Auctions: Storage Units and Rentals

The reality shows currently on TV make the pursuit of treasures through bidding at storage unit auctions feel exciting. The thrill of choosing which units to bid on and the exhilaration of being the auction’s winner looks like quite an adventure. Sometimes, the storage areas contain valuable pieces that net winning bidders big profits. Other times, the winners have a lot of low-value items that have to be sold second-hand to recoup the money invested. Storage unit auctions aren’t a new phenomenon, however they have only recently gained widespread attention, thanks to the power of reality television. Whether you are interested for the adventure or the potential to make money, it is easy to get involved without putting up significant cash out-of-pocket.

How It Works

Storage units rent out their space for a month to month basis. When a renter fails to pay and falls behind on their monthly fees, the unit is then forclosed on by the business and then available to be auctioned off. When an auction takes place the manager opens the storage unit and allows potential buyers to get a look of what is inside and the money that can be made from owning what is inside.

This allows the potential buyers to take a look at what is inside, get an idea if this is something that they may or may not want to bid on. Baseline usually starts at about 10 dollars and can go up from there, how high depends on the unit and the interest involved. Storage unit auctions can go slow or fast paced depending on the number of units being auctioned that day, and the demand of a unit. Bidding wars could ensue if there is a profit forseen by bidders.

Why Are There Auctions (Storage Units and Rental)?

Before joining the storage unit auction excitement, many wonder how and why the units and rentals are available in the first place. Basically, individuals rent the space to keep items they can’t otherwise store for a variety of reasons. As with any rental, the monthly payment is expected on time each month. When the renters stop making payments, sometimes due to financial troubles, a medical situation, or something else, the companies that own the spaces have to dispose of the personal property inside, much like a foreclosure.

The company advertises the upcoming auctions in local papers, giving the owners of the items fair notice and a chance to work out the outstanding balance. Those interested in bidding on the contents of the storage units also see the notices and determine which they would like to participate in. Now, it can happen that at the very last minute, the unit’s renter will contact the storage company to pay their bill in full. That means that some attendees might be disappointed, as the company cannot proceed with an auction under these circumstances.

What Can I Expect at a Storage Unit Auction?

If you have been to an estate auction, you might be expecting a traditional auction experience at the storage units as well. However, these auctions are held much more informally, with participants submitting there bids verbally. The highest bid wins the storage unit’s contents, and payment is expected immediately.

The gamble in a storage auction is that you don’t know what you are going to get if you win. Each rental space is typically 5’ by 5’ or larger, and you only get a moment to see â€" but not touch or move â€" the contents. That means behind whatever is immediately visible, you could find something valuable, but it could be just a collection of junk. Use your brief window of opportunity to scan for items that can be sold easily, like appliances or books, and don’t bid too high unless you are confident that there are truly valuable items inside.

Once you win the contents of a storage unit, you typically have just two days to remove all of the items. Some individuls find it easiest to bring a large vehicle with them to the auction, so they can collect everything before they leave.

Auctions, storage units and similar, are an interesting and affordable way to spend an afternoon. Who knows â€" you might be lucky enough to win something special!

Source: http://goarticles.com/article/Auctions-Storage-Units-and-Rentals/6351971/