Storage units go beyond just the bidding and buying. Once you’ve purchased the unit, there are other bigger matters you need to give regard to.
There are taxes and legal matters that surround once you buy storage units. So if you’re a first timer in an auction, below are some of the things you may want to consider. If you end up not doing so, you may be facing legal charges from the government.
When you sign up for a storage unit, the tenant must understand that the company has a lien on the unit and all the items inside it. This tells you that if s/he is unable to pay your debts, the company has the right to sell the items inside the unit.
Depending on the contract details, the owner of the items are given a redemption period to pay their debt and claim their goods. This gives any bidder less of an edge because when the tenant is able to pay off just at the nick of time, then the bidders won’t be able to purchase the unit anymore.
Before any auctions are done, the tenant is notified by email that their items are about to be sold. A recent revision is that they now allow e-mails with receipts as legal in certain states.
If you’re a bidder and would want to check out the items and units being auctioned off, you must be aware of the sales tax. If you plan on reselling it and doing this for a long time, you need to have a sales tax number. This entitles you protection and a legal obligation to pay off any taxes surrounding the items you are about to resell.
Remember that sales tax implementation may vary from one state to another. So it’s best to know how it really goes down in your area.
When it comes to storage units, it’s not always as easy as it seems. There’s more from where the bidding and buying comes from. Ensure that you are aware of these legal matters before anything. The last thing you want is getting in trouble for something you weren’t aware of.