What Are Storage Auctions? Everything You Need to Know

Introduction: What Are Storage Auctions?

Storage auctions are events where the contents of unpaid or abandoned self-storage units are sold off to the highest bidder. These auctions have gained significant popularity in the UK in recent years, offering a unique opportunity for individuals to purchase items that were previously stored in rented units. The appeal of storage auctions lies in the potential to find hidden treasures or valuable items that can be resold for profit.

The concept of storage auctions has captured the public imagination, partly due to television shows that dramatise the process. However, the reality of storage auction events is often less glamorous but no less intriguing. Participants range from professional resellers to curious newcomers, all drawn by the mystery of what might be found behind the roll-up door of an abandoned storage unit.

Why Do Storage Auctions Happen?

Storage auctions occur primarily due to unpaid rent on storage units. When a tenant fails to pay their rent for an extended period, the storage facility has the right to reclaim the unit and sell its contents to recoup their losses. This process is known as storage unit repossession.

Common reasons for abandoned storage units include:

• Financial difficulties preventing tenants from paying rent
• Tenants moving away and forgetting about their stored items
• Death of the tenant without next of kin claiming the contents

It's important to note that storage facilities don't profit from these auctions beyond recovering their lost rent and auction costs. Any excess funds from the sale are typically required to be returned to the original tenant, although laws can vary by location.

How Do Storage Auctions Work?

The process of storage auctions in the UK follows a specific set of steps designed to balance the rights of the tenant with the needs of the storage facility. Initially, the facility will make multiple attempts to contact the tenant about overdue payments. If these attempts are unsuccessful, the facility will then schedule an auction.

Once an auction is scheduled, it's advertised to potential bidders. This may be done through local newspapers, online auction listings, or directly through the storage facility's website. On the day of the auction, bidders are allowed to view the units, but only from the outside. This 'look but don't touch' policy adds an element of mystery and risk to the process, as bidders must make their decisions based on what they can see from the unit's entrance.

Online storage auctions follow a similar process but allow bidders to participate remotely. These virtual auctions often provide photos or videos of the unit contents, giving bidders a bit more information to work with. However, the element of uncertainty remains, as the true value of the contents is never fully known until the unit is cleared out.

What Can You Find in a Storage Auction?

The contents of storage units put up for auction can vary widely, which is part of what makes these events so intriguing. Most units contain everyday household items - furniture, clothing, books, and kitchenware are common finds. Electronics, tools, and sporting equipment also frequently appear.

However, it's the potential for valuable or unusual items that draws many bidders to storage auctions. There have been cases of units containing rare collectables, valuable antiques, or even luxury vehicles. One famous case involved a unit bought by a couple for  £75 that contained a rare James Bond car from the film “The Spy Who Loved Me," which was later bought by Elon Musk for £750K.

Personal documents and photographs are often found in storage units, but these items are typically not considered part of the sale and should be returned to the facility management for proper handling.

It's important for bidders to remember that while exciting finds do occur, they are the exception rather than the rule. Most storage units contain ordinary possessions, and the real skill in storage auction buying lies in identifying items with resale potential among everyday goods.

Are Storage Auctions Legal in the UK?

Yes, storage auctions are legal in the UK, but they are governed by specific regulations to ensure fairness and protect the rights of both tenants and storage facilities.

Key legal aspects of storage auctions in the UK include:

1. Proper notification: The facility must make reasonable attempts to contact the tenant before auctioning the unit. This usually involves sending multiple notices over a period of several weeks or months.
2. Transparent process: The auction itself must be conducted in a fair and transparent manner. This includes allowing potential bidders to view the units and providing equal opportunity for all participants to bid.
3. Handling of personal documents: Any personal documents or legally protected items found in the unit must be returned to the tenant or destroyed in accordance with data protection laws.
4. Financial settlement: The storage facility can only keep the amount owed from the auction proceeds, including unpaid rent and auction costs. Any excess must be returned to the tenant, although claiming this excess often requires the tenant to come forward.
5. Adherence to contract terms: The facility's right to auction must be clearly stated in the original rental agreement signed by the tenant.

While these regulations provide a framework for legal storage auctions, it's always advisable for both storage facilities and auction participants to seek legal advice if they have specific questions about the process.

How to Participate in a Storage Auction

To participate in a storage auction in the UK, follow these steps:

1. Find upcoming auctions through online listings or by contacting local storage facilities.
2. Register for the auction, which may require providing identification and contact information.
3. Arrive early on auction day to inspect the units (for in-person auctions).
4. Listen to the auctioneer's instructions and rules.
5. Bid on units that interest you by raising your hand or bidder card.
6. If you win, be prepared to pay immediately and clear out the unit within the specified timeframe.

For online auctions, the process is similar but conducted through a bidding platform.

Online Storage Auctions vs. In-Person Storage Auctions

Both online and in-person storage auctions have their advantages:

Online Storage Auctions:

• Convenient and accessible from anywhere
• Often provide more detailed photos or videos of unit contents
• Allow for easier comparison between multiple auctions

In-Person Storage Auctions:

• Provide a firsthand look at the units
• Offer the excitement of live bidding
• Allow for networking with other bidders and auctioneers

The choice between online and in-person auctions often comes down to personal preference and availability.

