If you are planning to enter into the world of auctioning self storage units then you must do your research. Fortunately while the terminology may be vast, there are some basic ones that you need to know. Here are a few of them.
Auction: This refers to an even when the items inside a certain self storage are sold to potential customers. This can be because the renter is remiss on the payment of the unit. It is also possible that the renter himself is the one who wants to auction since he may no more need for the items in storage. While a company can always sell the items themselves, using an auctioneer has its own benefits as some auctioneers even have their own clientele that go with them from one self storage rental to another.
Commercially Reasonable Sale: Owners of self storage units are typically required to have what is known as bids that are commercially reasonable. What this means is that if a particular item being auctioned is found to be valuable, then the owner has the right to inform the potential buyers so that the item will be bought near its correct market value.
Default: This is a period wherein the renter is unable to fulfil his part of the agreement, namely the payment. When a default occurs, facility owners do not automatically gain ownership of the items in the unit. In some states a default signals the start of a time period before the owner gets ownership. For example it can be two months after the default that the owner of the facility can start foreclosure steps.
Inspection and Inventory: While it may vary from state to state, what this generally refers to is that the company has the right to open the renter’s unit and conduct a physical inspection of all the items inside said unit prior to the sale or auction. To be on the safe side most owners often do this once the period to cure the default has passed.
Time to Cure Default: When a renter defaults on his payment, the owner of the self storage units give him time to cure said default. This is often done by sending registered mail to the renter’s last known address.
Notice: The owner of the self storage is required by law to send a letter to the renter informing him of his default and the time period with which to settle his obligations.
Payment: Refers to the obligation of the renter in order to retain ownership of the items being stored. Depending on the agreement, the renter may pay in full or in partial payments.
Publication: When the renter defaults on his payment, he is given a certain amount of period to pay for his obligation. When the time to cure default lapses, then the owner of the units can start the foreclosure and may even call for an auction. Prior to conducting the action, the company or owner is required to publish a notice of the sale in a newspaper having general circulation.
These are just some of the words but as long as you continue to be a bidder, you will eventually later other and more advanced terminologies when it comes to self storage auctions.