Are you interested in starting a potentially profitable side hustle or business? Buying storage units at auction might be worth exploring. This increasingly popular investment strategy has gained attention through reality TV shows like “Storage Wars,” but there’s much more to this business than what you see on television.
In this comprehensive guide, we’ll walk you through everything you need to know about buying storage units—from understanding what they are and where to find them to bidding strategies and common pitfalls to avoid. Whether you’re looking to flip items for profit or find hidden treasures, this article will provide the knowledge you need to get started.
What Are Storage Units?
Storage units are secure, rentable spaces where people store their belongings when they lack adequate storage at home, during moves, or when downsizing. These units come in various sizes, typically ranging from 5×5 feet (like a small closet) to 10×30 feet (comparable to a one-car garage or larger).
These facilities usually offer climate-controlled options, drive-up access, and security features like surveillance cameras and gated entry. People rent these units monthly, but sometimes renters abandon their units or stop paying their bills, leading the storage facility to auction off the contents to recoup their losses.
Can You Buy a Storage Unit?
Yes, you can buy the contents of storage units, though not the actual physical unit itself. When tenants default on payments for a specified period (usually 3-6 months, depending on state laws), storage facilities can legally sell the contents of these abandoned units through public auctions.
The legal framework for these sales falls under lien laws, which vary by state but generally follow a similar process:
- The renter falls behind on payments
- The facility sends notices to the renter’s last known address
- After a legally required waiting period, the facility can schedule an auction
- The contents are sold to the highest bidder
It’s important to note that you’re purchasing the entire contents of the unit “as is,” meaning you take ownership of everything inside—valuable items, trash, and everything in between.
Different Types of Storage Units Available for Purchase
When entering the storage unit buying business, you’ll encounter various types of units that might come up for auction:
Standard Units
These are the most common and typically contain household items, furniture, and personal belongings. Sizes vary widely, affecting both price and potential value.
Climate-Controlled Units
These units maintain consistent temperature and humidity levels, making them ideal for storing sensitive items like electronics, artwork, and collectibles. These units often command higher prices at auction because the contents are likely better preserved.
Business Storage
Some units contain inventory, equipment, or records from closed or bankrupt businesses. These can be particularly valuable if they contain specialized equipment or merchandise.
Vehicle Storage
Units or spaces designed for storing cars, boats, RVs, and other vehicles occasionally come up for auction. These can be lucrative but require specialized knowledge and transportation capabilities.
Specialty Units
Some facilities cater to specific storage needs, such as wine storage, document storage, or high-security units for valuable items. These specialty units can contain high-value items but might require expert knowledge to properly assess.
Where to Buy Storage Units
There are several venues where you can purchase storage units:
In-Person Auctions
Traditional on-site auctions remain popular at many storage facilities. The auctioneer moves from unit to unit, opening each one briefly for potential bidders to view (without touching anything), then conducts the bidding process.
Benefits:
- You can personally view the contents before bidding
- Opportunity to assess the crowd and competition
- No online fees or premiums
Drawbacks:
- Limited to your geographic area
- Can be time-consuming
- May require traveling between multiple facilities
Online Storage Auctions
Online platforms like StorageTreasures.com, StorageAuctions.com, and LockerFox.com have revolutionized the industry by allowing remote bidding. These platforms list units with photos and sometimes videos of the contents.
Benefits:
- Access to auctions nationwide
- Convenient bidding from anywhere
- More auctions available at any given time
Drawbacks:
- Reliance on limited photos/videos to assess value
- Potential for higher buyer’s premiums
- Must arrange pickup within the facility’s timeframe
Hybrid Auctions
Some facilities offer a combination of in-person viewing with online bidding, giving bidders the best of both worlds.
Direct Purchase
Occasionally, storage facility managers may offer to sell abandoned units directly to known buyers without going through the auction process. Building relationships with facility managers can create these opportunities.
