It’s not uncommon for tenants at self-storage facilities to not pay their bill. When this occurs, the facility may auction off the tenant’s property to recoup some of the lost revenue. Bidding and buying this auctioned property has become a hot business venture, with thousands of entrepreneurs participating in it. If you’re thinking about getting starting in the storage auction business, though, you should read the following.
Target High-Income Areas
Do some research to determine the median household income in a particular area before attending a storage auction there. While there are always exceptions to this rule, high-income cities and areas typically have more valuable storage auctions — it’s just that simple. So if you focus your efforts on high-income areas, you’ll turn a higher profit.
Bring the Right Tools
You’ll need to bring a few tools when attending storage auctions. Because some units lack indoor lighting, it’s recommended that you bring a flashlight so you can see inside. You should also bring a padlock (with key, of course), as well as cash. Most self-storage facilities only accept cash for auctions, so bringing your credit card or checkbook could result in forfeiture of the unit.
Bring a Friend
In addition to the right tools, you should also bring a friend when attending a storage auction. Why is this necessary? Well, it’s not technically necessary, but bringing a friend will make lifting and hauling large items easier. If there’s a dresser or chest of drawers tucked away inside the unit, for instance, you may not be able to lift it by yourself, in which case you’ll need a second set of hands. Once your business grows, you can always hire someone to help. Until then, however, you should convince a friend or family member to lend a hand.
Know Your Product Pricing
Of course, you’ll need to familiarize yourself with the product pricing if you want to succeed in this business. When you acquire a product from a storage auction, you should attempt to resell it at the highest fair-market value cost. Online auction sites like eBay are an invaluable tool for this purpose. Even if you don’t sell your products here, you can still use eBay to see what the same or similar products are selling for. Doing so will give you a better understanding of its price, which you can then use to set your own price.