An Introduction to New York Self Storage Laws
Did you know that New York self storage facilities can sell your property if you fail to pay the rent on time? What does the NY Code say you can do to halt a sale? What are your rights if the stored property has been sold? What are New York's laws on self storage facilities?
This Article Answers 3 Questions About NY's Self-Storage Laws
- What Are New York's Laws on Self-Storage Facility Contracts?
- What Are New York's Laws on Storage Facility Liens?
- Are there Any Quirks in the New York State Laws
What Are New York's Laws on Self Storage Facility Contracts?
Self-storage businesses in New York can specify a liability in their contracts. The liability could be per room size or a capped dollar amount beyond which the owner is not liable. This liability must be included in the occupancy agreement to be valid. The owner can charge a higher monthly fee if the person’s property is especially valuable. Owners must state up front if the contract is for one unit or multiple units.
NY's Requirements for Occupancy Agreements for Self Storage Units
- Must be written, dated, and signed by both the owner or his agent and the occupant.
- All disclosures must have the name and address of both the owner and the occupant and the street address of the self-storage location where the property will be stored.
- New York law requires all disclosure forms to have the phone number occupants use to reach someone when they have questions about their property, fees, or notices received from the rental facility.
- Occupancy agreements must give the occupancy charge and any additional charges occupants must pay. Additional charges include both optional ones like insurance and mandatory ones like utility fees for temperature controlled units and applicable sales taxes.
- If the valuation of the property is increased, the self-storage facility owner must send a letter to the occupant with the increased valuation, the higher monthly rate proposed and a pre-addressed request form that the occupant can use to request the higher rate. Owners of self-storage in NYC cannot simply increase the monthly rate per a perceived increased value of the property in the storage unit.
NY Code - Section 182
- N.Y. LIEN LAW § 182 :
NY Code - Section 182: Self-service Storage Facilities and Liens
New York Laws on Storage Facility Liens
Self-storage facility owners have a lien against the property stored at the facility for current charges to date and future ones that may be accrued. While the monthly rental fee is the most common charge associated with the lien, the owner can also charge security fees, utility fees and other reasonable fees to protect and secure the property. The lien is secured only to the property at the self-storage facility.
In NY Can the Occupant Challenge the Lien in Court?
- The lien sale can be challenged per section 7-210 of the Uniform Commercial Code.
- If the court invalidates the lien, the occupant is entitled to the property.
- If the owner establishes the validity of the lien, the sale can go forward five days after a copy of the judgment is made available.
- The occupant can pay the lien balance and redeem the property prior to the sale.
- Self storage facilities are legally required to surrender the occupant’s property when the amount owed has been paid. Failure to do so is considered an unlawful detention of goods and is a legally actionable offense. If the court finds that the occupant’s goods were subject to unlawful detention, the occupant can sue for up to three times the damages they suffered and any legal fees they have accrued.
- If you own self-storage in NYC, never hold someone’s property for ransom for money they do not owe or out of malice; it will cost you dearly.
The New York court case “Matter of Lewitin vs. Manhattan Mini Storage” confirmed that a single phone call to inform the client is insufficient. Multiple attempts must be made to reach the client must be made, including at least one certified letter.
Are There Any Quirks in New York State Law on Self-Storage?
- The state of New York requires all warehouses to have a license except for the self-storage industry. However, self-storage facilities can choose to have a license.
- Self-storage facilities should have insurance.
- A self-storage in NYC cannot contract with other self-storage facilities to assume part of the liability for an occupant’s loss. This was determined by the New York State Insurance Department, Office of General Counsel, in opinion number 11-04-03.
Questions & Answers
If I purchase a storage unit at auction, what do I have to return to the previous owner?
Assuming we're not talking about a service member who has extra protections when their items are in storage, you probably are not required to return things (in most states). It would be considerate to return personal documents, jewelry, and other items. If you're not sure of the legality, you can contact the unclaimed property of your office and hand it to them.Helpful 2
What is the correct procedure for advertising a self-storage unit for sale?
If you own the items in the unit, you can put up a general classified offering the items for sale. If you're essentially foreclosing on the property, you need to research the required rules for your jurisdiction on trying to notify the owner, give them proper time to respond, and then hold the sale.Helpful 1
I’m being charged insurance, pre-lien fees and less than 30 day late fees - is this legal?
If you are late paying the monthly bill, late fees are always reasonable. Insurance is something they can mandate, just as a landlord may require tenants to have renter's insurance.Helpful 1
What action can we take if a tenant is not paying for the storage fee for their unit?
Depending on the contract, the state you're in and laws like those giving service members more time before you can foreclose and sell their property, you can eventually empty out the unit for nonpayment. Whether you throw out the items, donate them or auction them off depends on you. And you can sell the unpaid debt to a debt collector to get it off your books and end the business relationship.