Auctioning a unit

arod71

Good afternoon and happy New Year to all.I came here to reach out for some guidance and to better educate myself on the regulations of self storage. I had a unit at a facility that was mostly tools of my trade for a remodel business I have. Somehow they mistakingly auctioned off, admitted to their negligence, bought the unit back from the buyer and returned it to the facility with about 80  to 90% of my belongings and tools gone. They instructed me to make a list of what was not returned and they would go from there to compensate for my losses. Long story short, I had close to 25,000.00 in tools and belongings to which they responded, well we only cover 2500.00 without prior consent. So basically I'm out 20k +due to there mistake.I find it appalling and a slap in the face and I'm not too sure how much leverage I have in getting back a fair amount for my loss, and there aren't many lawyers that specialize in this sorry of thing. Any help would be greatly appreciated as this was everything that I had accrued over the last five years for my company.

themage

As far as I am aware, most states have a limit on the liability for a storage facility. Most rental agreements will state that limit, and whether or not you are required to insure your own items that are stored. Many will also offer or require insurance when you sign the agreement.

I am sorry you lost so much equipment, but at most places, the security and upkeep for stored items is strictly your (the tenant's) responsibility. If negligence can be proven, you may have a legal case to pursue damages, but I don't know if it would be worth it to you.

Please note, I am not a lawyer and this information is just how I understand the situation.

arod71

Thank you,I appreciate your input, and I believe you're spot on. I was just hoping for this company to do what was right without having to litigate, or that maybe someone new a route that would hold them responsible for their negligence.

AnitaJohnson1269

Did they auction the unit online?  If so, the online auction company should have photos of what was in the unit that was posted for the sale.  I don't know if that will help your case but couldn't hurt.  I don't understand how one could auction the wrong unit.  There are so many checks to go through, it should have been caught.  

StorMomma

Read your lease.  I'll bet they have a limit for the space as to how much stuff you can keep in it.  i.e.  5x10 can't contain more than $2500 in value, 10x10 can't contain more than $5000 in value without prior consent of the owner.  I'm sure that's what they are referring to.  Good luck in whatever you decide to do!

GM_SJ_BSS

I am curious as to how they accidently sold your unit???   Were you behind on your rent and made payment arrangements and they still sold your unit, or did they cut the wrong lock??  I've been doing storage for about 17 yrs and have processed many Liens and held auctions, never ever have I sold the wrong unit...How in the heck does that happen...   I am sorry you lost your belongings, I wish had some good advice to give but without knowing the whole story its hard to comment on what you should do which at this point probably wouldn't be in your favor, can't express enough how important it is to insure units.  Good Luck...

prowlett

Unfortunately, this happens more than you would think in the storage world. Between hiring at or close to minimum wage, not having appropriate move-in procedures, a lack of care, etc, this is what happens. Typically it’s because the manager moved you into X physically, but moved you into Y in their program. They didn’t do any audits to catch this. They then moved someone else into Y physically and X in the program. Essentially, they auctioned the wrong unit. There are so many ways to prevent it, but it is very easily done when no one is paying attention. You would be surprised how many managers and owners don’t actually know their state lien laws as it pertains to storage. They just go from what they heard from someone else. Most contracts state the limit of liability the owner holds. Outside of that, it’s on you. We explain that to our customers, but most don’t. For $25k, might not be a bad idea to talk to a real estate lawyer. 

GM_SJ_BSS

prowlett said:

Unfortunately, this happens more than you would think in the storage world. Between hiring at or close to minimum wage, not having appropriate move-in procedures, a lack of care, etc, this is what happens. Typically it’s because the manager moved you into X physically, but moved you into Y in their program. They didn’t do any audits to catch this. They then moved someone else into Y physically and X in the program. Essentially, they auctioned the wrong unit. There are so many ways to prevent it, but it is very easily done when no one is paying attention. You would be surprised how many managers and owners don’t actually know their state lien laws as it pertains to storage. They just go from what they heard from someone else. Most contracts state the limit of liability the owner holds. Outside of that, it’s on you. We explain that to our customers, but most don’t. For $25k, might not be a bad idea to talk to a real estate lawyer. 

Wow that's bananas....I had never experienced this and would not of guessed this is common... Guess you learn something new everyday...