How a Self-Storage Auction Works

Self-storage units are a fantastic way to safely and conveniently store belongings that you don’t have room for in your home or business. They really come in handy during the sale of a home, a move, during a renovation or to store excess business inventory.

How does self-storage work? For a regular fee, paid weekly or monthly, a self-storage company rents a specific sized storage unit for an agreed upon period of time to a person to use and secure with their own lock. The person can access their storage unit during access hours that are outlined in the contract.

What happens when storage rental fees are not paid? When the rental fee isn’t paid to the storage company and officially becomes in arrears (as per the terms of the contract), the storage company will enter a storage auction process to try and recoup the financial loss. The items stored in the subject self-storage unit will be put up for auction (either in person, or online) and sold to the highest bidder.

How a Self Storage Auction Works

Now many people have seen the television show Storage Wars, and others with a similar premise. They depict the process of storage unit auctions. While these shows can be entertaining to watch and have become quite popular, it’s important to note that they only show the final stage of the storage auction process, and it is often dramatized. 

For many self-storage companies, especially here at Storage Solutions, auctions are the absolute last resort. We are in the business of keeping people’s belongings safe and secure, not selling them.

Unfortunately, sometimes auctions are necessary as storage facilities need to make up for the monetary loss associated with the delinquent rent - belongings stored inside a unit may have value if sold, and the unit, once emptied, can be rented to a different person.

Before an auction can begin, there are many steps that must legally be followed, depending on the province/state that your business is in. For example, in Ontario, storage unit auctions are governed by the Repair and Storage Liens Act.

• When a customer is late in paying their rent, many emails/texts/phone calls will be made to ensure that they know their rent is behind. Each storage company will have a timeline on how long a customers account can be late, ranging from just a few days to a few weeks.
• After sufficient notice is provided, the company will enter the final notice period.
• A final notice letter will be sent out via email and registered mail as per the Repair and Storage Liens Act, outlining how long the customer has to pay, and when the auction process will start.

In Ontario, many businesses use online auction companies rather than bringing an auctioneer onsite to conduct auctions in person, like what is typically seen in TV shows. A video, or a series of pictures, will be sent to an online auction company along with facility rules, starting bid amount, unit information (size and location), a timeline, and a description of what can be seen inside the unit. It is important to note that to provide a fair and transparent auction, reputable storage companies will not enter the unit and will not move any of the items. In many dramatized TV auctions, the units will be staged in a certain way to make them look appealing. Many people who bid on storage unit auctions do so with the purpose of reselling the items to make money and staging the unit to make it look more valuable is not in good practice.

Once an auction is posted online, the timeline for bidding is usually set to a few days or perhaps a week. The self-storage company does not want to keep holding onto the items when the rent is being paid. Most of the time, auctions help the storage company recoup some of the financial loss, but they are often still left with a debt that isn’t repaid which can be very hard on small businesses. 

Overall, the process is not as glamourous as it’s often made out to be. It is a last resort and definitely not a lucrative process.

How to Prevent a Self-Storage Auction

To avoid having to go through an auction, and losing the items that you keep in self storage, there are four tips to live by:

1. Sign up for automatic payments on a credit card, or directly from your bank account (when available) so that you don’t forget.
2. Keep your contact information up to date with your storage company.
3. Ask your self-storage company to sign you up for text message alerts when rent is due.
4. Pay ahead if you can. Most storage companies will let you pay several months or even a year in advance if you’d like (some even offer a discount for this).

Storage Solutions Self-Storage Facilities

If you’re looking for self-storage facility that offers affordable, flexible storage, and one that cares about their customers, choose Storage Solutions!

We have a large variety of self-storage units for rent. Visit our YouTube channel for online tours of our Milton self-storage facility and Woodstock self-storage facility, and videos of the different sizes and types of storage units we have for rent. You can also check out our sizing & pricing page to help you figure out the right sized storage unit to rent.

Once you’re ready to rent a storage unit, we make it super easy! You can rent 24/7 online through our website or by calling or sending us a text at 905-854-1008, or email us at info@storagesolutionsontario.com.

We’re always here to help, so is you want more information about renting a storage unit from us or would like help figuring out the best type of self-storage unit for your needs, contact us.

If you’d like helpful tips & tricks, advice, and a good laugh, keep up with our self-storage blog and like or follow us on Instagram & Facebook.

Your friend in self-storage,

Storage Solutions