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Thread: Auction Ethics Question

  1. #9
    Satyra From PhoneSmart is offline Senior Member
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    Default Re: Auction Ethics Question

    Quote Originally Posted by dakselfstorage View Post
    I always say I will announce that the tenant is here. It has not happened to us since we opened in 1998.
    Wouldn't announcing that the tenant is there discourage other buyers from bidding, specifically to avoid confrontation... and on the other hand, if no one else bids on the unit, isn't there a possibility that the original owner of the unit could get their belongings for less than what is owed. Or does the bidding start with the amount owed on the unit?

  2. #10
    DFWRealist's Avatar
    DFWRealist is offline Member
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    Default Re: Auction Ethics Question

    Quote Originally Posted by Satyra From PhoneSmart View Post
    Wouldn't announcing that the tenant is there discourage other buyers from bidding, specifically to avoid confrontation... and on the other hand, if no one else bids on the unit, isn't there a possibility that the original owner of the unit could get their belongings for less than what is owed. Or does the bidding start with the amount owed on the unit?
    My responses below are from my personal experience and from the auction buyers point of view:

    1- The times a tenant was present and we were informed they were present... It discouraged me from making any bids. However, it did not discourage all buyers from bidding as all units were sold.
    2- Your second question was a little unclear to me but... The sales I have attended where tenants were announced as present, the tenants were NOT allowed to bid on any unit. Their own or any other. All units have sold where the tenant was there. If it happened to be that their unit did not get a bid, it would be deemed a "no sale" and the contents would then be owned by the facility. I am not sure what the management would then do with the tenants former property at that point.
    3- The auctions I have attended, the amount owed to the facility is never disclosed to the buyers attending. The opening bid starts at whatever amount a buyer offers to open bidding or the auctioneer will start with a number that is fitting with the contents of the unit. Sometimes that number gets no response and the auctioneer will reduce the bid amount until a buyer jumps in and accepts that bid amount. The total past due amount for the unit is never a factor to a buyer as again, that figure is not disclosed to the buyers attending.
    When you argue with an idiot...there are two idiots arguing. -Ray Pritchard

  3. #11
    dakselfstorage's Avatar
    dakselfstorage is offline Senior Member
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    Default Re: Auction Ethics Question

    Quote Originally Posted by Satyra From PhoneSmart View Post
    Wouldn't announcing that the tenant is there discourage other buyers from bidding, specifically to avoid confrontation... and on the other hand, if no one else bids on the unit, isn't there a possibility that the original owner of the unit could get their belongings for less than what is owed. Or does the bidding start with the amount owed on the unit?
    I don't think it would be an issue with my regulars. Years back I mentioned to one that the tenant may show up. He told me if he likes the unit they will not get it cheap. If the tenant causes any issue I will have them off the property very quickly.
    Joe Krezdorn
    DAK Self Storage
    Leesport, PA 19533
    www.dakselfstorage.com

  4. #12
    Satyra From PhoneSmart is offline Senior Member
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    Default Re: Auction Ethics Question

    Quote Originally Posted by DFWRealist View Post
    My responses below are from my personal experience and from the auction buyers point of view:

    1- The times a tenant was present and we were informed they were present... It discouraged me from making any bids. However, it did not discourage all buyers from bidding as all units were sold.
    2- Your second question was a little unclear to me but... The sales I have attended where tenants were announced as present, the tenants were NOT allowed to bid on any unit. Their own or any other. All units have sold where the tenant was there. If it happened to be that their unit did not get a bid, it would be deemed a "no sale" and the contents would then be owned by the facility. I am not sure what the management would then do with the tenants former property at that point.
    3- The auctions I have attended, the amount owed to the facility is never disclosed to the buyers attending. The opening bid starts at whatever amount a buyer offers to open bidding or the auctioneer will start with a number that is fitting with the contents of the unit. Sometimes that number gets no response and the auctioneer will reduce the bid amount until a buyer jumps in and accepts that bid amount. The total past due amount for the unit is never a factor to a buyer as again, that figure is not disclosed to the buyers attending.
    If the owner can't bid on their unit, nor any other units... What would be the point of them being there?

  5. #13
    storageDE is offline Junior Member
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    Default Re: Auction Ethics Question

    We don't "stage" units for auction. We will from time to time have a build up unit we auction off. Thing left from tenant that moved out. If you don't see anything of value in the unit don't bid on it. Its that way with all units so why do we need to disclose how the unit arrived at auction? Bid with your eyes not with your mind. As for letting a tenant on the property that has a unit going up for sale... NO WAY!! I have had auction tenants taken from the property in police cars for trying to "crash" the auction. As far as I am concerned they are past due and are locked out. If its a friend or a relative bidding and I don't know it thats fine with me. What else can you do.
    Ken
    Secure Self Storage
    New Castle, DE.

  6. #14
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    Default Re: Auction Ethics Question

    Quote Originally Posted by Satyra From PhoneSmart View Post
    If the owner can't bid on their unit, nor any other units... What would be the point of them being there?
    I have to stand up for the owners/management in responding to that question. The tenants owe a significant amount of money for non payment of rent so, I don't see how they should ever be allowed to essentially play "Lets Make a Deal" with their unit in hopes of getting it for less than they owed. I have never seen it in Texas but, maybe other places it has happened? I don't know.
    From what I have seen... Tenants who attend the sale have usually made a plea to the bidders to let them have some of their sentimental items back. Most of the tenants who have shown up at the sale... Have been very humble and didn't make a scene at all.
    When you argue with an idiot...there are two idiots arguing. -Ray Pritchard

  7. #15
    dakselfstorage's Avatar
    dakselfstorage is offline Senior Member
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    Default Re: Auction Ethics Question

    Quote Originally Posted by DFWRealist View Post
    I have to stand up for the owners/management in responding to that question. The tenants owe a significant amount of money for non payment of rent so, I don't see how they should ever be allowed to essentially play "Lets Make a Deal" with their unit in hopes of getting it for less than they owed. I have never seen it in Texas but, maybe other places it has happened? I don't know.
    From what I have seen... Tenants who attend the sale have usually made a plea to the bidders to let them have some of their sentimental items back. Most of the tenants who have shown up at the sale... Have been very humble and didn't make a scene at all.
    DFWR In PA the tenant is allowed as it is a public sale. It has not happened yet, but you never know.
    Joe Krezdorn
    DAK Self Storage
    Leesport, PA 19533
    www.dakselfstorage.com

  8. #16
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    RichardandBeverly is offline Senior Member
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    Default Re: Auction Ethics Question

    DFW, in Texas the tenant is allowed to bid on the unit, and so am I. If it came down to it, I would simply outbid them and sell off the stuff to make up the lost rent. If they owed $200 and their bid was $150 I would let them have it, as it must be cleaned out in 48 hours, and I would not re-rent to them.
    Last edited by RichardandBeverly; 11th December 2012 at 11:20 PM. Reason: spellimg
    Richard and Beverly
    Park Inn Storage
    Odessa Texas

 

 
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