With support from the national Self Storage Association (SSA), the Tennessee Self Storage Association (TNSSA) won a pivotal battle amending the current self storage lien law. The House Bill 1265 was signed by Tennessee Gov. Bill Haslam on April 29 and will go into effect on July 1.
The amendment will allow self storage operators to deliver delinquency notices by hand, e-mail or other “verified” mail means. “Verified mails” refer to the U.S. Postal Service’s certificate of mailing. Certified mail, which starts at $5.54, was the previous mandated means of delivery. The certificate of mailing is far less costly, at a base rate of $1.15.
The lien-sale newspaper advertisement requirement has also been changed as part of Section 66-31-102 of the Tennessee Code Annotated. The statute now mandates one-time publishing in a newspaper or publication of local readership. In the past, two published notices were required. Other changes include a maximum monthly late fee of $20 or 20 percent of the rent, as well as the ability of an operator to auction or have a tenant’s vehicle removed at 60 days of delinquency rather than the previous 90 days.
"As an insurance agent in the self-storage industry, I'm very excited to see more legal protection for self-storage owners,” said TNSSA President Dee Wiseman Sharp. She added that she strongly suggests Tennessee storage facility owners to attend a May 17 meeting in Knoxville, where lobbyists will be on-hand to explain the changes in the statute.
The law moves business in a positive direction, but is also good for the customer because it updates communication to the 21st century, said Sherry Cole, self storage owner and chair of the TNSSA legislative committee.
"I truly believe the changes will allow self-storage facility owners in Tennessee to more effectively communicate with their customers." said Cole. "Our members were so responsive when asked them to call and e-mail their legislators. It was really the entire association who pulled together and made it happen, and I'm very proud of them.”
Two states, Florida and Nevada, are making steady progress with self storage lien law legislation and Illinois is gearing up for finalizing a bill. And just weeks ago, Colorado Governor John Hickenlooper signed into law Senate Bill 11-039, which includes improvements to the state’s lien law for self storage operators.
Sources Used:
“Tennessee Gov. Signs Self-Storage Lien Law; OKs E-mail Delinquency Notices.” Inside Self-Storage. May 4, 2011.
Robinson, Holly. “Self Storage Lien Law Legislation Making Headway in Florida and Nevada.” Self Storage Industry News. April 22, 2011.