{"id":3266,"date":"2018-12-10T09:30:07","date_gmt":"2018-12-10T16:30:07","guid":{"rendered":"https:\/\/blog.storewithneighbor.com\/storage-blog\/?p=3266"},"modified":"2024-01-29T17:55:37","modified_gmt":"2024-01-30T00:55:37","slug":"storage-auctions","status":"publish","type":"post","link":"https:\/\/www.neighbor.com\/storage-blog\/storage-auctions\/","title":{"rendered":"Storage Auctions: A beginner’s guide"},"content":{"rendered":"\n

You’re likely acquainted with self-storage<\/a>, but have you ever heard of storage for auction?<\/span><\/p>\n

Introduced in the 1960s, self-storage has steadily grown in use throughout the years. Storage facilities assist a wide variety of people to store their belongings in secured units whilst undergoing periods of transition. However, one fault in the system, for many self-storage companies, is their inability to have certain customers pay their rent on time. <\/span><\/p>\n

Because of the income at stake in this particular situation, storage facilities came up with a solution: to auction off abandoned or unpaid units in an attempt to make up for financial loss. In recent years, storage auctions have risen in popularity due to television shows such as <\/span>Storage Wars<\/span><\/a> and <\/span>Auction Hunters<\/span><\/a>. These shows follow bidders at auctions and show the valuable finds<\/a> that can found in an evicted storage unit. <\/span><\/p>\n

Whether you’ve read a local listing or tuned into a storage auctioning show, you likely have somewhat of an idea of what takes place at a storage auction, but in the off-chance that you don’t, we’re here to help. Here’s what you can expect at your local storage auction:<\/span><\/p>\n

How do Storage Auctions Work?\"Storage<\/b><\/h2>\n

There are approximately 80,000 storage auctions held throughout the United States each year. <\/span><\/p>\n

Many, if not all, self-storage companies will sell or auction off the contents of a customer’s unit to make up for potential losses that have been incurred overtime. <\/span><\/p>\n

Storage auctions are often the result of a lien, “the right to hold property belonging to another person until the debt owned by that person is paid.” If after a given amount of time the debt has not been paid, the right of lien permits storage facilities to sell a customer’s belongings to pay the accumulated debt. Storage auctions, however, rarely produce enough money to cover the rent due and the cost of holding the auction.<\/span><\/p>\n

Auctioning can be both costly and time consuming, leading to many facilities seeing the process as a last resort. Most self-storage companies prefer you to pay your monthly rent on time because an auction is almost always a “money-losing proposition” for them. <\/span><\/p>\n

When an auction does take place, the storage company will sell off the contents of the collected unit to the highest bidder, often by hosting a free auctioning event to the public. If the sale, made by the highest selected bidder, does not cover the balance owed by the previous owner of the storage unit, the remaining amount due will likely go straight to the collection agency. If the sale brings in more, the excess will be sent to the previous owner as is legally required. <\/span><\/p>\n

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