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Tenant sends in a payment after unit has been auctioned. WWYD?

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  • #16
    I may take the cash too.
    Don't put off until tomorrow, what you can do today.

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    • #17
      Originally posted by DairyGirl View Post
      They were probably counting on the fact that since they called before the sale and had questions, that meant that you were supposed to "automatically" know to pull the unit from the sale. By the way, what was the question they had? I would apply the payment to the balance owed THEN send them a letter stating the unit was sold at auction, and since they still had a balance due, you applied that payment to it.
      Exactly what I'd do!

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      • #18
        I guess I'd punt the question to my management company-I feel that if the unit is gone, taking the check is giving the tenant the false impression that they're still paying for the unit-especially if you've not been able to get a hold of them by phone, text or email. It's asking for trouble if they come in to 'check it out' and find that nope-that sucker is gone.

        The only real reason they probably sent the check is because they were under the false impression that you listened to their plea and kept it out of the auction.
        When I had all of my ducks in a row-I realized that most of them were not even mine!

        WA State

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        • #19
          Originally posted by KrisinNC View Post
          I guess I'd punt the question to my management company-I feel that if the unit is gone, taking the check is giving the tenant the false impression that they're still paying for the unit-especially if you've not been able to get a hold of them by phone, text or email. It's asking for trouble if they come in to 'check it out' and find that nope-that sucker is gone.

          The only real reason they probably sent the check is because they were under the false impression that you listened to their plea and kept it out of the auction.
          So, even then they "sent" a snail mail check and the facility waits fr that to finally get to the facility. Even if they "assumed about the unit not being auctioned" they should have made a more valiant effort to pay quickly. Better off with them no longer being a tenant.
          "Never let the inmates run the asylum!"

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          • #20
            I would cash it and send a receipt with balance due.
            By this time from us they already received an after sale cert showing balance and collections if not paid within 10 days.
            Joe Krezdorn
            DAK Self Storage
            Leesport, PA 19533
            www.dakselfstorage.com

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            • #21
              Wow, what a great discussion. I posted the question because there are so many ways to handle it, I couldn't decide what I would do.
              It is a week after the auction. So far, no other contact from the (former) customer. No payments received.

              Little more info: they typically paid by mailing a money order (not a check). I am the owner of the facility (130 units). We have not used collections for anyone yet.
              Also, during the previous auction, I spent a lot of time trying to contact them. In addition to the required 2 mailed notices, I called them personally. 3 times someone in the house hung up on me as soon as I identified who I was. Imagine that frustration. I left messages and played phone tag for days. They were too difficult to get on the phone. So, this time I didn't bother to call them back. I instructed our call center to tell them to email me if they had a question. I never heard back.

              Because of the large balance (over $800), I am inclined to apply any payment I receive to that and then send the letter suggested here with their current balance and notice that the unit has been auctioned off. I'm going to guess that me telling them that they still owe us over $700 will prevent much blow back.

              Thank you all for the feedback. A lot of great points to consider.

              Alex

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              • #22
                In my opinion, even if the unit has been auctioned they likely still owe a balance. So the payment they may send would/should still be applied and receipt sent.
                AmyLou

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                • #23
                  Do you send a letter after an auction telling them the unit was sold, their final balance due, and inform them it will be sent to collections? That should alert them and keep them away.

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