Self storage glossary

Short, precise definitions of the terms owners run into, from overlocks and lien sales to economic occupancy.

A

Abandoned unit: An abandoned unit is one where the tenant has left and stopped paying, often without notice. You usually still must follow your state's lien process or abandonment rules before you clear the contents.
Access control: Access control is the system of gates, keypads and door sensors that decides who can enter the facility and when. It records entries and can limit hours.
Alternate contact: An alternate contact is a second person a tenant lists who can be notified about a delinquency. Some states require you to send lien notices to the alternate contact.
Anniversary billing: Anniversary billing sets each tenant's due date to the day of the month they moved in. Rent is not prorated, and cash arrives all month long instead of on the first.
Auction advertisement: An auction advertisement is the public notice of a lien sale, run in a newspaper or on an approved website where the statute allows. Rules set how many times it runs and how far ahead of the sale.
Autopay: Autopay charges a tenant's card or bank account automatically each billing cycle. It cuts delinquency because tenants do not have to remember to pay.

C

Cap rate: Cap rate is NOI divided by a property's price or value. A lower cap rate means a higher price for the same income. It is a rough yardstick, not a guarantee.
Card on file: A card on file is a payment method saved with the tenant's permission for future charges. It makes autopay and online payments possible, and it should be stored by the payment processor, not your own system.
Certified mail: Certified mail is a postal service that proves a letter was sent and, with a return receipt, that it was delivered. Some states require it for lien notices.
Churn: Churn is the share of tenants who move out in a period. High churn after rent increases or specials is a warning that pricing is off.
Climate controlled: A climate controlled unit is kept within a set temperature range, and often humidity, inside a heated and cooled building. It rents at a premium for furniture, records and electronics. The term has no legal standard, so state what you actually control.
Collections: Collections is the work of getting past-due rent paid, through reminders, calls, payment plans and, as a last step, the lien process. Most owners try several contacts before they start any legal steps.

D

Data export: A data export is a file of your tenants, units, balances and history that you can take to another system. Ask vendors how to export before you sign up, and in what format.
Default: Default is a tenant's failure to meet lease terms, most often missed rent. A lien notice usually cannot be sent until the tenant has been in default for the period the statute sets.
Delinquency: Delinquency means a tenant has not paid rent by the due date or grace period. Owners track the count of delinquent tenants and the dollars past due to decide when to remind, lock and start a lien.
Door alarm: A door alarm is a sensor on a unit door that signals when it is opened. It helps unmanned sites spot break-ins and unauthorized access.
Drive-up: A drive-up unit has a door that opens to the outside, so tenants can load straight from a vehicle. Drive-up units are cheaper to build and popular for larger items.

E

E-sign: E-sign is a legally accepted electronic signature on a lease or form. It lets tenants sign online and gives you a stored copy for disputes and lien records.
Economic occupancy: Economic occupancy is the rent you actually collect divided by the rent you would collect if every unit were rented at street rate. It is lower than physical occupancy when you give discounts or have tenants who do not pay.
ECRI: ECRI stands for existing customer rate increase, a rent increase applied to tenants already renting. Owners use ECRIs to lift income because rates on long-term tenants often fall behind street rates. Notice rules vary by state and by lease.

F

First-of-month billing: First-of-month billing sets every tenant's rent due on the 1st. It is simple to track, but new tenants need prorated first months and cash arrives in one spike.

G

Gate code: A gate code is the personal number a tenant enters at the keypad to open the gate. Software ties each code to the tenant and turns it on or off by payment status.
Gate lockout: A gate lockout turns off a tenant's gate code when rent is late, so they cannot enter until they pay. It does the job of an overlock at a gated facility.
Grace period: The grace period is the number of days after the due date before a late fee or lockout applies. Many facilities use 5 to 10 days, but your lease and state law control.
Gross potential rent: Gross potential rent is the total rent you would collect if every unit were rented at street rate. It is the top line used to measure economic occupancy.
GSF: GSF stands for gross square feet, the total area of all buildings including halls and offices. NRSF divided by GSF is the efficiency of the design.

I

Interior unit: An interior unit sits inside a building and is reached through a hall. It is often climate controlled and offers more weather protection than a drive-up.

K

Keypad: A keypad is the number pad at a gate or door where tenants enter a code. Modern keypads connect to cloud software so codes update right away.

L

Late fee: A late fee is a charge added when rent is not paid by the end of the grace period. Some states cap the amount or require it to be stated in the lease.
Lease: A self storage lease, also called a rental agreement, is the contract between owner and tenant. It sets rent, fees, access, insurance and lien rights, so it should be reviewed by a local attorney.
Lien notice: A lien notice is the formal written notice that a tenant is in default and that the owner may sell the stored goods. State law sets who must get it, how it is delivered and what it must say.
Lien sale: A lien sale is the public sale of a delinquent tenant's stored goods to recover unpaid rent and costs. Each state sets the notices, ads and waiting periods you must follow first. Skipping a step can void the sale.

