Understanding Legal Obligations in Self Storage Property Management
Entering into a self storage property management agreement carries legal obligations. These include understanding both the manager’s and tenant’s obligations, maintaining legal and regulatory compliance reports, reminding the tenant of their rental agreement, and mitigating risk. At The Storage Mall, we have decades of combined industry experience and a thorough understanding of legal obligations. Here is information to help navigate them:
Understanding Owner and Tenant Obligations
Understanding the terms and conditions agreed upon between self storage property management owners and their tenants should be paramount. The rental contract serves as the foundation for preventing and resolving issues. It outlines terms for rent delinquency (including monthly rent due dates), late payment penalties, and billing procedures. For tenants, take the time to understand the agreement, as it can vary in length and structure. It’s also worth asking about administrative fees and insurance requirements.
Many self storage companies include deposit requirements in their rental agreements, but each location may handle them differently. Some apply deposits toward the final month. Others are able to refund the tenant under certain conditions. At The Storage Mall, we provide a personalized, flexible rental agreement for each tenant, including both month-to-month and fixed-lease options.
Complying with Legal and Regulatory Reports
Regulatory compliance requires self storage property owners to maintain accurate financial records. Industry experts often help facility owners review and adjust budgets, including lease agreements, to remain in compliance. They can also align operations with property management requirements, including those related to tenants’ rights.
At The Storage Mall, we stay up to date on these laws and best practices; we also offer ongoing staff training. Our team can also provide ongoing reports to verify the accuracy of a storage operation’s finances. These reports include:
- The recording and depositing of rent payments
- Reconciliation of revenue
- Tracking of merchandise sales
We intend regulatory reports to prevent legal issues and to better protect the storage facility’s reputation.
Reminding Tenants of Their Obligations
One responsibility of a self storage property owner is to remind tenants of their rental agreements. This includes notifying them of upcoming deadlines, overdue rent balances, and late fee details. Encouraging tenants to pay rent on time can help facilities avoid revenue loss; many owners offer reasonable grace periods to accommodate unexpected challenges.
Mitigating Risk via Liens and Other Resources
To protect self storage owners from unexpected costs when tenants don’t meet their rent obligations after extended payment deadlines, lien policies should be in place. This allows owners to recover unpaid rent by claiming the right to auction the tenant’s items. At The Storage Mall, our team takes the time to understand and enforce the state’s lien laws to help guide owners through this process.
Risks in self storage property management can range from property damage to tenant liability claims, from financial errors to contract issues. Recruiting managers who understand how to handle daily operations and customer disputes often helps. Facility owners may hire industry experts to reduce financial risk by evaluating key performance metrics, preparing regular financial statements, and assessing income and expense records; this helps prevent potential billing or budgeting issues.
Safeguard Self Storage Property Management
To understand their legal obligations, both owners and tenants need to be clear about the terms and conditions in their rental agreements. Reminding tenants of the details in their contract, including payment due dates and late fees, can help both parties meet their obligations. If seeking a third-party vendor, inquire about their understanding and experience with the industry’s legal requirements. At The Storage Mall, we’re equipped to help self storage owners mitigate financial risks and protect their bottom line. For more information, contact us today.