, it can negatively impact your credit rating potentially making it difficult to get a mortgage, rent a property or even get a job.
What Happens If You Can’t Make A Storage Unit Payment?
If you see that you may not be able to make a payment for any reason, the first thing you should do is contact the storage facility to know exactly what their policy is.
You should try to negotiate a payment plan based on what is feasible and may need to provide justification for why you cannot meet the agreed payments.
If you can, you should try and pay any outstanding balance to avoid further penalties and minimise the risk of your items being sold at auction.
It may also be worth seeing what their cancellation policy is - it may be cheaper to pay the cancellation fee and avoid the risk of missing future payments.
How To Avoid Missed Payments On Your Storage Unit
To avoid missing payments on your storage unit, there are certain actions you can take from the outset:
Don’t Pay for Unused Space
A big mistake that people often make when choosing storage is paying for an entire storage unit which ends up being half empty. Choosing flexible solutions like storage by the box allows you to only pay for exactly what you store and avoid paying for unused space.
Only Store For As Long As You Need
don’t be fooled by fixed, long-term contracts if you’re unsure how long you need to store your items for. For short-term storage or more flexibility, choose a storage company that allows you to pay for as long as you need storage rather than a fixed time period.
Choose An Affordable Storage Solution
Before locking yourself in a contract, make sure to shop around and see what the best storage solution is. Factors such as location and unit size will impact overall price.
Flexible and Affordable Storage Solutions with The Box Co.
To avoid ever missing a payment, make sure you’re getting the best price and maximum flexibility for your storage with The Box Co. With storage by the box solutions from £3.56 per month and returns in as little as 24 hours, you can store your belongings at a low price with total flexibility.
Say goodbye to fixed long-term contracts. With The Box Co., you can store your items for as long as you need - customising the storage duration to fit your needs with flexible pricing options.
Want your items back? Simply put in a return request and our team will return your items straight to your door on your preferred date.
Get in touch today to get a personalised storage quote!
