Fees, Fees, and More Fees!

antique casg registerSo you’ve decided that your limit at today’s storage auction is to spend $400 on a locker. Okay, sounds reasonable. Naturally, you go to the bank and withdraw $400 from your savings account. Stop right there! You’re going to need more than just $400! I know, you’re probably confused because you just said your limit was $400…so what’s the deal? Well, did you take into consideration any of the fees you’ll have to pay at the auction? If you want to pay $400 for a locker….you’ll need some extra cash to back you up.

Attendance Fees

Attendance fees aren’t very common, but some storage facilities have implemented them to make extra cash and hopefully curb the number of looky-loos who show up to the auction. If there is an attendance fee it shouldn’t be very high, and in some cases, the fee is refundable if you buy a locker.

Buyer’s Premium

Some auctioneers will charge what is called a buyer’s premium, which is a percentage added on to the final cost of the locker. Obviously, this will end up costing you more in the long run. Say you pay $400 on a locker, and the auctioneer requires a 10% buyer’s premium, you’ll be paying $40 extra. Not all auctioneers charge a buyer’s premium—in fact, some are against it.

Sales Tax

Many storage facilities require that you pay sales tax on any unit that you win. I know; all of these fees and add-ons are making you crazy, right? Well, this one can actually be avoided if you apply for a resale permit. Acquiring a resale permit makes you tax exempt on the purchase of any storage unit for the purpose of resale. Check out this link to get more info on applying for a resale permit!

Cleaning Deposit

The cleaning deposit is very commonly implemented by the storage facility to insure that you completely clean out your locker. A cleaning deposit is usually around $100, which sounds scary—but thankfully, this money will be returned to you if you satisfactorily clean your locker out in the allotted time.

So as you can see, a $400 locker isn’t really $400. Make sure you come prepared, and stay alert. A good storage hunter will always be calculating costs and profits, so it’s important that you’re well aware of all of these fees before you even bid. As always, we suggest that you call the facility before the auction to find out exactly what their fees and policies are. Knowing is half of the battle, and being an informed buyer is going to set you apart from the rest of the game.

 


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