Storage Auctions

Landlord reserves the right to bid on lockers??!!

Landlord reserves the right to bid on lockers??!!
« on: April 18, 2012, 11:10:40 PM »
What the heck?! I was reviewing auctions for the next two weeks and noticed several where the landlords reserved the right to bid on the units. I've never seen this before, is it legal? The notices also say that the landlords reserve the right to refuse the winning bids. Has anyone been outbid by the landlord, or had their "win" confiscated?

If this is a trend, I hope it ends.

Offline Alias

  • ***
  • 200
    • View Profile
Re: Landlord reserves the right to bid on lockers??!!
« Reply #1 on: April 18, 2012, 11:27:23 PM »
While I disagree with someone with access to a unit bidding on it I don't see legal reasons not to.
But why would they look in a locker and then bid on it when they don't have to auction it off in the first place. They could just take it, right?

Now refusing the bid? If there is a written, witnessed, reserve.....don't like that either but don't see why they couldn't.
But if there isn't a reserve then highest bidder wins. End of story.

Re: Landlord reserves the right to bid on lockers??!!
« Reply #2 on: April 19, 2012, 12:33:32 AM »
Some states don't require a unit to be disposed of by auction at all, so if the facility doesn't get a high enough bid, they may see it in their best interests to take possession of the contents themselves.

Like many of these issues, a lot of it will come down to the details of a state's lien laws.

Offline money4nothing

  • *****
  • 925
  • I'm hidding
    • View Profile
Re: Landlord reserves the right to bid on lockers??!!
« Reply #3 on: April 19, 2012, 06:15:58 AM »
Some states don't require a unit to be disposed of by auction at all, so if the facility doesn't get a high enough bid, they may see it in their best interests to take possession of the contents themselves.

Like many of these issues, a lot of it will come down to the details of a state's lien laws.

Happens here a lot. Florida... Have not been to one that it was not auctioned off or purchased by facility.
I think it covers them if they don't get any bids on a unit then they can dispose of it after auction.

 We have one with reserves we don't even bother to go.  ;) Thank goodness they put it in there ads.

Offline Cobia

  • ******
  • 1144
    • View Profile
Re: Landlord reserves the right to bid on lockers??!!
« Reply #4 on: April 19, 2012, 08:23:22 AM »
Like others have said, they can bid on it if they wish, although it would seem counterproductive since they can take possession outright in some states. They can also require a "reserve" or minimum bid, either to recover their losses, or they know there is stuff in the unit that will bring atleast that much money reselling it. Some auctioneers will also bid on units, and they will let you know before the auction if they intend to bid.

The disclaimer about buying the contents back is really to cover themselves legally, mainly in the case of the facility auctioning off the wrong unit. I have heard of a court case where the tenant accused the facility and auction buyers of fraud and collusion because the unit supposedly had $100,000 worth of property in it and it only sold for $500. The tenant accused the facility and the auction buyer (winning bidder) of purposely trying to defraud them. The tenant acted quickly with getting an attorney involved, like the day of the auction, so all the contents that were removed had to be brought back to the facility and secured until the case could be heard in court. (Tenant lost the case, by-the-way)  ;)

Re: Landlord reserves the right to bid on lockers??!!
« Reply #5 on: April 19, 2012, 10:58:27 AM »
I've see the "reserve to reject a bid" clause in the paper and on the sign-in sheet at almost all my auctions.  I've never seen them do that however at the main auctions.  Now, we have a number of mom n pop places that never hold an auction.  So either they have some of the best tenants or they take posession of everything themselves.  Most places don't want to hassle with cleaning out the units, selling the stuff, etc.  So even $5 bids get accepted.

I would check those auctions out and just be cautious.  Or talk with some of the other regulars and get a feel for what they think.

Re: Landlord reserves the right to bid on lockers??!!
« Reply #6 on: April 20, 2012, 02:53:37 AM »
Thanks, all, for the feedback. I guess the only option really is to wade in and see how it works out.


Re: Landlord reserves the right to bid on lockers??!!
« Reply #7 on: April 20, 2012, 11:43:53 AM »
I actually have seen a rejected bid, but probably not the way you would imagine based on the way it happens.

We had two bidders going up in $50 increments and at $300, one of them tried to go $305 and the auctioneer (district manager at PS) said something like "Really? I'm not doing that!"

The bidder then went to $325 instead of $305 and was outbid at $350 and it sold at $350.

It was a rejected $5 bid, but in the moment you may not think of it as a "rejected bid."

Re: Landlord reserves the right to bid on lockers??!!
« Reply #8 on: April 20, 2012, 06:03:47 PM »
I've seen that Matches.  Normally it's someone underbid by mistake or the rules are $10 incraments and they are trying to do $5.  Still not seen a fully rejected bid as in removing the locker due to the facility didn't like the bid amount.

Re: Landlord reserves the right to bid on lockers??!!
« Reply #9 on: April 21, 2012, 08:18:58 PM »
Ok Im only talking about colorado and states around us I have bought at,  dont know what othere states do.   Colorado states after 30 days units can be disposed of by owner for back rent.  Nothing about auctions nothing about selling goods   just DISPOSING....  Ok   most big chains auction them.... Lets take PS    all PS cares about is getting the unit cleaned out and its to legality.  They want to re-rent it  as fast a possible as their a publicly traded company their earning statments are on how full their faciltiies are as its  GURENTEED MONEY.   they dont care about how much a auction unit brings thats why  every PS storage auction Ive been at   its   "clear it out in 48 hours"    Or re-rent it for a month.. Its all the same to their spreadsheets
No individually owned places  Ive seen them pull all kinds of crap.   Either just completely keep it to them selves  never have an auction..
Or NOOBIE ALERT
heres what most do.....they take all the left stuff from units  or litterly what they leave outside unit if they dont have room in truck... Its like eviction stuff..   put it in to  an empty one and try to sell it.   Becasue if they have to dumpster it all can cost them up to $200 or more extra.    See this all the time with small independently owned storage facilityes
Now you have to understand  they love the storage shows now...they dump this on noobs  for hundreds of dollers and laugh the whole time...   Ive litterly been at a small independent one  and was only me and a noob ..  I saw that was a totall set up   I refused to bid   the noob without prodding offered him  $200  for it   we both about fell over.  Walking back to the office he almost laughed in guys face and then to add on  told him had to be out in 5 hours.

Re: Landlord reserves the right to bid on lockers??!!
« Reply #10 on: April 22, 2012, 12:58:05 PM »
I haven't had that happen in this business yet (being laughed at) but I have noticed a sideways glance and a smile between a reg and a mgr after I won one. I walked right up to him and told him I'm retracting my win and to re-auction it if he wants his money. He told me that I wouldn't be allowed back in. So I said loudly "who wants in when you stage lockers?" and walked, loudly telling the details as I did. In the end over half the crowd walked with me. You gotta be very observant.


xx
I HATE PAYPAL!!! Reserves are killing my business!!!

Started by rulesforrebels

25 Replies
6460 Views
Last post January 03, 2014, 05:12:59 PM
by Travis
xx
First two lockers

Started by VinceRN

4 Replies
1451 Views
Last post August 25, 2011, 10:29:38 PM
by ronin
xx
2 new lockers won.

Started by Mr Andersen

7 Replies
3114 Views
Last post April 14, 2011, 07:33:28 PM
by Mr Andersen
xx
got 5 lockers for 62.00 total

Started by lithiar

5 Replies
2704 Views
Last post October 16, 2011, 08:32:19 PM
by craiglstauction