It is a perennial problem for all Storage businesses; one that will remain constant whilst there is a need for people to store their belongings.
We refer of course, to default storers.
Despite doing everything you can to ensure storer payments remain up to date, the harsh reality is – defaults do and will occur. And it is not only the accrued debt amount you must deal with; there is the ongoing loss of rental income and a Storage unit* full of unwanted items to get rid of!
Thankfully, as a Self Storage owner, you do have rights (under specific license agreements) to ‘sell’ the contents of these default storage units, freeing up the space for paying customers and a preferred method to do this is by public auction.
Why public auction? Because an operator must be seen to have made reasonable attempts to secure the best possible price plus, the public auction model provides evidence the market set the price for the goods sold.
Nowadays, online auctions dominate the storage auction landscape and with the introduction of Storage Auction Only platforms like iBidOnStorage, Storage operators are not only able to reach a far greater, targeted audience; they now have more input and control over how and when their auctions appear and the ability to help promote their auctions, maximising exposure.
Since their launch in September 2016, iBidOnStorage has hosted more than 13,500 Self Storage auctions across Australia, at an average of around 370 auctions/ month. They have 18,000 registered buyers, a number growing by 10-15 daily; proof that there truly is a market of Storage Auction Hunters out there looking for their next big win.
Most impressively, over this time, iBidOnStorage has paid over $4.2 million back to sellers as Bad Debt Recovered, a number they a very proud of and one they continue to strive to grow.
If you are new to the Self Storage Industry, customer debt may not be a real concern for you in the early stages of trading. Managing debt will however become a regular item on your Management Teams “To Do” List. When it does, take comfort in knowing iBidOnStorage is an industry specialist and will work with you to achieve the best possible outcome for you and your business.
Start off the right way and use this service from the start of your Self Storage business journey
To speak to the iBidOnStorage Team, call 02 4302 0605 or email: [email protected].