Will a Storage Facility Really Auction Your Belongings If You Do not Pay?
When renting a storage unit, the last thing on anyone's mind is it being auctioned off to the highest bidder. However, the question of“What happens if I don’t pay my storage bill? Will my items really be auctioned?” In this blog, we’ll discuss the realities of storage auctions, how they work, and how you can avoid them from happening.
The Storage Auction Process
Storage auctions are not as dramatic as shown on TV. Storage facilities are businesses that rely on timely payments to operate. When tenants stop paying rent for their storage units and fail to respond to reminders, the facility may auction off the belongings to recover some of the lost revenue.
It’s important to understand that state laws govern auctions. Each are different depending on where you go. In Kentucky, storage facilities must follow specific steps before selling off items. The process gives tenants plenty of time to resolve missing payment issues and move out their belongings. Storage auctions are something no storage facility wants to do. It is just a means to get lost revenue back for businesses.
How Does a Storage Auction Happen?
Storage facilities must follow the laws before an auction takes place. Since rules are different in every state, Here’s a step-by-step explanation of how it generally works:
- Missed Payments: The storage facility will often allow a short grace period to make the payment without penalty if you miss a payment. But a late fee may be applied if payment is late after this warning.
- Notification Process: After they do not receive payment, the storage facility will send a series of notices. These typically include phone calls, emails, and letters.
- Lockout of the Unit: Your access to your storage unit will be revoked if you continue to miss your payments. You will not be able to retrieve your items until the note is paid out.
- Public Notification of Auction: If the balance is not paid after a period of time (often 30-60 days), the facility will post your unit in a public form.
- The Auction: The facility hosts the auction if the balance is never recovered.
- What Happens After: The auction proceeds are used to cover the unpaid rent and fees. If there is any remaining balance, it must be returned to the tenant.
How Long Do You Have Before an Auction Happens?
The exact timeline varies by state and facility, but most storage auctions occur after 30-90 days of non-payment. Kentucky law ensures tenants receive multiple opportunities to settle their accounts before an auction occurs. Facilities like StorPlace Self Storage are committed to working with customers during this time to avoid auctioning belongings whenever possible.
