In 2015, a self storage facility in San Diego violated the Servicemembers Civil Relief Act (SCRA) by auctioning off a U.S. Navy member's stored belongings without obtaining the required court orders.
The SCRA prevents storage facility operators from selling active-duty military personnel’s belongings without following strict procedures.
The servicemember had failed to pay rent while deployed, and the facility proceeded with the sale, violating SCRA protections. As a result, the facility was ordered to pay $170,000 in damages.
This is the perfect example of why self storage facility owners must know their region's applicable regulations and laws.
If you don’t abide by the rules in your area, you could face:
❌ Costly fines and penalties.
❌ Reputational damage.
❌ Legal action or criminal charges.
❌ Revocation of licenses.
❌ Operational disruptions.
We’ve put together this guide to help you ensure that you stay on the right side of the law while running your self storage business.
In this article, we’ll discuss the rules, laws, and regulations applicable to storage facilities in the U.S. and UK.
What Are Storage Facility Rules and Regulations?
Source: Freepik
Self storage facilities are governed by various rules and regulations that aim to protect both operators and their customers. These rules vary depending on your jurisdiction and apply to things like rental agreements, notice requirements, right to access, and prohibited items.
Self Storage Rules in the UK
Source: Freepik
There is currently no legislation in the UK that specifically regulates the activity of self storage facilities. However, there are some laws that apply to the industry:
➡️ Torts (Interference with Goods) Act 1977
The Torts (Interference with Goods) Act 1997 clarifies the rules regarding disputes over the possession or handling of goods.
This legislation applies to the self storage industry in the UK, particularly in cases where the facility handles or disposes of a tenant’s goods.
The Act governs the rights and responsibilities of both the operator and customers involving goods, covering wrongful interference, detention, and disposal. It also establishes processes for resolving disputes about the possession and disposal of goods in specific circumstances.
➡️ Consumer Rights Act 2015
The Consumer Rights Act 2015 strengthens consumer protections, making it easier for individuals to understand and enforce their rights when buying goods and services.
This act governs contracts between businesses and consumers, ensuring fairness and transparency.
For self storage owners, this means rental agreements mustn’t include unfair terms, and they should be easy to understand.
This Act also states that operators must handle complaints and refunds in accordance with statutory guidelines.
➡️ Consumer Protection from Unfair Trading Regulations 2008
The Consumer Protection from Unfair Trading Regulations 2008 is designed to protect consumers from unfair and misleading business practices.
This prohibits storage facilities from misleading practices or omissions that could deceive customers, including false advertising about services or fees.
It also covers concealing critical terms, such as cancellation policies or penalties for late rent payments.
➡️ Storage agreements
The agreement (your contract) is the primary legal tool governing the relationship between facility owners and the storer.
In most cases, this will be the Standard Self Storage Agreement, a legally binding contract, or something similar.
The Standard Self Storage Agreement may be subjected to legal scrutiny via consumer protection legislation enforced by Trading Standards.
If you don’t have this agreement in place, you open your facility to potential legal action and misunderstandings, so it must be watertight.
Source: Freepik
As mentioned above, there aren’t any specific laws that govern self storage in the UK, but the Self Storage Association (SSA) United Kingdom outlines some guidelines for operators to follow. The association has a template contract that you can use to help you comply with regulations in the UK.
➡️ Marketing rules
Your responsibilities as an operator start before you sign up your first tenant, especially when it comes to marketing your business.
Trading Standards and Consumer Protection regulations govern your advertising and promotional activities, so they must be clear and honest.
Contract law also means that any verbal claims you or your staff make can be considered binding as a part of the contract with the tenant.
The General Data Protection Regulation (GDPR), implemented in the UK through the Data Protection Act 2018, applies to all businesses, including self storage operators, that process personal data. In marketing, GDPR sets strict rules for collecting, storing, and using personal information for marketing purposes. We will discuss data protection again later in this article.
For example, let’s say you guarantee the security measures of your storage units and a tenant's unit is broken into.
You have accepted the liability for this loss by saying the unit was guaranteed secure. This means you’ll likely be liable to compensate your tenant for the full amount of their loss.
Source: Freepik
➡️ Contract rules
As mentioned above, the SSA UK advises you to have a clear and unambiguous written agreement with every tenant. It should set out the rights and responsibilities of the tenant and the facility.
Below are some important points when it comes to developing and signing a contract with tenants:
No tenant should be allowed to move into a storage unit without signing your agreement.
Ensure the person signing the agreement is the person storing their items. A person shouldn’t sign on another person’s behalf. If more than one person is storing items in a unit, they should both record their details and sign the agreement.
Inform tenants that you don’t insure their goods, and they must provide insurance for their items.
Provide the tenant with a copy of the agreement and store the original agreement at your facility. You should also have a copy of the tenant’s ID stored.
