Let's talk about self storage.

Hello all! Looking for accurate information as to the next steps when a tenant doesn't pay. We've been open for 2 months now and still learning.

Our process... All rent due on the 1st. If rent is not received on or before the 5th, an initial late fee is applied to the account on the 6th. Also on the 6th, we overlocked unit (Davinci lock) and remove gate access. If rent is still not received by the 15th of the month, we charge a subsequent late fee on the 16th. Currently, we have 4 tenants who have not yet paid (day 8). 

Our question - What are the next steps in the process? We want to be firm and consistent. As of the 16th, when we apply the second late fee, do we start the process?

We use Easy Storage Solutions and I see under Settings a "Pre-Lien", "Lien" and "Auction" section where we can add rules. I have looked through the Goldbook but find it somewhat overwhelming and unclear.

Any help or re-direct to resources would be most appreciated!

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Ryan Stalling
Steel Roots Storage LLC
Waxahachie TX
(972) 921-7309
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I think your policy is too liberal.
We charge a late fee midnight of the 5th day.  So in your case, if not paid by the 4th day, at 12:01am they are automatically charged a late fee.  Then a subsequent late fee every 5 days...
We go overlock the unit and charge an overlock fee.
Our software sends them text, email.
We do not call.
The software does the communication.
At the 20th day - we call and advise that unit will go to auction in 10 days.... it is a courtesy call (this is the way we position it).

We ask them if they can't pay do they want to abandon (still has to pay past due rent) or it goes to collections.
If they want to pay, we get them to pay and advise them next due date.  We also verify their contact information.

at day 30, lock is cut and auction process begins including newspaper advert, photos, post tag on door, list the auction on StorageTreasures.com.
We add fees for each of these tasks as these items take time and time is money, none of my employees work for free.

Waiving late fees never occurs unless it is their first time and they agree to go on autopay.  

Hope that helps.  If you need more details, call me a 281-391-2510 David Fisher - Imperial Storage Solutions.

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David Fisher ASA Sr. Appraiser
Visionary
Fisher Global Development, LLC D/B/A Imperial Storage Solutions
Sugar Land TX
(281) 391-2510
------------------------------

Original Message:
Sent: 11/9/2022 10:51:00 AM
From: David Fisher
Subject: RE: Next Steps When Tenant Doesn't Pay

I think your policy is too liberal.
We charge a late fee midnight of the 5th day.  So in your case, if not paid by the 4th day, at 12:01am they are automatically charged a late fee.  Then a subsequent late fee every 5 days...
We go overlock the unit and charge an overlock fee.
Our software sends them text, email.
We do not call.
The software does the communication.
At the 20th day - we call and advise that unit will go to auction in 10 days.... it is a courtesy call (this is the way we position it).

We ask them if they can't pay do they want to abandon (still has to pay past due rent) or it goes to collections.
If they want to pay, we get them to pay and advise them next due date.  We also verify their contact information.

at day 30, lock is cut and auction process begins including newspaper advert, photos, post tag on door, list the auction on StorageTreasures.com.
We add fees for each of these tasks as these items take time and time is money, none of my employees work for free.

Waiving late fees never occurs unless it is their first time and they agree to go on autopay.  

Hope that helps.  If you need more details, call me a 281-391-2510 David Fisher - Imperial Storage Solutions.

------------------------------
David Fisher ASA Sr. Appraiser
Visionary
Fisher Global Development, LLC D/B/A Imperial Storage Solutions
Sugar Land TX
(281) 391-2510
------------------------------

Thank you, Mr. Fisher!

------------------------------
Ryan Stalling
Steel Roots Storage LLC
Waxahachie TX
(972) 921-7309
------------------------------

Original Message:
Sent: 11-09-2022 09:51 AM
From: David Fisher
Subject: Next Steps When Tenant Doesn't Pay

I think your policy is too liberal.
We charge a late fee midnight of the 5th day.  So in your case, if not paid by the 4th day, at 12:01am they are automatically charged a late fee.  Then a subsequent late fee every 5 days...
We go overlock the unit and charge an overlock fee.
Our software sends them text, email.
We do not call.
The software does the communication.
At the 20th day - we call and advise that unit will go to auction in 10 days.... it is a courtesy call (this is the way we position it).

We ask them if they can't pay do they want to abandon (still has to pay past due rent) or it goes to collections.
If they want to pay, we get them to pay and advise them next due date.  We also verify their contact information.

at day 30, lock is cut and auction process begins including newspaper advert, photos, post tag on door, list the auction on StorageTreasures.com.
We add fees for each of these tasks as these items take time and time is money, none of my employees work for free.

Waiving late fees never occurs unless it is their first time and they agree to go on autopay.  

Hope that helps.  If you need more details, call me a 281-391-2510 David Fisher - Imperial Storage Solutions.

------------------------------
David Fisher ASA Sr. Appraiser
Visionary
Fisher Global Development, LLC D/B/A Imperial Storage Solutions
Sugar Land TX
(281) 391-2510
------------------------------

Hi Ryan,

The Goldbook gives a timeline summary that I have found extremely helpful. I have attached it here. Feel free to reach out to me directly if you have any other questions. Email is joleaconn@gmail.com and cell is 832-549-3499

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

Thank you, Ms. Conn! This is helpful and exactly what I was looking for. I now see it in the Goldbook too. Thank you and appreciate the offer for me to connect with you if other questions arise. I may take you up on your offer at some point. :)

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Ryan Stalling
Steel Roots Storage LLC
Waxahachie TX
(972) 921-7309
------------------------------

Original Message:
Sent: 11-09-2022 10:03 AM
From: JoLea Conn
Subject: Next Steps When Tenant Doesn't Pay

Hi Ryan,

The Goldbook gives a timeline summary that I have found extremely helpful. I have attached it here. Feel free to reach out to me directly if you have any other questions. Email is joleaconn@gmail.com and cell is 832-549-3499

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

Thank you, Mr. Hunt!

------------------------------
Ryan Stalling
Steel Roots Storage LLC
Waxahachie TX
(972) 921-7309
------------------------------

Original Message:
Sent: 11-09-2022 02:42 PM
From: Doug Hunt
Subject: Next Steps When Tenant Doesn't Pay

The next step is to send the notice of lien. In my early life this had to be done by certified letter.  Then 10 years TSSA lobbied and got it changed to verified mailing thanks to Connie Heyer the legal counsel.  I think it was 4 years ago they were able to get the law changed so that we could email the lien letter.  Email notification became as good as the written letter and so much easier  Once the notice of lien is sent wait 15 days and the legal ads can start running , 15 days after the first ad runs the auction can be held, live or online.  This is a broad brush approach to the process.

 

Douglas Hunt

Owners Management Co.

Access Self Storage

OMC Gate Co.

3404 N. I-35E

Lancaster, TX 75134

Off -214-742-9499

Cell- 214-236-7474