Storage facility policies

Lately it seems like some of the facilities have had to change some of their policies about deposits. The last auction I went to the manager had upped the deposit from $50.00 to $100.00. She also made a new rule that if you need more time you have to pay and additional $100.00 per day. She said she had two 10X30's that didn't get cleaned out from the previous auction. It really sucks that newbies do this stuff and the repercussions come down on those of us that do this for a living.

She is talking to a lawyer about how she can write up a contract between the buyer and the facility so that if the buyer doesn't clean the unit they can be charged fees for clean up. This is a local chain with 8 facilities down the coast so if one does it the others will to. The buyers are banned from ever coming to the facility for auction but that doesn't help the situation with deposits.

That is a bit ridiculous to charge $100 per day for every day the locker isn't cleaned out. I'm sure the facility got burned, but that's a bit outrageous. Perhaps you could pull her aside and offer to clean up whatever someone leaves behind. It may not be the best stuff, but it's free inventory..

I think charging deposits in any fashion is ridiculous. I have never put down a cleaning deposit on a locker, ever, out of 150+ I'd estimate. I have crippled to paying a 10% buyers premium though (also tax in some cases), and that was annoying. Luckily it seems most of those type of auctions are regulated to auction zip, and they are kind enough to let you know ahead of time.

The thing is, these facilities act like it is costing an arm and a leg to dispose of leftover contents. Who are you kidding? We will see it back on the auction block next month!

I think charging deposits in any fashion is ridiculous.

It certainly varies from one area to another and is dependent on many things, including a facility's experience in the past with buyers who don't clean out their locker buys.

It also might depend on whether a facility is part of a chain or an independent. The chains may or may not do it more; for example in my area Extra Space charges a cleaning deposit and Public Storage doesn't. How does that relate to your area for those two chains?

I have never been concerned about leaving a deposit as I can afford to do it (doesn't cut into my buying power) and I know I'm going to get it back, so no problem. On the other hand a deposit would cut into some buyer's ability to keep bidding and that rules them out of the competition at some point.

That is really a MOOT point when I and five other regulars go at it. The only thing that stops one of us is not friendship for each other but whether one or the other has brought $2K that day or $5K that day. At that level a $100 deposit doesn't mean much at all.

The same. Extra space is a buyers premium and cleaning deposit, Public Storage is nothing. To follow suit I have never attended an extra space auction, but am a regular of Public Storage. To add to your comments, most auctioneers who have a multi-town following also seem to charge one or both

I bought from one facility that forced us to pay a deposit per unit. I bought 4 that day. I had to lay out a $400 deposit. I got it all back and they were real easy to work with, but geez.. $100 is enough incentive to get the lockers cleaned out.

I just figured all facilities made you put down a cleaning deposit. Every facility in my area requires a deposit. This particular place I am talking about is one that I have become very good friends with the manager. She did let me pick the units that were left and I got a few good things out of them. She also has a unit of her own she is trying to pear down that she let me pick out of. I really don't think she would charge me or a few of the other regulars extra as she knows we do this as our job and we don't want to be banned. 

I have no complaint about paying a cleaning deposit anywhere. I always get it back. I think it is good for the facility to have just a little guaranty that the locker is going to get cleaned out and without a deposit they probably get lots of trash left behind that they would then have to get rid of. Further more if letting them hold $100 of your cash for a day or two while you clean out the unit is going to break you, you probably have no business buying the unit in the first place.

Further more if letting them hold $100 of your cash for a day or two while you clean out the unit is going to break you, you probably have no business buying the unit in the first place.

I agree with this statement wholeheartedly! Like MM said previously, deposits thin out the herd because most newbies don't expect a cleaning deposit (because it's not on TV). I know when I first came back to the auction biz, I was expecting a little box to pop up to my lower left with prices and a "cha ching" sound.

I love when unit managers charge bigger deposits.  I always get it back and if someone hears they have to put 100+ just to play it trims my competition.