In self-storage, it sometimes happens that a storage unit is forgotten, surrendered, or no longer paid for by the tenant. Under certain conditions, the storage facility may then choose to auction off the contents of the unit to the highest bidder. In this article, we walk you through the basics and rules of storage auctions and give you tips on bidding and assessing value.
In the Netherlands, storage auctions take place relatively rarely, as strict rules apply that both buyers and storage companies must follow to prevent unlawful sales. The overall storage auction process generally consists of a viewing moment (without entry), the bidding process via an auctioneer or an automated system, immediate or 24-hour payment, and a 24- to 72-hour pickup window. Finally, you may sometimes pay an additional cleaning deposit to confirm that you will leave the storage unit empty and tidy.
What is a storage auction and how does it work?
It starts with the rental terms. These must state that the storage facility is allowed to sell the contents of the unit if the tenant fails to comply with certain rules. Overdue rent or contract termination are the most common situations. After multiple reminders without result, the facility may take steps to auction the contents.
The goods in a unit are often offered as a single lot. The bidding process can take place via either a physical or an online auction. In an online auction, a customer can place a bid themselves or set a maximum bid, also known as an automatic bid. The system then automatically increases the bid in increments when another bidder places a higher bid, until the maximum amount is reached. At the end of the auction, the highest bid wins.
At a live auction, there are physical viewing moments where buyers may inspect the storage unit from the doorway. Bidding is conducted under the supervision of an auctioneer. The auctioneer determines the pace of the auction and assigns the lot to the highest bidder. Bids are made verbally or through hand gestures, and once the auctioneer brings down the hammer, the sale is final.
For both online and live auctions, prior registration and identification are mandatory. This is necessary because bids are legally binding and the amounts offered can rise significantly. The buyer is therefore obligated to pay the agreed amount and remove the purchased goods. This applies regardless of the eventual value of the contents.
Estimating value and bidding cleverly
For storage auctions where the entire contents are sold at once, a solid ability to evaluate goods and estimate value is essential. Since you cannot see everything in the unit, it is helpful if a handful of items already gives you an idea of what the unit might yield and roughly how much. You can base your maximum budget on this.
Because of the legal responsibilities involved, you also need a strong sense of discipline. When you place a bid, your purchase is binding until another buyer places a higher bid. Even if you have not officially paid yet, backing out is not an option once the unit is assigned to you.
To assess whether a unit contains attractive items, you can pay extra attention to:
- Recognizable brand names or model numbers
- The quantity and condition of boxes
- The original purpose of the unit (professional versus private)
- The cleanliness and layout of the space
- Visible categories (tools, electronics, furniture)
Even if a storage unit appears to contain appealing items, there are also red flags to watch out for in order to limit the risk of disappointment. If you encounter mold, water damage, piles of crammed junk, or damaged packaging, it is advisable to reconsider your intent to purchase.
It can happen that you make a bad buy. In that case, limit your loss by reselling, recycling, repairing, or donating as much as possible. A trip to the dump can end up costing quite a bit of extra money.
