How to Sell a Self-Storage Complex with Eviction in Texas: 2026 Update

Evictions at a self-storage facility aren’t exactly rare. Tenants fall behind on rent and just disappear without a trace. If you’re running a storage complex in Texas, you’ve probably dealt with it more than once.

Now that you want to sell, you’re probably dealing with active eviction proceedings or storage unit liens on your books. This might have you second-guessing whether anyone will want to buy your property.

Well, selling a self-storage facility with eviction issues is completely legal; however, you need to handle everything correctly. If you want a faster, investor-focused option, it also helps to understand how our process works when selling a property with tenant issues.

Can You Sell a Self Storage Facility with Eviction Issues in Texas?

Yes, you can sell a self-storage facility with eviction issues in Texas. They might change who’s interested in buying and what price you’ll get, but they don’t make your property unsellable.

Some buyers want a perfect facility with zero problems, and those aren’t your people. You need someone who understands that storage facilities sometimes come with tenant issues.

Experienced investors know this stuff because they’ve seen evictions before and they’ve handled lien enforcement.

The key is to be honest with your buyer from the start. Don’t try to hide eviction proceedings or downplay the situation because buyers will find out during their inspection anyway.

Just lay it all out from the beginning and find a buyer who can work with your current situation.

What Does Texas State Law Say About Storage Unit Eviction?

Texas has clear rules about evicting tenants from storage units laid out in the Texas Property Code and you have to follow every single step. You can’t just break into a unit and throw everything away. That’s illegal and will get you sued.

The process starts when a tenant stops paying. After they’re in default for the period specified in your rental agreement, you can send a preliminary lien notice to their last known address.

If they still don’t respond, you move to the lien sale process. This means advertising the auction in a local newspaper and giving them one final chance to settle their debt.

Texas law has a landlord’s lien that automatically attaches to everything inside the unit. That means their belongings are collateral for the rent they owe you, so if they don’t pay, you can sell their stuff to get your money back.

But when you’re selling your facility, buyers want to see that you’ve complied with state law in every respect. They know mistakes can expose the new owner to liability.

What Are Your Rights as a Self-Storage Facility Owner?

You have more power than you might think when it comes to dealing with deadbeat tenants. Texas is actually friendly to storage facility owners.

First off, you have the right to lock out tenants who don’t pay. You’re not being mean or unreasonable. You’re protecting your business.

The moment they fall behind on rent, you can deny them access to their unit until they settle up. That’s totally legal and something most facility owners do without a second thought.

You also have the right to enforce your lien and sell the contents of abandoned or delinquent units. This isn’t a shady move, but rather literally built into the Texas Property Code.

The law recognizes that you need a way to recover unpaid rent. Selling off tenant belongings through a proper lien sale is how you do it.

Your rental agreement backs you up, too. As long as your lease clearly states the terms about late payments, lien enforcement, and access restrictions, you’re covered.

Your tenants sign that agreement knowing what happens if they don’t pay, so you’re not springing anything on them when you follow through.

You’re not responsible for storing someone’s stuff forever if they stop paying. Once you’ve followed the proper legal steps, you can clear out that unit and rent it to someone who actually pays.

You’re running a business, not a free storage charity.

How Does Eviction Affect Selling a Self-Storage Property in Texas

Evictions definitely impact your sale, but probably not in the way you’re thinking. They don’t kill the deal; they just change how buyers look at your property and what they’re willing to pay for it.

Impact on Property Valuation

Your facility’s value takes a hit when you’ve got multiple units in eviction proceedings. Buyers see those empty or soon-to-be-empty units as lost income. They’re going to factor that into their offer.

Appraisers also look at your occupancy rate and income, so active evictions drag both down. A facility running at 90% occupancy with stable tenants is worth more than one at 70% occupancy with half a dozen eviction cases pending.

But on the other hand, some investors actually like buying properties with issues because they can negotiate a lower price and then fix the problems themselves.

Buyer Concerns About Ongoing Evictions

Most buyers freak out about ongoing evictions because they’re worried about inheriting legal problems.

If you messed up the lien enforcement process or skipped steps, that becomes the new owner’s problem. Well, nobody wants to walk into a lawsuit on day one.

They’re also concerned that those evictions are a sign of broader management issues. If you have many delinquent tenants, buyers may wonder whether you’ve been too lax with collections or whether the facility has a reputation for attracting problem renters.

Cash flow is another big worry. Buyers want to know how much money they’ll lose during the transition period while they’re still clearing out problem tenants and filling units with paying customers.

Timing Considerations for Your Sale

If you can wrap up your eviction cases before listing the property, you’ll get better offers and a smoother sale.

Of course, buyers prefer buying a clean slate, even if that means a few empty units, rather than taking on active legal proceedings.

But sometimes waiting isn’t realistic, especially if you need to sell quickly or if your evictions are dragging on forever. In that case, you’re better off selling as-is and just being super transparent about where each case stands.

The worst time to sell is right in the middle of a problematic eviction situation where nothing’s resolved and everything’s up in the air.

