Unless you’ve been living under a rock – or refuse to turn on the television – you’ve most likely come across the widely popular reality shows surrounding self storage auctions. If you haven’t, you really need to check them out! The A&E series “Storage Wars” debuted in December 2010, and since then multiple spin-offs have taken flight. Because of the popularity of these shows, the interest level in actual storage auctions has risen to an all time high.

A California poll revealed that storage facility operators began to see a steady rise in attendees for their auctions shortly after the debut of “Storage Wars”. On average, operators would have 15-20 sign-ins for an auction before the show first aired, but now they are reporting as many as 75 sign-ins for a single auction! That is impressive.

Because of watching these popular shows, many questions are left for the average Joe, such as:

• What’s real about these storage auctions?
• Are they just like the TV shows?
• (And the most popular question by far is…) What’s the best thing found in a storage auction unit?

So, let’s discuss!

First of all, it’s very rare to have a large number of units sold at any one auction. Storage auctions typically only have 1-3 units per self storage facility each month. It’s important to remember that storage operators never want to auction a unit, as it only affects them negatively. You can read one of our previous blogs about How the Auction Process Works. Storage operators vary rarely recover the total debt owed during storage auctions.

In a single episode of one of these popular reality shows, viewers can see as many as 10 units which appear to be at the same facility for one auction on the same day. This is true Hollywood showing its face here. Producers of the popular series “Storage Wars” have admitted that over 400 hours of footage is shot for every one hour that makes it on screen. This can include anywhere from 150-300 units from multiple locations, over multiple days! Basically, they edit the show to look like one auction is much larger than it really is, and that it all takes place at one facility on one day.

One very REAL thing which these shows get completely right is that no attendees of the auction are allowed inside the units. This is a common sense thing because it eliminates the possibility for theft of or damage to the contents. Attendees can simply look into the unit and are not permitted to touch anything inside the unit. Basically they have to bid on what they see, and what they think may be inside of boxes and furniture or underneath visible items. And, just like the shows portray, all of the contents of a unit are sold to a single bidder as one transaction. Pennsylvania and Maryland require the contents of one unit to be sold as a lot – meaning if you win the bid, you now own everything inside that unit. There are only a few states, including Alabama and Kansas, which are required by law to sell items one at a time.

Looking to strike gold? Well, it is possible. You never know what’s stored away in gram’s old dresser. But there are a few things to keep in mind:

• With the wide exposure of reality shows, there are more bidders, which means more competition.
• Units are sold to the highest bidder. Its best to go in with a plan to avoid getting caught up in the excitement. Then comes the clean out of the unit. The larger the unit, the more help that’s needed to empty it out. In almost every auction, there will be garbage to dispose of from inside the unit, for which you as the new owner are now responsible.
• So, keep in mind that your total cost for one unit includes the following: the bid for the unit, the labor to empty the unit, transportation to get the contents of the unit off site, and disposal of any refuse once you leave the facility.

Don’t get me wrong, there are many cases out there where buyers have profited largely from a storage auction. In April 2011, a storage unit went to auction in southern California which held a nearly pristine copy of “Action Comics No. 1” featuring the first appearance of Superman. This comic sold for a record $2.16 Million! Now that is a lot of money! Unfortunately, it was later discovered to be stolen from actor Nicolas Cage’s home in early 2000. And, a high-value find like that comic is quite rare.

Most people who benefit from a storage auction are those who own a second-hand store or refurbish furniture for resale. Furniture, appliances and clothing are typical items you will find inside almost every storage unit. And unless the buyer can resale the items (the ones in good shape anyway, because trust me many things are broken and damaged) for more than they paid at auction (minus disposal and labor costs) they could still lose money on it.

Despite this reality check, I do agree that storage auctions are all the rage right now. The TV shows make them look so fun and exciting. And, although not likely, there is always that small chance you could find the next $2 Million comic book! If you haven’t been to a storage auction yet, it is definitely worth a visit just to see it for yourself. You can check out one of our upcoming auctions to see what it’s all about. And hey, maybe you will find something you want to bid on – you never know!

