The laws governing storage auctions have been slow to adapt to new technology.
Many states are still operating under laws written in the 1980s or earlier, and they can seem very outdated today. In many states, auctions are required to take place in a live location and be advertised through a local newspaper.
With the advent of the Internet and the ever-growing popularity of online auctions, these archaic rules can be a nuisance for storage facility owners.
Fortunately, some states are revamping their laws to match the demands and opportunities of new technology. In October of 2013, Maryland passed a law that would allow storage facilities in Maryland to hold auctions online rather than in person. Additionally, the new law made several other valuable changes to the way auctions are handled in the state:
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Delinquent tenants can be notified via email in addition to other types of contact, like phone calls and certified letters
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Vehicles, including RV’s and boats, can be towed away if they’re left at the facility for more than 60 days
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Storage facility managers can place a limit on the value of items that can be stored inside the facility.
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The owner can charge a late fee of $20 or 20% of the delinquent rent, whichever is higher, beginning after the waiting period written into the rental agreement.
These changes in Maryland’s lien / auction laws were brought about through the efforts of the national Self Storage Association, which has been working to update laws across the country for the benefit of the storage industry. Online storage auctions are more convenient for buyers and sellers alike, and making online auctions a legal option for facility owners provides more opportunities for making sales.
As more states begin to modify their laws regarding self-storage auctions, online sales will begin to become the norm.
Sites like OnlineStorageAuctions.com work to facilitate these auctions and make them easier for both buyers and sellers to take advantage of the newest technology behind lien auctions.
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