When it comes to having a legal auction at your storage facility, there are state-specific steps you need to accomplish prior to the sale in order to stay in compliance with each state’s lien laws. Common questions we answer are, “What are the required steps for my state?” or, “How long does my ad need to run?”
However, a vital detail that is often overlooked is the information needed in the advertisement of the sale. Not the act of posting an advertisement, but the actual verbiage that your state’s lien law requires to appear in each advertisement. If that particular information is not included in your legal ads per your state’s requirement, then you may face the issue of having a wrongful sale, and nobody wants that!
Thanks to the ongoing hard work from the national Self Storage Association team and your state associations, the requirements for when and where you post your auction advertisements are being updated and modernized across many states to make this obligation easier and more manageable. While that’s terrific and extremely helpful, you still need to ensure that your auction advertisements always include the proper information and verbiage, regardless of when, where, or how long it’s posted.
“Some states require only basic information such as the time, place, and manner of the sale, while others require operators to list details such as the tenant’s name, unit number, or a description of the property,” says Joe Doherty of the national SSA. “Operators should have a system in place for ensuring that the advertisement contains the necessary information and is published accurately in the location permitted by state law.”
Let’s use Louisiana as an example. A bill was recently passed that allows operators to post their ads online instead of using (and paying the higher price of) the local newspaper, starting in 2022. That’s a fantastic and convenient improvement for operators across the state!
So, for Louisiana and over 25+ other states that already allow alternatives to posting in the physical newspaper, the ad’s location has changed but the ad’s information and duration remain the same.
Louisiana operators will be able to post their ad in places such as StorageAuctions.com’s free “Legal Notice” section, with the following information still required:
- A brief and general description of the movable property reasonably adequate to permit its identification by the lessee
- The address of the self-service storage facility and the number, if any, of the space where the movable property is located and the name of the lessee
- The time, place, and manner of the sale or other disposition
Some states may require this same information, while others may require more or less. Whether you’re one of the lucky ones who can avoid the antiquated physical newspaper, or if you still have to publish your ads in hard copy, always make sure that your advertisement includes all the requirements. In most cases, a simple Facebook post or your auction being online will not suffice. Check your state’s lien law requirements and make sure your ads are always up to par to avoid a wrongful sale.
If you have any questions about your auction process, feel free to reach out to the StorageAuctions.com team today. We’re your trusted partner for worry-free auctions, and we’d love to help you successfully and legally manage your auctions for improved results.