If you have any questions about self storage auctions and the auction process, you can contact us at any time and one of our friendly property managers will be glad to answer any questions for you.

PA Lien Law and Storage Auctions

There are a lot of questions and maybe some confusion that surround the self storage lien law and the auction process. We are here to help you understand the complete process so you never have to worry about either when it comes to your self storage unit. The last thing we want to have happen is to auction off your storage unit. Follow these simple guidelines and you can prevent an auction from happening to you.

PA Lien Law

First of all, we never want to auction off a unit, for any reason. A storage facility will only auction the contents of storage unit if the owner fails to pay their rent for an extended period of time. If we aren’t getting any rent, then we must contain our losses and free up a unit so we may rent it to a new tenant. We never profit from any auction. All proceeds go first to pay back rent and fees, then the balance goes to the tenant.

In the state of Pennsylvania, the lien law allows self storage operators to place a lien on the stored contents of a unit once the rent has become a full 30 days past due. Operators and property managers will make multiple attempts to contact a tenant who remains in past due status, prior to a lien being placed on the storage unit. At least four phone calls and emails are initiated from the contact information on file. If the property manager cannot reach the tenant through these attempts, he or she may contact the alternate person listed on the account as a next step. We send several paper notices – at five, fifteen and thirty days past due – in an attempt to bring the account current and prevent a lien on the unit. If the tenant provided an email address to the manager, these notices will be forwarded in an email as well.

In Pennsylvania, when an account becomes a full 5 days past due the unit is over-locked, and at 30 days past due a lien is placed on the stored contents. Operators are required to send a notice of this lien to the tenant via USPS certified mail and regular mail at the last known address on file. The lien notice informs the tenant of the past due status, provides the total amount due to bring the account current and lists the scheduled auction date.

Late fees and the subsequent auction of storage contents are not contingent upon the tenant receiving the notices that have been sent. Tenants are responsible for keeping their account current as contact information changes. We send these notices to the last known address on file, so it is important to notify us when something has changed – such as phone, address and email – to ensure we can reach you.

Storage Auction

Storage facilities are required by the lien law to advertise the sale of each individual unit publicly. This advertisement will appear at least 10 days prior to the scheduled sale. We run these ads in a publication of general circulation, like the Central Penn Business Journal, for any auctions we have scheduled each month.

Tenants are able, and encouraged, to make their payments at any time up until the moment the auction begins. If full payment of the past due rent and fees has been made by the tenant prior to the auction, the sale of that unit is cancelled, all ownership of the contents is restored immediately to the tenant and the over-lock is removed.

Storage auctions are held once per month at Harrisburg Self Storage. All storage auctions are open to the public. However, employees of Harrisburg Self Storage and their immediate families are not permitted to participate in the auctions. The auctioneer will open the unit so attendees can examine the contents. Attendees are not permitted, at any point before or during the sale, to enter the unit or touch any items inside the unit.

The auctioneer will begin the sale with a minimum bid. Attendees are bidding on all the contents inside the unit, not individual items. Just like any other auction, the sale is closed by the auctioneer to the highest bidder. Payment is taken, in cash only, and applied to the auctioned account. If the auction brings in an amount greater than the balance due, the overage will be sent to the tenant. If we cannot locate the tenant to refund the proceeds, we send the proceeds to the unclaimed property division of the Pennsylvania state government. Harrisburg Self Storage only retains the original debt of the tenant.

Keep in mind that storage facilities never want to auction the contents of a unit. Storage operators and property managers are not the enemy in these unfortunate situations. You can avoid an auction for your self storage unit if you abide by the terms of your rental agreement and make your payments when they are due. If you end up in this situation where an auction is eminent, you can contact your property manager to discuss your account and arrange for payment to avoid an auction sale.

For more information on the Pennsylvania lien law, please contact us at any time.