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So this is a HUGE problem…anyone else dealt with this?

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  • So this is a HUGE problem…anyone else dealt with this?

    So here’s some background…
    A facility here in Las Vegas was bought about 4-5 months ago with a grip of problems. The main ones being that the spaces were rented to friends under fake names like Ryne Oceros (Rhinoceros) or worse yet, to no names whatsoever. So there are full units with no names or contact info associated. No one has made a payment nor has anyone came to stake claim on any of these units (except for Ryne Oceros, who admitted that he just got out of prison and wants to empty his unit but clearly has no ID). So has anyone had anything similar to this happen that can point me in the right direction as to whether an auction can be held to clear out these units so the facility can be repaired and properly maintained? Is there a process for a situation like this that I can follow so an auction can occur? Thanks in advance!

  • #2
    .This is why due diligence is so important before buying. As a buyer, one of my biggest concerns is fake accounts being created to boost the numbers.

    To answer your question, follow your state lien laws. I would probably take an extra step and consult with a self storage attorney just for extra measures. Good luck!

    Comment


    • #3
      I just bought a facility where there were no fake accounts (that I know of) but one of the tenants is currently in jail, two more were meth heads that I've already evicted, and one was MIA but recently re-surfaced when I taped an auction notice to his unit door.

      He has a signed lease and is coming to pay me in cash tomorrow for the back rents. He first wanted to pay with a credit card, but admitted that the card is not in his name and belongs to his grandma. That raised an immediate red flag when I saw that the birth date on his lease makes him 64 years old.

      I can't wait to see if the driver's license he presents matches what's on the lease.

      Verify, verify, verify, and then call a lawyer and re-verify.

      Comment


      • #4
        Are there signed rental agreements for the units? If there is not a signed rental agreement then you may have an issue selling via the storage lien laws in your state.

        I would cut off the locks and inventory the units, I would hope that inventory might produce 1 or more names of the contents owners.

        I would then use that information to try and contact the people.

        I would also contact your attorney for guidance on what to do. You may be able to post termination of rental agreement notices (if a rental agreement exisits) for a way to legally get rid of the contents

        Comment


        • #5
          Originally posted by RandyL View Post
          Are there signed rental agreements for the units? If there is not a signed rental agreement then you may have an issue selling via the storage lien laws in your state.

          I would cut off the locks and inventory the units, I would hope that inventory might produce 1 or more names of the contents owners.

          I would then use that information to try and contact the people.

          I would also contact your attorney for guidance on what to do. You may be able to post termination of rental agreement notices (if a rental agreement exisits) for a way to legally get rid of the contents
          There are no signed rental agreements since this facility actually belonged to a mom & pop who died and subsequently left the facility to their two sons who then ran it into the ground by renting spaces to people like Rhinoceros at a monthly rate of $38.50 and did so on basically a fist bump. They didn’t require any identification either. So it’s now been approximately 5 months and no one is calling or showing up to make a payment so all these people are essentially getting free storage. There are actually even some whose rents were .10 a month. It’s a real S#%t show. I thought maybe if they were to tape a termination/eviction notice to each of the unit doors for 2-4 weeks, then they could proceed to an auction. Also running an ad in the local newspaper as well as posting auction notices in 6 areas around the neighborhood to state the intent to sell the units contents. Since there are so many units that are full but have no names connected to the spaces, nor any phone number or address, there’s no way to send letters to the mystery tenants.

          Comment


          • #6
            Originally posted by Jblake View Post

            There are no signed rental agreements since this facility actually belonged to a mom & pop who died and subsequently left the facility to their two sons who then ran it into the ground by renting spaces to people like Rhinoceros at a monthly rate of $38.50 and did so on basically a fist bump. They didn’t require any identification either. So it’s now been approximately 5 months and no one is calling or showing up to make a payment so all these people are essentially getting free storage. There are actually even some whose rents were .10 a month. It’s a real S#%t show. I thought maybe if they were to tape a termination/eviction notice to each of the unit doors for 2-4 weeks, then they could proceed to an auction. Also running an ad in the local newspaper as well as posting auction notices in 6 areas around the neighborhood to state the intent to sell the units contents. Since there are so many units that are full but have no names connected to the spaces, nor any phone number or address, there’s no way to send letters to the mystery tenants.
            As I mentioned before I would cut off the locks and inventory the units with hopes of finding some information. Then overlock the units. If any of the owners of the units attempt to access them they will be forced to contact them. When they do you present them with a rental agreement at the full street rate or a termination of rental agreement notice, you give them the choice.

