Making Money From Old Storage Units: How To Dominate The Market

Making money from old storage units seems like a strange idea. And to be honest, it isn’t the first thing that comes to mind when people think about investing in property. 

But it turns out that it is actually one of the most lucrative options out there, and everyone’s doing it. Why? 

Ultimately, it comes down to margins. Storage units are nearly the perfect business model because they can get rid of the problem of tenants. There are less rules about kicking out people’s property if they don’t pay you on time, but the same can’t be said of people. As it turns out, a large percentage of the population rents storage units, so there is a need out there for this business model.

So, what should you do to make money from old storage units? Here are some ideas.

Note: Some links in this post are affiliate links, which means I receive a commission if you click a link and then make a purchase.

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Become A Storage Facility Owner

One way to make money off of abandoned storage units is to become a storage facility owner and rent out the units yourself.

Research The Market

As always, you’ll want to start by researching the market. Learning more about how the business works can help you avoid mistakes early on. 

The next step is to develop your strategy using various platforms. You will want to have the right business skills from the start so that you do not make a costly mistake. It is especially important to have the right contracts and legal forms for the renters to fill out and sign, whether you provide them online or in person.

Realize You Will Need To Have Lien Auctions

Most companies, by law, will operate lien auctions on property left in storage for too long. These auctions are helpful because they cover a small portion of the bills from storing property without payment if renters default on their payments. 

Furthermore, you can a lien auction to periodically empty storage units, preparing them for new tenants, who will hopefully pay better. 

You can attend lien auctions to see how they work. Observing bidding strategies can help you better understand how the process works. 

Consider Hiring A Professional Auctioneer For Lien Auctions

Some storage property owners hire auctioneers to run this type of auction. This can be a benefit because the auctioneer, if they have a website or email list, often brings their own following, so you have more bidders than what you would normally have attend from the lien sale's public notice.

Look At Your Local Competition

Looking at local competitors’ strengths and weaknesses can also help. Go to their website or call them. See if they have any units open and how many. If most of them are vacant, you may not be in a good location to run this business and make a profit. If they have just a few open, or are full and have a waiting list – then this may be the business for you.

Is your competition online? If not, and you are willing to be. This will be an advantage for you. As people are moving to new locations, they find your storage units online as they do not know the local area. They may need to store excess items while renting until they purchase a home.

Consider The Costs

You will also want to look at available buildings for sale in your area and the cost to renovate it to your needs. Would it be less expensive to buy land and build a storage facility? Then consider what locals are already paying for a space and calculate if you would earn enough to pay your bills and make a profit on that amount. Take into consideration that 20% may not pay you. Will your bank give you a loan for what you need? What will your down-payment be?

Buy Abandoned Storage Units And Resell The Items

Another way to make money from old storage units is to bid on and win a storage lien unit, clear it out, and resell the goods. We go into deep detail about all of this and more in Our Books On Amazon section that you can find at the end of this post. But here are a few things to consider.

Planning To Buy A Unit

You will first need to know your budget in advance, develop your strategy, find the auction and do any research you can.

When you attend the auction and are considering making a bid, look at how much trash is in the unit. In some places, it costs money to pay for disposal of large electronics (if you can't sell or store them), mattresses and general trash (in our area, we have to pay by the pound). Even if the unit looks clean, there is trash in every unit.

Then look at what you can see that you can resell and estimate how much you will earn, consider some surprises in what you can't see that you will earn money on and make your bid accordingly to earn money and pay for your time involved.

Bid On And Win A Storage Auction Unit

Now, you can bid on and hopefully win this storage unit without going over your budget. When it comes to bidding, you want to be as smart as possible about it. Making the mistake of going in early or bidding too high can leave you poorer than you otherwise would be. 

Only attend auctions you know have transparent processes. Online events are okay, but it is usually better to go to these places in person so you can inspect the exhibits. Sometimes digital auctions have strange rules, as well as advanced fees. Also, you need to get a hold of the manager to get it unlocked and the timing may not work out for you to empty the unit in time to avoid additional fees. Unknown websites could also be a scam.

Don’t get caught in bidding wars. This common rookie mistake is something that a lot of people are tempted to do, simply because they want something they’ve seen. The best strategy here is to stick with your pre-defined budget. Anything under that is a bonus. 

Also, don’t focus on the units with lots of visible junk or trash. These won’t usually contain the high-value items that are going to net you the most profit when you come to resell. While there might be a few units with incredible value, these are the exception, not the norm. 

Empty The Unit On Time

Be sure to completely empty out the unit on time. Leave it as clean as possible. Sweep it out. You want to leave a good impression on the storage facility manager so they will let you know of future auctions. Leave your contact information with them when you pay.

Start Organizing Everything

The next step is to start organizing everything. You want to put items in their proper place so that you know what you’re dealing with.

Once you buy items, it’s then a good idea to find storage space for them and organize them properly. Labeling things is a good idea, especially if you’re planning on using boxes and bins. 

Many people invest in steel buildings for storage, since they are strong and cost-effective. However, you can use sheds; it’s just that they are less secure. 

Cleaning and repair work is also important once you have the goods in your hands. Refurbishing them can increase their value substantially, encouraging potential shoppers to pay more. 

Don’t underestimate the value of cleaning and dusting, especially electronics. With these, you can often get incredible results, allowing you to earn much more than you thought possible when you first went to the auction. 

Of course, the amount of money you make depends on your eye for a bargain. But you can sometimes increase the value of household items and other products by up to 50%, just by removing dirt and grime.

For things like electronics and furniture, you can watch online DIY refurbishment and repair videos. These are handy for providing tips for making items look the best they possibly can, including things like using canned air to clean dust from tight spaces. 

Resell The Items

There are numerous online platforms that you can use to make money out of selling from old storage units, including Etsy for vintage items and eBay for electronics. If you have something bulky you want to sell, you might want to try Facebook Marketplace or Craigslist.

Selling at flea markets is another option if you live in an area where attending these is part of the local culture. These can provide you with access to a massive audience and help you find people who are more willing to buy from you. Sometimes, you can make several sales with a single customer, reducing your stock and increasing your profits over time. 

Get Into Marketing

Lastly, you can sometimes enhance your ability to make money from old storage units by learning how to dominate the market. Some people are having success building a name and logo for their resale business, and sharing stories of their finds across social media. These forms of content are popular for customers who love uncovering bargains and getting the best deals. 

You can sometimes advertise online but be careful to do so only in your area. Don’t spend a lot of money targeting a national audience, unless you plan on selling to them via the mail.

Conclusion

Making money from renting out a storage unit or buying an abandoned unit is a great way to pay the bills. Either of these options could be a side hustle to what you are already doing.

This is a contributed post.

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