When a self-storage facility blacklists you from participating in future auctions, it can spell disaster for your business. Granted, you’ll still be able to participate in auctions hosted by other facilities, but these facilities may be farther away, have more competition, and yield less valuable items. The bottom line is that you should take certain precautions to ensure you remain in good standing with all self-storage facilities that you do business with.
What Is Blacklisting?
Blacklisting is another term for banning a person or corporate entity for participating in storage auctions. Most self-storage units allow anyone to participate in auctions, until they are blacklisted at least. Once your name is placed on this list, you’ll be prohibited from bidding on future auctions. As you can expect, this can greatly impact businesses that rely on storage auctions as their primary source of income.
Why Does Blacklisting Occur?
To understand why blacklisting occurs, you must first take a step back to the basics of storage auctions. Self-storage facilities hold auctions to recover some of their lost revenue from delinquent customers. If a customer fails to pay rent for X amount of days (varies depending on state laws and the facility’s rules), the facility will sell the unit’s contents at auction. Even if the facility fails to recoup 100% of the unpaid rent, it will generate some revenue at the very least.
But there’s a second reason why self-storage facilities hold auctions: to clean out the contents of abandoned units so they can make room for new customers. The individual who wins the storage unit at auction is responsible for removing any and all items within the unit. Whether the items are of value or not, the winning bidder must still clean out the unit. If he or she fails to do so, the facility may blacklist their name, preventing them from participating in future auctions.
How To Prevent Being Blacklisted
The good news is that it’s fairly easy to keep your name off the self-storage facility’s blacklist. Before you participate auctions at any new facility, read their rules and guidelines. This should contain invaluable information regarding what’s acceptable and what’s not. And remember, never leave any items behind. Regardless of their value, it’s your responsibility to clean out the unit so the facility can rent it out to another customer.
Have you ever been blacklisted by a self-storage facility? Let us know in the comments section below!