This year, Tennessee, Nevada, California, and Illinois passed legislation that impacted storage facility owners. The legislation addresses lien notices, sale of property, guidelines for issues involving late fees, and enforcement procedures.
The new legislation in Tennessee went into effect on July 1, 2011. Dee Sharp, Tennessee Self Storage Association President, said, "The passing of this bill is a significant milestone for our industry because it gives parameters that level the playing field among competitors and protects consumers' interests."
A critical part of the legislation covers selling property from delinquent or defaulting tenants. It improves the process for storage owners to recover some of their expenses when tenants default on their payments.
- The bill also includes:
- Allowing facility owners to tow abandoned vehicles to avoid the sales process
- Reduction of the timeline to begin the sales process from 90 days to 60 days
- Lien notification to be sent to the lessee through e-mail and first class, verified mail
- Guidelines on late fees which can be 20% of the lease value or $20, whichever amount is greater
Before this legislation, facility owners had to send lien notifications through certified mail. This increased the owner's costs. Using e-mail and first-class, verified mail will help reduce the owner's expenses.
The bill also impacted the requirements for notices of sales. Previously, a notice had to be published in the newspaper two time and posted at the county courthouse. Now, facility owners and managers are required to only publish one notice in the newspaper.
The Tennessee Self Storage Association is holding their 3rd Annual Legal Seminar on Thursday September 15, 2011. It will be held at the Franklin Marriott Cool Springs, 700 Cool Springs Blvd, in Franklin, Tennessee. Prepayment registration for members is $99 and $149 for non-members. Payment at the door is $124 for members and $174 for non-members. Registration and check-in begin at 4:30 p.m. The seminar will include a dinner, the seminar and a question and answer period.
Scott Zucker, an attorney with Weissmann, Zucker, Euster, and Morochnik, will discuss the new legislation and how it affects owners and managers of storage facilities. Attendees are encouraged to bring their legal questions for Scott to answer.
Sources Used:
Tennesse Self Storage Association; 31 August 2011.
"Tenn Self Storage Legislation: An Improvement for Renters and Businesses." Storage Plus News; 23 June 2011.
"Unofficial TNSSA 2011 lien law." Tennessee Self Storage Association.