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Timeframe for New York Lien Sales

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  • Timeframe for New York Lien Sales

    Hi. I'm hoping someone from New York can answer this question. Right now we send out certified auction notices when the customer becomes 60 days past due. Then they have 30 days from the date of that notice to pay their bill before their unit is advertised for auction. Then from the advertisement date we wait another 30 days to hold the auction. That's 4 months where I'm not receiving rent for a unit! I've looked at NYS lien law 182 regarding regarding these timeframes, but all it says is that we mail " a demand for payment within a specified time not less than ten days from receipt of notification..." Does anyone from NY know if this means I can cut the 30 day period between the certified auction notice and the required advertising down to 10 days and save myself 20 days of non-payment? It's killing me. Thanks!

  • #2
    That is by far the longest assumed time frame for a lien to actually get to auction, I have heard of.

    #182: The notice shall include an itemized statement of the amount due, the description of the property subject to the lien, the nature of the proposed sale, a demand for payment within a specified time not less than thirty days from mailing of the notice and a conspicuous statement that unless the claimant pays within that time the goods will be advertised for sale and sold at public or private sale in a commercially reasonable manner.

    I read this as whenever the tenant is late, that in no less than 30 days you have a right to start auction proceedings. After those 30 days you send your notice. Certified, and in that notice you set out a date for the auction to happen. I would say that at the end of that 30 days, you cut the lock, inventory what you see without crossing threshold, you send the lien notice for full payment or the auction will happen 2 weeks later on a specified date. It is a vague way for them to say it for sure but that is a "commercially reasonable manner", again IMO. You just shave off at least 1.5 months of time, if not 2 months.
    Last edited by pacnwstorage; 12th February 2020, 08:36 PM.
    "Never let the inmates run the asylum!"

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    • #3
      Beth,

      I am also in NY and have a similar timeframe to what you currently use: The tenant gets contacted via email around 4-5x, phone or text 3-4x and 1 standard letter at 45 days. Then we start auctions proceedings on the 2nd day of the 3rd month ending at the beginning of the 4th month.

      I have shared with the owners that this is costing us but they would rather be safe than sorry. I pushed it a little and thought that the way to convince them was to figure out the missed revenue costs. We do around 7-8 auctions per year so the total cost of additional missed rent is not even $1,000 if we bump it up 30 days. I guess its a small price to pay for taking every precaution ensuring no one can come back after the auction and claim they weren't given enough time/notice.

      Matt

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      • #4
        Thanks, guys, for the replies. I recently got involved in the business (previously run by my late husband) & I really hate to pay attys around here. They get $400-$450/hour & start at $1,000 retainer. NYS Lien Law 182 doesn't lay out auction timeline clearly as some states do. I guess the crux is, is there a legally required # of days in arrears before the first auction notice can be sent out? Do I legally have to wait for day 61 before sending it or can I send it out on day 31, proceeding with advertising during the next 30 days while waiting for payment (apparently it has to be advertised twice, which we do a week apart) & hold the auction on day 62? That would save me over a month of not receivng any rent. I wish we only did 7-8 auctions per year. We do at least 12 and usually a few more than that.

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        • #5
          Check with your state self storage association and ask at other facilities in the area what they do. The more input the better. I can say for sure that 4 months is just too long. You can look in the paper for storage auctions and see their ad for the auction and call those facilities as well to see what they normally do.
          "Never let the inmates run the asylum!"

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          • #6
            Matt: Since you're from NY,I have a question for you. I just posted a question regarding late fees. Do you know if NY has any regs regarding self storage late fees? Thanks

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            • #7
              Originally posted by BETH C. View Post
              Matt: Since you're from NY,I have a question for you. I just posted a question regarding late fees. Do you know if NY has any regs regarding self storage late fees? Thanks
              I read that they tried to pass the $20. late fee but it did not pass, so what I am seeing, you all can charge what you feel is a reasonable late fee.
              Go with that 18% or whichever is greater!

              You are NY, we expect HIGH $$$ rates in NY!
              Don't put off until tomorrow, what you can do today.

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              • #8
                I'm liking the 18% or $20 on the 6th day after due date, whichever is greater, that got passed in the "Garden State" (I'm still looking for that garden!). We're over the NYS line from Bergen County, so the prices are fairly high here. I feel comfortable with those #'s. I don't want to rip anybody off, but some accounts just never seem to get caught up. Maybe these higher fees will move us up in their "have to pay this bill this month" list. Thank you so much for talking this out with me.

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                • #9
                  Do it!
                  Do it!
                  Do it!
                  Do it ASAP and never look back!!!

                  Don't put off until tomorrow, what you can do today.

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                  • #10
                    I am born and raised in NJ and I am still looking for the garden too!
                    Don't put off until tomorrow, what you can do today.

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                    • #11
                      I guess you want me to do it

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                      • #12
                        Originally posted by BETH C. View Post
                        I guess you want me to do it
                        I do!!!
                        I do!!!
                        Tell me that you did!
                        LOL
                        Don't put off until tomorrow, what you can do today.

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                        • #13
                          Originally posted by BETH C. View Post
                          Matt: Since you're from NY,I have a question for you. I just posted a question regarding late fees. Do you know if NY has any regs regarding self storage late fees? Thanks
                          Beth,

                          Sorry for the late response. Our owners run everything by their lawyers no matter how small. So while i haven't specifically asked about the late fee policy, I am confident it has been vetted twice over...

                          We charge a $20 late fee after the 10th of the month.

                          Matt

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                          • #14
                            Matt: THanks for getting back to me. What part of NY are you located in? I'm about 40 minutes north of Midtown NYC, just above the Jersey line. Prices across the state vary greatly. Also, We auction on about the 92-95 day and charge an "Auction Fee" on day 61. I read a lot of people in this forum charge a "pre-lien" fee much earlier on and then an auction fee. One facility in my county charges a "$100 Lien/Foreclosure" fee on the 31 - 35 day. What does your place do about these other fees? I'm happy to hear from anyone on this. Thanks, everyone.

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