What are Storage Auctions? How can you participate in them and where do they take place?
If you’re a fan of the famous Storage Wars show and have always wanted to participate in a storage auction but weren’t sure about how to do so, you’re in luck. We have compiled a “mini-guide” on everything You Need To Know About Storage Auctions In South Africa.
Storage Auctions are popular amongst antique dealers and second-hand shop owners who are constantly on the search for collectibles, vintage or antique furnishings, at bargain prices.
Typically a storage unit goes on auction when a tenant stops paying their storage unit rental fees. Should a tenant default on the rental agreement between themselves and the storage unit company, the storage unit company may immediately have a lien on all goods stored within the storage unit to secure payments of outstanding amounts.
More often than not, the auctioning of the tenant’s belongings is one of the methods used by storage facilities to dispose of the contents in the storage unit because each day the unit remains occupied is another day the facility loses rental income for that unit.
When a storage unit goes up for auction, the lien law of South Africa makes provision for the owner of the storage facility to open the unit and sell its contents. The tenant of the unit is notified if he is overdue on a unit’s rent and if there is no response he is notified until the period in the contact has lapsed. Thereafter, the contents of the unit are sold, usually via auction.
Storage Auctions are usually Live Onsite or Online Auctions. During Live Onsite Auctions bidders will be able to view the contents of the unit. However, they are not allowed to move any of the items or open any boxes. During Online Auctions, the auctioneers will load an image of the unit for bidders to see what is in the unit.
The registration process for either is the same as any other auction. To participate bidders have to register with the relevant auctioneer, pay the refundable registration deposit (if required) and submit their FICA documents.
The auctioneer will open the bidding by asking for a first bid and participants will place their bids until the highest bidder wins the storage unit. Once the bidder has paid, they generally have 24 – 72 hours to clear the unit, some storage facilities require the unit to be cleared immediately.
Do you own a Storage Unit Company and are looking to host an Online Auction? Find Out More here.