Americans have a lot of stuff! More stuff than can fit in their homes. The solution? Storage facilities! An industry that continues to see rapid growth year over year.
According to the 2023 Self-Storage Almanac, over 11% of American households pay for a storage unit. At an average monthly cost of $110, the annual industry revenue exceeds $29 billion. Globally, the industry is valued at an estimated $50 billion.
Throughout the United States, there are more than 51,000 storage facilities, offering an astounding 2.04 billion square feet of storage space. That’s enough operating space to cover Washington DC, 73 square miles to be exact!
Storage spaces vary in size, but the most popular size is 10X10 ft. and furniture is the most common item to store. Additionally, appliances, clothes, sports/hobby items, and business items create the need for storage space.
In recent years, the COVID-19 pandemic has greatly influenced the increased demand for storage units. As more Americans began working from home, the desire for a designated workspace was born. To achieve that, people moved furniture and items from closets and spare rooms into storage to allot for areas to work in their homes.
Aside from the pandemic, moving homes is the most common reason for utilizing a storage unit. However, research by Storage Café shows that a larger house does not decrease the need for storage space. In fact, over 40% of Americans in three categories of home sizes ranging from 1,000 to 3,500 square feet have a storage unit.
Households with multiple members are more likely to need storage space and people living in two- and three-bedroom homes are most likely to rent a unit. As urbanization increases, the demand for storage units increases. The housing market and affordability of homes play a large role in industry growth as well.
Speaking of affordability…What happens if a renter does not pay for their storage unit? Does not paying affect their credit score? For unit owners, how long before the storage unit can be auctioned? These are popular questions posed by renters and owners of self-storage units.
When renters do not pay for their units, the storage facility loses money. Eventually, the facility will turn to auction as a way for the company to recover funds lost by the renter's failure to make payments. As well as, to recover the rental space itself.
Requirements vary by state, but most renters have a grace period of one to three months before their unit can be processed for auction. When payments become delinquent a lien is placed on the items in a renter’s unit.
After missed payment, the facility will change the lock and take full possession of the unit. Storage facilities are legally required to notify renters of final lien notice via Certified Mail®. The letter is to include the date, time, and location of the auction. As well as, the amount due.
Renters have until the auction begins to pay their delinquent balances and regain access to their units and belongings. Failure to pay results in the selling of their items and a default balance that is sent to collections. In turn, affecting their credit score.
Something that is not always considered is that it behooves both the storage facility owner and the unit renter for the rental fees to be paid. The legalities and requirements for auction are extensive. Storage companies would prefer to avoid auctions. Renters who communicate with their storage company are more likely to avoid that outcome. Tracking the conversation with Certified Mail gives the sender proof of mailing, delivery, tracking, and delivery confirmation.
For facilities and renters alike, Certified Mail Labels is the easiest and most inexpensive way to send Certified Mail. Save $2.45 on each letter while skipping the trip to the Post Office entirely.
Certified Mail Labels allows users to create USPS Certified Mail Labels, Priority Mail Labels, and Express Mail Labels with USPS Postage online.
A 10-year data archive gives users access to their mailing history and delivery confirmations, 24/7-365 days a year, for convenient and organized record keeping.
Storage facility owners looking to consolidate their auction processing should look no further than full-service print and mail solutions. Easily upload a PDF letter and we take care of the rest. Receive sender proof of mailing, delivery, tracking, and delivery confirmation without a trip to the printer or Post Office.
Create your account now or contact our customer support team to learn more about our full-service solutions today.