Things You Should Know About Self Storage Auctions
Things You Should Know About Self Storage Auctions
Not all people who use self storage units are able to keep up with their dues. As a result, some customers who fail to settle their financial obligations with the providers lose their items for good.
Self storage providers have the right to auction off the stored items within their premises if the renter fails to settle his dues within a specific period of time and after notices have been sent to him or her. Being business owners, the law grants self storage providers a lien or legal claim against the items stored at their units when the tenant does not pay his dues for a certain period of time. When the facility forecloses its lien, it will then hold a public auction to sell the stored items inside a unit.
There are processes involved in these self storage auctions and they may differ from one provider to another but they’re all fairly simple to follow. At the auction site, participants are required to register first. Facilities normally ask buyers to sign a bigger contract in order to be allowed to participate in the bidding. Other facilities also use bidder numbers.
To take part in the bidding, buyers must be at least 18 years of age. Sometimes, buyer deposits may be required but they’re refundable. The deposit is announced and will be refunded after the unit has been emptied.
Before the sale starts, the unit is usually opened for inspection. But at this time, no participant is allowed to view the items beforehand. No one is allowed to enter the unit nor touch any item inside because sometimes, the tenant may settle his dues at the last minute.
Prohibited during the auction process are smoking in the area and bringing of firearms.
The contents of a storage unit are normally considered as a single lot and sold as such. There maybe times, though, when the items will be divided and sold into two or more separate lots. When this happens, the auctioneer will make an announcement.
The bidding process done at self storage auctions is the open type and not the sealed type. The amount differs because what usually happens is bidders decide on the amount to bid depending on the kind of items stored in the unit. In short, there’s no standard sale price for this process.
You should also know that the storage facility itself has a right to place bids during the auction. But this is not meant to buy the items in the unit but rather just to make an opening bid.
Payment of the bid is done immediately after the auction and must be in cash. In some instances, bidders can pay early even before the auction closes.
The winning bidder is then given 24 hours to remove the purchased items from the self storage unit. In the case of large units, the time for removal of contents may be extended. The time allowed should be announced at the auction but if not, you should find out about it.
