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Wednesday, January 15, 2025
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SSA Blog

©2024 by the Self Storage Association (SSA). SSA and SSA Magazine are trademarks of the Self Storage Association, Inc. Opinions expressed by authors and other contributors do not necessarily reflect those of the SSA, publisher or editors, nor do they represent the policy or positions of the SSA. Information contained within articles should not be construed as the primary basis for legal or investment decisions.

10

SSA Announces 2025 Legislative Agenda

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SSA Announces 2025 Legislative Agenda

The SSA has a robust legislative agenda planned for 2025. The SSA, in close coordination with state association partners, intends to pursue self storage facility act amendments in Arkansas, Delaware, Florida, Georgia, Idaho, Illinois, Iowa, Maryland, Massachusetts, Michigan, Missouri, Nevada, New Jersey, New Mexico, New York, Ohio, Oregon, Pennsylvania, Rhode Island, Tennessee, Texas, and Washington.

As background, the SSA typically seeks seven core amendments to laws in states that have not previously adopted them. Overall, these amendments aim to reduce costs, streamline operations, and limit liability for the operator as outlined in more depth below.

 

Newspaper advertising: Historically, nearly all state lien laws required advertisements in the newspaper before an operator could proceed to sale. This is an outdated requirement. In recognition of the decline of newspaper readership and the growth of online channels, the SSA seeks to allow storage operators to advertise online through auction websites and sites such as Facebook Marketplace and Craigslist. Currently, 32 states and the District of Columbia permit alternative advertising or have no advertising requirement at all. In 2025, SSA intends to pursue advertising amendments in Delaware, Florida, Georgia, Idaho, Illinois, Missouri, Nevada, New Jersey, New Mexico, New York, Oklahoma, Oregon, Pennsylvania, Rhode Island, and Texas.

 

Contractual value limitation: Many operators include in their rental agreement a limitation of the value of the property that the tenant may store in the unit. Value limitations are a necessary tool for operators because they have no reasonable means to know the type or value of property that customers are storing on a self-service basis. A common rental agreement provision is as follows:

LIMITATION OF VALUE OF STORED PROPERTY: Occupant agrees not to store property with a total value in excess of $5,000 without the written permission of the Operator. If such written permission is not obtained, the value of Occupant’s property shall be deemed not to exceed $5,000. Nothing herein shall constitute any agreement or admission by the Operator that Occupant’s stored property has any value, nor shall anything alter the release of the Operator’s liability as set forth below.

Currently, 41 states have established statutory protection for this type of provision. In 2025, SSA intends to pursue legislative changes in Ohio (clean up) and New Mexico to recognize this provision in statute.

 

Online sales: Online sales can expand the audience of potential bidders by allowing bidders to submit bids without attending a one-day sale in person. More bidders can increase the likelihood of higher bids. SSA seeks to expressly permit operators to conduct any lien sales online while also retaining the ability to hold those sales “live” at the facility. Currently, more than 40 states expressly permit auctions to be conducted online. In 2025, SSA intends to seek this change in Arkansas, Maine, and New York.

 

Optional towing: Many storage operators do not want to go through the process for selling vehicles, watercraft, and trailers. The process can be cumbersome, and many operators are not frequently called upon to conduct these sales. Towing avoids the need for a sale and allows operators to return the space to inventory faster. Currently, 47 states expressly permit optional towing, while operators retain the right to sell vehicles, watercraft, and trailers if they wish to do so. In 2025, SSA intends to seek towing amendments in New York.

 

If you are uncertain about the adoption status of any of the changes outlined above in your state(s) of operation, please visit the Legal Resource Center at the SSA’s website.

 

New Amendments

 

The SSA also intends to expand the scope of self storage facility act amendments in 2025. In addition to those changes outlined above, the SSA intends to seek amendments to address the issues of an unsigned rental agreement and nonmonetary defaults.

 

Unsigned agreement: Most owners have executed rental agreements for their tenants. However, sometimes issues may arise and there is not a signed agreement on file. This can become problematic, especially if the owner needs to enforce their lien rights. The SSA is seeking amendments to address that issue. The amendment will provide express statutory authority to bind tenants to a new rental agreement if they continue to use the space or pay rent. If this amendment is approved, then the owner is on firm legal grounds to enforce their rental agreement and their lien rights, should that prove necessary. In 2025, the SSA intends to seek this change in several states including Delaware, Iowa, Massachusetts, Michigan, Oklahoma, Pennsylvania, Tennessee, and Washington.

 

Nonmonetary default: Storage operators are familiar with the lien remedy. When the occupant stops paying the process starts: overlocking the unit, sending notices, and finally, if necessary, selling the contents of the unit to partially recoup losses and return the unit back to inventory. However, this straightforward remedy is only available when the tenant stops paying their rent. What do you do if the tenant is good about paying their rent but, for example, is living in the unit or is using their unit for unlawful purposes? The answer has traditionally been you need to hire a lawyer and start the court eviction process. In 2025, the SSA is seeking a legislative fix to this “nonmonetary default” issue in several states including Delaware, Iowa, Massachusetts, Michigan, Oklahoma, Pennsylvania, Tennessee, and Washington. If successful, it would permit owners to dispose of or sell any remaining property in the unit after a certain number of days following delivery of termination or nonrenewal notice.

 

Electronic delivery: As technology has evolved, many storage operators have shifted some of their business practices to reflect current realities. One such change is the shift to electronic delivery of rental agreements. This year the SSA is seeking to get legislative approval that confirms that self storage rental agreements may be delivered and accepted electronically in Delaware, Iowa, Massachusetts, Michigan, Oklahoma, Pennsylvania, Tennessee, and Washington. This is settled law in every state, but it is not completely clear in the various self-service storage facility acts. This amendment confirms its already existing application to storage rental agreements.

 

Towing for reasons other than nonpayment: Many storage owners establish certain rules and requirements specific to vehicle storage. For example, many owners require, as a condition of the tenancy, that the occupant provide proof that the vehicle is adequately insured or maintain the vehicle in an operable condition. Many owners have expressed frustration with occupants who fail to comply with those terms and conditions. Further, many state laws historically were written to only allow for towing if the occupant failed to pay rent. This year the SSA is seeking to get legislative approval that confirms that owners may tow titled property for nonmonetary defaults in Delaware, Iowa, Michigan, Oklahoma, and Pennsylvania.

 

Defensive Measures: In addition to offensive legislation, SSA also opposes negative threats to the industry. So far in 2025, the SSA is already aware of legislation harmful to the industry proposed in Montana, Virginia, and Washington State.

Please contact the SSA if you hear of any negative legislative proposals in your area(s) of operation.

 

 

 

| Categories: Legal, Marketing, Operations, Legislative / Regulatory | Tags: Legal, State Laws, Lien Laws, Towing, Default, Rental Agreement | View Count: (135) | Return
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