Renting a storage unit seems like a simple solution for keeping belongings safe when space is limited. However, the situation quickly escalates when payments stop and the unit is abandoned. Storage facilities operate on strict rental agreements. Failing to pay can lead to late fees, loss of access, and, ultimately, the auctioning of stored items. So, knowing what will happen if you abandon a storage unit is vital if you are looking at a similar situation. Let’s find out!
What Happens If You Don’t Pay and Abandon a Storage Unit?
The Initial Consequences: Late Fees and Restricted Access
Most storage facilities provide a grace period, typically 5 to 10 days. During this period, the renter may receive reminders with attempts to contact via:
- Phone calls
- Mailed notices
If the payment remains unpaid after the grace period, the facility manager will apply late fees. Fees vary depending on the contract and location. The implications of defaulting on your storage unit can be significant.
It can include restricted access to the storage unit and confiscation of your belongings. You cannot access the facility or remove your belongings until you pay the balance. Some companies may even place an overlock on the unit, preventing entry altogether.
The Lien Process: Legal Steps Toward Auction
Storage rental agreements typically include a lien clause. This allows the facility to claim ownership of the contents if rent is unpaid. The timeline for this process varies by state or country, but in most cases, it begins after 30 days or more of non-payment. The facility then begins the legal requirements of recovering unpaid rent by selling the unit’s contents.
At this stage, renters typically receive multiple warning notices. Notifications can include certified letters, emails, or public announcements to inform them about the upcoming auction.
Some states require storage facilities to publish an auction notice in local newspapers or online. This gives the renter one final chance to pay and reclaim their belongings.
The Auction Process: When Items Are Sold Off
The facility will schedule an auction if the balance remains unpaid and the legal notice period expires. Storage unit auctions are commonly held in person and online and are geared toward bidders that purchase abandoned contents as a whole unit. They do this without knowing the exact value of the items inside.
Unlike reality TV show portrayals, buyers do not always find storage auctions profitable. Sentimental or valuable possessions are often sold for a fraction of their worth.
Note that renters will still owe any unpaid balance even after the auction. The storage company may pursue legal action if it does not generate enough money to cover outstanding rent and fees. The company may also send the remaining balance to collections, which can negatively impact the renter’s credit score.
What Happens to Personal or Sensitive Items When You Abandon A Storage Unit
Most storage facilities follow specific guidelines for handling personal, sensitive, or irreplaceable items. Sensitive documents like the ones listed below are sometimes set aside rather than sold.
- Passports
- Birth certificates
- Social security cards
Some facilities may attempt to return these items to the renter, while others dispose of them according to company policy.
However, sentimental items such as photo albums, heirlooms, or collectibles are typically not exempt from auction. Once sold, you have little chance of recovering them, which makes it crucial to resolve payment issues before reaching this stage.
Can You Get Your Belongings Back After an Auction?
Once someone sells a storage unit at auction, reclaiming belongings becomes almost impossible. The winning bidder legally owns the contents, and the new owners do not have a legal obligation to return any items.
Some compassionate buyers may be willing to negotiate a return of personal items, but this is at their discretion.
In rare cases, if a renter can prove extenuating circumstances (such as hospitalization or military deployment), a storage facility might reverse the auction process. They can choose to work out a payment plan. This is not guaranteed and depends on the company’s policies.
Clark Storage – Best and Most Secure Storage Units in the Area
Our family business objective is to provide you with the best service and facilities in a secure location. As you get to know our facilities, you will note they were selected for your ease of access, location, and security. Please let us know how we can continue to improve your storage needs and fulfill your high expectations. We have storage units in Council Bluffs, Glenwood, and Pacific Junction. Contact us today. We are also offering a Move-In Referral Program, click here for more information.
