How A Storage Auction Works

June 14, 2017 Facebook Twitter LinkedIn Google+ Online Auction

In America and around the world, one of the best known franchise businesses is certainly McDonalds. Worldwide there are 30,000 McDonalds franchises. In the United States alone, McDonalds operates 13,000 locations in 50 states. The corporate record is impressive. Most Americans consider McDonalds one of the forefathers of the franchise industry, which today reaches just about every corner of ordinary American life.

Would you be surprised to learn that in 2009 another American industry operated 50,000 facilities nationwide? It is not a fast food business like McDonalds, but rather an industry known as self storage. Across the nation there are 9,000 self storage companies managing those 50,000 locations. Within the industry the 50 largest companies out of the 9,000 control approximately 40% of the business. In any given city or town storage units can be rented ranging in size from as small as 2 x 4 to full size two car garages. People use storage units to house everything from cars to inventory, and from furniture to art.

In addition to all sorts of household goods, facilities store automobiles, recreational vehicles, boats, trucks, and heavy equipment and machinery of all variety. Over the last thirty years the storage industry has grown in accordance with the needs of the population and the ever expanding buying power of the middle class American citizen. However, when a storage unit tenant doesn’t pay the rent, an owner is forced to auction off the unit to the public.

As a basic overview, storage auctions occur because renters have fallen behind in their storage payments. Once a storage unit tenant reaches a standard point of delinquency, and a series of formal notifications are made in an attempt to notify and collect past due rent, a unit may become eligible for auction if and when no payment is made.

Note that storage facilities try to avoid auctioning the property of unit renters going to great lengths to resolve the problem before the necessity of an auction. Storage facilities are not in the business of selling property, they are in the business of renting space.

Given the enormous scope of the industry, and the massive amounts of storage being rented by Americans coast to coast, there will always be a percentage of individuals and businesses that default on their rent. The facilities are left with no choice but to auction the property otherwise they would be put out of business because they would have rental space tied up without producing revenue.

For consumers looking to find out where storage auctions are taking place, they can find out on various storage auction related websites.

Storage auction websites help standardize procedures within this enormous business model assisting the consumer navigating the policies and procedures when it comes to utilizing the option of self storage. Be sure to stay on tpo of schedules, auction rules and other details using one of the main storage auction websites to find out how, when, why and where storage auctions take place via specific links in the website.

Published by Mark Carlson, care of:

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