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Louisiana Updates Self-Storage Lien-Law Legislation

Louisiana Gov. John Bel Edwards signed Senate Bill 101 (SB 101) into law on June 7, which will allow self-storage operators to advertise lien sales on online-auction websites instead of in a newspaper of general circulation. The measure also updates rental-agreement requirements regarding delinquency notifications. All changes go into effect on Jan. 1, 2022.

Beginning next year, self-storage rental agreements request that tenants provide two email addresses and a cell-phone number. Facility operators must also inform customers, either within the rental agreement or via verified mail, of the company’s right to enforce a lien. If this information is included in the lease, it must be in bold type at least 12 points in size, and the customer must initial next to the language when signing. If delivered by mail, the information must also be sent via email and text message.

When notifying delinquent tenants of an active lien, self-storage operators must send written notices via verified mail to the last known physical address on the rental agreement as well as by email (primary and secondary addresses) and text message, if provided on the lease.

Operators can still advertise a lien sale 10 days after notification is mailed to the tenant or at least 10 days after the payment deadline has passed, whichever is later. Though that timeframe didn’t change in the updated law, operators must wait 30 days to begin lien enforcement if the notice of lien rights was sent to the tenant via mail instead of included and acknowledged in the rental agreement.

The national Self Storage Association (SSA) recommends that operators update their rental contract well in advance of the law going into effect on Jan. 1, according to a June 14 newsletter emailed to members. The bill was supported by the SSA and the Louisiana Self Storge Association, which lobbied to eliminate the newspaper-advertising requirement.

The SSA represents about 22,000 U.S. and international member-affiliated self-storage facilities, according to its website. It’s allied with several state and international self-storage associations and has about 6,000 members.

Sources:
SSA Magazine Weekly 6/14/21, Amended Louisiana Lien Law Brings Change for Industry
Louisiana State Legislature, SB 101

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