What You Need To Know About Storage Auctions

With famous media coverage and stories about storage unit auctions, you may wonder how you can get in on the action. Storage auctions can help clear out abandoned units that are cluttering up the facility, but they also provide businesses with more vintage items to sell or someone who is struggling with expensive furniture. Storage auctions can occur for many reasons and can range in price. Learn more about storage auctions and abandoned units in this blog. 

Why Storage Units Are Abandoned?

While many people like students or families depend on a storage unit, there are many reasons that a unit could be abandoned. Storage facilities will then sell these units to help get their money back and provide an empty unit to a new renter. Here are some of the most common reasons for abandoned units.

• Financial hardships: The most common reason for abandoning a unit is that the renter can not afford to rent the unit anymore. Instead of canceling the unit or removing their items, they disappear and leave the storage facility with no option but to auction the items off. The facility must give notice to the original renter that they need to pay what is owed before the unit is auctioned off. 
• Untimely death: An unexpected death can leave a storage unit abandoned with no one to take over it. If a person has no children or family members in the area, or who are willing to pay for the unit, the facility will add it to storage auctions. 
• Hospitalization: Long-term hospitalization could cause financial strain or for a person to be away from their home. Even if the unit provides notice of the unit being a potential for auction, the hospitalized person may not receive it. While some hospital stays won’t affect your unit, long-term abandonment (multiple months or a year) will increase the risk of it going to auction.
• Relocate and forget: Life circumstances can cause people to relocate or move far away from their storage unit. Some people forget they have a storage unit and don’t take those items with them during a move. Since the storage facility doesn’t have the new address of the renter, they will end up putting the unit up for auction.
• Imprisonment: Renters could end up imprisoned when renting a storage unit. Long-term sentences will leave the unit abandoned for over a year which will put it at risk of auction. Some family members may be able to clear out your unit and cancel your monthly payments while the person is imprisoned. 
• Divorce: When couples get a divorce, one of the spouses may abandon items in a storage unit. Some ex-spouses may obtain the storage unit during the divorce, but neglect to pay or maintain the unit. These abandoned units are also up for storage auctions. 

How To Stop Your Unit From Going To Auction

The easiest way to prevent your storage unit from going to auction is to stay on top of rental payments and maintain your unit. Even if you are behind on payments, making new payments or working out a payment plan with the facility can help reduce the chance of your unit being included in storage auctions.

Storing sticky or perishable items may be another reason for a facility to terminate your rental. If your unit is causing disruptions for other renters, the facility management may reach out to have you remedy the problem. If you do not comply, the consequences could be putting your unit up for storage auction. 

Why Facilities Host Unit Auctions

When a renter doesn’t pay for their unit, the facility needs to make up for that missing money. Putting abandoned units up for auction will help them make some of their money back and once items are cleared out of the auctioned unit, they are able to rent it again. Many people are looking for a bargain deal and look for local unit auctions. Facilities know that they can quickly make up the money when they host auctions of multiple units at once. 

Storage Auctions Are Not Open To The Public

Although facilities want to make the lost money back quickly, these auctions are not open to the general public or not publicly advertised. Those who call the facility may be able to learn about upcoming auctions and join the bidding. Some hardcore storage buyers will visit multiple auctions in one day and buy multiple units. Keeping this in mind when considering buying auction units will help you know what to expect. These bidding wars can get intense and may be expensive for just the average consumer. Be aware of your budget and how pricing can play into your attending an auction.

What To Do After Buying An Abandoned Storage Unit

If you do purchase an abandoned storage unit, you should start by analyzing the items in the unit and seeing what would be of value to you or what can be donated. Once you pay the facility for the auctioned-off price, you will need to discuss future payments or if you are going to clear out the unit and move on. 

Most facilities won’t auction off a dangerous unit, but after purchasing one, look for hazardous waste, mold, or critters just to be safe. Bring cleaners to help restore the unit and vehicles large enough to haul away items that you will be keeping.