Storage operators are able to sell stored goods if the contract and the law gives them the right to do so, and it follows the required process.
When a customer stops paying or leaves goods behind, the storage company is still paying to maintain the facility and losing space it could rent to someone else. That is why many storage agreements include a lien over stored goods and explain what the operator may do if fees remain unpaid.
Selling the goods can be a reasonable way to recover money owed and make the unit available again. The operator must give the customer proper notice and follow the process that applies.
When can stored goods be sold?
A sale may be considered when fees have not been paid, the storage agreement has ended, or goods have not been collected as agreed. The operator should check the customer’s contract and the circumstances before going ahead.
The right to sell is not automatic. But where the agreement and applicable law provide for it, a customer cannot simply leave goods in a unit indefinitely while the operator continues to carry the cost.
What notice should be given?
The operator should notify the customer in writing and explain what is happening. The notice should identify the goods, state the amount owed, and give the proposed sale date.
The customer should have the chance to contact the facility, pay what is due or arrange to collect the goods before the sale. The required notice period depends on the agreement and the legal process that applies. Where that period must be at least three months, the operator must allow the full three months before selling.
Why does the process matter?
Following the correct process protects both sides. The customer knows what is owed and has a fair opportunity to act. The operator has a clear record of the notices sent and the steps taken before the sale.
If the goods are sold, the operator should keep records and deal with the sale proceeds in line with the contract and applicable requirements.
A practical way to recover space and costs
Storage operators cannot be expected to keep unpaid units occupied forever. When a contract and the law allow a sale, and the required notice has been given, selling the stored goods can help recover outstanding costs and return the space to use.
The key is to follow the process that applies to the specific agreement and situation.
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