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Self Storage Auctions. Auctioning goods from a self-storage unit in default is complicated enough for any self-storage owner, You never know what you might find in a storage unit - among the boxes and furniture and old records, there is the occasional surprise Self Storage Auctions.
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Self Storage Auction Poster From 1895
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Self Storage Auctions
The self-storage business is a rental business. That is to say, the self-storage owner rents out space for storage purposes to tenants; he does not store the property of customers. He acts as a landlord, not a warehouseman. Like any good landlord, the self-storage operator's goal is to keep occupancy high and retain his tenants. Unfortunately, sooner or later, he will be faced with the task of evicting a tenant for failure to pay rent, then have to reclaim the storage space and remove or dispose of the tenant's property. The most common way to do this is to place a lien against the property and hold an auction to dispose of the goods.
Lien Sales
Most self storage facilities are forced to hold storage auctions or lien sales to vacate non-paying tenants. These auctions are held according to the terms outline in the Occupancy Agreement as governed by the state the facility is operating within. Auctions are opened to the general public with most bidders buying for the purpose of reselling for profit. Storage auctions are a great way to buy secondhand merchandise for pennies on the wholesale pound sterling. If you are someone who sells at flea markets, garage sales or on e-Bay, you will probably find storage auctions to be one of your best sources for merchandise.
In general, most states in America give self-storage operators extraordinary leverage against delinquent tenants. Nearly every state has specific statutes that govern the sale-and-disposal process, as provided for in the state's Self Service Storage Facility Act. However, if the procedures are not followed to the letter, or if there is an error in any step of the sale-and-disposal process, the self-storage operator leaves himself vulnerable to law suits claiming loss or damage of stored goods. Even when the process is handled correctly, it is not uncommon for a disgruntled tenant to file a claim against the operator charging negligence in the removal or disposition of stored property.
Sale-and-disposal legal-liability insurance is an important coverage that is specific to the self-storage industry and should be considered an essential part of every self-storage owner's business insurance package. Sale-and-disposal legal-liability coverage provides self-storage operators with protection against conversion: the act of wrongfully taking, selling, using or destroying the goods of another party. Due to the incredible diversity of goods commonly stored and the wide range of values of the property, the penalty for conversion can be extremely high. Recently, a self-storage operator was held liable for $250,000 in damages by a California court for the wrongful sale of a customer's property. The court judged that the storage owner's notice of intention of sale was defective, since the operator's newspaper ad did not include the delinquent tenant's name, which was required by state law. The court ruled that the operator was in violation of negligence and conversion as a result of this error.
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