Participating in storage auctions is a smart investment that will almost certainly pay off in the long run. Whether you’re looking to start a new career or just earn some extra cash on the side, it will help you achieve these goals and more.
How Storage Auctions Work
Storage auctions work on the principle of auctioning off the contents of abandoned, delinquent self-storage units. When you rent a storage unit, you typically sign a contract in which you agree to pay a monthly or annual fee to use the facility. If you fail to pay as specified in the terms of this contract, the facility has legal rights to auction off your contents in an attempt to recoup for their losses. Some states also have laws requiring storage facilities to return personal belongings like yearbooks, driver’s licenses, etc., but the rest of the items can be auctioned off to the highest bidder.
The great thing about storage auctions is that no two units are the same. Sure, you’ll find similar items throughout, but every unit will contain different items. This means the possibilities are endless in terms of resell profits, as some units may contain cash, collectible coins, firearms, autographed memorabilia, and other high-dollar items. If you’re participating in auctions for the purpose of reselling the contents for a profit (which most people do), you’ll be surprised to see just how many units contain valuables such as these.
Of course, there’s no guarantee that a storage unit will contain valuables. On the contrary, many units that you’ll come across may have few-to-no valuables. So, how do you know if a unit is worth bidding on? The auctioneer normally allows the bidders to peek inside, but not touch, prior to bidding. Once he or she cuts the lock, use this time wisely to identify items of value and calculate their depreciated fair-market value. If you see $500 worth of items, then you should bid no higher than $500 just to be on the safe side.
Striking it Bid
Just a single high-dollar storage unit can yield a huge return on your investment, making all of your hard work well worth it in the end. It’s not uncommon for bidders to earn thousands of dollars on a single unit, assuming they score a valuable item and are able to find a seller. It’s these units that really make the buy-sell storage auction business worth it.