            You really need to check with a lawyer in your state to make sure you are complying with your states laws.

            Have you denied access at all in the last 5 months to these units?

            Comment


            • #7
              Originally posted by RandyL View Post

              As I mentioned before I would cut off the locks and inventory the units with hopes of finding some information. Then overlock the units. If any of the owners of the units attempt to access them they will be forced to contact them. When they do you present them with a rental agreement at the full street rate or a termination of rental agreement notice, you give them the choice.

              You really need to check with a lawyer in your state to make sure you are complying with your states laws.

              Have you denied access at all in the last 5 months to these units?
              There’s no need to because no one has shown up. They don’t have access because all access is through Storlogix which feeds off of Sitelink and with no name there’s no access code. So access is denied to anyone that doesn’t have a code.

              Comment


              • #8
                Originally posted by Bubba View Post
                .This is why due diligence is so important before buying. As a buyer, one of my biggest concerns is fake accounts being created to boost the numbers.

                To answer your question, follow your state lien laws. I would probably take an extra step and consult with a self storage attorney just for extra measures. Good luck!
                Yes I realize due diligence is necessary and had I been the one to make this purchase I most certainly would’ve done my research before buying, and they have realized this now, as hindsight is always 20/20.

                Comment


                • #9
                  Originally posted by Jblake View Post

                  There’s no need to because no one has shown up. They don’t have access because all access is through Storlogix which feeds off of Sitelink and with no name there’s no access code. So access is denied to anyone that doesn’t have a code.
                  Are you sure that they didn't program some manager codes into StorLogix outside of the management software? Next step is locking them out and cutting the locks to see what you are dealing with.

                  Comment


                  • #10
                    No signed leases???
                    Oh boy!
                    Legally, there can be no lien sale.
                    You need to consult with an attorney, STAT!

                    Good luck and please come back and keep us posted!
                    Don't put off until tomorrow, what you can do today.

                    Comment


                    • #11
                      How are these people paying for the units? if no payment, no signed rental agreements and no info or live bodies to contact for these units wouldn't that be considered 'dumping'?

                      Comment


                      • #12
                        Originally posted by Shortie720 View Post
                        How are these people paying for the units? if no payment, no signed rental agreements and no info or live bodies to contact for these units wouldn't that be considered 'dumping'?
                        Yes! No agreement, no tenant, no pay - I say cut the lock, empty them out and move on.

                        Comment


                        • #13
                          The contents would be considered unwanted items due to not having a signed lease.
                          Have any of these folks paid at all?
                          How long have you been sitting on these unpaid- unsigned units?
                          Don't put off until tomorrow, what you can do today.

                          Comment


                          • #14
                            We would cut all locks to these unsigned- unpaid units.
                            We would overlock with a managers lock and wait about 30 days- a full month and see if anyone would come to try and access any of the units or the property for that matter.
                            You want to also go through your gate access codes.
                            Remove any that are not tied to a tenants account.
                            Change any and all manager codes.
                            You may also want to change your fire and police codes.
                            Any dead beat may already know those codes so you want to get that changed STAT.
                            Make sure to call your local police and fire and make sure they update your records if you do change the code.


                            Don't put off until tomorrow, what you can do today.

                            Comment


                            • #15
                              I would probably change any and all vendor codes as well!

                              New manager.
                              New owners.
                              NEW rules!!!

                              images.jpg
                              Don't put off until tomorrow, what you can do today.

                              Comment

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