Source: Freepik
If you use digital signatures to sign up tenants online, you’ll need a thorough sign-in process before you give them access to your units to protect yourself against legal action. You’ll also need to see original identification documents before they’re given access to storage units.
The terms and conditions of the contract can only be enforced if the tenant signs the full document, not just a summary of its clauses.
Exclusion or limitation clauses may be excluded from applying to contractual regulations if it can be proven that the tenant didn’t read or understand the clause when they signed the contract.
Your contract must be deemed fair and reasonable, and you are required to ensure that the tenant understands the contract in full before signing it.
Failing to meet the guidelines above could leave you liable for cost, and legal action, or mean you’re unable to evict problem tenants.
➡️ Changing fees or agreement terms
There are three main recommendations that you should consider when it comes to changing your fees or making adjustments to your agreements:
Once you have a contract with a tenant, you can’t change its terms for worse without their consent, including your rates and fees.
Your storage agreement must contain a specific process for dealing with changes to your storage fees during the course of your relationship with the tenant.
Care should be taken when considering increasing your fees for a single tenant only, as this could be considered discrimination.
➡️ Rules for late or non-payment
In the UK, storage operators don’t have an inherent right to sell a tenant’s items simply because they are in arrears. It can only result from the terms of your agreement with them.
Here is some advice to follow regarding late or non-payment:
The Standard Self Storage Agreement states that fees should be paid in advance. This allows operators to chase up outstanding amounts while the tenant still pays for the storage unit they’re using.
If you’re asking for a payment a month in advance, this means that, after 30 days, you can negotiate with the tenant to move their goods out of their unit without charge, and you aren’t out of pocket.
👉 Important Late Payment Guidance A late payment fee can be charged when a payment is overdue. However, the tenant must be notified of the fee when they sign their agreement. The late payment fee is a one-off charge to cover the cost of chasing the late payment. If a tenant's fee is due on the first of each month, the late fee can be charged once if it isn’t paid on time. Late payment fees can’t compound—a fee can only be charged when the payment is due. For example, if it’s a monthly payment, a late fee can only be charged once a month when the storage fee hasn’t been paid. You can’t charge a late fee every week if you typically only invoice monthly. |
Below is the process you should follow for overdue payments:
In the first 30 days an invoice is overdue, you must have contacted the tenant through various methods and multiple times.
You should also have sent the initial lien sales letters to the tenant to start the lien sales process should you want to continue selling the tenant’s items.
🤔 What Is Lien? A lien is a legal claim that a storage facility owner places on a tenant’s stored belongings due to non-payment of rent or other fees. The lien gives the facility owner the right to retain the tenant’s property as collateral and, if necessary, sell it to recover the unpaid amount. |
Overlocking, which is placing an additional lock on the unit or using an electronic code to ensure the tenant can’t use their key or code to access their space, doesn’t mean excluding the tenant from the facility entirely. It also doesn’t include cutting or removing the tenant’s lock. You should also send the tenant a notification that you have overlocked their unit.
When it comes to selling a tenant's items for late or non-payment, you can’t sell their goods until at least three months after your initial notice was sent.
Now, let’s look at some further guidelines that apply to non-payment:
Special rules apply to selling and transferring items such as caravans, vehicles, and boats. In the case of motor vehicles, they can be re-registered to the facility owner.
Additionally, bankruptcy doesn’t terminate your agreement with the tenant. Unpaid fees incurred before the bankruptcy will be a debt in the bankruptcy. It’s best to start a nil balance from the date of the bankruptcy once you receive notice.
If a tenant has passed away, you can only deal with the person legally appointed to deal with their estate. The cost of their storage may continue to accrue against their estate, and invoices can be sent to the executor or administrator of the estate.
The Self Storage Agreement can be terminated once the initial fixed storage period has ended. The fixed storage period will be recorded on the front of the agreement. You can only terminate the agreement if you follow the license terms during the fixed period.
Source: Freepik
➡️ Accessing storage space
Next, let’s discuss who can access your tenant’s storage unit and what advice applies to this:
In most self storage facilities, owners don’t have access to the tenant’s space. If you want to access the unit, you need permission from the tenant, or you must act within the terms outlined in your agreement with them.
If you need to access a storage space urgently, such as if a fire breaks out, you are entitled to cut and remove the lock on the unit unless you have a key. You’re required to re-secure the space after the event and record the state of the unit by taking a video or photos.
If you need to access storage units for things like fumigation, repairs, or reallocating the tenant, you must contact them to inform them when and why you require access, giving them at least seven days' notice.
The tenant should be available at your facility to supervise your access to their unit so that you won’t be held responsible for any loss or damage.
If your tenant can’t attend on the day you need to enter the unit, take photos or videos of the lock being cut, you using a key to access their space, and as the door is opened. At least two staff members from your facility should be present when you do this. You must secure the unit after you’ve accessed it.
