Announcement

Collapse
No announcement yet.

Lien/Auction forms

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Lien/Auction forms

    To go with the Iowa Specific topic posted yesterday. Please point out any improvements or questions you have. Always trying to improve. Thanks.

    If your starting your first location, please take these as a basis for your future needs and adapt. And request more examples from the forum users. Make sure yours are State specific.

    As we have moved through the "Rent Up" process, we then moved to "Improve" our tenants. We started getting tired of the same tenants showing up on our past due lists. You will see we forced them to either to move to Autopay or be evicted. We have far less auctions and past dues a year into this change. Also the check is in the mail, has become less of an issue.

    On the Auction Rules, our major objective is to have the unit cleared out. At this point we don't care about the lost rent. If I get $10 for a unit I am happy. Costs me about $100 to clean it out personally and go to the dump, if I can do in one trip.

    Serveral of the bidders make OK money and have asked why I don't sell the contents on Ebay. It doesn't fit our model of being in the Storage business. Don't want to have to wash, take pictures and then have to set up times to meet people. As we get our large location running in the 1mm population metro, we may evaluate having a "shop" to dispose of unit contents we might bid on at our auctions. This would be a very limited Saturday 10 to 12 am operation.

    Thus far we have only had to get rid of 4 RV's or vehicles. Really don't like doing this. Our tendency is to not auction, but have the local Tow company tow away and let them handle title search and ownership issues.

    Clothing disposal has been an issue since the local Food Pantry/Clothing store, won't take them. They get to much. Most of it then gets sent to a consolidation outfit that sales to overseas where they are shredded for fiber content. I might have to ship to Belize and sale down there. When we go on trips there, you see the weidest shirts from all over the world there.




    Tenant Auction Notification:
    https://clarkstoragellc.com/storage-...-notification/

    Notice of Public Sale:
    https://clarkstoragellc.com/notice-of-public-sales/

    Auction Rules, day of sale:
    https://clarkstoragellc.com/auction-rules/


    If this ever comes up on an Auction, I will probably have to break my rule and bid.






  • #2
    Clark, have you thought about and/or looked into holding your auctions online?

    I use storagetreasures.com and am always happy with the results!
    Don't put off until tomorrow, what you can do today.

    Comment


    • #3
      I don't think you have to bid...you are already the owner!
      Don't put off until tomorrow, what you can do today.

      Comment


      • #4
        Originally posted by lady5563 View Post
        I don't think you have to bid...you are already the owner!
        That depends on the state. Here, we would have to.
        MamaDuke

        Comment


        • #5
          @L thanks for feedback. We intentionally want to put as little time and effort into our Auctions as possible. We have 6 locations that we have had auctioned on a saturday morning in 4 towns. We start at 8:15 and finish the last one at 1:30. All units are cleared out by Monday morning, unless someone made arrangements. Other than the auction itself, we don't meet anyone.


          Please google your State, lien laws, self storage. Similar to the Iowa laws I posted, yours also probably requires some form of minimum Bidding effort. These create the situaton so the occupant may get some money back. If I want something, I do bid on it. For example if they owe us $200, I am more than comfortable bidding up to $200 knowing we are not personally out of cash. All depends on how much trash is involved.

          Thank you.

          Comment


          • #6
            Clarkstoragellc I don't like using the eviction word in my notices. We have never evicted a single storage tenant it is not a process we find needed at all. I would switch your wording to say you are terminating their rental agreement because they have violated a section that you should reference also. Does your rental agreement allow for immediate termination of the rental agreement due to violating terms? Eviction is not a quick or immediate action.

            Also I don't see where you reference the inventory of the items that you took for the unit which is required to be sent to the tenant.

            You also need to make sure you state in the notice that their stored items are subject to a lien. You also need to list their outstanding charges.

            I also have moved to online auctions and it has been a big time saver and has raised auction revenue also. I list my online auctions at www.bid13.com

            Comment


            • #7
              [QUOTE=Clarkstoragellc;. We intentionally want to put as little time and effort into our Auctions as possible.

              Thank you.
              [/QUOTE]

              Be very careful in conducting lien sales!
              This is something that you must follow the letter of the law or it will not work out in your favor!
              You need to intentionally put forth your best effort in doing it right!
              Good luck and please keep us posted!
              Don't put off until tomorrow, what you can do today.

              Comment


              • #8
                Thanks @R and @L. We send a separate letter to the tenants, that is not attached showing balance and unit. Could you post a "content" letter you send for a 10 x 20? Would like to understand how detailed you are doing. When I first started I asked my attorney on content. Recognizing that I did not want to enter the unit, thus exposing myself to any theft issues. Plus we always start with about 25 and end up with about 7 at actual auction time. (Lot of cut locks and inventory work wasted.) She did not think there was an issue on just noting the size of the unit. Example: 10 x 20. I will confer with her again. On the eviction, we add that to the letter to speed up, having them move to Autopay or having them move out. We stay fairly full, thus we have started "upgrading" our customers away from delinquencies. The way we do business, we don't do hardly any past due calls. With several locations and hundreds of units spread 40 miles apart, this is part of making the operation efficient. Month to month for both parties, per the contract. Thank both of you for your insight. Its what I appreciate about this forum, multiple perspectives and experiences.

