We have a very organised playroom (anal Mummy ) and we also regularly get rid of things that are grown out of / no longer played with. Anything broken gets chucked. We usually pass on toys to friends with younger children who will play with the 'grown out of by us' stuff. I enjoy passing it on and its nice to know the kids that will play with it, and its just not worth the effort to sell individually in my opinion.

For storage we have a heap of expedit shelving and storage containers in the playroom, and a few miniature wheely bins for all the train tracks etc. The only toys in bedrooms is DSs Lego so DD doesn't smash it. Otherwise the bedrooms would get overrun. I highly recommend (assuming you have the space) to have a dedicated toy area!

However I am going to sell all our no longer needed stuff in one go in about 6 months. We have a heaps of stuff boxed up in the garage/roof space/DDs wardrobe as as soon as I have finished with DDs highchair/cot/change table I am going to get a market stall at one of our kids markets, take it all there (no longer used baby stuff/breast pump/monitors/jumperoo/baby furniture etc and whatever toys are no longer needed and just sell it dirt cheap to get rid of it all. If I have anything left I will take it to a charity shop on the way home and come home empty handed!!