Self Storage Law News
- Category: Industry News
After more than a year hiatus, we will be bringing back the lien law web sites.
The magazine ISS stopped hosting the lien laws, so I will re-activate and update the website.
We will also re-activate the tenant friendly forum that will assist owner, managers, and tenants. https://forum.stocktonstorage.net/
Because the site had been down for more than a year, we will going through each state and updating the statutes. It will take us a little while. If there has been an update that you would like to see, you can email Ron through the contact section.
*as of March 27, 2017, we have all the states updated. We have not added any pending statutes at this time. If you know of a pending statute, please let us know. We are still searching through the text looking for dead links. There is still some digital spider webs we are trying to clean up. Using an older program that has been really helpful Xenu's Link Sleuth at http://home.snafu.de/tilman/xenulink.html
Article from ISS: Tiptoeing Through the Minefield of Self-Storage Lien Sales
excerpt... Lien-Sale Minefield
Of the lawsuits I’ve handled in which the plaintiff claimed a lien sale was conducted improperly, 100 percent have involved allegations that the operator failed to follow one or more technical aspects of the lien-sale process. Plaintiffs accuse self-storage businesses of:
Not properly noticing the sale
Conducting the sale on the wrong day
Not posting the sale in the newspaper long enough
Not conducting a proper inventory
Failing to have a sufficient number of bidders
Failing to have a written lease
California Customer Record's Law
California Civil Code section 1798.80-1798.84 talks about what is considered personal information. A tenant's address is on the list of personal information to be protected. A lot of payment receipts that are generated by Self Storage software have the tenant's home address on there. Anyone making a payment on the account receives a receipt with the tenant's name, unit number, and address. This does seem to be in violation of the statute. I would recommend removing that information from the receipts that you hand to the payee, however you should discuss this with your attorney to help access the risk for your facility.
A Trip Wire for storage facilities that California has added to the "Hiring" section of the California Civil Code:
SB-1186 has added to:
CALIFORNIA CIVIL CODE
TABLE OF CONTENTS
TITLE 5. HIRING
CHAPTER 1. HIRING IN GENERAL ................................. 1925-1938
1938. A commercial property owner or lessor shall state on every
lease form or rental agreement executed on or after July 1, 2013,
whether the property being leased or rented has undergone inspection
by a Certified Access Specialist (CASp), and, if so, whether the
property has or has not been determined to meet all applicable
construction-related accessibility standards pursuant to Section
Death of a Storage Tenant
We have added a new article section for probate and property distributions for each state. I will be adding each state as soon as possible.
Newspaper Advertisement Requirement
Some of the changes to lien laws are removing the lien sale advertising in the newspaper requirement.
I was little unsure these changes but after talking with the Stockton Record and seeing the article in the Wall Street Journal, it makes sense to move the lien sale advertising requirement from the printed version.
Nobody from the Stockton Record could explain why it would be important to keep the newspaper legal advertisement requirements.
From the WSJ.com Sector :
Newspaper Publishing Revenue 2010 (in millions):$40,726 Decline 2000-2010: -35.9% Forecast Decline 2010-2016:-18.8%
Establishments 2010: 6,128 Decline 2000-2010 Forecast: -28.6% Decline 2010-2016: -17.6%
The newspaper industry was able to fake their importance with a senator from southern California by claiming the storage facilities potential for mischief is limitless and the newspaper in the judicial district deputizes the entire community. Our city of almost 300,000 there is a subscription rate of under 5%, I do not see how that can deputize the entire community.
Self Storage Industry on Television:
Shows like Storage Wars on A&E , and Auction Hunters on Spike have brought a lot of attention to the lien process of the storage industry. People need to remember it is television with editing and staging of some events. Just because a vehicle was shown to be sold as parts in California, does not mean it really happened that way. Or that a lock is cut off at the time of the sale, most states require an general inventory of goods stored for the lien sale advertisement.