SB 555

This bill makes various changes to the law regulating the leasing of space for

storage of personal property in self-service storage facilities (facility) and

self-service storage units (unit), primarily to the requirements for the notice and sale

of the personal property that is being stored in a facility or unit when the lessee

defaults in the payment of rent; provides that a vehicle being stored in a facility or

unit may be towed at the owner's expense if the lessee defaults in the payment of rent

and sets out the default and notice requirements that apply; and authorizes, and

establishes requirements for, the sale by a facility operator (operator) of self-service

storage insurance covering personal property being stored in a unit or at a facility.

Disposal of property stored in self-service storage units and facilities

Current law regulates the leasing of space for storage of personal property in

facilities and units, including requiring written rental agreements; creating liens on

personal property stored in the facility; limiting late rental fees; and establishing

procedures for the disposition of personal property if a person defaults in the

payment of rent or leaves the personal property behind at the termination of the

rental agreement. The bill includes the following changes to requirements for

disposal of property stored in self-service storage units and facilities:

1. The bill changes the time for when a late fee may be charged to five days,

rather than weekdays, after the rent is due.

2. Currently, an operator must give two notices to the lessee that he or she is

in default in the payment of rent or that rent has not been paid for personal property

left behind after the termination of the rental agreement. The first notice must be

sent by regular mail and must state that the lessee has failed to pay rent for storage

of the personal property and include a general description of the personal property

that is subject to the lien for payment of rent. The second notice must be sent by

certified mail or first class mail with a certificate of mailing. This notice must state

that there is a lien on the personal property being stored in the leased space and

include a general description of the property subject to the lien. Under the bill, the

first notice must be sent by regular mail or electronic mail and the second notice must

be sent by electronic mail or any method of mailing offered by the U.S. Postal Service

or other commercial mail delivery service that provides evidence of mailing. The

notices may be sent by electronic mail only if there is confirmation of receipt. The

bill also removes the requirement that the notices contain a general description of

the personal property that is being stored and that is subject to the lien for payment

of rent, but requires the operator to make available to the lessee, upon the lessee's

request, either photographs or a video of the personal property.

3. Under current law, if the lessee does not redeem the property after notice by

paying the rent and any other charges that the lessee owes, the operator may sell the

property after advertising the sale once per week for two consecutive weeks in a

newspaper of general circulation where the facility is located. The bill changes the