Over the past year, many self-storage facilities across the country have grappled with declining occupency and delinquent accounts. A recent article on TimesDaily.com shows an alarming side affect of the depressed economy: people simply walking away from their storage units. According to the article, Self Service Storage in Sheffield, Ala., posted eight potential defaults in March. By September, it increased to 14. Last month, the facility had 19 units slated for auction.
While auctions have always been a part of the storage business, you may find more customers are willing to walk away from their stuff than they were a year ago. If this is the case at your facility, you better be sure you know the ins and outs of auctions before you start one. ISS columnists and legal experts have written about this topic for Inside Self-Storage magazine many times over the years, including this article, which covers the key questions you should answer before scheduling any sales. Is it possible a payment was missed? Is the tenant in the military? Could there be something else going on that has prevented the tenant from paying the bill?
Maybe it’s not a unit full of furniture and boxes you’re concerned with but a boat, RV or vehicle. Jeffrey Greenberger’s article on selling vehicles will guide you. Or check out Jeff’s webinar, Creating Solid Lien-Sale Rules for Self-Storage
To weigh in on the subject, read this thread on Self-Storage Talk or click on the post comment button to share your thoughts. A few hours of research now could save you money—and headaches—down the road.