required tracking and refunding within 30 days of move-out if no damages were found. This changed such that, by the year 2000, almost all of the top operators, including Universal Storage Group (USG), were now doing admin fees vs. the aforementioned deposits. There are two main reasons: First, we did not have to track this money and issue refunds; secondly, it was an easy nonrefundable income stream for adding in new customers and their data. It is quite common now to charge an admin fee; the only place we find an exception is for online renters, where no fee is charged or the fee includes their new lock and access to an app for use in opening gates, etc.


Late Fees – Nowadays, it is common in self-storage for these fees to be state mandated in the state’s self-storage lien law or other laws. Currently, more than 30 states have such laws, according to the Self Storage Association (SSA). Per Joe Doherty, senior vice president, chief legal and legislative officer at the Self Storage Association:


• 31 states have laws that provide a safe harbor for late fees of $20 or 20 percent, whichever is greater.


• The following four states have laws that provide a safe harbor for late fees at a lower rate:


u New Jersey - $20 or 18 percent, whichever is greater.


u North Carolina - $15 or 15 percent, whichever is greater.


u Arizona - $10 or 20 percent, whichever is greater.


u California has a sliding scale based on monthly rental amount.


• 15 states do not have an express late safe harbor.


Following these guidelines is critical


to your operation, although you do have some options.


MiniStorageMessenger.com • September 2022 39


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