07/08/2024

Are You on the Self Storage Naughty List?

We asked self storage lawyers, and they agree! If you're doing any of these things, you're on the self storage naughty list. Let NeSSA help you run your facility as easy, cost effectively - and legally - as possible.

1. You don't comply with your current state's lien law. Laws are rapidly changing, and operators need to keep up or be at risk of making mistakes. For example, your notices and advertisements must have all the required information. NeSSA has each state's lien law and a breakdown of how to follow them available in our Member Resources section.
2. You haven't updated your rental agreements. Whether it is state law issues or best practices updates, your lease must be kept current to protect you. A strong rental agreement is the backbone of a strong self storage business. Be sure that it meets the state minimum requirements and has been reviewed by a knowledgeable self storage attorney. NeSSA offers attorney-created indoor and outdoor lease agreements for our members with free lifetime updates for members in good standing.
3. You don't understand or are ignoring the military status of your occupant. Active military and their dependents have extra protections under the Federal law. You must comply with these extra protections and to do so, you must understand what they are and how to handle them. Failure to comply can result in civil and criminal penalties. Your state association can help you understand how to properly handle military status.
4. "No good deed goes unpunished." You're making choices to help your customers at the sake of policy and procedure. Taking shortcuts to help will eventually get you into trouble. NeSSA exists to serve our members and is always available to help resolve your operational questions.
5. You don't have a process to maintain your facility and spot bad behavior. Do not allow your facility to be an easy mark for thieves or people looking for a place to live in a storage unit or store problematic property. Aside from online resources, NeSSA has both live and online continuing education to keep owners and operators up to date on best practices.
6. You aren't properly handling your tenant's bankruptcy to avoid the consequences. Too often operator's emotions get in the way of compliance with the legal requirements they must follow if their occupant files for bankruptcy protection. The consequences of not handling this properly range from fines, penalties, and responsibility to pay for the debtor's attorney fees, up to contempt of court. Your state association has a plethora of resources ranging from lien sales and bankruptcy to deceased tenants and military searches to help you run your business 
7. You're using a rental agreement that comes from your software or that you borrowed from another facility. You have millions of dollars tied up in your investment and are trying to save money by ignoring the only document that can stand between your facility and a lawsuit. All of the states NeSSA represents have form rental agreements for sale to members. Bob Copper always asks, "How many lawsuits can you afford?" If the answer is none, then join NeSSA to have access to our standard rental agreements.

Join NeSSA Now

Special thank you to Joe Doherty, Jeffrey Greenberger, and Scott Zucker for their insights.