Ok, so all the talk about collections and the ghost tenant, How quick are you to take them to lien? I mean do you have exceptions/If so (other than Military) What are they. Do you find if you go to lien over each person as soon as you are able that it has ever given your property a bad wrap.You'll have to help me out here guys . I opened a new one and we have been climbing the side of this steep hill forever, however we are gaining ground . Now I am faced with to many non payers and I need to act fast. So what , in your opinion is tact. Or at this point don't we reserve the right to not use any? Often times I will have a tenant who strays in here after a near 3 month period and pays there bill, says how sorry they are and then wham o, next time they are due we go through this again. However I know they will wander back in a pay again.How do you handle that when and if the time comes? I mean we would like to keep tenants, but I want the ones that actually pay there bill.I don't even get storage free!

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Lovin it.

The one thing you don't want is to be known as someone who doesn't hold them accountable for their debts!

We follow the lien law to the letter in most cases.

There are a few that we have worked with, but they get one shot - if they fail to live up to their agreement out they go. It sounds harsh, but as I explain to our tenants -- this is a business not a charity!

The exceptions I have mentioned are hardship cases such as one lady who was diagnosed with cancer and evicted from her apartment in the same week - we made a deal with here two years ago as she was ready to go to auction - she has lived up to her end of the bargain for the last tow years. We have had others that after 6 months of trying to help them the stopped making payments - off to auction they went -- I don't care if your dead brothers stuff is in there.

I have learned to grow a thick skin -- my wife however is still a soft touch and gets me into trouble every now and then.

Autodoc is absolutely correct. If you like trying to explain your high receivables to your owners/partners/investors, then, by all means, let these people beat up on you. Yes, you will get a reputation as a soft touch.

Tact is not a part of collections once the tenant is in lien status. If the story is good, make your own judgment. I can say, that in almost 18 years of doing this, none of those promises has worked out in our favor.

Bob

You say taking the client to auction gives you a bad rap - I don't agree. I tell my customers "if you are having difficulties, LET me know - I can't do anything to help you if I don't know that you need it!" If they are having medical difficulties, ask them for a doctor to give verification of same. If they are unemployed, have them show you an unemployment stub, etc. I agree with Wayne, give them one chance - if they prove good for it, then offer other chances, IF NECESSARY!

When they come in after three months, do you waive any fees? If so they know your a patsy and will not send them to auction and give them a break. Other than what I mentioned above, I give no breaks on late fees unless they were our fault.

One other option on the repeat offenders - "This is your last chance to keep your payments up. Should you be set up for auction again, but still come in on the last day to make your payment, you must leave the facility with your belongings. You might lose out on a renter, but is it really worth all that hassle? Even offer them a buy out - say 75% of what they owe - to leave sooner. That leaves that space open for a client who WILL pay you on time and who WILL abide by your rules and the lien laws........

Just thoughts.......

I'm not sure if I agree 100% with all that has been posted. I don't waive late fees either, unless the post office screwed up delivering a check. I always tell customers that if you pay your car payment, mortgage, credit cards, or electric bill late, you pay a late fee...well you do here too.

However, we have about 12 or so customers that have been here for years, and routinely pay every 3 months, a week or so before the auction. Each one pays $110 in late fees every time, and no amount of convincing seems to work that they should pay monthly. They pay over $5,000 a year in late fees combined. So I don't think I'm going to ask them to leave....but they all do know that if they wait just a little too long at some point, they will arrive at the facility to find they have been auctioned.

I also have many tenants who always pay late - do I waive the late fees -- heck no!! Those fees pay my bonus - so far this year that bonus has bought me a new high end laptop!!! Next is a Nintendo Wii.

I have tried to explain to some of these "regulars" that in what they are paying for three months (with rent and fees) they could pay up front 5 months and I would give them the 6th for free. Fortunately they do not listen and I keep getting a fot bonus check every month! Gotta love it.