Self-storage lien laws across the country have begun to change to keep up with modern technology.

These changes are occurring in response to lobbying by the national Self Storage Association, which works with its affiliates to protect the interests of the storage business.

One of the newest states to undergo such potential changes is Missouri, where House Bill 1225 was introduced.

This bill would allow storage facility owners to notify their defaulted tenants via email instead of or in addition to other types of contact attempts prior to an impending lien auction.

The default period would also been lengthened to 45 days rather than 30 to allow more time for delinquent tenants to recover their belongings. Vehicles could be towed after 60 days of delinquency.

Additionally, if the bill passes, Missouri storage owners can use public media other than newspapers for advertising their lien auctions, including websites. Most significantly for auction hunters, the law also allows Missouri storage facilities to hold lien sales online.

In addition to these changes to the way lien auctions are handled, the new law also provides storage facility owners with new tools for streamlining storage agreements and lien proceedings. Under the new bill, facility owners can work with renters to determine the value of the belongings stored at the facility.

This limits the liability of storage facility owners in the event of property loss or damage.

Whether this appraisal will have any effect on the value of auctions remains to be seen, but it is possible that it could affect the price of lockers auctioned in the state.

On the whole, however, these changes should be positive for everyone involved on the self-storage business, including auction hunters. The bill has passed through its initial stages in Missouri courts, and if passed it should go into effect this August.

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While other states are developing laws to streamline the lien auction process, New York Senator Tony Avella is working to create laws that could be very unfavorable to storage facility owners and auction hunters.

The bill was introduced on January 8. It proposes several new changes to the way storage auctions are handled in the state:

— Two lien notifications, rather than one, must be sent to the delinquent tenant.

— If the primary tenant cannot be notified, a secondary contact must be notified in his place.

— Tenants would have 30 days to satisfy their lien rather than 10 days as is currently allowed.

The purpose of these changes would be to give tenants better odds of recovering delinquent units. Senator Avella admits that his inspiration for introducing these laws came from witnessing the ever-growing popularity of storage auctions and wondering why any tenant would walk away from expensive belongings.

While the law could protect the interests of some storage tenants, it also introduces additional hassles to storage facility owners. Meanwhile, the proposed law would give no benefits to storage facilities themselves such as those seen in other states: The ability to contact renters through email, the ability to post lien advertisements online or the ability to hold an auction over the Internet.

Because of this, both the New York Self Storage Association and the national Self Storage Association are lobbying to oppose the bill. Given the SSA’s success in favorably changing storage laws elsewhere in the country, it’s possible that the bill might be modified to include terms more attractive to people in the storage business while still providing some additional protections to renters.

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 Slowly but surely, state laws are beginning to catch up with modern technology when it comes to storage auctions.

Starting January 1, 2014, Oregon will join the growing ranks of states whose reformed lien laws allow auctions to be held virtually rather than in person.

This news follows on the addition of two other states, Maryland and North Carolina, revamping their lien laws in October of 2013.

The laws are changing in response to pressure from the national Self Storage Association, which works to improve the storage industry for facility owners and storage renters alike.

Previously, storage facility owners in Oregon were required to list auction notices in the local newspaper and hold a live lien auction in a public location. Now, beginning with the new year, Oregon will have similar laws to other states that allow online auctions:

• Storage facilities can hold auctions on any publicly accessible auction site

• Facility owners can impose a fee of $20 or 20% of the late rent for each month of delinquency

• Delinquent tenants can be notified of a potential lien sale via email in addition to other contact methods

• Abandoned vehicles and boats can be towed after 60 days on the property

Online storage auctions are more convenient for buyers and sellers alike. Internet technology has made it easier than ever to advertise sales and hold auctions without many of the hassles of a traditional sale.

By utilizing an online auction site like OnlineStorageAuctions.com, a storage facility can sell off its abandoned units quickly and easily. As more states begin to change their lien laws to keep up with the changes in the industry, online auctions will become the new standard for the business.

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 The laws governing storage auctions have been slow to adapt to new technology.

Many states are still operating under laws written in the 1980s or earlier, and they can seem very outdated today. In many states, auctions are required to take place in a live location and be advertised through a local newspaper.

With the advent of the Internet and the ever-growing popularity of online auctions, these archaic rules can be a nuisance for storage facility owners.

Fortunately, some states are revamping their laws to match the demands and opportunities of new technology. In October of 2013, Maryland passed a law that would allow storage facilities in Maryland to hold auctions online rather than in person. Additionally, the new law made several other valuable changes to the way auctions are handled in the state:

• Delinquent tenants can be notified via email in addition to other types of contact, like phone calls and certified letters

• Vehicles, including RV’s and boats, can be towed away if they’re left at the facility for more than 60 days

• Storage facility managers can place a limit on the value of items that can be stored inside the facility.

• The owner can charge a late fee of $20 or 20% of the delinquent rent, whichever is higher, beginning after the waiting period written into the rental agreement.

These changes in Maryland’s lien / auction laws were brought about through the efforts of the national Self Storage Association, which has been working to update laws across the country for the benefit of the storage industry. Online storage auctions are more convenient for buyers and sellers alike, and making online auctions a legal option for facility owners provides more opportunities for making sales.

As more states begin to modify their laws regarding self-storage auctions, online sales will begin to become the norm.

Sites like OnlineStorageAuctions.com work to facilitate these auctions and make them easier for both buyers and sellers to take advantage of the newest technology behind lien auctions.

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As of October 2013, North Carolina has joined the growing list of states whose legislature allows lien sales to be held over the Internet.

Until now, storage auction facility owners were required to follow an outdated law that mandated all sales be made in person through live storage auctions. Now, with Governor Pat McCrory signing the bill into law, this has changed.

Aside from allowing storage facilities to hold lien auctions online, the bill allows several important changes in the way storage facilities run their business:

• Storage operators can now email delinquent tenants as part of the lien sale notification process

• Notices of lien auctions can be posted in local media other than the newspaper

• The late fees assessed to delinquent tenants have been revamped; they are now 15% or $15, whichever is higher, after a unit has gone five days delinquent

• Watercraft and RV’s that have been abandoned for more than 60 days can be towed away

The law, which came into effect October 1^st, had been in the works since March. Before the law went into effect, storage facilities were required to publish newspaper notices of a public sale at least five days before the auction; under the new law, a notice is still required, but it can be posted online or through other public means.

Under the new law, a storage auction is considered “viable” as long as it has three or more bidders who arrive at the designated time and place. This includes auctions held online through virtual auction sites like OnlineStorageAuctions.com.

For states that have not yet updated their legislature to allow online storage unit  auctions, storage facility managers can still utilize a virtual auction site in conjunction with their live auctions. As long as the sale is open for bidding at an advertised time and place, bidding can be started online.

This works as a good compromise until the laws are updated in other states.

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