Are Self Storage Auctions Profitable?
Self storage auctions have become increasingly popular in recent years. Mostly in part to the reality TV show “Storage Wars.” These type of auctions occur when the contents of a storage unit are put up for sale on StorageTreasures.com to the highest bidder. But are storage auctions profitable for a business venture? We will explore the ins and outs of self storage auctions. And help you to learn the secrets to bidding and winning!
How Self Storage Auctions Work
First, it’s important to understand how storage auctions work. It all starts when a self storage tenant stops paying rent on a storage unit. Then, the storage facility will need to place a lien on the contents of that unit. After a certain period of time, the facility can then sell the contents of the unit at an auction. This is to recoup the unpaid rent. Bidders at these auctions have a limited amount of time to view the contents of the unit before the auction begins. Often, you will place a bid on the unit without knowing exactly what is inside!
One of the biggest factors that can affect winning self storage auctions is competition. In some areas, there may be a lot of bidders at each auction. More bidders equal more competition. However, in other areas, or when we have a high volume of auctions posted on our website for that area, there may be less competition, making it easier to win and profit a good deal.
Quality of Unit
Another important factor to consider is the quality of the items in the unit. While it’s possible to find valuable items at storage auctions, it’s also possible to end up with boxes filled with items that don’t turn a profit. Bidders need to be able to quickly assess the value of the items in a unit before bidding. And take a risk on what might be in unlabeled boxes. Self storage auctions can be risky, as there is no guarantee that the items in the unit will be valuable or even in good condition.
Put in the Time
Despite these risks, storage auctions can be profitable for those who are willing to put in the time and effort to learn the business. Bidders who can quickly assess the value of the items in a unit, and who are willing to take risks on unknown items, may be able to turn a profit on a regular basis. We know many bidders that have made this a full-time job!
One strategy that can help increase profitability is to specialize in a particular type of item. For example, some bidders may focus on buying units that are likely to contain tools or equipment. And others may focus on units with clothing or electronics. By becoming an expert in a particular area, bidders can increase their chances of finding valuable items and avoid overpaying for things they don’t know much about.
Overall, self storage auctions can be profitable for those who are willing to put in the time and effort to learn the business. While there are risks involved, bidders who can quickly assess the value of the items in a unit and take calculated risks may be able to turn a profit on a regular basis. By specializing in a particular type of item and checking the website often for new auctions, bidders can increase their chances of success. Ultimately, it’s up to everyone to decide whether storage auctions are worth pursuing as a business venture. Check out our top units from 2022 and see the winnings some bidders took all the way to the bank.