American citizens have figured out another way to make money in these desperate times. Storage unit auctions are happening all over the country from small towns to big cities. The self storage clear-out events are a bit like treasure hunts, but without the footwork. Storage building owners close delinquent accounts and clear the contents from the storage rental units by hosting free auctions to the public.
Want to know how to find a storage unit auction near you? Check the Internet or contact storage unit owners to find out if any are hosting a storage auction. Also, check newspapers, public bulletin boards, and the Chamber of Commerce for storage unit auction information.
(Author's note, added Nov. 16, 2010: Be sure to check out the new TV series, "Storage Wars" premiering December 1, 2010, on A&E. Show times are 10/9C.)
How Do Storage Unit Auctions Work?
Participating in a storage unit auction is easy. All one has to do is show up at the auction with enough money in hand to buy the contents of a delinquent storage unit – maybe a few hundred dollars to start – and the means to haul the winnings away. A pickup truck, van, or even a car towing a trailer will do nicely. It's a good idea to have a helper along too, in case there is any heavy lifting to do.
The person in charge of the auction cuts the lock on the storage unit and then gives the audience five minutes to see what's behind the door. The worker opens boxes and moves things as much as possible to allow the viewers to see what's inside. It's a good idea to take notes on what's inside the unit before the bidding begins, so one does not bid a small fortune for a few dollars worth of merchandise that won't easily sell later on. Bidders are not permitted to handle items or search through boxes.
Once the auction gets underway, the highest bidder wins the entire contents of the unit. Some people score big with camera equipment, coin collections, and appliances. Others end up with worthless items like broken toys, bags of fertilizer, or old books. Either way, the winner is responsible for clearing out everything in the unit.
Winning a Storage Unit Auction
Some winners are able to sell storage unit merchandise immediately after the auction has ended, making money back on unwanted storage unit items. What are some of the benefits of winning a storage auction?
- The winner can take all the items inside the unit he's won – sports gear, antiques – you name it.
- Valuables hidden deep inside dresser drawers or boxes belong to the winner to do with as he pleases.
- Unwanted items can be sold at a reasonable markup at flea markets, garage sales, or on online auction sites such as Ebay.
- Some appliances and electronics may need only minimal repairs. These are good deals only if the buyer is handy at fixing things.
- Furniture can be refinished if one is willing to spend a little more money and time fixing it. The resulting profit might be well worth the effort.
The Downside of Winning Storage Unit Auctions
The potential for profit is good, especially if one can travel to participate in out-of-town events. On the down side, amateur winners may end up with worthless junk. It's easy to get caught up in the race to win – a costly error when you don't know if the storage unit holds treasure or trash.
- All items may not be visible to viewers before the auction if the unit is crammed. One does not really know what he's getting until after the bidding is over.
- There is no way to know if visible electronics or appliances are in working condition.
- Winners have only a day or two to clear out the storage unit and sweep it clean. The task is time-consuming, especially if one has to make a trip to the dump.
- It takes money to bid. Sometimes the thrill of winning overcomes new bidders. The result is a negative bank balance and a garage full of junk.
- Living in a small town may be a disadvantage if a neighbor who has lost his home and job sees his belongings being sold at the local flea market.
If the idea of walking away with someone's belongings seems cold, then buyers can turn over personal items such as family photo albums to the storage unit facility owner. There is always an outside chance a former renter will return for these. The buyer gets to keep the valuables though, and the delinquent client is not given any information as to who bought his items at auction.
Bidding on abandoned storage units is a way to make money – sometimes. Participants can increase income by selling auctioned goods that interest other buyers. Tools, appliances, furniture and even vehicles bring a good price at storage center auctions. It's a wise idea to consider beforehand the steps for bidding at storage unit auctions.
Mary King - Mary King is a Suite101 Topic Editor for the Caregiver Support and Home Management sections. She has authored 5 teen-based novels.
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