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How Much Do Storage Facilities Recover At Auctions

Offline MovieMan

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How Much Do Storage Facilities Recover At Auctions
« on: January 14, 2014, 08:52:56 PM »
You probably have some ideas and maybe even some first-hand knowledge of this. Share what you think and what you know.

I think:  that when the crowds are big and the lockers are better that the facilities do all right. Break even with what is owed them and of course pass along the overage to the former tenant if they can find them. In most states the overage goes to a state fund if the former tenant can not be found.

I know: that at one of the auctions went to recently that the 7 or so delinquent tenants owed about $1,500 and the facility only brought in a little under $700. I know this because the managment told me after the auction.

I also know that in that $700 that was spent it was a "small" amount because the lockers were tossed (by former tenant taking out any valuables before abandoning it) and because they were basically junk. The auction buyers of those lockers will be happy to break even if that.

So, I guess it depends on a lot of things, but probably overall the facilities don't do that well, and they've lost about 3 months of being able to rent a locker out due to the legal process.


Offline Travis

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Re: How Much Do Storage Facilities Recover At Auctions
« Reply #1 on: January 15, 2014, 12:17:47 AM »
I don't think that storage facilities that have available spaces to rent really lose anything at all. They would just be empty anyway. Heck, they're actually winning since the storage facility gets to write the loss off on their taxes.

However, if they are at 100% occupancy, they do lose money. Some of the units that go to auction aren't that valuable or are just trash that the former tenant left behind. If the units don't sell for very much, the storage facility could be out three months lost rent and expenses. But let's face it, 90% or more of the storage facilities in this country aren't at 100% occupancy.

Sure, on some units they recover all lost rent, late fees & expenses. In some states they can even keep the overages owed to the tenant, if they go unclaimed after a certain period of time. I'm willing to bet that storage facilities only break even on about half the units that go to auction.

Offline MovieMan

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Re: How Much Do Storage Facilities Recover At Auctions
« Reply #2 on: January 15, 2014, 09:30:24 AM »
However, if they are at 100% occupancy, they do lose money.

You know me, I'm always researching something and because I have pretty good relations with some of the facilities in my area they are research subjects too.

In my area the facilities tend to run in the 85% full situation, BUT, for several of them the lockers that are in short supply are the 10 x 15's.  If they are short in supply (or non-existent) then the facilities ARE losing money by not having any available.

A prospective tentant for a 10 x 15 isn't gong to be interested in the remaining 15% that aren't rented because those will be 5 x 5, 10 x 20, 10x30 for the most part.  The prospective tenant doesn't want a 5 x 10 or three 5 x 10s. The prospective tenant doesn't want to pay the jump in price for a 10 x 20 and certainly doesn't want or need a 10 x 30.

The prospective tenant will (in my opinion) LEAVE facility #1 and go maybe a mile away or less to facility #2 and find an empty 10 x 15.  Sound like losing money for facility #1 to me.

Re: How Much Do Storage Facilities Recover At Auctions
« Reply #3 on: January 15, 2014, 08:14:37 PM »
big chains such as extra space tend to lose money on the larger rooms but they usually make money on the smaller ones.  So say the managers.

More people are willing to bid high on a 5 x 5 rather than a 10x30. 


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