👉 Important Entry Guidelines Every time you enter a tenant’s unit, you increase the chances of getting accused of being responsible for any loss or damage to their goods. This is why you should only ever use force to enter a unit if no other options are available. You should have procedures in place when you access a unit without the tenant being present, including having other staff members present, recording the procedure through videos and photos, and taking detailed notes. |
The police and other authorities can only access a storage unit with a warrant addressed to the tenant (not you) or if they’re enforcing a power granted to them under the legislation. Trading Standards officers have the right to enter any commercial building at any reasonable time without a warrant.
➡️ Handling information
When tenants sign up for your storage services, they provide you with personal information. The management of this information is regulated by the General Data Protection Regulation (GDPR), which controls how organizations use this data.
The legislation states that your business must not only protect your tenants’ personal data but you must also let them know how their information will be used and who it’ll be shared with.
You need to have privacy notices:
In sign-ups.
On your premises about CCTV.
On your website for inquiries or online sign-up.
By recorded message if you collect information by phone.
By link in your emails.
On social media.
On job applications.
These privacy notices inform the people you deal with, including potential customers, tenants, and recruits, of what data is being collected, how it’s collected, who it’s shared with, and what it’s for.
You must also inform them what legal reason allows you to use the data and the individual’s rights regarding this information.
How you store data is also vital, but this process will vary from one facility to another. For example, a facility may store all information on a password-locked computer system only accessible by the operator, while another may store data in hard form in a filing cabinet.
However you choose to store information, it’s essential that it’s secure. It shouldn’t be accessible by anyone who doesn’t need access to it to operate your business.
👉 Data Privacy and Social Media Data Protection legislation doesn’t just apply to the information you collect about your tenants via your website or through your sign-up process. It also applies to how you use social media. Here are some guidelines to follow: 📱 You should only use social media to contact a customer when they have already contacted you using this method in the past, or you can guarantee the person you’re communicating with is the customer and not someone with a similar name. 📱 Don’t post on community groups or other open forums when chasing debt or trying to find a customer. 📱 Ensure your privacy documents have provisions about contacting people using social media. 📱 Use services like Facebook Messenger and WhatsApp to communicate directly with the customer rather than posting to sources accessible to others, such as Facebook pages. |
➡️ Dealing with credit cards
You’ll likely have to keep tenants’ credit card details on hand to process monthly payments.
The Payment Card Industry Data Security Standards (PCI DSS) requires storage operators to ensure their payment gateways comply with this regulation.
When using an online payment gateway on your website, you should never have access to any credit card details from tenants. These should all be handled by the gateway and passed onto your bank. Once processed, you will see the money in your account with the tenant's personal details.
If you process credit cards through a card machine, you are responsible for the PCI DSS. This means you must ensure that you are protecting and then correctly disposing of this data.
Self Storage Rules in the U.S.
Source: Freepik
The U.S. self storage industry is regulated differently to that of the UK. There are some specific self storage laws that govern the industry, but this occurs at a state level, meaning rules vary by state.
However, there are some federal laws that apply to businesses in general, for example:
The Americans with Disabilities Act (ADA) mandates that public spaces must be accessible to everyone.
The Fair Credit Reporting Act (FCRA) sets rules about credit checks.
The Federal Trade Commission (FTC) sets out guidelines on deceptive advertising.
Now, let’s look at the specific laws that govern the self storage industry in the U.S.:
➡️ Lien rights
Lien rights give storage facility owners the legal ability to claim and potentially sell a tenant’s items when they default on their payments.
This allows facility operators to recoup unpaid fees by auctioning the tenant’s belongings, following specific legal guidelines.
Lien laws vary across the U.S., with 46 states enacting legislation that governs how these rights are exercised.
State lien laws often address key aspects of the process, including:
Waiting periods: The required number of days between notifying a tenant and auctioning their stored property.
Notification requirements: The type of notice that must be provided to tenants, such as whether it can be sent electronically and if prior consent is needed to use email for legal notices.
Auction procedures: Rules regarding how public sales should be conducted.
Source: Freepik
For instance, in Texas, storage facility owners must wait 14 days after sending a written notice to enforce a lien and sell a tenant’s belongings. This is according to Texas Property Code, Chapter 59: Self Service Storage Facility Liens.
To ensure legal compliance, you need to outline your lien and auction procedures in your agreements. However, even the most thorough contract won’t be enforceable if it conflicts with the state or local regulations.
➡️ Late fees
As in the UK, late fees should be outlined in your contract with the tenant. You can offer tenants a grace period of a few days to pay their fees, during which they can pay overdue rent without incurring additional charges.
State laws regulate late fees for residential properties; in many states, these laws extend to self storage units.
