Did you read my post about my aggravating linen closet 
here? As promised here are some tips and techniques to get your closet organized and staying that way.
I'm making progress on my organizing job. This weekend it's painting time for the closet and I have my new baskets to organize all my items in. Next week you will get to see pictures of the before and after of my closet!
Photo Apartment Therapy 
Linen closets are generally a multipurpose storage area. Many odds and  ends -- such as vacuum cleaners, ironing boards and cleaning supplies -- can  find their way into a linen closet. It can seem like a lot to ask from  one small closet. 
Decide what you want to use your linen closet for. Only bedding and towels? Medicines? Cleaning supplies? Remove anything else that doesn't belong there. We usually use 20% of what we own 80% of  the time.
When you start cleaning your linen closet,  take everything out and sort it into like piles. It will be easy to see  what you have.
Consolidate all medicine in one place. That way you can find them and don't have duplicates. This goes for cleaners also, although your linen closet might not be the best place for them
Use a revolving 
spice rack (flat no bottles) to store your  medicines  on. That way it's easy to see what you need and takes up  little space.  Once I see how many meds we have and need, I might  implement this idea.  My shelves are spaced widely, I might get a 
2 tier rack  like this one and use one  tier for first aid supplies.
Get rid of outdated products and medicine or things you  know you won't use. Follow your local guidelines on proper waste  disposal.
If you have unused toiletries that you'll never use donate  them to a  woman's shelter
When the closet is empty, wipe down the shelves with a warm  soapy water. Let dry before you return anything to the shelves.
Roll towels to increase shelf space.
If you fold towels, fold lengthwise (long ends together),  then the end with the top of the towel in 1/3 then the bottom with the  fold over so all ends are enclosed in the towel and it won't unravel in  the closet.
Keep a box of baking soda in the closet or you can hang a  sachet of  pine (I always just use a fresh bag of wood chip animal  bedding from the  pet store) or lavender in cheesecloth to keep the  closet smelling nice. Hanging a dryer sheet also works.
Lay down acid free tissue paper so fabrics don't discolor  over time. This is a good tip for my quilts, but I feel is unnecessary  for my towels and sheets.
Use adjustable wire shelving for space organization and air  flow.
Consider under shelf wire mount baskets (for wash clothes) and shelf dividers  from the
 Container Store (I LOVE that place) to help keep you organized  if your shelves do not adjust.
In addition to labeling baskets, label the shelves where  things like towels and sheets go. Martha Stewart does this and her  closets are like closet porn they are so good.
Use space bags for large bulky items used only occasionally  like quilts and comforters.
If you don't want to purchase space bags, try a thicker ply  garbage bag, suck the air out with a vacuum cleaner and tie securely.  Just don't forget to label what's in it.
Keep frequently used items at eye level and in the front of  the closet.
Keep infrequently used items toward the back of the closet  or on the top hard to reach shelf.
Wash everything in the closet at least once every 6  months to keep it fresh.
Always replace newly laundered items on the top of the  stack and take fresh from the bottom to rotate your items.
Sort your towels and sheets and have no more than 3 towel  sets (towel, hand towel and washcloth) per person and 3 sets of sheets  per bed. I think that is CRAZY Talk. We have one set of sheets, the one that is on the bed. You have to be efficient in your laundry at my house. We have 2 towels each, 1 guest towel and 2 large "cleaning" towels that can double as a small beach towel. Remember I'm in a very small space.
If you have more than this in your closet sort it.  Put left overs  in the rag pile and donate the rest. If they are in too bad shape to  donate to a charity shop, animal rescue organizations will usually  gladly take them.
Keep extra sheet sets organized by storing them in a pillow  case.
Don't cram the shelves too tightly. You want to be able to  get your hands in there without scraping your knuckles. This is for two  reasons. One you can then pull out an item without everything else  coming out with it and it allows air flow around the items so they stay  fresh.
If you have to cram stuff to get it all to fit, you have  too much stuff.
Shelves should be 10 inches apart for sheets and table  linens, 12-16 inches apart for towels and 18 inches or more for  comforters and other bulky items.
Table lines are best stored on a hanger (just not a wire  one)
If you have to fold table lines, fold them with tissue  paper to reduce the creasing.
Store extra blankets and sheets in the decorative pillow  shams that come with bedding sets on your bed. In the guest room, you  can have the guest towels in the pillow sham and out of your linen  closet. (I've never thought of this!) 
How do you keep your linen closet organized?
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