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Short answer: Mark’s collection system is simple: put as many tenants as possible on autopay, send automatic reminders, make paying easy, never waive late fees, never allow payment plans, start collection calls when the late fee kicks in, and auction promptly once a unit goes into lien.
The steps Mark uses #
- Autopay by default. New tenants are assumed to be on autopay and sign the form; it’s presented as policy. Mark doesn’t discount rent to get people on it. Paper invoices carry a small monthly fee.
- Automatic reminders. Text and email reminders for anyone not on autopay, each with a link to pay. If your operating software can’t do this, Mark considers that a reason to replace it.
- Many ways to pay. A pay link in every email, text and letter, and online payment through the website.
- Never waive late fees. With autopay and easy payment available, late payment is a choice, and the fee encourages people not to repeat it.
- Collection calls. Someone calls starting the day the late fee applies; voicemails mention the pay link being texted and emailed. Tenants who have a relationship with an empathetic manager are often more likely to pay that facility first.
- No payment plans. Mark calls this his number one rule. Letting someone pay a little each month to catch up usually puts them further behind and hurts the facility’s cash flow and value.
- Repeat late payers. Late more than twice in a year means autopay or move out, a policy written into the lease so it can be enforced.
- Auctions. Once a tenant is in lien (usually 30 days past due, depending on the state), follow your auction process and put the unit back into service.
Lien and auction rules vary by state, so follow your state’s self-storage lien law and your attorney’s guidance on notices and timing.
Related answers #
- What is a self-storage delinquency ratio and how do you calculate it?
- Why should self-storage owners auction delinquent units promptly?
- What metrics should a self-storage owner track every month?
Source: Mark’s post Self-Storage Revenue Strategies for 2026 Part 2 – Improve Collections
