Championed by the Nevada Self Storage Association (NVSSA) with financial support from the national Self Storage Association (SSA), Nevada Senate Bill 150 (SB 150). that revises state-wide self storage lien laws was signed into law by Gov. Brian Sandoval on June 13. The lien law, which improves the state’s lien laws and limits operators’ liability regarding protected property, goes into effect on Oct. 1.
The bill contains the following changes for self storage operators:
• Lien notifications can be delivered via e-mail address, if the delinquent tenant has an e-mail address on record, or any form of verified mail. This will be less expensive than the previously required Certified Mail.
• If a delinquent tenant signs the Declaration in Opposition, it is the responsibility of the tenant, not the facility operator, to file suit within 21 days. The operator must wait 30 days to proceed with the lien.
• Operators are protected in situations involving abandoned property, including sensitive property such as pharmaceuticals and private records.
• If the self-storage rental agreement contains a limitation of value, stored property shall be deemed not to exceed that value.
“This (law) allows storage operators to use more modern means of communication than what was available in 1983 when the law was originally written,” said Travis Morrow, president of the Nevada Self Storage Association. “The operator can still use Certified Mail if that’s what makes them more comfortable. But the U.S. Postal Service offers other proof-of-mailing options that are far less expensive.”
In related news, the new California lien law which went into effect on Jan. 1, 2011 puts forth a more cost-effective lien sale process. The new law empowers self storage operators to resolve lien and auction disputes in small claims court rather than superior court, which is lengthy and expensive. Another area of savings wipes out a verification of delivery of lien notices by certified mail and replaces it with a more inexpensive certificate of mailing.
A five-part Californian lien law webinar series is being hosted by SkilCheck. Each Webinar is geared to be specific to individual California lien law topics and will help participants understand auction procedures. Carol Krendl, owner and CEO of SkilCheck Services, will host each webinar which are scheduled to begin at 10 a.m. PST. The following topics will be covered:
• June 21: Understanding the California Lien Law Provisions. This webinar will take a closer look at the provisions within the updated California lien law.
• June 23: Processing the California Self Storage Lien. The second webinar will focus on how the California lien process works from start to finish.
• June 28: California Self Storage Auction Procedures. In this webinar, the focus will be showing operators how to legally prepare for their next self-storage auction.
• June 30: California Lien Sale Issues. This webinar will explain and discuss the different issues that arise when a self-storage customer goes into lien sales.
• July 1: Soldiers Civil Relief Act. The last webinar in the series takes a closer look at how the Servicemembers Civil Relief Act applies to the self-storage business. Operators will learn what they can and cannot do when it comes to service members' self-storage goods and how they can legally sell them.
The cost of each webinar is $40 but all five can be registered for $175. Krendl will provide attendees with forms and other materials. Krendl has been involved with the self-storage industry since 1984. She currently serves as vice president of the California Self Storage Association. SkilCheck provides services for self-storage operators including mystery shopping, manager background checks, manager training, employment evaluations and more.
Sources Used:
“Nevada Governor Signs New Self-Storage Lien Law.” Inside Self-Storage. June 14, 2011.
“SkilCheck Presents Free Self-Storage Webinar Series on California Lien Laws.” Inside Self-Storage. June 9, 2011.
Kilpatrick, Kim. “Two States Tackle Proposed Changes to Lien Laws.” Self Storage Industry News. March 8, 2011.