|
Auctions happen for the simple reason that Storage Indianapolis companies are "for profit" companies. They make their money by renting the real estate they own to people. If the rent is not paid they are not making any money. It is not that they are simply not receiving any money, they are actually losing it. Real estate has costs as do all businesses. Property taxes have to be paid whether or not the rent is being paid. Also, the company has to pay electricity and garbage bills. Lastly, the storage companies have employees whose salaries will be paid regardless of the fact that rent is not being paid. To fix this situation, the company needs to get the stuff out of the unit and rent it to a tenant who will pay the bill. This is accomplished with the auction process and it serves two purposes. First, under the terms of the rental agreement that every tenant signs the property in the unit is pledged as collateral for the rent. Once the bill is not paid, this property becomes the property of the storage company. It can be sold and the proceeds of the sale go to help cover any debt that remains unpaid. This helps to limit the financial losses of the storage company from the bad tenant. The other purpose that is served is, by selling the goods at a low price to a third party, the storage company finds someone who will remove all of the stuff from the unit. A frequent rule at storage auctions is that one is responsible for removing everything from a unit. Also, one is rarely given access to the storage company’s dumpsters. If, one does gain access, go wild! It is much cheaper than going to the dump. This ultimately means that the disposal costs to the storage company are completely eliminated at the same time part of the outstanding debt is paid. Why People Don’t Pay the Rent The property that is left behind in storage Indianapolis lockers can be sold for any number of reasons. There are four main reasons. These four are financial difficulty, moving, death and business failure. In the case of financial troubles, a person frequently cannot afford to pay the rent. Financial difficulty can strike for many reasons. Divorce is a very common cause of money troubles in America today as is credit card debt. Either one of these problems can cause weakness in a person’s finances very quickly. People decide which bills to pay and which to ignore. Mortgage, car payments and utilities all take priority over storage rent. As a result, people stop paying these first. This can quickly lead to a storage unit foreclosure. Customers could find storage units in many storage facilities. Author Bio Jeson Clarke is conveying information about storage Indianapolis and http://www.indianapolisinstorage.com/faq/. You’re probably thinking, everyone says that, so, what’s different here. It’s the commitment of quality, genuineness, and a guarantee that values your time and interest.
Related Articles -
Indianapolis Storage, Self Storage indianapolis, indianapolis Self Storage,
|
