Quick Facts About Self Storage Auctions

Self storage auctions are held by storing space companies in order to recover their losses due to non payment of rentals by the customers. The lease agreements usually have a clause that gives right to these companies to auction the stored goods of the defaulters.  However, before auctioning some companies give a relaxation period to these customers to pay their dues. Those customers who are unable to repay, before the expiry of this period, have to face auctioning of their stored items. 

Process Of Storing Auctions

Different states have different laws related to the auctions of cargo space units. These laws may state the conditions of auctioning the goods can be held, the minimum period that should be given to the customers to repay their dues before auctioning, the process of an auction like who is authorized to hold the auctions etc. However, every company should clearly state all their terms and conditions in the lease agreement related to the auction of the stored goods in the event of non-payment of rentals. This is necessary to avoid any legal issues during self storage auctions .

For holding auctions, the company offering places of safekeeping for rent should first decide the date of the auction. These companies have different options available in this matter. They can either hold auctions once a year or at different time intervals depending upon the defaults. The storing space company should also send a letter to the tenant regarding the auction proceedings. After the date of auction has been decided, the company should place a public notice in newspapers and magazines. The advertisement for such auctions should be circulated at least 2 weeks before the auction of the goods. This notice should state the name and address of the tenant whose units are up for auction and the reason for the auctioning of his items. 

Store room auctions are of different types. Some states allow auctions to be conducted only by authorized auction houses while in some states cargo space services themselves can hold these auctions. In states where warehouse owners cannot conduct auctions, the owners often label this as garage or public sale. The auctions can either be held for a complete unit, or for individual items. The former is the most widely option used by owners. In this auction, the doors of the cargo space units are opened to the public before the bidding process starts, and the buyers bid for the complete place for safekeeping units. In the second type of auction, individual items are put for auction. Since this is a time consuming process, owners usually avoid it. However, it can be beneficial while auctioning costly items like cars, boats, antiques etc, as people are ready to pay high prices for such items if they are able to see and check them.

Cargo space companies opt either for sealed bids or verbal bids. In sealed bids, bidders write the bid amount and submit it to the company before the auction, which are then opened on the day of the auction. In verbal bids, bidders verbally tell their bid amount on the auction day. Cash is usually preferred for transactions at auctions.

In short, if the tenants fail to pay monthly rentals of the store rooms then the auctions are legitimate mediums available with company owners to recover their losses.

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Disclamer: This entry is intended to promote our partner StorageMart and some or all participants received compensation.

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