Announcement

Collapse
No announcement yet.

Do you have to auction

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

  • Do you have to auction

    Hello, I am recently out of the military and own a small storage facility with 38 units in it. After almost a year I am at the point where I have to evict 2 tenants for failure to pay. I have read the lien law over and over and think I am following it to a "T" but I am curious if anyone else is reading this the same way. Do i HAVE to do a auction? It says I can dispose of the goods. Does this mean I can just pay someone to remove them and what happens to the property is irrelevant? I ask because the items in the storage units are borderline worthless and not likely to sell. The law consistently uses the term "Other Disposition" . I am curious if anyone else has looked into this in the past and also wondering if anyone has a good newspaper template they use to advertise the Sale/Disposition. I just want to do this right, I am small still and want my 1st time to be right or as close to it as possible.

    PBJ

  • #2
    What state are you in? The laws differ from state to state. I am in Washington and we can dispose of the contents of the unit if we figure the value to be less than $300. I would be very concerned about trying to assign a dollar amount however. In doing so, I would have to go into the unit and go through every box and bag. I like being able to say that I never touched a thing if the tenant were ever to come back and say that he had something extremely valuable in there that we threw away. If I can get $1 for it from a lien sale I would rather save myself the liability. On the other hand, if I get nothing I have the opinion of all the buyers at the lien sale that the unit had no value. In Washington, we have to have at least 5 people at the sale to make it a "commercially, viable sale".

    Kim
    Kim Howard
    Manager
    FCI Self Storage & Custom Police Vehicles

    Comment


    • #3
      PBJ, check with your State's Self Storage Association. They should be able to help you even if you are not a memeber. Out of curiosity, does your rental agreement have a spot for your tenants to give an estimated value which they will be storing? if so you will need to see if it is under Illinois' threshold for lien sale. Kim and i are in Washington, our threshold is $300. Remember to inventory everything and take photos for your records! Better have a witness too if you havent done this yet.

      Good Luck!
      -Bobby

      Comment


      • #4
        Thanks for replying

        I am in Illinois, and the lien law does not show any maximum value however my lease does say $5000 for maximum and of course that they are required to carry insurance on their own and such. No there is no place for a estimated value. There will be on the revised version now I think. I have pasted a copy of some of the terms used in the lien law so you can see the wording i was talking about.

        "Any sale or other disposition of the personal property shall conform to the terms of the notification as provided for in this Section;
        (G) Any sale or other disposition of the personal property shall be held at the self‑service storage facility, or at the nearest suitable place to where the personal property is held or stored; "


        I have contacted my Association but to be honest i was unimpressed with benefits versus the cost especially since I am so small. I could not even get access tot the forum to see if it was used. A well maintained and USED forum would be worth a lot to me if the chat was based on Illinois rules and regs. In the long run it seemed like a pay the money and take your chances sort of thing. Maybe I will look further into it.

        Comment


        • #5
          Yes, in Illinois you must do a Public Sale. You do not have to hire a professional auctioneer, you can hold a "Public Sale." Advertise in the newspaper legal section as a "Public Sale" including date, time, unit number, description, and name, plus mail them a certified letter, follow the timeline stated in the law, and you do the sale yourself. Even if it is just junk and only brings $5.00, you are protecting yourself by following the law. Think of it like insurance.

          Yes, the Illinois Self Storage Assoc. (ISSA) is well worth the money. They will help educate you, but only if you choose to participate and take advantage of what is offered -- information and education. If you are a Storage Professional, you should be involved in your state organization. I am not a paid spokesman, I just know from years of experience that business people need associations to support themselves and their industry. This is your support system for your business, and as a small business person, we all need to support each other. If you belong to the ISSA and attend the events, you would have this knowledge and more.

          IF YOU DO NOT BELONG TO THE LOCAL CHAMBER, NFIB, SSA, ISSA, AND OTHER BUSINESS SUPPORT GROUPS, YOU ARE HURTING YOURSELF AND YOUR INDUSTRY. IF YOU WANT A VOICE IN POLITICS, IF YOU WANT TO DEFEND YOUR INDUSTRY, IF YOU WANT BAD LAWS STOPPED, THEN YOU MUST JOIN THESE GROUPS AND DONATE MONEY TO FIGHT FOR YOUR CAUSE. THE ONLY THING THESE POLITICIANS LISTEN TO ARE GROUPS THAT LOBBY IN THE STATE CAPITAL, AND IF YOU AREN'T INVOLVED, YOU WILL BE A VICTIM. (Sorry for yelling but it really is that important.)