                Comment


                • #9
                  Clarkstoragellc send me an email, [email protected]. I can send you the forms that I use.

                  I'd be curious to know on what grounds you find you can skip the required inventories of the units. Up until this recent change you were required to publish those inventories twice before the sale.

                  Comment


                  • #10
                    I would like to suggest that when you go to cut a lock on a delinquent unit, to put this unit in lien status, always take a good camera and a witness!
                    Cut the lock, open the door, stand back and snap a few pics.
                    You are correct about not entering the unit but you can do a good visual and take the best inventory that you can by listing what you see!
                    Good luck.
                    Don't put off until tomorrow, what you can do today.

                    Comment


                    • #11
                      @R. I will confer with my attorney as noted above.

                      Can you delete the specifics and show a copy of an inventory of a 10 x 20 unit?

                      Per the statute it says describe the contents of every container, unless it is locked, taped shut or tied; then just list that. For a normal 10 x 20 that is full, this would be about 40 containers/boxes and all of the miscellaneous shovels, bicycles, mattresses, yard ornaments, dressers, etc. Plus it would take me an hour to pull it out to inventory and then to put it back. If I had to do that, I would charge them $200 for having me do it. Can you post an example and describe the process to take an inventory. Keep in mind I normally have about 25 auctions units at the beginning, and then this works itself down to about 5 to 8 at the end. I would have to do this for all 25 to go in the newspaper. I haven't seen any of the other storage locations around me do this in the newspaper, not that we're all not wrong.

                      Thanks.

                      @L, when a unit goes to delinquent status, we just place a lock on it. Again, I don't want access to their unit. The only time I open their unit is the day before the auction, just to make sure there is something in there and to make it easy to get through the process, so my battery on my cutoff saw doesn't go out in the middle of an auction. Let me know if there is a purpose you cut the lock when someone goes delinquent and how you get the keys to the tenant once they pay. Always looking to learn knew approaches.

                      Thanks.




                      Comment


                      • #12
                        Clark attached is an old letter that I used to send to the Cedar Rapids Gazette when it was time to publish my lien sales. Since it is all published and public information I don't have to take out any private information.

                        If you go onto bid13.com and search for expired auctions in my area you will find videos of those units, this will give you an idea of what I wrote down in my inventories and what I left out.
                        Attached Files

                        Comment


                        • #13
                          @R, thanks for the example. I will need to check with our attorney.

                          Not to bemoan, the point, but the statute says you have to note the content of all containers and boxes that are not locked, taped, tied, etc. If I did that for a normal 10 x 20, just one unit would be longer than the content stream above, in this post. I'm not talking down to pads of paper, individual books, pencils, etc; but just general contents. Also, on about 1/2 of my units, you would have to partially empty the unit just to get access to everything.

                          I'll check out. Thanks again for example.

                          Comment


                          • #14
                            Originally posted by Clarkstoragellc View Post
                            @R, thanks for the example. I will need to check with our attorney.

                            Not to bemoan, the point, but the statute says you have to note the content of all containers and boxes that are not locked, taped, tied, etc. If I did that for a normal 10 x 20, just one unit would be longer than the content stream above, in this post. I'm not talking down to pads of paper, individual books, pencils, etc; but just general contents. Also, on about 1/2 of my units, you would have to partially empty the unit just to get access to everything.

                            I'll check out. Thanks again for example.
                            Clarkstoragellc in the old lien law the purpose of the inventory and the publication of the information in the legal notices section of the paper. Was to allow someone to identify their property based on the items that are listed. Once upon a time most everyone read the local paper, and the legal notices section actually had a purpose.

                            With the new law we are no longer required to post these in the legal notices sections. It has now transformed into a requirement to drive people to the sale. Which can happen in many ways.

                            I used to provide my bidders with a list of the inventories of the units to be sold. We stopped doing that now, since it is no longer required to be published that means that type of information is no longer public information.

                            This is my current protocol and time frames I use in the state of Iowa.

                            My rental agreement states that a unit is in default after payment has failed to have been made on the 1st of the month.

                            After a unit has been late 2 months in a row (day 36) we make a list of prospective units to put into lien.

                            Day 37-40 I will send out a pre lien notice that tells tenants we will be cutting of their lock and entering their unit unless they remit payment within 7 days (this is not a required step in Iowa law but I find it allows me to connect with my customers and prevents about 50% of the inventories)

                            Day 44+ At least 7 days later I will do out with another employee to conduct the inventories. I take a picture with the tenants lock on the door. Then I have my employee cut it off. Then I start the camera open the door and record video of the contents of the storage unit as well as take the inventory of the unit. At the end of the video I put a numbered security tag on the unit that is seen in the video that stays on it till it is sold, or the tenant pays up 100 % of their balance. If the tag is removed for any reason we record the unit again as if it is a new inventory.

                            As you can see from my example in my previous post the inventory does not need to tell the persons life story. It is just there to get a general idea of the contents.

                            My process complies with the new Iowa Lien law, but I don't follow it to it's quickest time allowances.

                            First important thing is the definition of default in your rental agreement. The new lien law states you must wait 1 month after that point.

                            Comment

                            Latest Topics

                            Collapse

                            Working...
                            X