Abandoned storage unit auctions are gaining traction in South Africa. These auctions attract resellers, entrepreneurs, and bargain hunters looking for valuable items at low prices. TV shows like Storage Wars and online platforms have fueled interest, making auctions more accessible.
Why Storage Units Go on Auction
Storage units go to auction when tenants stop paying rental fees. When a tenant defaults, the storage company can place a lien on stored goods. These auctions allow facilities to recover lost revenue while clearing space for new rentals.
Legal Framework for Auctioning Storage Units
South African law requires storage operators to notify tenants about overdue payments before auctioning their belongings. The waiting period allows tenants to settle debts. If unpaid, the facility can proceed with the auction while following the Lien law requirements to ensure fairness.
How the Lien Law Applies
The lien law mandates that tenants receive written notifications on overdue payments by the storage facility informing the tenant of their outstanding balance and they risk losing their stored possessions. The law requires a waiting period, during which the tenant can settle their debt and reclaim their belongings. If they fail to respond within the stipulated timeframe, the storage facility has the right to auction off the contents.
The waiting period duration is determined by the terms outlined in the rental agreement between the tenant and the storage facility.
How Storage Unit Auctions Work
Storage unit auctions follow a structured process:
- Notice to Tenant: The storage facility informs tenants about overdue payments.
- Grace Period: Tenants can pay outstanding fees to reclaim their belongings.
- Auction Announcement: If the account is unpaid, the facility announces an auction.
- Public Auction: The contents of the unit are auctioned to the highest bidder. Auctions occur in person or online via platforms like iBidOnStorage.
- Clearing the Unit: Winning bidders must remove all contents within a set timeframe as set by the terms and conditions of the auction.
Tips for Prospective Bidders
Research the Process
- Understand auction rules and legalities before participating.
- All facilities will have their own set of rules.
- Research the facility and ask for the terms and conditions of auctions.
Set a Budget
- Determine your spending limit before bidding to avoid overpaying as it is easy to get caught up in the excitement of the bidding process.
Inspect the Unit (If Possible)
- Some auctions allow external viewing. Assess visible items and their potential resale value as items are bought as is.
Consider Resale Potential
- High-demand items including electronics, tools, and collectables are in demand on second-hand markets. Factor in refurbishment, transportation, storage and resale costs.
Account for Additional Costs
- Consider the expenses that won’t generate a profit including transport and disposal of unwanted items and cleaning the storage unit.
Use Online Auction Platforms
- Websites like iBidOnStorage offer remote bidding, expanding opportunities for buyers. Research different platforms and choose those with a good reputation.
Network with Experienced Bidders
- If you can be charming enough, engaging with seasoned bidders can provide valuable market insights and strategic tips to improve profits. Networking within auction circles can also lead to partnerships on units and future business opportunities.
How to Find Storage Unit Auctions
Research Local Storage Facilities
- Contact self-storage companies directly to ask about upcoming auctions. Speak to managers and owners for up to date information on future auctions.
Use Online Resources
- Follow facility websites and social media pages for auction announcements.
Explore Auction Listing Websites
- Auction websites aggregate listings from multiple facilities, making it easier to find upcoming auctions in one place.
What to Prepare for an Auction
Understand Auction Rules
- Each auction has specific guidelines regarding payments, bidding, and unit clearance timelines.
Bring Necessary Supplies
- Essential items include a flashlight, padlock, gloves, and a notebook for inventory.
Arrive Early
- Register in advance and secure a good position to observe available units.
Stay Focused While Bidding
- Stick to your budget and avoid emotional decision-making.
How Storage Unit Auctions Work At Storage Spot
At our storage facility, we partner with ClareMart Auctioneers to manage the auction process for storage units. Here’s how it works:
The Auction Process
- Scheduling and Advertising: ClareMart schedules the auction on available dates and advertises it on our behalf. They primarily use their website online platforms like Facebook for advertising.
- Auction Day Setup: On the day of the auction, ClareMart sets up at our facility in the morning. Buyers register directly with them, but they do not receive any prior information about the contents of the units.
- Registration Requirements: To participate, buyers must register with ClareMart, provid proof of address, I.D and pay a R5,000 registration fee. This fee is refundable if you do not win any bids and is used towards successful bids.
- Auction and Removal: The auction takes place on 1 day, Monday or Tuesday. Successful bidders have until Friday to remove all contents from the unit and clean it.
Why We Choose This Process
While we would prefer not to use auctions, it is necessary for maintaining the viability of our business. Auctioning units as-is is the most efficient method for us, as it provides a fair opportunity for all potential buyers and avoids issues like missing items that arise when selling items off-site. This public auction process ensures transparency and fairness for everyone involved.
How to Bid on Local Storage Units?
Register for in-person or online auctions. Inspect units from the doorway before bidding. Stick to your budget and be prepared to clear out the unit promptly.
How to Find Storage Units Up for Sale Near Me?
Check online auction websites, contact storage facilities, and follow social media auction groups.
How Do Storage Units Go Up for Auction?
When a tenant defaults on payments, the storage facility attempts to contact them. If unresolved, the unit is auctioned following a legally mandated waiting period.