Requirements Before Selling Your Storage Facility

Before you even think about putting your facility on the market, you’ve got some homework to do.

Disclosure Obligations Under the Texas Property Code

Just like any other state, Texas requires you to tell buyers about your eviction mess upfront. Not later or not when they ask. Be upfront.

It’s not optional and trying to dodge it just sets you up for legal issues down the road.

The disclosure forms include a whole section on legal issues and disputes related to the property. Your evictions count as well as your lien sales. Any tenant who’s threatening to sue you definitely counts. Check those boxes and explain what’s going on.

Buyers appreciate honesty way more than surprises. You tell them now about the three units in eviction and they’ll work with you.

If they find out during inspection, they may suddenly renegotiate or walk away completely.

Documenting All Storage Unit Eviction Proceedings

File every notice you mailed, the certified letter receipt, and the newspaper ad you ran for a lien sale. Buyers want proof you followed the rules.

Think of it like building your defense case before anyone even accuses you of anything. You’ve got the paper trail showing you did everything right. That way, when buyers question whether you handled evictions legally, you just hand them the stack of documents.

Your rental agreements need to be part of this, too. Buyers want to see the actual contracts that give you the right to lock people out and sell their stuff.

If your lease is vague or poorly written, that’s a red flag for them.

Completing Lien Enforcement Actions

Finish what you started if you can. A completed lien sale with an empty, clean unit is so much easier to sell than one where you’re still in the middle of auctioning someone’s belongings.

Buyers don’t want to inherit your half-done legal stuff. They want to buy a property, not a property plus three ongoing eviction headaches they have to figure out.

If time’s not on your side and you’ve got to sell right now, at least know exactly where each eviction stands.

If you can finish any of them in the next two weeks, do it. The fewer loose ends you hand over, the smoother this whole thing goes.

How to Sell a Self Storage Complex in Texas with Tenant Evictions

Don’t know where to start? Follow these steps and you’ll sell your self-storage facility with active eviction in no time.

Step 1: Review All Active Eviction Cases and Unit Status

Make a spreadsheet. We know that isn’t exactly fun, but trust us on this. List every unit with issues, who’s in it (or was in it), where the eviction stands, and what still needs to happen.

You need this level of detail because buyers will grill you about it. “How many evictions?” “What stage are they in?” “When’s the auction?”

If you’re fumbling for answers, they’re going to wonder what else you don’t have a handle on.

Check your payment records, too. Some tenants might be current but have a history of late payments. That also matters to buyers trying to decide whether they’re buying a stable property or a constant headache. For a step‑by‑step approach, see our How to Sell a Warehouse with Lis Pendens in Texas: 2026 Guide.

Step 2: Organize Facility Records and Documentation

You need to find every piece of paper related to running this place. These are leases, insurance policies, maintenance logs, utility bills, and property tax records.

Put your eviction stuff in its own folder where it’s super easy to find. Buyers are going to zero in on that, so don’t make them hunt through random files trying to piece together what happened with Unit 47.

Your financials need to tell a clear story, too. What was your income before evictions tanked your occupancy and what is it doing now? What can buyers realistically expect once they take over and clean up the mess?

Step 3: Address Delinquent Storage Units

Now you need to decide whether you’re going to finish evicting these people before you sell, or hand that job to the buyer.

Finishing them yourself gives you more control and makes the property cleaner to sell. The downside is that it takes time. If you need money now, waiting around for lien sales to wrap up might not be realistic.

Some buyers actually prefer handling evictions themselves because they’ve got their own process and don’t trust that you did it right anyway. Weird, but true.

So selling as-is with disclosed evictions isn’t always a disaster.

Step 4: Get a Professional Valuation

Don’t just guess what your place is worth based on what you paid for it or what you think it should be. Hire someone who appraises commercial properties and knows the self-storage market.

They’re going to factor in your evictions, occupancy rate, location, income, and all the real stuff that affects value. You’ll get an actual number instead of a rough estimate.

This valuation is your bargaining chip when buyers try to lowball you. You can point to a professional assessment and tell them how much it’s actually worth instead of just arguing feelings.

Step 5: Choose Your Selling Strategy

How patient are you feeling? Because that pretty much determines whether you list traditionally or go straight to investors.

Listing on the open market gives you a shot at top dollar, but it also means dealing with buyers who want perfection. They might bail the second they hear “eviction,” and you could sit there for months.

Going to cash buyers or investment groups means accepting a lower price, but you’re out fast.

You also don’t deal with financing falling through or buyers getting cold feet over your tenant problems.

Step 6: Find the Right Buyer for Your Situation

You need someone who understands how to deal with this situation. Either they’ve dealt with evictions before or they’re buying cash and planning to overhaul everything anyway, so your current issues don’t scare them.

Talk to agents who specialize in commercial storage properties. They know which buyers in your market handle troubled properties and which handle only unproblematic properties.

Investment groups that buy multiple properties are usually your safest bet.

They’ve seen worse than what you’re dealing with and they’re not going to clutch their pearls over a few evictions.

