Storage facilities in Colorado have an easier time holding auctions now due to a change in the way the state’s lien laws are written.
The bill, which was passed in mid April, lifts the previous requirement for storage facilities to contact their tenants through certified mail or post storage auctions in newspapers prior to holding a lien auction.
Now, storage facilities in Colorado can contact their delinquent tenants through first-class mail or even email when available to notify them of the late payments and intent to sell.
Additionally, storage auction announcements can be posted in any “reasonably public” advertisement space, including the Internet.
This bill was supported by lobbyists and both national and state levels of the Self Storage Association. It’s estimated that the new bill will save Colorado storage facilities as much as $2 million each year in costs associated with certified letters and newspaper advertisements.
At this time, many states still require their storage facilities to post newspaper ads or contact delinquent tenants through certified mail. This can be very costly, especially in major cities where newspaper ad space is at a premium. That Colorado has made changes in its lien laws is a positive sign for the storage auction industry.
It shows that state laws are becoming more aware of trends in technology and are willing to adapt to these trends.
In the future, more states will most likely begin to adapt their lien laws to catch up with modern technology. This means that more states will begin allowing storage facilities to use modern technology to advertise storage auctions, which will make finding these auctions easier.
Rather than searching all over for the newspaper where a notice of sale is listed, auction hunters will be able to check the Internet.
Moreover, more states may begin revising their lien laws to allow virtual storage auctions. This will make it simpler for storage facilities to sell their units over the Internet without the hassle of concurrent auctions of possible legal ramifications.
Overall, the new law in Colorado is the first positive step toward the future of auctions.
Please leave your insightful opinions in the comment box below.