You may have heard from friends who go to self storage auctions to buy collectibles, antiques and other items for next to nothing. Self storage facilities schedule auctions on a regular basis, to sell property of storage customers that fell behind on rental payments or abandon their property.
The law allows the operator of a self storage facility to put a lien on all property stored in the facility. If a tenant does not pay his rent the storage facility will schedule an auction to get rid of the personal property and recover some or all of the money owed by the tenant.
Self storage auctions are usually announced in a local newspaper of general circulation. In Columbus the paper of choice for all kinds of auctions is the Daily Reporter – the legal newspaper of Central Ohio.
Self storage auctions have to be advertised for 2 weeks before the actual auction takes place.
At the day of the auction interested buyers gather at the facility. First, you will have to sign in on a bidders sheet. Most self storage facilities require a cash deposit of $25. You can get the deposit refunded when you emptied the unit you purchased or, if you don’t purchase anything.
All payments have to be made in cash. The amounts are rather small, so cash is not a big issue.
Next, the storage units that will be auctioned off are opened by the auctioneer or the manager of the facility. You are not allowed to enter. You can only assess the value by looking at the content from the outside.
Then the auction starts and the auctioneer will ask for bids. Typically, self storage auctions are absolute auctions. This means that there is no reserve or minimum bid. However, the facility may deny any bids which they deem too low or unreasonable.
Just like with any auction the highest bidder wins the content of the storage unit. The winning bidder has to pay cash and must remove the contents of the unit the same day.
Some self storage facilities require that you sign a lease agreement after you win a bid. This allows them to charge rent, if you don’t remove everything on the day of the auction. Other facilities simply use your deposit to secure that you will empty the unit.
Self storage rooms can be a true treasure coves. People leave all kinds of antiques and collectibles in a facility. Sometimes they simply don’t want to deal with their belongings or don’t have a place to put them, so they decide to abandon the property.
On the other hand, you may find a lot of trash in a self storage unit. Be prepared to dump the stuff you don’t need. Most of the time you will find the little treasures that get you excited, and you can either sell them on Ebay or Craigslist and make a nice profit. Or just keep those collectibles for yourself.
Thanks for reading the Columbus Storage Blog
Feel free to contact Kurt Novak
Phone (614) 395-7375
Email: knovak@westbeltstorage.com
About the Author
Kurt is an experienced real estate entrepreneur and self storage investor. Connect with Kurt on Google+
{ 13 comments… read them below or add one }
how can i find out where they are at i am interested in going to one
There are 3 ways to find out when and where auctions are:
Self storage facilities use auctions to get rid of personal property of tenants that don’t pay. It is a last resort to recover money owed by a delinquent tenant. They are usually not happening every single month.
any upcoming storage units contents in auction in central ohio?email billy
Do the storage facility owners open the units and remove any expensive items before the auction? I’ve heard that this is a common practice at some places.
One more quick question… can you bid on individual items or do you have to bid on the entire contents of a given unit?
Matt,
These are 2 good questions.
1. You cannot bid on individual items. You buy the contents of the whole unit and it is your responsibility to remove everything.
2. Storage facilities typically open the units just before the auction. We DO NOT go through the units and remove valuable items before the auction. I am sure most other reputable facilities do the same.
You’ve done a great job at describing how the auction process works.
My website http://StorageAuctions.TV list storage auctions all over the US and Canada.
There is never a fee to search for storage auctions or post upcoming auctions.
If a storage unit has a vehicle in it that sells at auction, How do you get the title switched over? Thanks!
Transferring the title of a vehicle abandoned in a storage locker is a little bit tricky. It applies to automobiles, trailers, and any vehicle that’s licensed. It’s probably different in every state.
Here in Franklin County, OH, the storage facility has to apply for the title at the Clerk of Court’s Auto Title agency. Dependent on the value of the vehicle it may require a court order.
Here’s more information from the Franklin County Clerk of Courts:
http://www.franklincountyohio.gov/clerk/ATFAQ.cfm
I’m thinking about starting with the Auctions after watching Storage Wars and Auction Hunters! Do we need a licence to sell stuff we get in a unit? thank you!!
If you are getting into a serious auction business, you may need to get a vendors license. It dependent on the state in which you do business. Contact the Secretary of State, they usually provide help for starting a business.
Just curious, I was reading that charitable organizations, could go in and take items out of a storage unit after being auctioned to the highest bidder. Is this true? thanks G
I never heard of that. Once a unit has been auctioned off, the content belongs to the highest bidder. I don’t know how anyone could go in and take items out of it.
Thanks for the question, though. Maybe another reader can answer it?