Storage auctions seem to be everywhere online today. Their popularity rose years ago, and shows no sign of slowing down. But where do these auctions come from? Why do storage facilities auction off the contents of storage units in the first place?
They deal in real estate
Self-storage is very much a part of the real estate industry, in a way similar to hotels or even apartment buildings are. Storage facilities lease or rent storage units to tenants who pay rates, like hotels and apartment buildings, of by the day, week, month, or year.
And like those other businesses, if a storage facility’s tenant stops paying their lease or rent, then the facility must act to rectify the situation. That can include eviction, and eventual auction.
Vacancies are to be avoided
Many self storage facilities operate on very small margins, meaning any vacant storage units are in fact costing the facility money. When a tenant stops paying their lease or rent, this only makes the situation worse: even if the facility could find a new tenant, the storage unit is still filled with the previous tenant’s belongings, thus blocking any potential revenue.
There is a process before an auction
Every storage facility, of course, has their own strategies for addressing issues with delinquent tenants and unpaid accounts. Storage facilities are in the business of renting space, not selling belongings, and they will therefore avoid having to hold an auction if they can.
In the event that the previous tenants cannot pay the amount owning, the storage facility will move forward with an auction of their belongings in an effort to retain some of the lost rental income, while also freeing up the space for new tenants. Online auction platforms like iBidOnStorage provide a transparent solution which benefits all parties (the seller, the bidder and the original customer).
The iBid moment
This is the moment services like iBidOnStorage are required by the facility. iBidOnStorage provides the online auction platform that allows facilities to reach a wide audience of bidders. The partnership between the facility and iBidOnStorage is one that helps alleviate the stress of dealing with unpaid storage units.
Of course, in the South Africa, there are regulations in place regarding auctioning the contents of delinquent storage units. Facilities, as well, act according to their own lease agreement. These rules can also apply to the auction itself, so it is advisable that prospective bidders familiarise themselves with the Terms and Conditions of each storage auction they partake in.
Participating
If you participate in an auction, and win a storage unit, then you will be given 72 hours to empty the storage unit. These units are sold as a ‘joblot’ on iBidOnStorage.co.za, and you will be responsible for all of the unit’s contents. Items within the unit are sold ‘as is,’ and there are no guarantees or warranties provided to winning bidders.
As long as you are aware of the above rules though, you will have no problems in finding a constantly updated list of the most exciting online storage auctions with us at iBidOnStorage.co.za. Registration is free – just click here!
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