What Are Storage Auctions?

Published: September 15, 2022

On the TV program “Storage Wars,” self-storage auctions have received a lot of coverage recently. Despite the fact that most self-storage firms have never done so, many (if not all) do hold auctions on a regular basis.

State laws control every step a self-storage company should take when reselling the contents of customers’ spaces to recoup losses from missed rent payments. If a customer does not respond to several requests for payment, companies are allowed by law to auction off their belongings. This process is also overseen by government officials.

Keep your info up-to-date

A self-storage facility can only contact its clients with the address, phone number, and email supplied by them. As a result, customers must keep their information updated at all times. Otherwise, account alerts and notifications would be ignored.

How the auction bidding works

If personal belongings such as photographs, tax records, bills, or passports are found in the storage space during an auction at a self-storage company, generally the successful bidder is required to return them back to the office of that storage company. The customer usually then has a set period of time (e.g., 30 days) to retrieve their items from the office free of charge. However, if they cannot pick up their belongings within that timeframe, often, they are able to contact the office and ask for their contact information to be given to the buyer so that said buyer has the opportunity to return any property back its original owner.

An auction is the natural culmination of a lien. A lien gives the holder the right to take possession of someone else’s property until a debt owed by that person is paid. If the debt is not paid, then the operator can sell the customer’s goods to recoup what they are owed.

Generally, when a customer fails to pay their storage unit rent, the self-storage company will auction off the contents of the unit. However, these sales rarely make enough money to cover the past due rent and the cost of holding and running the auction. In addition, auctions are time-consuming and take employees away from necessary job duties.

To sum it up: Self-storage companies much prefer that customers simply pay their rent on time, as going through an auction is almost always a loss financially.

Remaining storage costs and balance

If the customer’s debt is not covered by the auction, the remaining amount owing frequently goes to a collection agency. The extra money is sent by check to the customer if the auction brings in more as required by law. Any undeliverable checks that are returned by mail are treated as abandoned property and dispersed as necessary under state legislation.

Customers frequently ask for concessions or payment programs to help pay down their debt, but it’s rarely feasible for self-storage firms to comply unless the client is willing on his or her own. If a customer wants to keep renting, he or she must settle the account in full so as not to be sold off at an auction.