Indiana Gov. Eric Holcomb signed an update to the state’s self-storage lien law on March 8 that allows facility operators to charge late fees and recover expenses for lien enforcement and rent collection. House Bill 1194 (HB 1194) will go into effect on July 1.
The law enables operators to assess monthly late fees to delinquent tenants of up to $20 or 20 percent of their rent, whichever is greater, as well as recover reasonable expenses incurred for collections and pursuing the lien. It also clarifies that assessed late fees and recoverable expenses are part of the operator’s lien against a delinquent tenant’s property.
HB 1194 was supported by the national Self Storage Association and the Indiana Self Storage Association.
Introduced in January, the bill passed the house on Feb. 1 with an 86-6 vote. An amended version of the bill passed the senate 47-1 on Feb. 26.
Sources:
Indiana General Assembly, HB 1194
The Monday Morning Globe 3/26/18, SSA, Indiana SSA Team Up on Lien Law Reform Bill Becoming Law