The self storage industry has seen a boon in business in recent years while the nation has been undergoing some rough economic times. Although business has been good overall, an increase in business in general has also resulted in an increase in a part of the business that is not so good—liens and auctions.
Auctions are a regretful but necessary part of the industry. Whenever a tenant fails to pay their rent for a certain period of time the owner of the facility has the option to put the contents of delinquent units up for auction in order to recoup unpaid rent.
Many states have been working at updating the lien laws as they pertain to the self storage industry in their respective states. A number have already had success, but there are many that are still hard at work at updating old laws.
Self storage facilities in Florida could end up being the next to see their laws updated. A pair of bills have been filed with the state and will soon go before the respective committees in the House and Senate capping off three years of work by both the state level and national self storage association.
If passed, the following are some of the changes that will be made to the existing law that was created back in 1979:
• Tenants can notify facilities of a change of address via first class or email.
• A notification of default can be sent via first class mail or email as long as receipt can be verified.
• Facilities will be required to ask prospective tenants whether they are in the military so that they may extend protection as afforded to them under the Service Members Civil Relief Act.
The proposed changes are expected not only to make the lien process easier, but will save facilities money as well.
For the last three years the national level self storage association has been assisting state level association with getting bills passed to update lien laws in their state. It has spent over $400,000 to help states do so as well as give $106,000 in grants.
Texas is one of the many states that have updated their lien laws in the last year. The changes, including new lease that is expected to save both time and money, went into effect on January 1.
“I believe most self-storage owners would be best served by updating to the new lease,” said TSSA Marketing and Membership Director Silvia Pendleton.
Along with Florida, a dozen states are hoping to see their laws updated in the coming year.
Sources used:
“Self Storage Lien Laws Bills Filed in Florida House and Senate.” Inside Self Storage; 13 January 2012.
“New Lien Laws to go into Effect Soon in Texas.” Self Storage Industry News; 04 November 2011.