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Self Storage Lien Sales in the 21st Century
Cheli Rosa
Business in the 21st Century
Self Storage in the 21st Century
• Online payments and reservations• Online rentals• Paperless Rental Agreements• E-Mail Communication• Online lien sales• Online legal advertisements• Use of tablets and mobile devices in daily operations• Use of social media as a legitimate form of advertising• SEO and Google Rankings• Web based management software
Self Storage Lien Sale Changes in the 21st Century
21st Century Changes Affecting Self Storage Lien Sales• The rise of the digital age• The growth of the millennial generation• The popularity of reality TV
The Digital Age
Much more difficult and time consuming to communicate ideas if
not in person
Communication of many different forms at your
fingertips
Millennial Generation
• The “Net Generation”• Electronics filled, increasingly online, and social networked• Over 80 million people in the US; more than any other generation.• They communicate digitally about anything and everything!
Reality Television
Even Grandma is Talking About Storage Auctions
Places One Can Get Information About Storage Auctions
• Blogs• Vlogs• Auction Company Websites• Amazon• Pinterest• Google • TONS of Social Media Websites• Reality TV
Perception is Nine Tenths of the Law
The perception of self storage is being shaped by reality television.
What Reality TV Does Not Show
• Late notices and calls• Certified mail receipts• Payment plans• Debt owed/lost income• The lock cut procedures and over locking• The amount of time the operator spends attempting to get a payment prior to a sale• The paperwork and effort that goes into notifying tenants• Your many, many attempts to prevent a lien sale
Class Action Lawsuitswww.bigclassaction.com
They are Watching You
Insurance Claims
• Be on the lookout for scams! • Be careful what you determine abandoned and decide to throw away.• Tenants are renting units, leaving what appears to be trash, and letting it go to sale. After the sale or after the lock cut, they come back to you and claim there were valuables in the unit.• Be wary of tenants that you cannot reach or collect from immediately after the move-in.
What do you do??
Educate Yourself1. Do you know where to find your state statutes pertaining to self
storage?• CT - https://www.cga.ct.gov/2011/pub/chap743.htm
• MA - https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXV/Chapter105A
2. Study the statute; become one with the statute.
3. Know all of the rules regarding lien letters and advertisements.
UCC SearchesThe Uniform Commercial Code (UCC) is a set of policies governing commercial transactions.
Connecticut Statutes Sec. 42-161 (b)
The owner shall notify the occupant and any person who has filed a valid security interest in such property with the Secretary of the State of his intention to satisfy the lien with a written notice which shall be delivered in person or sent by registered or certified mail, return receipt requested, to the last known address of the occupant.
Connecticut Secretary of State UCC Filings
http://www.concord-sots.ct.gov/CONCORD/online?sn=PublicInquiry&eid=9755
UCC Searches cont’d.Massachusetts Statute Chapter 105A, Section 4
(1)No sooner than five days after such default, the occupant and all other persons known to claim an interest in the goods shall be notified by regular mail or electronic mail sent to the last known address of any person to be notified.
(2)No sooner than 14 days after default, the occupant and all other persons known to claim an interest in the personal property shall be notified by electronic mail or verified mail, sent to the last known address of any person to be notified, or by hand delivery of said notification.
Massachusetts Secretary of State UCC Search
http://www.sec.state.ma.us/cor/corsearch.htm
Tenants in Bankruptcy• Automatic Stay - If your tenant notifies you that they have filed bankruptcy, you must cease all collections efforts. This includes: late calls, late notices, late emails, late text messages, late social media messages. • The tenant must pay ALL rent and fess that become due after filing for bankruptcy. • Find out who the bankruptcy trustee (attorney) is and contact them regarding the status of the case. They might sign an abandonment at which time you would be able to sell the contents.
PACER – Public Access to Court Electronic Records
https://www.pacer.gov/
Active Military Tenants
You cannot sell personal property belonging to a
member of the active military or their spouse until they have been removed from active duty for 90 days.
Why? Servicemembers Civil Relief Act (SCRA)
https://www.justice.gov/sites/default/files/crt/legacy/2011/03/23/scratext.pdf
Active Military SearchesHow do you know if your tenant is on active duty military
status?
1. Ask them! Ask this question on your rental agreement or customer information sheet.
2. FREE SEARCH - https://www.dmdc.osd.mil/appj/scra/single_record.xhtml
3. PAID Search - https://www.servicememberscivilreliefact.com/?gclid=COC5vIm6-MsCFYMehgodm7QN5A
Deceased Tenants
• Confirm any information you are getting regarding your tenant is accurate. Ask for documentation. • Request a certified copy of the “Letters of Testamentary”• Request a copy of the death certificate.• Request a picture ID of the executor or administrator of the account. • Confirm the identity of the executor with the probate court.
Granting Access
What do you do if someone other than your tenant claims to have a right to the property and requests access?• Ask for paperwork from the probate court dictating they are now responsible for the estate.• Ask for an affidavit proving responsible party.• Collect the rent owed.
Selling Vehicles at AuctionConnecticut The CT self storage statutes outline a specific process that self storage operators must follow if they property they wish the sell is a motor vehicle. • CT DMV Requirements for vehicles in storage
http://www.ct.gov/dmv/lib/dmv/regulations/42-160.pdf
• Other requirements of the CT DMV
http://www.ct.gov/dmv/cwp/view.asp?a=816&q=452138
• CT Requirements for selling an abandoned vessel - CT Statutes 847, Liens, Section 49-55 through 49-59https://www.cga.ct.gov/2011/pub/chap847.htm
• CT forms for the Department of Energy and Environmental Protectionhttp://www.ct.gov/deep/lib/deep/boating/abandoned/form_-_notice_of_abandoned_vessel.pdf
Towing Vehicles Massachusetts • MA allows storage operators to tow stored vehicles after 60 days of non-payment. • The tow company shall comply with MA Section 39A of Chapter 255.• If the storage operator did wish to sell the vehicle, they would also be bound by any MA DMV rules or procedures.
#1 Defense
A Well Written Rental
Agreement
