How do I check a storage facility’s auction and abandoned-unit procedures?
Ask for the written steps the facility follows when a tenant stops paying or abandons a unit, then read the tenant agreement and the notices it sends. Review a few past cases from start to finish, including any complaint, so you see whether the process was followed.
Begin with the agreement tenants sign. Ask whether it explains late fees, notices and what the facility may do about unpaid units. Then ask for the internal procedure that staff follow and whether it was reviewed by a lawyer. Ask your own lawyer what the process should include and whether this one does.
Then trace real cases. Ask for the file on several recent unit auctions or clean-outs: the notices sent, the dates, the contact attempts, what was done with the contents, and where the money went. A good file is complete and consistent. Gaps matter.
Ask about problems. Has a former tenant disputed a sale, claimed items were missing or complained about a notice? How were they settled? Ask how much income is lost to unpaid units and how long they stay on the books. Ask how personal items or sensitive papers found in units are handled. Your accountant can show how auction proceeds and write-offs appear in the figures. Ask whether staff are trained on the steps and who signs off on each sale. Where the process is informal, have your lawyer help you set a better one before you take over, because you will inherit any past mistakes along with the facility.
Key takeaways
- Read the tenant agreement and the staff procedure side by side.
- Trace several past cases through notices, sale and proceeds.
- Ask about disputes, missing-item claims and how unpaid rent is tracked.
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
- 03Business Development Bank of CanadaGovernmentWhat is Cash Flow
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