Automating the lien process is one way the self storage industry is benefiting from the digital economy, says Scott Zucker, an attorney and self storage legal expert.
“Automation of the lien process is something the industry has been waiting for,”
“Automation of the lien process is something the industry has been waiting for,” Zucker says. “It can be an automated process, and there is no reason it should not happen.”
Self storage is a regulated business, with 49 states plus Washington, DC, providing self storage lien laws within their statues that govern how operators can remedy the situation if a tenant defaults on the payment of rent. The regulatory process must be followed exactly to allow the operator to sell goods as part of their lien right and recover rent as a result of the sale of the property.
…During the last few years, nearly 70% of states have redrafted and modernized their lien laws. Another 10 states are currently working to do the same. As lien laws continue to evolve, storage operators must continually re-train existing and new store managers to keep up with the dynamic nature of the rules.
For operators, there are three areas of risk with liens. The content of notices must comply with the statutory requirements, the timeline for sending the notices must be followed with tenants having the right to pay their balance due to avoid a lien sale, and the sale must be advertised in a timely fashion. Automation can eliminate mistakes from each area of risk.