Fact or Fiction: Addressing Some of the Latest
Rumors About Storage Auctions
When a storage tenant
stops paying rent on their storage unit, their unit becomes eligible for an
auction. After some time of not hearing back from the tenant, their belongings
can be auctioned to the highest bidder to help pay back the missed rent that is
owed to the business. Storage unit auctions are also held to help clear out any
of the contents from self-storage spaces that are no longer being used, so the
original owner can re-rent the unit to someone who needs it.
Now that you know a little more information about the purpose of a storage unit auction, we can address some of the latest rumors we have heard regarding storage auctions.
Rumor #1: Storage Facilities will Create an Auction Without Contacting the Tenants
Before any storage unit is auctioned off to the community, there have usually been several attempts to contact the tenants, including sending notices via certified mail. Auctioning the items in a storage unit is often a last resort.
Before the tenants originally move their items into a storage unit, a contract is often placed that sets the terms for late or missing payments. Just like any landlord, if the tenant doesn’t pay their rent within a certain amount of time, the landlord will notify the tenant of their intent about what they choose for the next steps.
Rumor #2: The Purpose of a Storage Auction is to Bid on Individual Items
Storage auctions are very different from a traditional auction. Usually, when you attend a traditional auction, items will be sold separately. However, when you attend a storage unit auction, everything held within the unit is sold together. Units are won based on a bidding system. The highest bidder will receive all the items within the storage unit.
Rumor #3: The Unit Clearing Process is Often Slow
After a unit is won, the bidder will have a set time frame to clear out the unit. The process is often quick because the owners will likely want to create space for new tenants.
Rumor #4: You Have to Be on Site to Bid on a Storage Unit
Nowadays, more storage auctions are held online rather than in person. Online storage auctions make it easy for people to place their bids on storage units all from the comfort of their home.