How to Get Started in Storage Bin Auctions

Storage-unit auctions can be a source of items that entrepreneurs can buy at low cost and resell for a profit. The warehouses that rent units to individuals and companies have the right to recoup their money when a customer abandons the unit and fails to pay rent. You will not know what you have bought until the auction is over. Whether it's treasures or trash, when the gavel drops, be prepared for surprises.

Things You'll Need

• Truck or large vehicle
• High power flashlight
• Cash

Instructions

Locate Sales

1. Contact companies that manage self-storage units in your immediate area. Ask them how often they schedule auctions for abandoned units and request mail notification, if available.

2. Identify the auctioneers that handle auctions sales of any kind in your area. Call them and find out if they conduct storage-bin auctions. Get their schedule for the upcoming month.

3. Check the legal notices in the classified section of your newspaper for public notices. Many states require that the self-storage operators place an advertisement 30 to 60 days prior to the intended sale.

4. Find out how each potential storage facility handles the pre-auction walk through. Plan to arrive ahead of the crowd so you can secure a good position for viewing the items in the units.

5. Attend a few auctions and watch them without bidding. The Columbian newspaper in Vancouver, Washington, notes that many of the attendees at storage auctions are veterans who show up frequently for sales. If you observe a few auctions before jumping in, you may benefit from using their strategies.

Buying and Selling

1. Bring a high-power halogen flashlight with you. You cannot go inside the unit unless you win the auction, so you need to be able to quickly scan the contents and identify as many items from the unit threshold.

2. Look for brand names, designer labels and well-constructed furniture during your inspection. The presence of some luxury items among the unboxed goods can provide clues about the renter's spending habits and personal tastes.

3. Set a budget; the competitive atmosphere at auctions can make you spend more than you intended. Develop a strategy for not exceeding your budget. Avoid bidding wars.

4. Be prepared to remove your goods from the site within 24 hours for most auctions. According to the Columbian, expect about two-thirds of the unit's contents to be junk. Factor your cost of transporting the trash to a dump into your bid price.

5. Sell the valuable items through classified ads, eBay drop-off stores or flea markets. You may incur cleaning or restoration costs for some of the stored items. This reduces your profit, but it can increase the selling price of your finds.

Tips & Warnings

• Almost all storage auction sales are cash only.

• It is customary to return personal items that have no monetary value to the management office.

• The storage facility will cancel an auction if the owner shows up and settles the storage bill up to five minutes before the scheduled start time.

References

• Storage Auction Etiquette and Tips
• Foreclosures Boost Auctions
• Auction Course Outline

Resources

• Read this Article in Spanish
• Online and Physical Storage Auctions
• Auction News