Where to Buy Abandoned Storage Units
Abandoned storage units specifically can be found through:
Storage Facility Websites
Many larger storage companies list their upcoming auctions on their websites. Check the websites of storage facilities in your area regularly.
Auction Listing Sites
Websites like AuctionZip.com aggregate auction listings, including storage auctions, from around the country.
Storage Auction Platforms
Dedicated platforms include:
- StorageTreasures.com: One of the largest platforms with thousands of auctions
- StorageAuctions.com: Features auctions from major storage companies
- LockerFox.com: Offers a user-friendly interface and mobile app
- Bid13.com: Specializes in storage and government surplus auctions
Local Newspapers
Legal notices for storage auctions are still published in the classified sections of local newspapers.
Social Media Groups
Facebook and other social media platforms host groups dedicated to storage auction hunters where upcoming auctions are sometimes shared.
How to Buy Storage Units
The process of buying storage units follows these general steps:
- Research and Preparation
- Familiarize yourself with local lien laws
- Set a budget and stick to it
- Research potential resale venues for items you might find
- Gather supplies (gloves, flashlight, lock cutters, cleaning supplies)
- Bring cash or certified funds as many auctions don’t accept personal checks
- Find Auctions
- Use the resources mentioned above to locate upcoming auctions
- Register on online platforms if bidding remotely
- Create a schedule of auctions you plan to attend
- Evaluate Units Before Bidding
- For in-person auctions, arrive early to register and view units
- Look for visible valuable items (electronics, tools, furniture)
- Assess overall organization (neatly packed units often contain better items)
- Check for professional moving boxes or protective wrapping
- Use a flashlight to see into dark corners
- Bidding Strategy
- Start with smaller, less competitive units to gain experience
- Set a maximum bid amount and don’t exceed it
- Consider the cost and effort of cleaning out the unit
- Factor in potential disposal costs for unwanted items
- Remember that visible items might not represent the entire contents
- After Winning
- Pay for the unit immediately
- Place your own lock on the unit
- Clean out the unit within the required timeframe (usually 24-72 hours)
- Sort items into categories: sell, donate, trash
- Leave the unit broom-clean to maintain good relationships with facilities
How to Buy Abandoned Storage Units
Buying abandoned storage units specifically follows the same general process as above, but with these additional considerations:
Legal Aspects
- Abandoned units must go through proper legal channels before being auctioned
- Facilities must make reasonable attempts to contact the original renter
- Required waiting periods must be observed before the auction
Documentation
- Ensure you receive proper documentation showing the legal transfer of ownership
- Get a receipt for your purchase
- Some facilities provide a list of known contents if available
Personal Items
- Be prepared to find personal items like photos, documents, or mementos
- Some states have laws requiring certain personal items to be returned
- Many experienced buyers attempt to return sentimental items when possible
How to Evaluate Storage Units Before Buying
Successful storage unit buyers develop an eye for potential value. Here are key evaluation strategies:
Visual Assessment
- Look for boxes labeled with valuable categories (electronics, collectibles, tools)
- Identify furniture brands or quality pieces
- Spot commercial equipment or inventory
- Notice any collectible categories (comics, records, antiques)
Contextual Clues
- Units from affluent areas often contain higher-value items
- Business storage might contain inventory or equipment
- Units with moving boxes from professional movers suggest care was taken with contents
- Seasonal items (holiday decorations, summer gear) may indicate a unit hasn’t been accessed recently
Red Flags
- Visible damage, mold, or water stains
- Loose items thrown in haphazardly
- Excessive garbage or common household items
- Strong odors (could indicate pest problems or damage)
Value Calculation
- Estimate visible value
- Assume hidden items could be valuable or worthless
- Factor in your time, transportation, and disposal costs
- Consider how quickly items might sell in your market
Common Mistakes to Avoid When Buying Storage Units
Even experienced buyers make mistakes. Here are common pitfalls to avoid:
Bidding Too High
Excitement and auction fever can lead to overbidding. Stick to your predetermined budget.
