Storage Auction Basics

Storage Auction Basics

What is a storage auction?
How do I bid?
How do I find auctions in my area?

Going to storage auctions is a fun and easy way to make some extra cash, but you have to know a few things first:
Storage unit auctions occur when an individual stops paying rent on their unit. After a certain
amount of time goes by without payment, the contents of the defaulted bin become the property
of the storage facility. The auction is an unfortunate result in the eyes of most storage facility
owners, but it becomes essential to recover their losses. They attempt to contact the leaser, and if there is no response, have no choice but to auction his/her stuff to vacate the bin for future use. Storage auctions are increasingly more common with the current state of the economy. Most storage facilities prefer to sell all the contents of the bin at once, because they are trying to recover the value of the backed rent and get the bin cleared and ready to lease.
There are several ways that storage auctions conduct the bidding process. Many places utilize the “bin type” auction, in which case the entire unit is auctioned at once. In some bin auctions the bidders are allowed to look inside. Most bin type auctions are open-door, but you cannot step inside the unit or shake boxes. Some auctions are piece-by-piece, meaning that items are sold completely separately, or in sets – such as a washer/dryer set, or dishes or silverware.
The bidding processes at storage auctions can vary as well. Many storage auctions utilize the traditional bidding system where an auctioneer announces the starting bid and it rises in increments of $5, $10, or $100, depending on the value of the unit and how high the bidders are taking it. Other facilities will hold “silent auctions,” in which case you write your bid on a slip of paper and turn it in to the auctioneer.
Finding storage unit auctions can be the biggest challenge. There are certain “hot spots,” categorized by the median household income of a particular area. It is usually best to bid in an area with a higher income level to ensure that units will have more valuable items. Citydata.com is a great site to use for this. Finding precisely when and where a storage auction will take place can prove difficult as well. Contacting every storage unit in just one city can be an extreme hassle. Some websites like storageunitauctionlist.com offer extensive listings of when and where the storage auctions will be within a 2 week period in a specific area. This makes it easy to schedule a day or even a week of attending storage auctions. Just be sure to call right before the day of the auction so that you can verify that the unit will go to auction. If a leaser pays for the unit last minute, the auction will be called off.
Storage auctions are not as complicated as some of the television shows would have you think. Anyone anywhere can participate, and when you check one out you will see how fun it can be!