by Tony Gonzalez
March 24, 2011 8:28 PM
Self storage facilities around the country have seen an increase in business since over the recent years as Americans struggle with the hard times and try to hold onto what is theirs. However, since in many cases the need for self storage has been an economic one (i.e. moving into a smaller home) sometimes people can’t pay their storage bill either.
When that happens the respective state’s lien laws come into play as the owner of the self storage facility is allowed to take ownership of the contents of the unit and put it up for auction.
With the increase in tenants at self storage facilities resulting in an increase in liens put on units (and auctions) the language of the lien laws in many states has come under scrutiny and become the focus of legislative efforts by state organizations in many states.
Colorado is among one of the more recent states to have some activity in the legislature concerning its lien laws. The Colorado Self Storage Association was looking to get the language of the law updated so that the whole process involving liens and the subsequent sales are not as expensive. A new law that would accomplish these goals has already passed the House and is working its way through the Senate.
The Arkansas Self Storage Association is working on passing a law to improve their lien process as well. A bill geared towards cutting down costs for self storage facility owners and saving them time in the lien notification process with delinquent tenants.
Nevada is looking to make some changes to their self storage laws as well, mainly in regards to the lien laws. One of the main things looking to be changed is the means of notification that self storage owners must give tenants. If what they want gets passed than all storage owners will have to do is send it by some sort of verifiable method. Once that is done the owners is free to auction off the unit (no need for a notice in the newspaper anymore either.
As the legislative sessions continue around the country there is bound to be more announcements of state’s proposing changes to the lien laws and other self storage laws that are in need of updating. With the backing of the national Self Storage Association many of the state level associations actively engaged in improving the lien laws of their respective state are likely to see success.
Sources Used:
“Colorado Self Storage Association Aims to Update State Lien-Law Statute.” Inside Self Storage; 10 November 2010.
“Nevada Considers Changes to self storage lien law.” Inside Self Storage; 10 March 2011.
“Improvements to Self Storage Lien Law Proposed in Arkansas Legislature.”; Inside Self Storage; 24 February; 2011.