AUCTION MONIES

6651storage

HOW DO WE DEAL WITH MONEY WE COLLECT FROM AUCTIONS AS FAR AS PUTTING IT TOWARD BAD DEBT? 

MamaDuke7

I apply it as a payment before I do the move out.  I note in the payment memo that it's the auction payment. 

Dtinfla

Charge the auction fee to the tenant's account, the cost of the auctioneer or the online auction company's charge, then as MamaDuke7 said apply money collected as a payment before moving them out.  

GM_SJ_BSS

In CT we charge sales tax, so we also apply the payment before move out like the above comment, but we have to go in to charges, add an administrative adjustment in the amount of the taxes as this goes to the state.

6651storage

so we don't move them out until after the auction?  Then they are still racking up debt?

i43storage

6651storage said:

so we don't move them out until after the auction?  Then they are still racking up debt?

Correct - you can't move them out until the auction date.  Well, you could, but you can't legally.  In our state, you can move them out of the unit and store their belongings elsewhere until auction.  This works well if they have a couple of things left that would fit into a smaller unit so you can rent out their larger one.

6651storage

thank you for that info we are just doing our first auctions (been open 1 1/2 years) and we were not exactly sure when to move them out.  Thank you again!

MamaDuke7

6651storage said:

so we don't move them out until after the auction?  Then they are still racking up debt?

That is correct.  Their stuff still occupies the space, so they still accrue rent and fees until the day the space is sold at auction and paid for by the auction buyer.