Running a storage auction step by step
This is not legal advice. Follow your state's statute and talk to a lawyer before you hold a sale.
A lien sale is the last step after a tenant stops paying. It has to follow your state's statute exactly. A missed notice or a sale held a day early can expose you to a claim for the tenant's goods. This guide walks through the process in order, from the first missed payment to handling proceeds after the sale. Florida's statute is used as a worked reference. Your state's steps and deadlines may differ.
The process at a glance
Most state lien laws follow the same broad order. The deadlines, delivery methods and advertising rules are what change from state to state.
- Rent goes unpaid and the account goes into default.
- You send late notices and deny access as the agreement allows.
- You send the formal lien notice the statute requires.
- The tenant's payment deadline passes.
- You advertise the sale as the statute requires.
- You hold the sale, or dispose of the goods if the statute allows.
- You apply proceeds, hold any surplus and keep records.
Find your state's version in self storage lien laws by state.
Before the sale: late notices and lockout
Most delinquencies never reach auction. Tenants pay once they get a clear reminder. Your goal in the early weeks is to collect, not to sell. See handling delinquent tenants before the lien process.
Send reminders on a fixed schedule. Apply late fees only as your agreement and statute allow. Overlock the unit or disable the gate code when your agreement permits it.
Check military status before you go further. Federal law bars enforcing a storage lien against a servicemember's property during service and for 90 days after, without a court order. See 50 U.S.C. 3958. Knowing violations can bring fines or jail.
The lien notice
The lien notice starts the legal clock. Its content and delivery method are set by statute. Get both exactly right.
In Florida, the notice must include an itemized claim, a description of the property, a demand for payment within at least 14 days of delivery, and a conspicuous statement that the goods will be advertised and sold. It must give the owner's name, street address and phone number. See Florida Statutes section 83.806.
Florida allows delivery by hand, email, or first-class mail with a certificate of mailing. If an email gets no response or delivery confirmation, the owner must also mail it before the sale. The notice must also be posted at the facility or on the unit. See section 83.806.
Keep proof of every notice: mailing certificates, email delivery records and photos of posted notices.
Advertising the sale
Most statutes require public notice before a sale. Some still require a newspaper. Others now allow online notice or online auction listings.
Florida requires advertising once a week for two consecutive weeks in a newspaper of general circulation. The sale must be at least 15 days after the first publication. See section 83.806.
Florida's ad must include a general description of the property, the facility address, the tenant name, and the time, place and manner of the sale. One ad may cover several tenants. See section 83.806.
Online and in-person auctions
Online auctions let bidders view photos and bid over several days. In-person auctions put bidders at the unit door. Check which your statute allows before you choose.
Florida allows a sale on a public website that customarily runs personal property auctions. The owner does not need a license to post property for online sale. See section 83.806.
| Factor | Online | In person |
|---|---|---|
| Statute allows it? | Check your state | Usually yes; check your state |
| Staff time on sale day | Lower | Higher |
| Bidder viewing | Photos only | View from the unit door |
| Cleanout timing | Set by your terms | Usually same day or set by your terms |
| Records | Platform keeps bid history | You record bids and buyers |
Sale day
Before the sale starts, confirm the account is still unpaid. A tenant can usually redeem up to the moment of sale. In Florida, the tenant may redeem before any sale by paying the lien amount and reasonable expenses. See section 83.806.
Florida requires the sale to match the notice and be conducted in a commercially reasonable manner. See section 83.806.
- Re-check the account balance and any payment received.
- Re-check military status.
- Confirm every notice and ad deadline was met.
- Photograph the unit contents before opening bids.
- Remove personal papers and photos if your policy is to return them.
- Record the winning bidder, amount and payment method.
- Give the buyer written cleanout terms and a deadline.
- Collect any cleanout deposit your terms require.
After the sale: proceeds and records
Apply the proceeds to the lien amount. Hold any surplus for the tenant as your statute requires.
In Florida, the owner must hold the surplus for the tenant and give notice of the balance in person or by first-class mail with a certificate of mailing. If unclaimed within two years, it is deemed abandoned. If other lienholders have priority, proceeds go to them first. See section 83.806.
Keep a sale file for each unit: the agreement, ledger, every notice, ad proof, photos, bid record and surplus notice. Keep it at least as long as your counsel advises.
Common mistakes that put a sale at risk
Most problems with lien sales come from small process errors, not from the law itself. A short review before each sale catches most of them.
- Sending the lien notice before the statute's trigger date.
- Using a delivery method the statute does not list.
- Leaving out a required item from the notice, such as the payment deadline.
- Running the ad late or in the wrong publication.
- Holding the sale before the minimum days after the ad.
- Selling after the tenant has paid or redeemed.
- Skipping the military status check.
- Failing to hold and give notice of surplus funds.
Build a one-page timeline for each sale. List each statutory deadline and the date you met it. Have a second person check it before sale day.
If you find an error, stop. Do not try to fix it by moving fast. Restart the step that went wrong, or ask counsel how to cure it.
Keep your process the same for every tenant. Consistency is easier to defend than one-off decisions.
Frequently asked questions
Can the tenant pay after the ad runs?
Usually yes, until the sale. In Florida the tenant may redeem before any sale. See section 83.806.
Do I need an auctioneer license?
It depends on your state. Florida says the owner needs no license to post property for online sale. See section 83.806.
What if the tenant is in the military?
Stop and talk to counsel. Federal law requires a court order to enforce the lien during service and 90 days after. See 50 U.S.C. 3958.
What do I do with surplus money?
Hold it for the tenant and give notice as your statute says. Florida treats it as abandoned after two years. See section 83.806.
What about a car or boat in the unit?
Many states have extra rules. See vehicles, boats and RVs in storage.