Neglecting Hidden Costs
Factor in cleaning, transportation, disposal fees, auction premiums, and your time.
Insufficient Research
Not knowing the value of what you’re looking at can lead to poor purchasing decisions.
Poor Inventory Management
Without a system to track, store, and sell items, you’ll quickly become overwhelmed.
Improper Disposal
Some items require special disposal procedures (electronics, chemicals, personal documents).
Ignoring Legal Requirements
Each state has specific requirements for storage auctions. Ensure you understand your legal obligations.
Overlooking Insurance
Consider insurance for valuable inventory and liability coverage when clearing units.
Failing to Network
Connections with other buyers, facilities, and resellers can provide valuable information and opportunities.
Conclusion
Buying storage units can be an exciting and potentially profitable venture with the right approach. Success requires research, discipline, and developing an eye for value. While you’ll encounter your share of duds, the thrill of discovering valuable items keeps many buyers in the game.
Remember that this business involves hard work—clearing units, sorting items, cleaning, researching values, and finding buyers all take time and effort. Start small, learn from each purchase, and develop systems to maximize efficiency.
Whether you’re looking for a side hustle or exploring a full-time business opportunity, the storage unit auction business offers flexibility and potential rewards for those willing to put in the work.
Frequently Asked Questions (FAQ)
Profitability varies widely depending on your knowledge, experience, and luck. Some professional buyers report 200-300% returns on their investment, while others barely break even. The most successful buyers develop expertise in valuing specific categories (antiques, collectibles, electronics) and build efficient reselling systems. Many beginners should expect minimal profits while learning the business.
Online storage auctions from reputable platforms are generally reliable, but they come with unique challenges. The main limitation is relying on photos or videos rather than seeing units in person. Established platforms like StorageTreasures.com and StorageAuctions.com have verification processes for facilities and offer buyer protections. Always read the platform’s terms and conditions and start with smaller purchases to minimize risk.
Yes, several risks exist:
- Financial risk of paying more than you can recoup
- Discovering damaged, broken, or worthless items
- Legal issues if proper lien procedures weren’t followed
- Potential liability for improper disposal of hazardous materials
- Time and effort required to process units
- Storage costs for inventory awaiting sale
You can start with as little as $100-$200 for smaller units, but a more realistic beginning budget is $500-$1,000. This allows you to bid on better units and cover additional expenses like transportation and supplies. More important than your starting budget is having a plan for quickly turning inventory into cash.
Contents vary widely, but common finds include:
- Furniture and household goods
- Clothing and personal items
- Electronics and appliances
- Collectibles and hobby items
- Tools and equipment
- Business inventory
- Seasonal items
- Occasionally valuable items like jewelry, art, or high-end electronics
Look for signs of valuable contents:
- Quality furniture or electronics
- Organized packing and storage
- Professional moving boxes
- Business equipment or inventory
- Collectible categories you recognize
- Well-maintained appearance
Essential equipment includes:
- Vehicle large enough to transport contents
- Gloves and protective gear
- Flashlight for inspection
- Lock cutters
- Cleaning supplies
- Boxes and packing materials
- Dolly or hand truck
- Inventory tracking system
While not legally required in most states, many buyers attempt to return highly personal items like photo albums, military medals, or important documents. Some facilities will assist with this if requested. This practice is considered ethical within the community and can generate goodwill.
Most facilities require units to be emptied within 24-72 hours after purchase. Failure to comply can result in additional fees or even forfeiture of the contents. Be sure you have adequate transportation and storage space before bidding.
As a side hustle, storage unit buying offers flexibility and the potential for supplemental income. For a full-time business, you’ll need efficient systems for purchasing, processing, and reselling items, as well as dedicated storage space and possibly employees. Many successful buyers combine storage unit purchases with other sourcing methods like estate sales and thrift stores to create a full-time reselling business. recent sales and to ensure the capitalization rate (annual net operating income divided by purchase price) meets your investment criteria, typically 8-12% for most hotel properties.
