The storage wars saga on TV demonstrates people making money by bidding on abandoned storage lockers. Show up with cash, outbid the others and you’ve won a unit with antiques, jewelry or old coins. Is it really that easy? Generally auctions on TV are run as they should be, with some drama and humor thrown in to make it more exciting.
Before you jump on the band wagon I have some suggestions. As a former storage owner/developer/ operator there are many laws to be complied with prior to a unit being auctioned.
Few storage owners manage the storage units themselves. Management firms are usually hired. Many managers don’t comply with the laws which can place the owner and you in a position to be sued. Yes you as a buyer can be sued if the storage company does not follow the laws.
In the state of Oregon a tenant is mailed a letter stating he/she is late and locked out due to nonpayment at 10 days.
30 days after that, a letter must be mailed certified mail return receipt requested, to the last known address of the tenant. 30 days after the certified letter has been mailed, the storage company must then place an ad in the public notice (Legal) section of the local newspaper stating the unit will be up for auction. The ad must be placed twice with 7 days in between ads. The ad must state the renters name, locker number, date and location of the auction. 7 days after the second notice the locker can then be auctioned.
In Oregon the owner of that locker has until the time of the auction to reclaim said locker.
VERY FEW COMPANIES FOLLOW THIS LAW!!!! Many companies will tell the locker owner they have only 7-10 days prior to the auction to redeem the unit. Thus leaving them as well as you open for a suit.
How can you be sued? Aren’t you just an innocent person trying to make a dollar? In this day of litigious people looking to make a quick buck the previous locker owner can sue, claiming that great grandma’s million dollar china hutch was auctioned off without proper procedure. Although the storage company may be at fault the plaintiff can name you in the suit as well. If questioned, the storage company has to divulge the name of the person who won the unit.
To help prevent problems follow these guidelines.
1. Go online to see what the storage laws are in your state. 2. Read the legal listings in the paper and make a note of all dates the ads are posted. 3. By using due diligence you are less likely to have any problems.