Slowly but surely, state laws are beginning to catch up with modern technology when it comes to storage auctions.
Starting January 1, 2014, Oregon will join the growing ranks of states whose reformed lien laws allow auctions to be held virtually rather than in person.
This news follows on the addition of two other states, Maryland and North Carolina, revamping their lien laws in October of 2013.
The laws are changing in response to pressure from the national Self Storage Association, which works to improve the storage industry for facility owners and storage renters alike.
Previously, storage facility owners in Oregon were required to list auction notices in the local newspaper and hold a live lien auction in a public location. Now, beginning with the new year, Oregon will have similar laws to other states that allow online auctions:
Storage facilities can hold auctions on any publicly accessible auction site
Facility owners can impose a fee of $20 or 20% of the late rent for each month of delinquency
Delinquent tenants can be notified of a potential lien sale via email in addition to other contact methods
Abandoned vehicles and boats can be towed after 60 days on the property
Online storage auctions are more convenient for buyers and sellers alike. Internet technology has made it easier than ever to advertise sales and hold auctions without many of the hassles of a traditional sale.
By utilizing an online auction site like OnlineStorageAuctions.com, a storage facility can sell off its abandoned units quickly and easily. As more states begin to change their lien laws to keep up with the changes in the industry, online auctions will become the new standard for the business.
Please leave your thoughtful opinions in the comment box below.
I would like the Oregon guidelines to inform customers that are in default of the online auctions. Can I cut the lock and take pictures 2 weeks before auction? How long before online auction do I send them notice and does it have to be certified mail? Thank You
Rose,
Yes, you can cut the locks and take photos of the units before the auction. According to § 87.689.(2) Before an owner may foreclose by sale a lien created by ORS 87.687, the owner shall notify the occupant of the foreclosure and sale by sending registered or certified mail or other verified mail to the occupant’s last known address or by sending electronic mail to the occupant’s last known address. The sale of the personal property may not take place earlier than 15 days after the first advertisement, publication or posting concerning the sale.
Also, according to § 87.691.(1) After the time specified in the notice given under ORS 87.689 expires, if the owner determines, based on the owner’s previous experience, that the personal property subject to the lien created by ORS 87.687 has a value of $300 or less, the owner may dispose of the property at the owner’s sole discretion.
Here is a link to Oregon’s storage lien laws.