Self Storage Payment Terms/Timelines

[Will Carter]

What are some usual payment terms for self storage rentals?  I'm revamping a family owned self storage facility that's been operating straight out of 1984...

My current thinking on terms:

You're in default after day 1.

Late fee after day 5

I'm locking you out after day 15

I'm sending you notice of foreclosure/auction date after day 30.

Too harsh?  Too lenient?  

Property is in Virginia so I think I'm good with the 30 day foreclosure after default if my memory serves.

I searched I promise...

Thanks.

[Michael Wagner]

You will want to check with your state self storage association for the legal timeline.  In New York, rent is due on the first, locked out on the 5th, late fee on the 10th, auction notice on the 35th day.  From there we send Certified letters with 10 days to pay.  If no payment, we publish two weekly ads in the paper and the auction is the 17th day after the first ad is published.  Each state varies though so make sure your ducks are in a row.