Louisiana updates self-storage privilege legislation

Louisiana Governor John Bel Edwards signed into law Senate Bill 101 (SB 101) on June 7, which will allow self-storage operators to advertise lien sales on online auction websites. online rather than in a mass-circulation newspaper. The measure also updates lease agreement requirements for default notices. All changes come into effect on January 1, 2022.

Starting next year, self-storage rental contracts require renters to provide two email addresses and a mobile phone number. Facility operators must also inform customers, either as part of the rental agreement or by verified mail, of the company’s right to assert a lien. If this information is included in the lease, it should be at least 12 point bold and the client should initial beside the language when signing. If delivered by post, the information should also be sent by email and SMS.

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

Operators can still advertise a lien sale 10 days after the notice is sent to the tenant or at least 10 days after the payment deadline has expired, whichever is later. While this timeframe has not changed in the updated law, operators must wait 30 days to begin lien enforcement if the Notice of Lien Rights was mailed to the tenant instead of included and recognized in the rental agreement.

The National Self Storage Association (SSA) recommends operators update their rental agreement well before the law takes 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.

According to its website, the SSA represents approximately 22,000 affiliated self-storage facilities in the United States and abroad. It is allied with several national and international self-storage associations and has approximately 6,000 members.

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