Let's talk about self storage.

Hey everyone! I have questions about late fees. Do you all have a standard late fee after a certain number of days regardless of the rate of the unit? Are your late fees a percentage of the rate on any given unit? Are there other ways you calculate them? I'm trying to determine the industry standard. We are a small operation with one location.

At Smartlock, a late fee is added to the tenant's total balance after 5 days of delinquency. That said, we understand that life happens, and we're often willing to waive the fee if the tenant provides a valid reason for the delay. We believe it's important for tenants to have a positive customer service experience.

------------------------------
Andy Maisch
Smartlock Management, LLC
Garland TX
(214) 699-5863
------------------------------

Thank you!

In an effort not to break the rules of telling exact numbers...we charge between $10 and $20 on the 6th of the month and another $10 to $20 on the 16th if we still haven't received the rent. No matter what the size/rate of the unit. However, I also take customer service into consideration and will waive fees under certain circumstances. People that are repeatedly late pay the fees.

------------------------------
JoLea Conn
OnSite Manager
ALL*STAR STORAGE
Richmond TX
(281) 341-7867
------------------------------

I don't think we're technically supposed to share information on late fees between facilities, but I will say that any fee you charge should be able to be justified in front of a judge. Try to quantify the liquidated damages a late payment would cause your business in the form of lost revenue, outreach attempts, postage, etc. and you should be able to reach a fairly reasonable number.

In Colorado, we have a late fee safe harbor law of $20 or 20%, whichever is greater. That sounds pretty reasonable to me!