Self Storage- First auction since Covid

Held our first auctions since Covid started. Haven't held an auction since February. Had 4 units out of about 860 total rentals. Only had one person we know moved out due to covid because one of them lost their job. Since we are full at all of our locations, any habitual lates we are having move out or have a significant rent increase. And/or be auctioned. This has gone down from about 15 units on a lot fewer total units when we first started. We have steadily filtered out bad accounts.

These 4 units were in three different towns, so I schedule an hour in between. The auctions only take about 5 minutes to do each. Only had 1 unit that didn't sell. Someone was scrapping small metal and wire in the unit. Luckily only about 1/2 truck full. Half metal for scrap yard and half junk.

Below is a 3 generation Auction buyer family. The grandma is shy, but the main buyer.

I have bids go in $10 increments and after the second time I say the number; I go 1,2,3 sold. Primary objective is to get someone else to clean the unit out, so we can turn around and rent. Not a lot of buyers, but it only takes one.

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Below are both our auction rules and a clean out policy. Have only ever had one person leave trash and lose their $100, plus not be able to come back to the auctions. We have kept filtering our customers. Pay check or cash, if continually late, then we move them to autopay credit card or bank account; then we increase their rate and tell them to leave or auction them off. This has helped us get down to the 4 out of 860 units since February. This saves us a lot of work in the long run, not chasing payments down.

Auction Rules- Clark StorageLLC 10/10/2020

1. Pay in cash or local check (if I know you).

2. Must pay day of sale.

3. Show driver license.

4. Must clean out storage unit by end of day Sunday.

5. If not cleaned out by Sunday, you will be charged $100 for clean up fee per unit.

6. Or make provisions Monday morning to rent the unit. Call Henry Clark xxx-xxx-xxxx by 11 am on Monday, or it will be disposed and charged for clean up.

7. Owners/families of units may not bid. Must pay storage fees in cash and move out.

8. Reserve the right to not accept bids by individuals.

9. Reserve the right to bid, for myself.

Units purchased/Amount__?????__________________________________________________

By approving and signing the below, you agree to an automated electronic charge for the clean up fee in the amount of $100 per unit, if not swept out.

Approval: __________________________________

Print Name: __________________________________

Phone Number _________________________________

Address ______________________________________

Date: 10/10/2020

Show Credit Card to Auctioneer:

Credit Card # _______________________________

Expiration Date______________________________

Security Code 3 digit _________________________

Show Check to Auctioneer:

Bank Account # ______________________________

Bank Routing #________________________________

Driver License # ______________________________

Henry Clark, Developer