When a lkr sells do the property mgrs recover the money that was owed ?

RFR asked this question in another thread, so thought I would address it in a new thread where it
wouldn't detract from original thread subject.

Before December, 2010 I would have said "no". Now I'm thinking they do cover (and exceed) the fees owed to them.
With 10 x 10 lkrs (which might rent for $80 a month) and with 2 to 3 months of back fees owed (plus other charges) the total they owe MIGHT be $300 to $350 (tops).

I see a lot of 10x10s going in the $500 to $600 range here in California, and that's for an average lkr. A "star" will bring more than that.

The funny thing is that the "excess" is supposed to go back to the lkr owner. So If they owed $400 and it sells for $800, they get $400 "profit". That's if they can be found. Many can't and the money goes into a county fund here in CA.

I use the 400/800 example because a couple of years ago I paid for a great looking tool lkr..yep..$800. The mgr told me before I left the premises that the guy owed $400.

A week or so later the prop mgr called me and gave me the guy's number. He wanted to buy something back. When I called him, I told him that item had already been sold. He was quite cocky and mentioned the $400 he reaped and said "Good luck selling the tools. You already know my name has been etched in all of them." I had sold some of them already so I informed him, "That didn't seem to matter to the people who bought the Macs and Snap-Ons. Those wrenches work no matter whose name is on them." He just hung up. Oh well, again, pay your bills.

From what I have heard, and do not quote me because this is hear say, is that in the event that more money comes in from an auction for a unit. Any money left after paying the rent gets sent to owner rather exowner of the unit.

Say I have a unit, a 10x10 that cost me $120 per month. I am three months behind, so that is $360.

Along comes the auction, it gets bidded to $600. Well $600 minus $360 is $240. That $240 is sent back to me.

This is what I have read because of some scam that was going on shortly after the shows got aired. I personally have not verified this with any managers at any facility. So this may be true, may not be true. Or it may be different for each location or facility within a location.

I do know for a fact though that the managers will bend over backwards to help out their tenants, I have yet to meet a manager that actually likes auctions, no matter how many people show up, or how much money is brought in.

Sounds right to me with the only variations being from state to state I would guess. In CA I understand (from what I hear from property mgrs) that if the person can't be found it goes to the state/county.

One mgr said it goes to their parent company and then after a year it goes to the state/county. Some opportunity for
money to disappear along the line.

Some of the independent properties could certainly take advantage of this system. A property owner who's also the property mgr....where's that extra money going again ?

Thanks for addressing this movieman, I was curious about this. I imagine it varies area of the country. In chicago area our prices have still not gone anywhere near back to normal so I would imagine unit owners normally get some money kicked back to them.

I've noticed on the boards some people saying things are back to normal or as close to it as we can hope for so was curious whether auctions woudl bring back more than fees owed. Also I wasn't sure how much they tack on in late fees and things.

I had a guy basically explain to me what movieman did a long time ago about how the money gets handled owner gets back anything beyond rent and fees. We were joking we should buy a unit stuff it full of display electronics and boxes and default on it.
Obviously I wouldn't do this and its stupid as damaged credit will cost way mor ethan the little bit you could make but were just joking about doing that.

Obviously I wouldn't do this and its stupid as damaged credit will cost way mor ethan the little bit you could make but were just joking about doing that.

Actually that was the scam I was reading on. A couple of vets decided to cash in on the high bidding that was going on. Got a unit had empty boxes and boxes full of trash, nicely stacked, and written on the boxes was like collectibles, antiques, old baseball cards, stuff of that nature. However they got founded out by the guy who bought the unit. He was pist to get a unit for I think over a $1000, and be full of empty boxes and trash, lol

Actually that was the scam I was reading on. A couple of vets decided to cash in on the high bidding that was going on. Got a unit had empty boxes and boxes full of trash, nicely stacked, and written on the boxes was like collectibles, antiques, old baseball cards, stuff of that nature. However they got founded out by the guy who bought the unit. He was pist to get a unit for I think over a $1000, and be full of empty boxes and trash, lol

We've had that problem up in the Seattle area at a couple of different facilities.  It's lead to a couple of lawsuits and lot's of hard feelings.  Even if it's not technically "illegal", it is surely not ethical!

We've had that problem up in the Seattle area at a couple of different facilities.  It's lead to a couple of lawsuits and lot's of hard feelings.  Even if it's not technically "illegal", it is surely not ethical!

That might of been where I read the article from, not 100% sure, but I know it was on the West Coast somewhere. To me it was just wrong, nice idea, but so damn scandolous. I would think it would hurt your reputation and be hated like crazy from all aspects. The facilities, the auctioneer, and fellow bidders.

These laws vary state by state. The excess money received isn't sent to the tenant, a notice is required to be sent. If the tenant doesn't respond within a certain amount of time, the funds revert to the storage facility or the state.

I definitely agree, the days of storage facilities not recuperating losses from delinquent tenants are over with unless the contents are pure trash.