How do storage facility owners decide when to auction off delinquent units?
At what point does an owner decide it’s time to tell the tenant to collect their stuff and leave?
“I don’t like auctions,” admits Mark Helm, author of Creating Wealth through Self-Storage.
From a business perspective, this makes sense. Monthly payments are generally more profitable than self storage auctions. On the other hand, he advises against offering payment plans for delinquent tenants. After all, the lack of monthly payments drains income to begin with. Something has to be done about it.
Compassion leads many managers to make exceptions for tenants who can’t make payments on time. There’s nothing wrong with being kind-hearted toward tenants, but storage facility owners need to set clear expectations up front to reduce their delinquency percentage.
If you’re a storage facility owner, you can use storagetreasures.com to auction off delinquent units and reduce your losses.