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What You Need to Know About Storage Unit Auctions

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If you're a fan of TV shows like "Storage Wars," you probably daydream about attending a storage unit auction, finding a rare item and making lots of extra cash. While the truth is that you're highly unlikely to find such an item in a storage unit, you can make some extra money through auctions if you know what you're doing. It all starts with understanding exactly how these auctions work, from the moment you step foot on the property until the moment you take your winnings home.

How Storage Units End Up for Auction

Before you learn how the storage auction works, it's good to know why they even exist. The reality behind it can sometimes make bidders emotional. When a person stops paying their storage unit bill, the owner or manager of the facility must make an effort to contact the customer. If he or she is unsuccessful, a lien is placed on the belongings inside the storage unit. Eventually, the storage company can sell the items, usually via auction, in an attempt to pay off the debt the customer owes. The process is time-consuming for the storage unit company and results in the customer losing his or her belongings due to the inability to pay the rent.

What Happens Before the Bidding?

Now that you know why storage units go up for auction, it's time to learn about the auction itself. Before the bidding starts, someone, usually an auctioneer, will make you aware of the rules of the auction. Most likely, you'll have read the rules online before you arrived. You may also be required to register before the auction. Once everyone understands the rules, potential bidders usually get the opportunity to look at — but not touch — the storage units up for auction to decide whether or not they're interested. Because many items may be boxed up, it can be hard to tell exactly what a unit contains.

What Happens During the Bidding?

Once everyone understands the rules and has had a chance to look at the unit up for auction, the auctioneer will begin the bidding. It's important to pay attention, because this part may go quickly. Some expert bidders are so sly, you may not even realize they're bidding on a unit. You may even try attending an auction as an observer at first, just so you can better understand the quick bidding process. As the auctioneer calls out a price, people in the crowd bid by holding up a sign, making a gesture or making a sound. Be careful not to let the nature of the competition send you bidding way over your budget.

What Happens After the Bidding?

Things move pretty quickly after the bidding too. Most companies prefer or even require a cash payment, so make sure you have plenty of money with you in case you have to pay right away. Some companies give you up to 24 hours to pay, though it's best to handle it as soon as possible. You may also have to pay state taxes in some locations. You'll also need to be prepared to get your belongings out of the storage unit as soon as possible. Many bidders opt to haul it off that day, though some storage facilities may give you an additional 24 or 48 hours to sort through and haul off the contents of the auction. Remember that you must remove everything in the unit, even trash or items you don't want.

How Do You Find Storage Unit Auctions?

Now that you know how these storage auctions work, it's important to know not every storage facility holds them. As a matter of fact, you'll find that more often than not, the facilities don't do it. To look for those that do in your area, try local classified ads, either in your newspaper or on sites like Craigslist. Check social media for advertisements, as well as online groups for storage auction enthusiasts. Of course, you can also contact storage facilities in your area, but be careful not to overdo it. If a company tells you they don't do auctions, don't keep asking and definitely don't beg.