Self Storage
Contract.
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It is important to remember that
choosing the cheapest storage facility may not be
the best decision for your property. Generally, but
not always the more money you pay for a service the
better the service you receive and this holds true
for storage facilities. Ask yourself whether the
items you are planning to place in storage are of
monetary value or sentimental value. Do the items
need special storage conditions in order to remain
in good condition
The Contract or Agreement
Once you have chosen a storage facility the operator
must provide you with a contract or agreement. It is
often a good idea to bring the agreement home to
read over it carefully and thoroughly in the comfort
of your home before signing anything. This will give
you time to read all the fine print and to
understand for what you are actually being charged.
If you have any questions contact the storage
facility and get clarification before signing the
contract. This contract like any other contract is
designed and expected to protect you the customer
and of course the storage facility. Keep your copy
of the contract safe in a secure place so you can
reference it when you need to. The contract can
generally be terminated with ease by giving timely
notice as laid out in the contract. More often than
not you will not have to pay for the remainder of
the month if you terminate the contract mid month as
this will be prorated. You will need to check if
this stipulation is included in the contract and if
not the storage facility can charge you for the
entire month.
Inventory – Why the need?
Always do a complete inventory of the items you are
putting in to storage. Most warehouse operators will
carry out this exercise with you and record the
condition of each piece before it goes in to
storage. This protects both the storage facility and
the customer in the event there is a dispute over
damages as the condition going in to storage is
recorded upfront and thus be referred to in the
event a dispute arises. Both the customer and the
storage operator sign the inventory in agreement on
the condition of the goods going in to storage.
What is included in the monthly cost?
The costs included in the contract will include such
basics as the cost of the actual space, utilities
such as electricity and light plus insurance and
will also include costs for climate controlled
storage you have accepted. Examine these carefully
to be certain this is what you agreed to. Look for
hidden costs such as labor or charges that may be
applicable if you use the storage facilities “free”
truck to get your goods to the storage facility.
Charges for access
Although uncommon, some storage companies may charge
you for accessing your unit during non office hours
and the rate fees to be included on the contract.
The contract does not however need to include any
charges that may apply for parking on the facilities
property as you drop off and collect items from the
unit. Neither does the contract need to include
charges such as any labor. Labor may be needed to
move your goods in to your storage unit and most
companies will do this for free however some do
charge so always ask.
Deposit
When you use a storage facility you will be required
to put down a deposit which is generally fully
refundable. The conditions will be laid out in the
contract however it is very important to read the
fine print on this subject in the contract. In order
for you to get your deposit back when you no longer
need the storage space the storage operator may lay
down conditions that are basically impossible to
meet. If you see this, walk away from this storage
company and do not use them if possible. Remember if
they are not upfront about the refundable deposit
what else can they be hiding.
Billing
The contract must include such information as the
monthly charges and how regularly you will be
billed. The monthly charge includes the actual
charge for the storage space itself, lighting, basic
insurance and any security offered at the storage
facility. The contract can have either an actual
cost or an estimated cost. The storage operator
cannot charge more than 10% above the estimated
cost. If you have chosen a climate controlled
storage option this must be included in the contract
and of course this will add a premium to the final
cost. Think carefully before you select climate
controlled storage. Is it really worth it and do the
items you need stored really need to be in climate
controlled storage. Remember the cost does not
generally include the cost of packing up your goods
and getting your goods to the storage space. If the
storage company is providing the truck at no charge
it will be listed in the contract as will the rates
applicable for not bringing the truck back within a
specified time. These charges can add up so be
careful in accepting any "free" incentives such as a
free truck for a period of time and check out what
charges apply after the stated "free" time has
elapsed. It is not uncommon for the truck to be free
for such a short period of time that in most cases
extra charges will apply so read the contract
carefully and be cautious in accepting any "free"
gimmicks.
How much insurance will I need?
Basic insurance charges will be included in the
contract unless you have chosen to take out more
insurance to protect your goods while in storage.
Basic insurance is generally $0.30 per pound. This
offers very little protection. For example, the
replacement value on a 20 pound television set will
be more than the $6.00 covered by the insurance
policy i.e. 20 X $0.30 = $6.00. For comprehensive
insurance you will need to look at alternative
options. Your homeowner’s insurance policy may cover
your household goods while they are in storage so
check with your insurance company before accepting
any additional insurance offered by the warehouse
operator. If your homeowner’s insurance policy will
cover your goods while they are in storage it is
also very important to also check what you will need
to do when you add or remove items from the storage
space. No matter what insurance policy your goods
are covered under it is very important to check
upfront if it is okay with the insurance company to
add or remove items from the space and how this is
handled from an insurance perspective. Your
insurance needs will change as you add or remove
items from the space. You do not want to find out
that the antique sideboard that you added to the
storage unit recently and was damaged while in
storage was not covered by insurance. Warehouse
operators who offer extra insurance may require that
you accept their preferred insurance coverage if you
want to store your goods with them. Others offer you
several options with outside insurance companies
with competitive rates due to the bulk discount they
receive The bottom line is that you absolutely need
to have your goods insured.
What happens if I miss some payments?
The contract must include what actions will be taken
in the event you do not pay for the service. If you
forget a payment or cannot pay the storage company
they will take most likely take action. What the
action is and after how many missed payment the
action will be taken needs to be laid out clearly in
the contract. The storage company will most likely
not give you access to your property unless you pay
the amount owed. However, if you need to get welfare
documents or medical information out of the storage
unit the storage operator must by law give you
access to obtain these documents only. In the
unfortunate event this happens to you it is not
uncommon for the storage company to move your goods
out of the storage space so they can rent it to a
paying customer. Your belongings may be sold at
auction by the storage company and you will be given
notice as to the date, time and location of the
auction. In some states you have the legal right to
try to try and stop the auction from taking place
however this action must be taken well in advance of
the auction date and this differs by stage. For
example, in New York state
You will need to file for a court proceeding at
least 10 days prior to the date the auction is
planned to happen.
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