Storage lien laws provide a remedy for storage unit owners.
Storage units allow flexibility to consumers who lack the space to store their belongings for a monthly fee. Basically, the consumer is leasing space in a unique landlord-tenant scenario, which significantly limits the type of use for the space in exchange for monthly rent. Like a residential or commercial lease situation, landlords or storage companies can evict a tenant for non-payment of rent. However, sometimes when eviction occurs, belongings are left behind. States have enacted storage lien laws to protect storage unit owners and generally have the same requirements.
Self-Storage Law
Many states have adopted a self-storage law. In Florida, for instance, it can be found at Florida Statutes section 83.801 and subsequent sections. It discusses the nature of self-storage, provides definitions and provides the procedure by which a storage unit owner can assert a lien against the personal property items left behind by a non-paying tenant. The law is very similar across other states.
Lien is Automatic
What most people would not anticipate is that the lien attaches to the personal property within the storage unit as soon as the items are placed in the storage unit, even if the personal property does not belong to the tenant. However, the landlord cannot act on the lien until after certain procedures are followed. The only property that requires special treatment to secure a lien is property with a perfected security interest, usually financed property. In those circumstances, the landlord must give notice to the security holder/creditor.
Notice
Prior to acting on the lien, certain procedures must be followed. Like most states, Florida requires a notice be provided by certified mail or in person to the tenant that he has defaulted on the rental agreement and also requires a demand for payment. However, unique to Florida is that five days after default, the landlord can deny access to the unit. The notice must provide an itemized list of the personal property, among several other specific requirements. Failure to comply with the notice requirements can limit or destroy exercise of the lien.
Auction
After notice to the tenant, the tenant typically has 14 days to cure the default. If he fails to do so, the landlord can provide notice in the newspaper, once a week for two consecutive weeks, advertising that the items will be auctioned. Fifteen days after the first notice is published, the landlord can conduct an auction of the personal property. The amount of money earned from the auction in excess of the amount owed to the landlord must be returned to the tenant.
Tags: personal property, storage unit, certain procedures, days after, landlord must, left behind