          Respect for all!

          Comment


          • #6
            Consider Doing an Eviction

            Yes, we have the lien law statues in just about every state, but you can also consider doing an old fashion eviction. Attorney Jeff Greenberger wrote a great article on this option that you should read if you are looking for an alternative to a traditional lien sale. The link to his website where you can download a free copy of the article is:

            http://www.selfstoragelegal.com/archives.asp It is the third article from the top.

            Just an idea from an old self storage guy that still likes using the old Monty Hall method – Let’s Make A Deal and get your stuff out of here so I can rent it to someone else and not go through all the lien sale / auction steps.

            MisterJim444

            PS: I agree totally with Willar about the importance of belonging to the associations that are working for our industry. It is one of the reason that I am writing this post from my hotel room in Illinois where I will speak to the Great Lakes self storage meeting (Illinois and Indiana SSA’s) tomorrow.
            Last edited by MisterJim444; 3rd June 2009, 10:45 PM.
            Learning Never Ends, But Will Time?

            Comment


            • #7
              Also check to see if they have a small member classification, here in Arizona we have a small member class and while they receive almost all of the same benefits, they pay a lesser fee. If they do not have this, perhaps mention it to a board member and maybe they can get it changed.

              I agree with everyone concerning Associations, Chambers, etc. They work for our benefit and without our support we would not be in the business the way we are today.
              Mel Holsinger, President
              Professional Self Storage Management, LLC
              3434 E. Kleindale Ste. E
              Tucson, AZ 85716
              O: 520.320.9135
              F: 520.320.9435
              www.proselfstorage.com

              Comment


              • #8
                Re: Do you have to auction

                I agree with Mister Jim, we make a deal on occasion. I have a "Statement and Release Agreement" I found online. I have a woman right now that has signed one with me. She paid half of what she owed and has a set date to be out of the unit. I got paid, (more than I would have gotten from an auction) and she got her stuff. I can now have an empty unit ready for someone who is willing to pay.

                Comment


                • #9
                  Re: Do you have to auction

                  Originally posted by storageman721 View Post
                  I agree with Mister Jim, we make a deal on occasion. I have a "Statement and Release Agreement" I found online. I have a woman right now that has signed one with me. She paid half of what she owed and has a set date to be out of the unit. I got paid, (more than I would have gotten from an auction) and she got her stuff. I can now have an empty unit ready for someone who is willing to pay.
                  can you post that link please?

                  Comment


                  • #10
                    Re: Do you have to auction

                    wow, way to resurrect a 4 yr. old thread!
                    In no way affiliated with Storman software.

                    Comment


                    • #11
                      Re: Do you have to auction

                      Originally posted by BroadwayStorage View Post
                      can you post that link please?
                      Here is the website!

                      http://www.insideselfstorage.com/art...ding-lien.aspx

                      Comment


                      • #12
                        Re: Do you have to auction

                        I wonder how PBJ is doing with his facility? he hasn't posted here in almost 4 years....I wish people would check in from time to time and let us know how it's going.

                        Comment

                        Latest Topics

                        Collapse

                        • Storman
                          Reply to The dangers of those rental trucks in the wrong hands
                          by Storman
                          I'm sure it was bad, but I couldn't watch that video for more than 10 seconds. I need a dramamine.
                          Today, 12:16 AM
                        • Orkocean
                          Reply to new to storage
                          by Orkocean
                          My father didn't talk about his vietnam days, all I know is he was a gunner in heli's and per my mother telling me stories as a kid he had 2 guns when most had one.. *shrug*... As far as my brother i'm not sure what his role was on the ship, it was late 90's early 2000's timeframe and I recall he went...
                          Yesterday, 08:19 PM
                        • MamaDuke
                          Reply to new to storage
                          by MamaDuke
                          My father was on the flight deck of the Kitty Hawk during Vietnam. Squadron, vf-213 F4's.

                          Small world!...
                          Yesterday, 08:01 PM
                        Working...
                        X