run-delinquency-and-lien-process

name

run-delinquency-and-lien-process

description

Run a self-storage tenant from first missed payment to lien auction as a disciplined, state-specific process — start with prevention (autopay enrolment, late-fee discipline), then walk the statutory lien timeline (late fees → gate lockout/overlock → pre-lien and lien notices → advertising/public notice → auction via StorageTreasures/Lockerfox → sale of goods → surplus handling), flagging at every step that lien law varies by US state, attaching the state and a retrieval date, and marking the whole thing operational guidance and NOT legal advice. Reach for this when the user asks "I have tenants 60+ days past due — what now?", "walk me through the lien and auction process", "when can I overlock a unit?", or "how do I handle auction surplus?". Used by `storage-revenue-and-occupancy-specialist` (primary).

Skill: run-delinquency-and-lien-process

Invoked by: storage-revenue-and-occupancy-specialist (primary). Also consulted by self-storage-operations-lead for the operational overlock / gate-lockout mechanics.

When to invoke: "I have past-due tenants — walk me through the lien and auction"; "when can I overlock / lock out a defaulting tenant?"; "how do I advertise and run the auction?"; "how do I handle the surplus?"; any move down the delinquency-to-auction path.

Output: a prevention review + a state-flagged, retrieval-dated delinquency-to-lien timeline (captured in ../../templates/delinquency-lien-timeline.md), every step marked operational guidance, not legal advice, with the legal question routed to counsel.

⚠️ Lien law varies materially by US state, the statutes change, and this skill is operational guidance — NOT legal advice. The self-storage lien is a statutory process with strict notice contents, delivery methods, and timing that differ by state; a mis-stepped or mis-timed notice can void the sale and expose the operator. Attach the state + a retrieval date to every specific claim and route the actual legal question to the client's counsel.

Procedure

1. Start with prevention — it's far cheaper than any lien step. Confirm autopay enrolment (a card on file that runs automatically is the single most effective delinquency control) and a disciplined late-fee schedule per the rental agreement (amounts/caps vary by state — verify). Most roll-to-delinquent is preventable here. See ../../knowledge/self-storage-patterns-2026.md.
2. Pin the state and the governing rule up front. Before any step, record which US state governs and note that the timeline is state-specific and not legal advice. Retrieve/confirm the current statute with a retrieval date; if unverified, mark it [unverified — verify against <state> statute] and say so.
3. Late fee → default clock. After grace, apply the first late fee; the default clock the state defines starts. Record dates in the timeline template.
4. Gate lockout / overlock. Deny gate access and/or place an overlock on the unit so a defaulting tenant can't remove goods while in default. When this is permitted is state-specific — verify. (The operations lead owns the physical overlock; the economics and timing are the specialist's.)
5. Pre-lien / default notice. Send the notice of default and intent to enforce the lien, by the method and after the delay the state requires (verify contents + delivery method).
6. Lien notice. Send the formal lien notice with the required contents (amount owed, deadline, that the goods will be sold) by the required delivery method (certified/verified mail, or email where the state allows). This is the step most often mis-executed — verify contents and method precisely.
7. Advertising / public notice. Advertise the sale as the state requires — newspaper and/or a designated online platform, for the required number of publications/days (verify).
8. Auction / sale. Conduct the sale — commonly online via StorageTreasures or Lockerfox, or a live/onsite auction (platform terms volatile — verify). Follow the state's rules on bidder terms and sale conduct.
9. Sale of goods → apply proceeds. Apply proceeds to unpaid rent, fees, and sale costs in the state-specified order.
10. Surplus handling — a frequent liability source. Any surplus over what's owed must be handled per state law (commonly held for / returned to the tenant, or escheated). Mishandling surplus is a common source of operator liability — verify the state rule and document the handling.

Worked example

User: "I have a tenant 65 days past due in Texas. When can I auction the unit?"

• State pinned: Texas governs; the timeline below is state-specific and not legal advice — the specific Texas statute days/notice contents must be confirmed against the current statute [verify — TX Property Code self-service storage lien, retrieval date] and with counsel.
• Prevention check: was the tenant on autopay? If a card failed, a retry + call may resolve it before the lien path.
• Sequence (verify each against TX statute): late fees already applied → overlock the unit → send the notice(s) with the required contents and delivery method → advertise as required → auction (e.g. via StorageTreasures) → apply proceeds → hold/return any surplus per TX rule.
• Routed to counsel: the exact notice contents, delivery method, waiting periods, and surplus rule are legal questions — this skill sequences the operational steps; counsel confirms the statute.
• Captured in ../../templates/delinquency-lien-timeline.md with each date and the state flag.

Guardrails

• Not legal advice, and state-specific — every step carries the state + a retrieval date; the legal question routes to the client's counsel.
• Prevention (autopay + late-fee discipline) comes first — it's cheaper than any lien step.
• Never skip or compress a notice/waiting step to auction faster — a mis-timed or mis-addressed notice can void the sale.
• Overlock timing, notice contents, delivery method, advertising requirements, and surplus handling all vary by state — verify each; never assume one state's rule applies to another.
• Surplus handling is a frequent liability source — document it and verify the state rule.
• Auction-platform terms (StorageTreasures/Lockerfox) and PMS delinquency-automation features are volatile — carry a retrieval date and re-verify.