This post is written in collaboration with The Lock Up Self Storage.
There is no doubt that self-storage can be a good option if you have items that cannot currently place elsewhere. People use self-storage facilities for several different reasons. You may find the option useful if you are moving house and need a place to temporarily store items until you can sort out what you want to keep and what you want to dispose of. Some people use self-storage as an on-going storage solution. We use self storage to house our building equipment. Do not forget that you can access your self-storage when you want to, and swap the items that are stored there.
So this can be a good solution to your storage issues; but what if you find yourself in a position where you cannot pay the self-storage fees? The first thing you should do is approach the provider of storage in Canberra to explain the situation. You may be able to reach some form of agreement. However, if you continue to default on payment there are certain steps that the providers of the storage unit are legally allowed to take. Let’s take a look at what can happen to your belongings.
What your contract enables the storage provider to do
When you enter into a contract with the self-storage provider you automatically enable them to take certain actions if you neglect to pay your fees. They are able to forcefully access the unit, seize your property and place it for sale at an auction. They then keep the proceeds towards the cost of the unpaid fees and of administering the sale of your belongings. It’s worth noting that, in the majority of cases, the amount of money made at auction does not fully cover these costs.
All of this may sound a little scary, but there is a process that has to be followed before your belongings are sold.
- The storage provider must inform you that your belongings are to be sold.
- The sale of the items has to be advertised publicly in at least two newspapers.
- The sale auction has to be in public so that you can buy your belongings yourself, if you choose to do so.
Do not forget that the storage provider wants you to settle your debt, so you are given plenty of opportunity to do so.
What you need to check before you sign
You can see that neglecting to pay your self-storage fees is not really a situation you want to get into. This is why it’s so important to make sure you check the details of the self-storage contract before you sign it. You need to make sure that you know details of:
- How much rent you need to pay.
- When you need to pay the rent.
- What the provider will do if you miss a payment.
- What other fees you may be responsible for.
If you know what your payment responsibilities are you are less likely to default.
This means you are less likely to be faced with the situation we have described in this post.
Have you used self-storage before? Can you see yourself using self-storage facilities?