Self Storage Contracts: Everything You Need to Know
Self storage contracts give essential parameters and agreement details that all parties can refer to for the sake of avoiding miscommunications and conflicts.3 min read
Self storage contracts provide essential parameters and agreement details that all parties can refer to for the sake of avoiding miscommunications and conflicts. Self storage agreements are also called:
- Storage Rental Agreements
- Storage Unit Lease Agreements
- Storage Unit Contracts
- Storage Space Lease Contracts
- Storage Space Lease Agreements
Such a document contains contact info, terms, purpose, and payment information. When it comes to contract information, the agreement should list the storage facility address, phone numbers, client address, and unit number. You may also include other phone numbers and email addresses if you please. Terms detail the beginning and end date of the agreement. For instance, you may agree to one year, or the contract can run on a month-to-month basis.
The unit purpose should list items stored within the unit, such as personal belongings, non-perishable property, among other things.
If you are an owner, you should also legally define what can and cannot stored in the facility. Also, you may limit the value of items stored to protect as a security precaution. Moreover, you should have the client agree that the overall value of the stored items not surpass $5,000, or you may set any amount that makes you comfortable.
You may also require that tenants do not store important documents, heirlooms, artwork, or other valuable goods.
In addition, the agreement should mention payment arrangements and whether payment schedules are subject to change. Further, include other provisions such as grace periods, late fees, deposits, and due dates in the contract. Regarding rate changes, add a provision that gives 30-days notice to heighten rents at when needed so you may stay on course with current market rates.
- Note: You should never agree to anything orally with no written contract. Each lease should state the following: “This contract contains the entire arrangement between all parties,” and “no oral agreements or promises from any agent or employee of ABC Storage that conflicts with this arrangement shall have any binding legality.” You may word such a statement differently, but the point should remain the same.
Further, be sure to disclose lien fees and how much would be charged accordingly. Also, state reasons why lien fees would become applicable to prevent miscommunication.
All rules should be posted onsite and in a place where tenants can see the rules. You should also include a clause in your agreement to the effect of: “All rules on the property are included as materials in this terms of this contract.” You may also add a sentence that permits notices in the form of rate changes or liens to be sent to a tenant via mail or electronically.
If a tenant fails to pay rent or breaches the agreement, nearly of the contents in storage can be sold to satisfy the remaining balance owed. Certain owners may also respond with collection proceedings. You should add a provision that would allow you to terminate within a given time, as prescribed by state law.
You should also list when a tenant can have access to his or her unit. The time limitations will depend on your discretion, but you should establish hours that restrict people from living in the unit. You may also mention how the unit should be used. For instance, you may permit the use of a unit as a business if you grant them permission to use power on the premises. Tenants may also need to make special requests, such keeping refrigerators on.
When it comes to liability, you should encourage renters to get some form of insurance to protect possessions and release your business of any liability in the event of injury, loss, or damage. You should ask an attorney to draft a clause that covers your business legally. You should also end the clause with a sentence that stresses, “By initialing here, you acknowledge that you have read, fully understand and agree to this provision.” You would then follow with a line where the client would place his or her initials.
Your lease should also mention multiple statements on reminding tenants that they are storing items at his or her own risk. Further, mention that your facility does not provide security or protect items, and that certain items on the facility are not designed to protect the unit or clients. Such items would include:
Stress that such items are in place for the sake of employees and the facility, and that your business cannot personally guarantee security.
To find out more about self storage contracts, submit your legal inquiry to our UpCounsel marketplace. UpCounsel’s lawyers will help protect your business by helping you draft a sound self storage contract that would safeguard your business from undue liability. In addition, our lawyers will be at your side if legal disputes stem from a breach of contract.