Reimbursement of funds

[cloverport]

We have owned our storage units now for 2 months. If someone moves in mid-month or so, I have been only charging them for the days they will actually be in the unit.... then the monthly charge from then on. However, if a tenant moves out mid-month, etc., am I to reimburse them the difference? I have been doing so, but then I read on the attached yellow page of the Wisconsin rental agreement that they are to give a 30-day notice before moving out. To me, this would mean they forfeit the reimbursement if they do not do so, am I correct, or do I reimburse them?

[mmidgley]

Re: Reimbursement of funds

You can choose which direction you would like to go. We do not prorate rent. We rent month to month.... you move out mid month, you lose whatever unused rent you have.

[cloverport]

Re: Reimbursement of funds

That is what I was thinking too. When a tenant first rents from you do you pro-rate then? I mean, let's say they move in on the 9th of the month, do you just charge them from the 9th until the end of the month for their first month's rent, or the whole month. This is so new to me. We are getting it figured out, but we have had some issues come up along the way that I am not sure how to handle. Thank you for your reply :-)

[mmidgley]

Re: Reimbursement of funds

we do anniversary billing, so there is no pro rating in for us. If you going to prorate... prorate in, but dont pro rate out

[Kirkus]

Re: Reimbursement of funds

We prorate move-ins to the 1st of the month. They only pay for the rest of the month when they move in and their rent is always due on the first. We do not refund partial months rent. But if a customer has paid several months in advance and they move out, we do refund any full months rent that they've pre paid. This second situation doesn't happen often but it does on occasion.

[A-team]

Re: Reimbursement of funds

That is what I was thinking too. When a tenant first rents from you do you pro-rate then? I mean, let's say they move in on the 9th of the month, do you just charge them from the 9th until the end of the month for their first month's rent, or the whole month. This is so new to me. We are getting it figured out, but we have had some issues come up along the way that I am not sure how to handle. Thank you for your reply :-)

We do anniversary dates between the 1st and 15th unless the customer wants to prorate to the first. After the 15th they must pay the prorated amount for the remainder of the month, plus the following month at time of rental. We require 15 days written notice to move out. If they give notice before paying the next months rent, they only have to pay the prorated amount for the 15 days. If they already paid the full month, we do not give refunds. We do not give refunds even if the tenant paid several months in advance. Our invoices have in bold letters, "When paying in advance, remember that WE DO NOT GIVE REFUNDS for any reason." It's also written in our rental agreement, as well as large signs in the office. Last but not least, it's also on our receipts.

[cloverport]

Re: Reimbursement of funds

Thank you all so much for your help . It is greatly appreciated :-)

[Guest]

Re: Reimbursement of funds

Rent is due here on the 1st. If the new tenant rents the unit on the 1st thru the 9th they pay a pro rate for the rest of the month and next rent due on the 1st of the next month. If they rent on the 10th of the month and after, they pay the pro rated amount and all of another full month. No exceptions. When they move out they get no refund. If they give me a notice and have been good tenants, I allow them to pay for a half month as long as they pay before the full rent is due on the 1st of the month. For instance, if they pay me in June, the half month's rent, they have to be out on July 15th or before. If unforeseen circumstances happen they can pay for only 1 more 1/2 month and be out by end of July. Like Kirkus, if they paid for multiple months and give notice and move out early, I tell them that I will refund any full months of rent as soon as unit is re-rented.

[Fay Smithhart]

Re: Reimbursement of funds

We prorate their rent when they move in but not move out. Rent is due the first of each month. If they move out in the middle of the month they do not get a refund.

[Guest]

Re: Reimbursement of funds

We prorate their rent when they move in but not move out. Rent is due the first of each month. If they move out in the middle of the month they do not get a refund.

You are so new Fay, you better not have any move outs yet.

[cloverport]

Re: Reimbursement of funds

You guys are great :-). I have printed off the whole thread for future reference. One more question, do you all have a rental agreement that you made up yourselves or pre-printed ones? The previous owner of our units used pre-printed ones from the State of Wisconsin, which I have continued to use. However, I would like to add statements as you mentioned above regarding pro-rating and refunds, but there is no room on the pre-printed agreement. Can I just create my own rental agreement for future tenants?

[lady5563]

Re: Reimbursement of funds

You guys are great :-). I have printed off the whole thread for future reference. One more question, do you all have a rental agreement that you made up yourselves or pre-printed ones? The previous owner of our units used pre-printed ones from the State of Wisconsin, which I have continued to use. However, I would like to add statements as you mentioned above regarding pro-rating and refunds, but there is no room on the pre-printed agreement. Can I just create my own rental agreement for future tenants?

I would NOT, I repeat, I would NOT attempt to write up any legal binding agreement/lease.
Consult a self storage attorney in your town/state.
The self storage laws vary, state to state.

[cloverport]

Re: Reimbursement of funds

That makes sense lady5563, I was just wondering how and/or where to put a statement about our pro-rating terms, vacating terms, etc. I have created a new tenant letter, which basically states what they pay the first month, if it is pro-rated along with what the next month's rent is, our address to send payments to, etc. When I rent out a unit I mail the rental agreement and tenant letter together. The tenant signs the rental agreement and sends it back to me. This has worked out very well. Maybe I will put the pro-rate terms in the tenant letter and on my invoices. However, with it not being on the rental agreement itself I do not know if it would have a legal standing or not. Having owned our units for only 2 months I am now experiencing the vacating pro-rating situation and am just wondering what to do in the future. I have 1 tenant who moved out on the 9th. He paid for the month of June already and another who is vacating on Friday, and again has paid for the month of June already. I never thought about what to do when a tenant vacates before the end of a month until now, and I am just not sure what to do. Again, on the yellow sheet of paper attached to our Wisconsin rental agreement it states that the tenant needs to give a 30-day notice before vacating, and the 2 tenants leaving have not done so. One gave me 5 hours notice, and the other told me yesterday that she is moving out on Friday.

[lady5563]

Re: Reimbursement of funds

Well for right now, as far as these particular tenants that are leaving, do what you feel is best for them individually.

Going forward, you can create this "letter" that each and every tenant should receive and even put an area in there where you require them to initial during the sign up process.
Mostly all properties do NOT refund on the move out.
Some do, most do not.
I do not refund anything.
Whether I get the 10 day notification or not, NO REFUNDS.
PERIOD.
In this letter that you wish to create, it's a good idea.
Bullet point all the areas that are necessary.

1. When the rent is due
2. When gate access will be denied. (we deny at 1 day late)
3. When will they get late fee's (1st late fee of $10. is at 10 days late)
4. When will they get any more late fee's (2nd late fee hits at 20 days late)
5. When will the lien process start (ours is at 32 days late)
6. Leave no trash behind.
7. Unit must be returned to you in the order in which the rented it. Must be swept out.
8. NEVER lock an empty unit. Tenants are still responsible for the rent of an empty unit.

[Guest]

Re: Reimbursement of funds

Agree with lady. You can get creative about your lease but always run it by a qualified attorney for final approval. I am doing that for the second time since I took over. I have gotten some great ideas here at the forum that I want to add to my existing lease. Also be aware, you can also post other rules and facility policies in a conspicuous place in the office that are over and above what your lease says. Of course, as long as they are legal and not just whims. I have it in my office and have never had a problem. The lease also references the office list as well.