CUT LOCK AND LIEN

LADYLIFT1

Does everyone send out a cut lock notice?
And when you send the lien notice, do you put the auction date on it?

themage

For our current workflow, I think we have combined the cut lock notice and the lien notice, and we do list the auction date on the notice.

MamaDuke7

I don't send a cut lock notice anymore.  Time consuming and didn't make a difference, and here it's not required.

I do send an auction notice with a copy of our stupidly still required newspaper ad with their name highlighted.  Sometimes that gets their attention and they pay.

themage

I agree the newspaper requirement is outdated. I like the idea of sending a copy of the ad with the auction notice though!

teamcapitola

After the Lien notice goes out, I only send a "Auction Scheduled" letter explaining the auction, and what happens after. 

I also agree with the legal ad requirement.... I highly doubt Auction Tenants read the legal ads weekly and go "OH NO...LOOK...IM BEING AUCTIONED!" 

BusyProperties

I include the auction date with the notice. We no longer cut locks up front, we give them time to pay. When I do notify them it is simply a text message that we are cutting locks in preparation for the auction & that they will be responsible for purchasing a new lock if they choose to pay the balance due after we cut it off. I put the ad in the paper the two Fridays prior to the auction. My process is 10 weeks long so they have more than enough time be aware of what is going on & to pay. 

GM_SJ_BSS

In CT, we send out cut lock notice by email only as we charge a cut lock fee. This way we also know what's in the unit as it is also required for us to put a brief description of unit items In the Lien Letter,  we are required to post the date, time and location of the auction on the Lien letter if payment is not received by demand date.  Good thing is we are no longer required to advertise in the local newspaper, which was expensive here in CT.

helenatim

I can't tell you how many times I have cut the lock and found next to nothing or nothing at all in the unit.  So I am now cutting locks as soon as I legally can. It has saved a lot of missed revenue with empty units.  Also, I start sending Foreclosure and pre-auction notices as soon as possible to induce payment.  Anything to stay our of the foreclosure process.  And to let tenants know that this is serious and they cant just let it slide.

sdgr35

@helenatim what kind of pre-auction/ foreclosure notice due you use. I would like to do the same. thanks

helenatim

sdgr35 said:

@helenatim what kind of pre-auction/ foreclosure notice due you use. I would like to do the same. thanks

I use an Intent to Foreclose Notice which I usually send at 45 days late. The text of the notice is:

Your Storage Facility hereby gives you notice that it will be asserting a possessory lien on the property stored in the aforementioned unit once the account reaches 60 days of delinquency.  The lien is asserted for unpaid rental charges, late fees, and other associated charges incurred for the rent of the storage space.  

The property subject to the lien is the property contained in storage unit <tenant.unitName> at <Site.Name> .

The amount of the lien is <Tenant.BalanceCurrent>.  This amount will change after 60 days of delinquency as fees for lock cutting, lock replacement, and Auction preparation are assessed.  These fees will add approximately $150 to the balance due.

To avoid these fees and potential foreclosure, please pay all outstanding charges as soon as possible. Payments can be made at www.yourstoragefacility.com.

Hope that helps.

igotthisnow

I send the 45 day notice as well.  Certainly helps...

sdgr35

@helenatim This is very helpful to me, thank you!

GlenMark

MamaDuke7 said:

I don't send a cut lock notice anymore.  Time consuming and didn't make a difference, and here it's not required.

I do send an auction notice with a copy of our stupidly still required newspaper ad with their name highlighted.  Sometimes that gets their attention and they pay.

Yes, we send lock cut notices. Both hard copy via USPS and by email. Basically our gist is we try to give everyone as much of an opportunity to respond and pay their bill before their unit goes to auction.

Though I agree the whole newspaper legal notices are outdated, I live in a small town where folks still read the local paper religiously. Even if our tenants do not, their friends/relatives usually do. We actually get more response from tenants this way... because its embarrassing to have one's name attached to a storage auction.