The Evolving Issue of Tenant Terminations in Self-Storage

In self-storage, as in other commercial lease arrangements, there are essentially two types of tenant defaults: monetary or the failure to pay rent in full and on time, and non-monetary or the breach of the terms and conditions of the lease agreement other than relating to the payment of rent. When there is a monetary default, a self-storage operator’s remedy is outlined in the applicable state self-storage lien statute. The lien law is a self-help remedy for monetary default; the facility owner is not required to file a lawsuit to regain possession of the space and dispose of the contents. The operator simply follows the statutory notice requirements, and if rent is not paid, the tenant’s stored goods are eventually sold or disposed of. Most spaces are sold at public auction or sale.

When there is a non-monetary default, for example, a tenant residing in a unit or using the unit to commit criminal activity, the operator may terminate the tenancy by sending a lease termination notice as provided by the rental agreement or state law. If the tenant does not vacate, in most states, the operator must file a court action (either an eviction action or an unlawful detainer action) seeking a court order to remove and dispose of the tenant’s stored property.

In the last year, the National Self Storage Association, in partnership with several state self-storage associations, has sponsored state legislation to provide a self-help remedy to operators dealing with non-monetary tenant defaults. As a result, there have been state law changes in six states to date, with more on the way. Currently, in California, Georgia, Kansas, Illinois, Idaho, and Utah, an operator can remove and dispose of a tenant’s stored property after a non-monetary breach without filing suit in state court. Instead, the operator provides the hold-over tenant notice that if they do not remove their property from the storage space, it may be sold or otherwise disposed of by the operator. Each state is different, but here is a sampling of the changes to the laws:

California
The revised law requires the operator to send a statutory notice to reclaim the property, which may be sent to the tenant once the tenancy has ended and the tenant does not vacate. California’s law is unique since it includes the form the owner must use when a tenant holds over. If the property has a resale value of less than $300, it may be disposed of in any manner determined by the owner. If the property has a value of $300 or more, it must be advertised for sale and sold at a public auction.

Georgia
In Georgia, the statute permits the operator to send a notice of termination and allows the tenant only fourteen (14) days after delivery to remove their stored goods. If the tenant doesn’t return to reclaim their property, the goods can be removed and disposed of by the operator.

Idaho
In Idaho, the operator’s default rights must be included in the tenant’s rental agreement to be enforceable. Therefore, future rental agreements should include the language whereby the tenant is informed that if their lease is terminated, their property is subject to disposal if not removed in a timely manner by the tenant.

Illinois
The revised law requires an operator to give their tenant prior notice of the lease termination and allow the tenant fourteen (14) days to remove their property. After the cure period has passed, the operator is permitted to remove and dispose of the stored property.

Kansas
If the occupant does not retrieve their property in the rented space for more than 45 days after the date of a notice of termination or non-renewal, the operator may sell the property. The termination or non-renewal notice shall be delivered to the occupant pursuant to the terms of the rental agreement. Before the sale, a notice must be sent to the occupant by first-class mail stating that the operator may sell the property in the space unless the occupant removes such personal property.

Utah
A self storage operator may sell, donate, or dispose of any property remaining at the self-service
storage facility at the end of a rental agreement without liability. The operator must provide written notice to the occupant by first-class mail to the occupant’s last known address or by email to the occupant’s last known email address before disposing of the property.

The Self Storage Association has plans to expand this remedy to as many as ten more states in the 2025/2026 legislative session. Self storage operators seldom terminate a tenancy when the tenant is paying rent; it is sometimes necessary. This remedy solves the problem of the hold over tenants and allows facility owners to get their space back quickly without having to go to court.