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Online Self-Storage Auctions: Answers to Common Questions and Tips for Better Results
Lots of self-storage operators use online-auction platforms to conduct their lien sales today, but many still have questions about the process. Get answers and extra tips from an industry auctioneer to help ensure your next sale is as smooth and successful as possible.
Cheli Rosa
August 4, 2024
4 Min Read
I speak with self-storage operators every week about their online auctions and listen to their questions and concerns. Many of you may also be wondering about the lien-sale process and how to make it work via a web-based platform. Below is some guidance to help smooth the way and ensure your auctions are as successful as possible.
What’s the Proper Way to Write a Unit Description?
Your description of the items up for auction isn’t just a list, it's a powerful tool that can attract online bidders to your self-storage lien sale and impact its level of success. The words serve as keyword matches for people who are searching for specific items. Many are seeking certain products for their resale shops.
Avoid using general terms like “household goods” or “miscellaneous.” Bidders don’t search for these phrases because it doesn’t return specific results.
Use a comma between each listed item. If you don’t, your description becomes one very long keyword.
Be as descriptive as possible. For example, instead of writing “furniture,” write “dresser, bed, dining table, bookshelf, chair,” etc.
How Do I Take Good Listing Photos?
The most frequent feedback we receive from bidders is that they want to see more detailed photos of the items in the self-storage unit for sale. It's crucial to understand that the high-quality pictures you provide are the cornerstone of an online-auction listing. By empowering buyers with clear visuals, you significantly influence their bidding behavior. Years of auction data tell us that more pictures results in higher bids. Consider these tips to take better photos:
Use landscape mode to get more items in the frame.
Turn on your flash to reach the back of the unit.
Avoid having the sun directly behind you, as it will cast shadows.
For best results, use a photo resolution of 1600 x 1200.
How Can I Minimize No-Show Bidders?
After the self-storage auction closes, contact the winning bidder by phone, text or email to set up a pickup time or arrange payment. They may not even be aware that they won the unit.
If your original bidder doesn’t respond or show up, request a backup bidder from your online-auction provider. When that happens, your original bidder will receive another notification, which may incentivize them to appear. You can also cut out the middleman and contact the bidder directly, which may improve your chances.
How Can I Reduce ‘Cherry-Picked’ Units?
When a self-storage auction winner shows up, takes what they want from the sold space and leaves the rest for you and your team to dispose of, the result is a cherry-picked unit. It’s very frustrating when this happens. The best solution is to charge a cleaning deposit. The bidder only gets it back once the unit is empty and clean. If you already do this and continue to have issues, consider raising the amount. Some operators charge a different deposit depending on how big or full the unit is.
If you’re concerned about holding cash deposits in your self-storage office, insist that the bidder use a credit card. This is now quite common.
Finally, always report any cherry-picking buyers to your self-storage auction platform. If you have reoccurring problems, you can request that certain bidders be banned from participating in your sales.
What Do I Do With Abandoned Personal Items?
It isn’t unusual for a self-storage auction winner to find personal items in the unit such as photographs or paperwork. It’s a generally accepted industry practice to leave them behind for the tenant to retrieve. Most online-auction providers have verbiage in their terms and conditions about this; plus, it’s a nice gesture, even if not legally required. Still, that leaves you as the facility operator to deal with this stuff.
It’s best to create a company policy on how to handle these scenarios, so every staff member understands the protocol. Where will these personal items be kept and for how long? Who will contact the tenant? How will items be relinquished? Everyone should know the answers to these questions.
Online auctions are more popular in the self-storage industry than ever. Bidders enjoy perusing these sales at their convenience, and operators are benefiting by having more eyes on their lien sales. By following the simple guidance above, you can ensure your next event is a success!
Cheli Rosa has been in the self-storage industry for 14 years. As a licensed auctioneer, she’s conducted hundreds of live auctions. She started an online-auction company and became a strategic account manager at StorageTreasures.com in 2018. She often presents at state and national self-storage conferences and writes for industry publications. To reach her, email [email protected].
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