diff --git a/bids/tests.py b/bids/tests.py
deleted file mode 100644
index 7ce503c..0000000
--- a/bids/tests.py
+++ /dev/null
@@ -1,3 +0,0 @@
-from django.test import TestCase
-
-# Create your tests here.
diff --git a/bids/tests/__init__.py b/bids/tests/__init__.py
new file mode 100644
index 0000000..e69de29
diff --git a/bids/tests/test_models.py b/bids/tests/test_models.py
new file mode 100644
index 0000000..6fe6f01
--- /dev/null
+++ b/bids/tests/test_models.py
@@ -0,0 +1,42 @@
+from secrets import token_urlsafe
+from monero.seed import Seed
+from django.test import TestCase
+from django.contrib.auth.models import User
+from bids.models import ItemBid
+from items.models import Item
+
+
+class ItemBidModelsTestCase(TestCase):
+    def setUp(self):
+        self.seller_password = token_urlsafe(32)
+        self.buyer_password = token_urlsafe(32)
+
+        self.seller = User.objects.create_user(
+            'seller', self.seller_password
+        )
+        self.buyer = User.objects.create_user(
+            'buyer', self.buyer_password
+        )
+        self.payout_address = Seed().public_address()
+        self.return_address = Seed().public_address()
+        self.whereabouts = 'Los Angeles, CA'
+
+        self.test_item = Item.objects.create(
+            owner=self.seller,
+            name='Test Item',
+            description='Test item',
+            ask_price_xmr=0.3,
+            payout_address=self.payout_address,
+            whereabouts=self.whereabouts
+        )
+
+    def test_create_itembid(self):
+        test_itembid = ItemBid.objects.create(
+            item=self.test_item,
+            bidder=self.buyer,
+            bid_price_xmr=0.1,
+            return_address=self.return_address
+        )
+        obj_name = f'{test_itembid.id} - {test_itembid.item.name} - {test_itembid.bidder} > {test_itembid.item.owner}'
+        self.assertTrue(isinstance(test_itembid, ItemBid))
+        self.assertEqual(test_itembid.__str__(), obj_name)
\ No newline at end of file