Avoiding Auctions

Krista_Knudsen

What do you or your facility do to avoid the tedious auction process? How do you make sure everything is legal and correct so you won't run into problems? Everyone has their own way of running that process.  

CVSSSTORAGE

There is no way to avoid auctions. We have had a lady who for an entire year every auction we have hers is on the list for auction. She pays the day before the auction and then is late again the next month. As far as running into problems with legality of things, just follow the laws of your state and you should not have any problems. Make no exceptions!

StorageNinja

At my facility, we have a checklist of things that need to be included in the auction file (like copies of the certified letter that was sent). The facility manager puts the auction paperwork together and the regional manager checks it to make sure everything is there and that there are no errors in the lease, etc. We also have notes in Sitelink of every time we have attempted to contact the customer, and we call everyone on their contact list to try to get a message to the customer if we are unable to reach them. That way, should it ever go before a judge, we can show that we made every attempt to contact the customer. 

When we do get a payment from the customer, we try to get them to pay as much as possible so they're not right back up for next month's auction. 

Orkocean

Read, read, and read... Not sure if all states have this but in TX the TSSA has a "gold book" that outlines processes and what not step by step. They have a whole section for the lien process including additional FAQ's to cover most common situations people get. Everyone may have their own "way" of handling the process but regardless the process is exactly that, the process. Once you get your checklist in order and used to doing it the process isn't tedious at all. The most bothersome part usually is just waiting in line at a post office if you're not using email for letters.

teamcapitola

Check, Check, and Double Check!

Most every state has very strict laws regarding storage auctions; while they give a lot of power to the facility, you had better have EVERY I dotted and every T crossed! As the manager, I am in charge of the Lien process here, but I still have my assistant manager check my work. Then I check it again....and again!

We have checklists in place for every step of the Lien process, and at least two sets of eyes for each step.

If we find anything wrong, we pull them from auction. Better to start over then open yourself to a lawsuit.

We do everything to avoid auctions...but they are an unfortunate fact of our business. Make sure you have a sound policy in place for collection calls, follow-up with delinquent tenants to see if a settlement could work.

Our delinquency rate sits around 1-2% and we still have 3 or so auctions a year. You just need to make sure you are following your states laws to the letter, since auctions are one of the most litigated things in our business.

Jeffrey_Buller

Another set of eyes is a great thing.  Always have someone familiar with your state laws go over your auction files.  Even if its another manager in a facility in your area.  I have been doing them for years and  I'm still capable of missing something.

sdgr35

I am very new to this program and storage facility in general. There is no list here for me to follow and I only had 4 hrs of training. I am also only part time 8 hrs a week running the self storage facility of over 250 units. Can someone share the list they have to follow on the process of liens, I have a rough idea but I would prefer something to go by which I do not have access to here. We are in NY state if that helps. Much appreciated. Thanks

i43storage

sdgr35 said:

I am very new to this program and storage facility in general. There is no list here for me to follow and I only had 4 hrs of training. I am also only part time 8 hrs a week running the self storage facility of over 250 units. Can someone share the list they have to follow on the process of liens, I have a rough idea but I would prefer something to go by which I do not have access to here. We are in NY state if that helps. Much appreciated. Thanks

@sdgr35 - Each state is different.  I would STRONGLY suggest getting a copy of the NY Statutes and follow it to the letter.

Prime

Krista_Knudsen said:

What do you or your facility do to avoid the tedious auction process? How do you make sure everything is legal and correct so you won't run into problems? Everyone has their own way of running that process.  

   Be selective when renting a unit, make sure they have a clean and healthy attitude and look, only rent if they have a current and up to date ID, also when running into the auction, Washington RCW allows you 14 days inbetween pre-lien, lien, and auction so I make it 16 days to give some cushion if needed.

Clyde_Lord_Jr

Go here for your state's information. https://www.selfstorage.org/Products-Services/Library/Public-Library

AKKathie

Our company is just now setting up to do our auctions online.  No more in person bidding! I personally think they are taking all the fun out of it but what the h_ll.  They think they will get more money this way.  But, we definitely follow the state mandated process of notification to the point of overkill.  We are close to a military base so we have to be very careful to check the tenant isn't military and got deployed and forgot to pay their unit.  It happened once so the company is now over the top cautious.

AKKathie

Check it out! Storagetreasures.com is where our company is going to auction our lien sales.  I just spoke w/Valley and got the low down because I was absolutely baffled that anyone would pay $280 for this unit!! They do indeed! Thinking that some treasure must be hidden in the suitcase or something.  One bidder not only came in to pay for the unit he bid on but also rented another unit to start sorting thru the unit he bought! Crazy! Guess I was wrong, although our bidding regulars that showed up every time almost as a socializing thing will be disappointed. They always laughed and joked with each other and even forced bidding up to poke fun at a competitor.

themage

Definitely keep an up to date copy of your state (and sometimes local) laws. For those that are new to the position, make friends with management at other storage places near you and exchange information about prices, auction, crime issues, etc. 

 Also, for New York, the public library is an awesome resource with people on staff to research and answer almost any question. 917-ASK-NYPL (917-275-6975) 9 AM-6 PM Monday-Saturday

olivermason99

The best way to live out of problems when you run a business is to higher a lawyer or a consultant...