M

Month-to-month: Month-to-month means the rental renews each billing period until either side gives notice. It is the standard in self storage and lets owners change rates with proper notice.
Move-in: Move-in is the day a new tenant signs, pays and starts using a unit. A clean move-in captures ID, contacts, payment method and gate code.
Move-in special: A move-in special is a discount offered to new tenants, such as the first month at half price or a $1 first month. Specials fill units but can attract tenants who leave when the discount ends.
Move-out: Move-out is when a tenant empties the unit and ends the rental, usually with notice. Check the unit, remove the lock, settle the balance and shut off the gate code.

N

NOI: NOI is net operating income, rental income minus operating expenses such as taxes, insurance, payroll and utilities. It excludes loan payments and depreciation. Buyers use it to value a facility.
Notice of sale: A notice of sale tells the tenant, and sometimes other interested parties, the date, time and place of the lien sale. Many states require it to be sent by a set method and number of days before the sale.
NRSF: NRSF means net rentable square feet, the total floor area of units you can rent, not counting halls, offices or driveways. Owners divide revenue by NRSF to compare performance across facilities.

O

Online rental: An online rental lets a customer choose a unit, sign the lease, pay and get access without visiting the office. It turns your website into a 24-hour front desk.
Outdoor storage: Outdoor storage is open or covered space for vehicles, boats, RVs and trailers. It is cheaper to build than units and is rented by the space or foot.
Overlock: An overlock is a second lock a facility places on a unit door when rent is late, blocking the tenant's access without opening the unit. It stays on until the tenant pays or the lien process ends. Your lease and state law should allow it.

P

Paid-through date: The paid-through date is the last day covered by the tenant's most recent payment. It tells you at a glance who is current and who is behind.
Payment processing: Payment processing is the service that moves tenant money from their card or bank to your account. Processors charge a percentage or flat fee per payment, which is separate from the cost of your software.
Physical occupancy: Physical occupancy is the share of units, or of rentable square feet, that are rented at a given time. It says nothing about the rent paid, so pair it with economic occupancy.
Platform fee: A platform fee is a charge by the software company on payments it processes for you. Stitch Storage charges 0.3% on rent processed through it, shown up front. Ask any vendor for their full fee schedule.
Pre-lien notice: A pre-lien notice is a courtesy letter sent before the formal lien notice that tells a tenant they owe rent and what happens next. Some states do not require it, but it often brings payment before costs rise.
Proration: Proration charges only for the part of a billing period a tenant uses, such as a move-in on the 12th. It is common with first-of-month billing and rare with anniversary billing.

R

Rate gap: The rate gap is the difference between what a long-term tenant pays and the current street rate for the same unit. A large gap is the opening for an ECRI.
Remote management: Remote management means running a facility from off site using cloud software, cameras, gate systems and call handling. It depends on reliable internet or cellular service at the site.
Rent increase notice: A rent increase notice tells a tenant their rent will change and when. Some states and leases require 30 or 60 days of notice, so check yours before sending.
Rent roll: A rent roll is a list of every unit with its tenant, rent, paid-through date and balance on a given day. Buyers, lenders and you use it to see real income and who is behind.
RV and boat storage: RV and boat storage rents parking spaces for recreational vehicles and watercraft, often outdoors or in covered or enclosed bays. Pricing is by length, and rules cover battery, fuel and insurance.

S

Self storage facility: A self storage facility rents space to people who load, lock and access their own goods. The owner does not take possession of the goods, which shapes the owner's legal duties.
Self storage software: Self storage software is a system that manages units, tenants, leases, billing, access and reports. It may also run online rentals, a website and lien workflows.
Semi-manned facility: A semi-manned facility has staff on site for limited hours or shares a manager across several sites. It balances in-person service with lower payroll.
Street rate: The street rate is the advertised asking rent for a unit type, the price a new walk-in or caller would see. It is the baseline for discounts and for comparing to what existing tenants pay.
Surplus proceeds: Surplus proceeds are the money left from a lien sale after rent, fees and sale costs are paid. Many states require the owner to hold the surplus for the tenant for a set time.

T

Tenant insurance: Tenant insurance is a policy bought from an insurance company that covers stored goods. It differs from a protection plan, which is a contract with the owner or a third-party program.
Tenant protection plan: A tenant protection plan is an optional or required monthly add-on that covers a tenant's stored goods up to a limit, paid with rent. The owner usually earns a share of the fee. Rules for selling it differ by state, so confirm yours.

U

Unit mix: Unit mix is the count and size breakdown of your units, such as how many 5x5, 10x10 and 10x20 spaces you have. A good mix matches local demand and earns the most rent per square foot.
Unmanned facility: An unmanned facility has no staff on site during normal operation. Tenants rent, pay and enter using online tools and gate codes, while the owner or a remote manager handles problems.

V

Vacancy rate: Vacancy rate is the percent of units not rented. It is one minus physical occupancy.
Verified mail: Verified mail is a delivery method that gives proof of mailing or delivery, defined in some states' self storage laws. Check your statute for the exact allowed methods.

W

Web rate: The web rate is the price shown online for a unit, often a bit lower than the street rate to encourage online rentals. Some owners keep the two equal to avoid confusion.