Without such a provision, if a tenant collects from its insurance company on a loss or damage claim, the insurance company would have the right to then seek recovery back against the facility for their payment of that claim. Related to insurance, a good self storage agreement should also contain an indemnification provision whereby the tenant agrees to indemnify and hold the self storage facility harmless for property loss or damage or personal injury which it causes from its use of the facility.
In other words, where a third party is injured as a result of the tenant's acts, and that third party seeks to recover against the facility, the facility can look to the tenant to recover for any damages it is required to pay that injured third party. Almost every state self storage law requires that certain language be incorporated in the rental agreement to notify the tenant of the landlord's right to lien its tenant's goods and sell those goods once the tenant is in default.
By far, the self storage rental agreement is one of the most important tools in operating a self storage facility.
Therefore, it is important for facility owners and operators to take the time to stop and review their agreement to confirm that the document they're using is up to date and effective for its intended purpose. Has your state law been amended since the agreement was written?
Courts will likely not uphold a facility's lien enforcement rights if the facility has not properly complied with the requirements of the statute. Self storage rental agreements should also include language addressing restrictions as to what can be stored in the unit, the termination rights of both the landlord and the tenant, and what defines a tenant's abandonment of its property.
Other provisions should address warranties, partial payments, the landlord's right to obtain access and their right to change the terms of the agreement upon proper notice to the tenant.
If you haven't done so in awhile, take some time to read your agreement and test it to see whether it needs updating.
A tenancy agreement is basically a contract that documents the terms and conditions of a landlord for his/her tenant(s).First, there should be a limitation of value provision which explains that the value of the property to be stored cannot exceed a certain amount (commonly ,000) unless previously approved in writing by the facility owner.Under this type of provision the facility would allow a tenant to store property with a value greater than ,000 if the tenant could provide proof of insurance for 100% of the estimated value of the property.A statement that the self storage owner is not a bailee, and does not take care, custody or control of a tenant's goods, must be explicitly addressed in the agreement.Keep in mind that judges who are deciding cases concerning tenant's claims will look primarily to the rental agreement to determine the facility owner's obligations to the tenant.No rental agreement is perfect, nor does it have to be.