States such as Arizona, California, Maine, Missouri, Maryland, and North Carolina have specific guidelines on the amount facility owners can charge their tenants for late fees. These regulations often allow reasonable late fees that reflect the costs of unpaid rent.
Let’s look at two examples:
Missouri: Storage facilities can charge either $20 or 20% of the monthly rent, whichever is higher.
California: Late fees typically range between $10 and $20, depending on the unit’s rental rate.
➡️ Non-payment
Each state has its own laws governing the procedures for handling non-payment for self storage tenants. These laws typically establish:
Lien enforcement rights: Allow facility owners to place a legal claim on the tenant's belongings for unpaid rent.
Notification requirements: Outline how and when tenants must be notified before their property can be auctioned or sold.
Waiting periods: Specify how long operators must wait before enforcing the lien or selling the tenant’s property.
Auction procedures: Detail how the auctions should be conducted, including advertising requirements and methods of sale.
For example, in California, facility owners must send written notice and wait 14 days before proceeding with a lien sale, and auctions must be advertised in a public forum. This is in accordance with the California Self-Service Storage Facility Act.
In Texas, owners must wait 30 days after the first missed payment to enforce a lien. A notice of sale must be sent by certified mail and publicly advertised before an auction. This is covered under the Texas Property Code, Chapter 59.
Source: Freepik
➡️ Sales tax
In certain states, revenue generated from self storage rentals is subject to sales tax.
For example, in Michigan, self storage operators are legally required to collect sales tax from tenants for their rental payments.
Additionally, you may be required to pay taxes on outsourced services you use. For instance, Ohio mandates that storage facility owners charge sales tax on rental income.
➡️ Zoning laws
Zoning laws govern how land can be used and ensure that self storage facilities are appropriately zoned for their intended purpose. These laws often create challenges for property owners who want approval to develop self storage investments.
Many cities classify self storage facilities as “conditional use,” meaning they require special approval from local authorities. Conditional use permits often involve government oversight to assess and mitigate potential impacts on the community or environment.
Homeowners’ associations (HOAs), community groups, and local political entities may lobby against self storage projects, citing concerns over property values or land development priorities.
➡️ Value limits
Value limits cap the total worth of items a tenant can store in a unit.
Storage company owners typically set these limits themselves, such as restricting storage to items valued at $5,000 or less per unit. You may want to consider including a rule like this in your agreement with the tenant.
Some state and local laws impose specific minimum or maximum value limits, so it’s essential to familiarize yourself with local regulations.
➡️ Vehicle towing
Self storage owners can enforce liens on abandoned vehicles, but these processes are strictly regulated in most states.
For example, if a tenant is more than 60 days behind on rent in California, the facility owner can tow the vehicle only after providing a 10-day notice period and sharing details about the towing company. This is in accordance with the California Civil Code, Section 21700-21716, known as the California Self Service Storage Facility Act.
Source: Freepik
➡️ Habitation laws
Living in a self storage unit is prohibited in all states due to safety concerns. Even if a tenant continues to pay rent, eviction is generally the only appropriate course of action to address such situations.
For example, in California, facility owners must evict tenants found living in their units, as this violates state housing and zoning regulations.
➡️ Auctioning of military personnel belongings
The Servicemembers Civil Relief Act (SCRA) provides legal protection to active-duty military personnel, preventing self storage facilities from auctioning their belongings without first obtaining a court order. You must comply with this law even if the tenant is late on rent.
➡️ Accessibility
As mentioned earlier, the Americans with Disabilities Act (ADA) requires self storage facilities to be accessible to people with disabilities.
This includes parking spaces, paths of travel, and, in some cases, elevators for multi-story facilities.
➡️ Consumer protection
Federal and state consumer laws prohibit deceptive and unfair business practices. As mentioned earlier, facility owners must disclose clear terms in rental agreements and provide proper notices before enforcing liens.
The Massachusetts Consumer Protection Act (Chapter 93A) protects consumers from unfair practices, such as unclear self storage lease terms or hidden fees.
➡️ Rent increases
You should ensure that your agreement with your tenant includes the contractual right for you to increase your fees by giving the tenant advance notice of the change.
The tenant should be given the right to vacate their unit before the effective date of the new rental rate to avoid the increase.
If the tenant chooses to continue using your self storage services, they consent to accepting your increased rate.
The length of the notice you must give your tenants varies from one state to another and can range from 15 to 90 days.
Many states have limited the percentage increase you can impose on your tenants. Some states have a maximum increase rate of 5%, while others allow up to 10%.
Source: Freepik
➡️ Data protection
Although not a U.S. law, self storage facilities that collect data from EU residents must comply with General Data Protection Regulation (GDPR).
For U.S. tenants, state-level privacy laws may apply, such as the California Consumer Privacy Act (CCPA), which governs the collection, storage, and use of personal customer data. In this case, facilities must disclose how data is used and allow tenants to opt out of data collection.
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