How Storage Auctions Work

As a basic overview, self storage auctions occur because renters have fallen behind in their storage payments. After a series of formal notifications are sent to the seller in an attempt to notify and collect past due rent, a unit may become eligible for auction if no payment is made. Self storage facilities go to great lengths, often above and beyond the requirements of self storage lien laws, to avoid a storage unit auction. Storage facilities after all are not in the business of selling people's property, they are in the business of renting space - empty space.

However, given the enormous scope of the industry, and the massive amounts of storage units rented by Americans coast to coast, a percentage of individuals and businesses will always default on their rent. When tenants fail to pay their rent for multiple months, facilities are left with no choice but to hold self storage auctions. Without storage unit auctions, facilities would be put out of business because an ever increasing percentage of their rental space would be tied up without producing revenue.