Hong Kong as a densely populated city, many houses are very small in size and cramped. To optimize use of space, many of them store away infrequently used items in mini-warehouse. The Consumer Council examined service details of 13 mini-warehouses and 6 valet storage companies in the market. Price difference of mini-warehouses could be up to 2.7 times while one-time door-to-door delivery charge for valet storage could well surpass its monthly fee.
Mini-warehouse
Mini-warehouse offers round-the-clock freedom to tenants to move in and out and tidy stored items. In the survey, the Council compared charges of the warehouses operated by 13 mini-warehouse companies across six districts. The difference amongst all listed monthly fees for renting a 16 square feet mini-warehouse could be up to 2.7 times, ranging from HK$383 to HK$1,418. Take Kwun Tong as an example, the lowest fee is at HK$510 and the highest at HK$1,418, representing 1.8 times in difference. Obviously there is substantial price difference but the related service details and terms and conditions could differ greatly, therefore, consumers are advised to compare all packages smartly and to visit the sites before placing order.
12 of the surveyed mini-warehouse companies offer prepayment discounts. Consumers prepaid for one year may enjoy a discount between 6% and 20%. These companies claimed that consumers will be spared from fee adjustment during the prepayment period. Nevertheless, a previous complaint to the Council alleged that a mini-warehouse company charged the consumer for the difference arising from a fee adjustment during the prepayment period. Prepayment is in general non-refundable for early termination of contract.
Like residential property, size of a mini-warehouse may be expressed in gross floor area or carpet area. 12 of the surveyed companies claimed to offer a high efficiency ratio between 90% and 100%, but some other companies stated on their website with efficiency ratio as low as 70%. While service providers usually just indicate the floor area only, consumers should also beware of the actual volume of the mini-warehouse as ceiling height would affect the space available for storage. The reported ceiling height of the surveyed mini-warehouses ranged from 8 feet to 11 feet.
In terms of insurance, only 1 of those surveyed provides insurance against property loss as part of the basic monthly fee with a maximum compensation of HK$1,000 per square foot. 4 other companies have specified fire insurance which, however, only covers damage to property structure, exclusive of damage and loss of the consumer's properties. Consumers should consider purchasing insurance for their stored belongings, but any breach of land lease conditions by the mini-warehouse company may jeopardize chances of a successful insurance claim.
Valet storage
Compared to mini-warehouse, valet storage service saves consumer the hassles of transporting and pick-up for stored items. Consumers enjoy a lower monthly fee but with limitations on storage space and the weight of stored items. Of the 6 surveyed valet storage providers, 4 charge by number of storage box, 1 offers package deals of storage space based on boxes in assorted sizes only, and the remaining provides rental by both individual box and package deals. Size of each standard storage box is about 60 x 40 x 33cm, and monthly fee ranges at HK$48 to HK$50.
Charge for the first round of box delivery and pickup is exempted by all 6 surveyed. Subsequent delivery and pick up will be charged and there are also restrictions on courier schedule and number of boxes per delivery. These limitations, to a certain extent, cause inconvenience to consumers.
2 of the surveyed companies provide on average one free delivery and pick up service per month. 1 provides one free service per month, but consumers can only choose date without specifying an exact time for delivery unless a premium fee of minimum HK$125 is paid.
The other 3 companies do not offer free pick-up and delivery. Maximum charge for one-time delivery could equivalent to 2.6 times of the monthly rental of a storage box. Furthermore, delivery to a remote district or a changed address is subject to an additional charge as high as HK$500.
If consumers' goods get damaged, lost or stolen during storage or delivery, the storage companies will offer compensation based on the loss in every storage box. The maximum claimable amount for each box is usually between HK$1,000 and HK$2,500.
Consumers are advised to select mini-warehouse and storage box according to their needs. The former is more suitable for storing large-sized items, while the latter for smaller and infrequently used items. Moreover, consumers should also take note that they may not know location and hygiene of the warehouse service offered by valet storage providers.
These are suggestions for consumers:
- Before committing to a mini-warehouse or storage box service, consumers should understand their terms and conditions, including scope of services and charges.
- Find out actual usable volume and storage conditions in particular to hygiene and security. Before signing a contract, consumers should always make on-site inspection and take measurements to protect their own interests.
- Avoid storing high value or commemorative items, purchase insurance for extra protection when needed.
- Although majority of the service providers offer prepayment discount, consumers should consider the needed rental period instead of hastily prepaying for too long a period unnecessarily.
- Understand charges and schedule for delivery in valet storage service.
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