New Minnesota Self-Storage Lien Law Goes into Effect Aug. 1

Update 7/29/14 – A new self-storage lien law signed in May by Minnesota Gov. Mark Dayton will go into effect on Aug. 1. Senate Bill 2398 contains language and procedures specific to self-storage and removes the enforcement of liens from under the state’s warehouse lien laws. Among its provisions is the allowance of tenant-delinquency notices to be sent 10 days after default by Certified Mail or e-mail, as long as the tenant has provided written consent. The law also outlines the self-storage lien-sale timeline and publication requirements.

The national Self Storage Association (SSA), which chartered the Minnesota Self Storage Association last year, worked with local operators to formulate the measure. “The new law improves what was one of the most awkward default processes in the country,” SSA officials said in the association’s weekly e-mail newsletter. “Where new obligations are required on the part of the owner/operator, an addendum to existing leases will satisfy the new law.”

The bill was passed unanimously by the House and Senate.

4/29/14 – The Minnesota Senate unanimously approved a bill last week that would change the administering of the lien-law process for self-storage operators. Senate Bill 2398 includes language similar to those enacted in other states, such as Indiana, Kentucky and Michigan.

The national Self Storage Association, which chartered the Minnesota Self Storage Association last year, has been working with local operators to formulate the new law. Prior to the bill, the enforcement of self-storage liens fell under the state’s warehouse lien laws.

The measure outlines new procedures specifically written for the self-storage industry and includes directives on informing tenants of their defaulted status. It would allow tenant-delinquency notices to be sent 10 days after the default by Certified Mail or e-mail, if a tenant offers written consent. It also stipulates the full amount a tenant owes must be included in the notification as well as a request for payment no less than 14 days after the tenant receives the notice.

The bill also outlines the lien-sale timeline and publication requirements. Operators can hold a lien sale 45 days after the tenant defaults on the rental. They must also publish information about the lien sale once a week for two consecutive weeks in a newspaper of general circulation or on a website that advertises self-storage lien sales or public notices. The sale cannot take place less than 15 days after the first publication.

The measure also addresses motor vehicles, including boats, and would enable operators to either sale the property or have them towed after delinquency exceeds 60 days.

SB 2398 is now being considered by the House.