Step 7: Close the Sale

Once you’ve got a buyer hooked, expect them to look at everything. Their attorney’s going to check that you followed every single eviction rule, so your documentation better be good.

Answer their questions quickly and completely. If you respond fast with accurate info, they’ll also stop worrying that you’re hiding something.

Also, make sure your contract spells out who handles what after closing. If there’s a lien sale scheduled for two days after they take ownership, you should have it in writing who gets that money and who’s responsible for finishing the process.

How to Prepare Your Self-Storage Property for Sale

In getting your facility ready to show, you need to prove to your buyers that, despite the eviction issues, this place is still a good investment. You’ve got work to do, but none of it’s impossible.

Clean Out Abandoned Units

Those units sitting there full of someone’s junk have to go. Buyers want to see empty, rentable space, not a storage graveyard filled with dusty furniture and boxes no one’s claimed in 6 months.

Finish your lien sales and clear everything out. Hire someone to haul away whatever’s left if you need to.

The goal is to walk a buyer through and show them usable units, not awkwardly explain why Unit 12 still has someone’s Christmas decorations from 2019.

Clean units also photograph better if you’re listing online. Empty spaces look bigger and more professional than ones crammed with abandoned stuff.

Make Necessary Repairs to the Facility

You also have to fix that busted gate and replace burned-out lights in the hallways. If you have time, patch up any obvious damage that’ll make buyers think the whole place is falling apart.

You don’t need to renovate the entire facility, but you can’t leave glaring problems either.

A broken security camera or a door that doesn’t lock right tells buyers you’ve been neglecting maintenance. They’ll assume there’s worse stuff you’re hiding.

Walk the property like you’re seeing it for the first time. Identify what jumps out as sketchy or run-down. Fix those things first because buyers are definitely going to notice them, too.

Present Accurate Financial Records

Your books need to tell the truth. Don’t try to fudge the numbers or hide how much money you lost from the evictions, because buyers will find out during their inspection.

Show them what your income looked like when things were good and what happened when evictions started tanking your cash flow. Also, tell them what it’s doing now. Transparency builds trust and trust makes deals happen.

Include your expenses as well. Buyers want the full picture so they can decide if this investment makes sense for them. Tell them about property taxes, insurance, utilities, and maintenance costs.

Hiding expenses just makes you look shady.

Finding Buyers for Storage Facilities with Active Evictions

Not every buyer’s going to want your property once they hear about the evictions and that’s totally fine. You’re looking for the right buyer, not just any buyer who shows interest.

Traditional Buyers and Their Requirements

Traditional buyers want easy properties that are already running smoothly. They don’t like evictions because they’re usually buying their first facility or they need bank financing. We all know banks hate legal issues.

You can still sell to these folks if your evictions are mostly wrapped up and you have proper documentation. But if you’re knee-deep in active cases right now, they’ll either lowball you or just disappear.

What Investors Look for in a Self Storage Property

Investors are way less bothered by your eviction problems. Experienced cash home buyers in Alabama and other southern markets often specialize in distressed commercial properties and understand how to navigate tenant complications. They’ve seen it all before and they’re more interested in whether your location’s good and the facility has profit potential.

They’ll negotiate hard because they know you’re motivated, but they also close fast with cash and don’t waste time.

Your evictions just mean they get a discount, which is exactly what they’re hunting for anyway.

Work with Cash Buyers for Your Texas Property

Cash buyers actually like buying storage facilities with eviction issues because they get better deals and they know how to handle tenant problems. If you’re looking to sell your house fast for cash in Texas, working directly with an experienced commercial buyer can simplify everything.

They’re not going to waste your time pretending to be interested and then backing out when they find out about your evictions.

The whole thing moves faster because there’s no bank involved. They look at your property and make an offer. You’re closing in a couple of weeks.

You’ll get less money than you would from some mythical perfect buyer, but that buyer probably doesn’t exist for your situation anyway. Cash buyers give you something way more valuable when you’ve got evictions. They actually close deals rather than just talk about them.

They also don’t act shocked when they see your eviction paperwork or try to renegotiate the price five times because of it.

They already factored your problems into their offer, so what you see is what you get.

If dealing with this facility is draining you and you just want out, cash buyers are the fastest exit. Take the offer and let someone else worry about filling those units.

Key Takeaways: How to Sell a Self-Storage Complex with Eviction in Texas

You can sell your self-storage facility even while active evictions are underway. It just changes your approach and who you target as buyers. Texas gives you legal rights to handle problem tenants through lien enforcement, so use them and keep detailed records of everything you do.

Don’t hide your eviction issues from buyers because they’ll find out anyway. If you want investors who can actually work with your situation, be honest with them rather than waste their time.

Ready to sell your Texas storage facility without dealing with months of showings and buyers who ghost you? Commercial Property Offer buys self-storage properties with tenant issues and closes fast with cash. If you’re ready to stop dealing with evictions and move on, reach out to us to see what your property could sell for. Call (855) 806-3337 and let’s talk about getting you out of this property so you can move on.