Risks and Rewards of Storage Auctions

Participating in storage auctions can be exciting, but it's important to understand both the potential risks and rewards:

Risks:

• Purchasing low-value or damaged items
• Investing in units with mostly personal effects and little resale value
• Unexpected costs for removing and disposing of unwanted items
• Potential legal issues if proper auction procedures weren't followed

Rewards:

• Finding valuable items at a fraction of their worth
• Discovering rare collectables or antiques
• Potential for profit through reselling items
• The thrill of uncovering unexpected treasures

Tips for Winning a Storage Auction

To increase your chances of success at storage auctions:

1. Set a budget and stick to it to avoid overspending.
2. Research the average prices of common items to estimate potential value.
3. Look for signs of quality items, such as well-maintained boxes or professional packing materials.
4. Bring a torch to better inspect unit contents from the entrance.
5. Pay attention to the auctioneer's description and any hints about valuable items.
6. Start with smaller, less competitive auctions to gain experience.
7. Network with other bidders to learn about their strategies and experiences.

How to Sell Items from Storage Auctions

If you win a storage auction and want to resell the items:

1. Sort and categorise the items quickly to determine their potential value.
2. Research prices for similar items online to set competitive prices.
3. Clean and repair items as needed to increase their appeal.
4. Use various selling platforms:
   • Online marketplaces like eBay, Amazon, or Facebook Marketplace
   • Local classified ads or boot sales
   • Speciality shops for collectables or antiques
   • Consignment stores for higher-value items
5. Consider bulk selling lower-value items to save time.
6. Be patient, as some items may take time to sell for the best price.

How to Find Storage Auctions in the UK

To locate upcoming storage auctions in the UK:

1. Check online auction listing websites that specialise in storage auctions.
2. Contact local self-storage facilities directly and ask about their auction schedules.
3. Sign up for email newsletters from storage auction companies.
4. Join social media groups or forums dedicated to storage auctions in your area.
5. Look for advertisements in local newspapers or community bulletin boards.
6. Attend a few auctions and network with other bidders to learn about future events.

Storage Auction Etiquette

When attending storage auctions, follow these etiquette guidelines:

1. Arrive on time and register properly.
2. Listen carefully to the auctioneer's instructions and follow all rules.
3. Don't touch or enter the units unless explicitly allowed.
4. Bid clearly and honestly – don't try to manipulate the bidding process.
5. Be prepared to pay and remove items promptly if you win.
6. Treat other bidders, auctioneers, and facility staff with respect.
7. Clean up after yourself when removing items from a unit you've won.
8. Don't share personal information about previous tenants if found in the unit.

Conclusion: Is Participating in Storage Auctions Worth It?

Whether storage auctions are worth it depends on your goals, experience, and risk tolerance. They can be an exciting way to find unique items and potentially turn a profit, but they also come with risks and require time and effort.

For those interested in reselling, storage auctions can be a source of inventory at potentially low costs. For collectors or treasure hunters, they offer the thrill of discovery. However, success often requires knowledge, patience, and a bit of luck.

Before participating, research thoroughly, start small, and be prepared for both wins and losses. With the right approach, storage auctions can be a rewarding experience, whether you're in it for profit or the excitement of the hunt.

Remember, while the potential for finding valuable items exists, most storage units contain everyday items. Approach storage auctions with realistic expectations and a clear understanding of the risks and rewards involved.

Frequently Asked Questions About Storage Auctions

Are there online storage auctions in the UK?

Yes, online storage auctions are becoming increasingly common in the UK. These allow bidders to participate remotely, often with photos or videos of the unit contents provided.

What happens to the contents of a storage unit in an auction?

The entire contents of the unit are sold to the highest bidder, who then becomes responsible for removing everything from the unit, usually within 24-48 hours.

Can you find valuable items in a storage auction?

While it's possible to find valuable items, it's not common. Most units contain ordinary household goods. The excitement comes from the possibility of finding something valuable among the everyday items.

Has anyone found rare or expensive items in a storage unit auction?

Yes, there have been cases of rare or valuable items found in storage auctions. However, these are exceptions rather than the rule.

How can I participate in a storage auction in the UK?

You can participate by finding auction listings online or contacting local storage facilities, registering for the auction, and following the bidding process either in person or online.

Do I need to register for a storage auction?

Yes, most auctions require registration. This usually involves providing identification and contact information.

How do I place a bid at a storage auction?

In-person auctions typically involve raising a hand or bidder card. Online auctions will have a digital bidding system.

What are the risks of buying from a storage auction?

Risks include purchasing low-value or damaged items, dealing with personal effects with little resale value, and potential costs for removing and disposing of unwanted items.

Are storage auctions a good way to make money?

While it's possible to make money from storage auctions, it requires knowledge, experience, and often involves risks. It's not a guaranteed way to make money.

What should I be aware of before bidding on a storage unit?

Be aware of your budget, the potential costs of clearing out a unit, and the risks involved. Also, understand that what you see from the unit's entrance may not represent all of its contents.