How to Bid on Abandoned Storage Spaces (and Why You Might Want To)
In the United States, about 20% of the population pays rent for some kind of storage facility. People store a variety of things in storage, from furniture that doesn’t fit in their current home to collectibles, personal items, and things that other people might categorize as “junk.”
However, a storage unit is a leased property, and if you don’t pay rent, the facility usually has the right to put your items up for auction when they close on the unit. This saves time and eliminates the hassle of cleaning the device, and also brings in additional income. Storage auctions are actually something of a thriving side hustle for storage facilities: with an estimated 155,000 auctions a year, self-storage companies make about $65 million from auctions.
If you’ve ever seen Storage Wars or similar shows on television, you know that anyone can bid on an abandoned storage facility. It’s a lot easier than you think, and there are many reasons why you might want to do it.
Why You May Bet on a Storage Unit
Why would you waste time and money bidding on someone’s abandoned junk? There are many reasons:
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Transactions. If you’re looking to furnish your apartment inexpensively or need certain items, a storage unit can be a cheap way to get them. Because it’s a bidding process, it’s possible to win the contents of a unit for an incredibly small amount —as little as $10 —making everything you find there a bargain. There are other costs (more on that below), but there are some great deals to be had.
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Benefit. People make real money by buying abandoned storage units and reselling their contents. It’s not necessarily an easy job (cleaning out storage units takes a lot of work), and there’s no guarantee that every (or even most) of the storage units you bid on will cost a lot, but if you put some diligence into it, you can earn a tidy profit.
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Opening. Every abandoned vault presents a mystery. Some will have boring junk, some will have valuable items, and some will have really quirky and interesting things that make this the perfect side hustle for those looking for a little mystery and adventure in their lives.
One word of caution: not all abandoned warehouses are the result of someone passing; Sometimes people are late on rent due to financial problems. Keep in mind that you can bet on something because of someone else’s misfortune – and you can actively bet against the owner. There’s nothing wrong with that, but maybe think twice before doing the victory dance.
How storage unit rates work
It’s actually very easy to bid on abandoned warehouse space. You can usually bet on them in person or online, although some establishments only do one or the other. The process is basically the same, but online auctions tend to take longer. Here’s how to do it:
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Register. Your first step is to register as a bidder on an online auction website (such as Storage Treasures or Bid13 ). You just need to provide basic information and a payment method and you’re in business.
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Identify abandoned units. You can search on sites near you, such as Storage Treasures, or contact a warehouse in your area directly. You’ll want to keep it local because you’ll need to make arrangements to get everything out. Besides viewing auctions in multiple places, the benefit of searching online is keyword searching: If you’re looking for specific items, you can sometimes narrow down the list of auctions by searching for those items.
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Browse. In most areas, no one can legally enter a storage unit until it is sold (not even the manager or owner of the property can go inside). In person, you can inspect the outside of the storage facility, but you are not allowed to touch anything. Online, you’ll usually get a photo and description of what can be seen on the outside of the device to give you an idea of what’s in there. But if everything is in boxes or the device is tightly packed, you won’t know what you’re getting until you take possession.
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Bet. Once the auction starts, you will be able to place your bids. Before you bid, it’s a good idea to have a maximum bid in mind – and make sure you can pay your bid, as it will be paid immediately if you win the auction. Online auctions simply charge the card you have, but in-person auctions sometimes require cash.
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To pay. If you win the auction, it’s time to pay. The owner of the apartment has the right to claim his property until payment is made, so do not delay. You’ll end up paying more than your bid: some areas charge sales tax, there’s often a bidding fee of 10% to 15% of the price, and there may also be a cleaning deposit (which can be refunded). or may not be returned). – make sure you know the conditions when registering). Additionally, you will have to arrange to travel to the location and haul everything away, so if you need to rent a truck or hire help, that will be an additional cost.
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Gather. Once you win, show up and claim your treasures. It’s a good idea to take safety and cleaning equipment with you – you have no idea what you’ll find in this unit, so you’ll be glad to have a face mask and gloves.
Other things to keep in mind: You usually have 1-2 days to clear the place, so be prepared with preparations before you start bidding. And even if you win the auction, there are some items that you won’t be allowed to keep :
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Any personal legal documents (such as birth certificates) must be returned to the former owner of the apartment (or his heirs).
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Vehicles that do not have a title can only be sold for parts.
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If you find a firearm, you will usually have to turn it in to the police.
There may be other restrictions or variations on these three points – check your facility’s rules and laws in your area to make sure you know what you’re getting into.