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Moving industry know-how

Running storage

The basics of a moving company's storage business — tenancy and agreements, monthly billing, access, insurance, and what happens when a customer stops paying.

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Many moving companies store customers' goods between homes, or for months and years. Storage brings steady monthly income — and a few responsibilities.

Two kinds of storage

  • Storage in transit (SIT) — short, temporary storage on a long-distance move, under the move's terms. See SIT and conversion to permanent storage.
  • Permanent (warehouse) storage — the customer rents space by the month. From here on you are a warehouse, not a carrier, and a storage agreement governs.

The storage agreement

Before you store anything, have the customer sign an agreement that covers:

  • what is stored (an inventory, with condition notes), and in what (vaults, loose, a unit),
  • the monthly rate, when it is billed and how it is paid,
  • the warehouse's liability limit (often per pound or a declared value) and any protection the customer can buy,
  • access — how and when the customer can visit or take items out, and the charges for it,
  • what happens if the customer stops paying,
  • how either side ends the agreement, and the move-out charges.

Billing

Most companies bill monthly in advance, by card on file. Price by vault, by cubic foot or by unit, with handling in and out charged separately. Raise rates with written notice.

When a customer stops paying

Every US state has laws on warehouse liens (and, for self-storage, lien acts): a warehouse can hold the goods for unpaid charges and, after the legal notices and waiting periods, sell them. The steps — written notices, timing, advertising the sale — differ by state and must be followed exactly. Talk to a local lawyer before any lien sale.

Insurance

Your warehouse needs its own cover (warehouse legal liability, property). Customers' own contents often aren't covered by their homeowner's policy while in your warehouse — tell them so, and offer protection if you can.

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