Live Storage Auction (Photo: YouTube)
Why Are There Storage Unit Auctions?
Narrator of A&E’s TV reality show,
Storage Wars, states:
"When storage units are abandoned, the treasures within are put up for auction."
Whether buyers consider this a business or a hobby; auctions occur every day across the country.
Rent a Storage Unit
An individual signs a contract to rent a public storage unit to store items. Reasons include divorce, interim time during a move, off to college, seasonal items, business items, and so on. The signed contract legally binds the individual and public storage company.
Default on a Unit
If the renter fails to pay the monthly fee, he/she then defaults on the storage locker. Each state enacts different
lien laws pertaining to self-service storage facilities. Notice given to renter via certified mail or electronic mail and/or advertisement placed in the newspaper. The state mandates how long the advertisements must run and dictates the wait time for the renter.
Wait period, usually about thirty days or more per lien law per state requirements before a facility can hold auctions to sell storage contents to recoup their losses.
However, even at the eleventh hour, the original renter can pay the back rent before the auction ends. This, according to the lien laws per each state.
Storage Auctions
Auction occurs around 45-90 days after a unit classified delinquent. Auction opened to the general public; most storage buyers bid to win for the purpose to resell for profit. Attendees must sign in approximately 15 minutes prior to the start of the sale. Auctioneer will state the rules and terms of the auction, which vary according to each self storage site.
Common rules:
1. Cash only payment.
2. Cleaning deposit due.
3. Unit cleared within 24-48 hours.
4. Return personal & legal documents to the rental office to return to the tenant.
5. Any stored firearms turned over to local law enforcement.
Bidders view the contents through the entrance of the locker. Time to view set up by the terms and attendance of the crowd. The live auction commences. The entire contents of the defaulted storage unit sold to the highest bidder. Bidders not allowed to enter unit; handle or search through boxes inside a locker.
A facility, per the terms of the auction, can accept sealed bids in a silent auction. Live or verbal auctions, however, more commonplace. Contents inside a unit sold "as is." Bidders should calculate the value of what they can see and set a budget for how to pay per auctioned unit.
Win a Unit
After the auction, the winner pays for the unit within 24 hours or risk forfeiting the locker. Payment in cash, but can vary depending on the terms of the auction. A cleaning deposit imposed, but refundable once the locker’s items removed. Time allowed to broom sweep clean a unit - between 24-48 hours. Facilities do not permit the use of their garbage cans or dumpster.
Also, each state enforces a sales tax that the bidder pays over and above the winning bid. With a resale license issued by the state, bidder will pay sales tax only when they resell the merchandise.
Due to the popularity of
Storage Wars, more potential buyers show up at auctions. Self-service storage facilities can capitalize by charging a nominal entrance fee and collect buyer’s premiums. The highest bidder signs paperwork to transfer ownership of the contents to their name.
Storage Contents
Most items are general household goods, furniture, electronics, tools, clothing, jewelry, antiques, collectibles, and personal items. Generally, only about twenty percent of merchandise considered profitable. Because bidders not allowed to see what’s inside boxes or bins; the items inside remain a mystery.
Online Storage Auctions
Live auctions a bidder drives to the facility to buy storage auction units. New trend, a bidder can buy units at an online auction. Smart buyers bid on credible sites. Also have a good knowledge of storage facility which holds the auction online. These factors allow for a successful buy online.
While there is not an auctioneer at online storage auctions, do keep in mind some of the same rules apply. Winner must visit the storage facility and pay cash, cleaning deposit, and clear the unit within 24-48 hours.
Here at
iBid4Storage we do not charge buyer’s premium fees. Our online storage auctions are open to the general public. Please read the terms of sale stated on each auction by the seller.
Live auctions or online storage auctions happen when a renter defaults on a locker.
What treasures found inside – possibilities endless.
