The New Hampshire Self Storage Association (NHSSA) and the national Self Storage Association have written an update to the state’s self-storage lien law that would enable facility operators to send sale notifications via e-mail, conduct lien sales online, place value limits on stored items, charge late fees, and tow motor vehicles from spaces that go unpaid. Senate Bill 192 (SB 192) is sponsored by state senator David Watters and co-sponsored by representative John Hunt. It’s currently before the Commerce Committee.
The bill would supplant the state’s current lien law, which is outdated. “The lien law was originally passed in 1999 and does not account for technological and operational changes that have occurred in the last 20 years,” NHSSA officials said in a released statement. “Several of the changes have been implemented in nearby states, such as Massachusetts, Connecticut, Rhode Island and Maine.”
Among the changes would be the use of e-mail for sending sale notifications and holding auctions on a publicly accessible website. Any proceeds remaining after the delinquency total is met must be held for 90 days for any lienholders of record or the tenant. If proceeds of an in-person or online auction aren’t enough to satisfy the tenant’s debt, the customer will remain liable to the facility owner for the amount owed, according to the bill.
In addition, the measure would allow operators to set a maximum value of stored contents in their rental agreements. The value limit expressed in the lease would be deemed the maximum value of stored property in the unit and the maximum liability for any claims.
The proposed legislation also enables operators to assess late fees equal to the greater of $20 or 20 percent of monthly rent. Late-fee policies must be stated in the tenant contract. The rental agreement may include late fees larger than the stipulated amount, but the burden is on the self-storage operator to prove the larger fee is reasonable.
Finally, SB 192 also allows self-storage operators to have stored vehicles towed after default surpasses 30 days.
If passed, the bill would take effect after 90 days. The NHSSA is hopeful the new law can be implemented this spring. It was introduced Jan. 3.
Source:
New Hampshire General Court, SB 192