ARIZONA HOUSE OF REPRESENTATIVES Fifty-sixth Legislature Second Regular Session
	House: RA DP 6-0-0-0

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HB 2087: self-storage facilities; valuation; vehicles; towing

Sponsor: Representative Hendrix, LD 14

House Engrossed

Overview

Allows a self-storage facility's rental agreement to set limits on the maximum value of stored property. Authorizes the removal of a vehicle, watercraft or trailer when an account is in default and after proper notice to the occupant.

History

The operator of a self-storage facility has a possessory lien from the date the rent is unpaid and due on all personal property stored in the leased space for rent. A rental agreement is the written agreement provided by the operator to the occupant that establishes the terms, conditions or rules concerning the leased space and its use and occupancy. Statute specifies the content of the rental agreement, including statements advising the occupant as follows:

1) the date rent is due and payable and the date that a late fee accrues;

2) a lien on all personal property stored within the leased space accrues as of the date rent is due and unpaid;

3) property stored in the unit may be sold or otherwise disposed of if the occupant defaults on payments;

4) any insurance protecting the personal property stored in the unit against fire, theft or damage must be obtained by the occupant;

5) a reasonable late fee (the greater of $10 per month or 20% of the monthly rent) may be charged by the operator for each month rent is due and remains unpaid; and

6) information that must be disclosed by the occupant, including any lienholders or parties having an interest in stored property in the leased space (A.R.S. § 33-1703).

Statute outlines the process and procedures for the enforcement of liens when the occupant is more than 30 days in default. Before conducting the sale, the operator must provide prior notice and specific information regarding the sale to the occupant (A.R.S. § 33-1704).

Provisions

1. Permits a self-storage facility's rental agreement to limit the value of stored property, which is considered the maximum value of the unit. (Sec. 2)

2. If the storage items include a vehicle, watercraft or trailer then after 30 days' default, the operator of the self-storage facility may contract with a tow company to have the property removed from the unit. (Sec. 3)

3. Requires the operator to notify the occupant at the last known address by verified mail or email at least 10 days before the towing company removes the property. (Sec. 3)

4. Prescribes the content of the notice, including the name, address and telephone number of the towing company removing the property if the occupant does not make payment to cure the default by the date stated in the notice. (Sec. 3)

5. Stipulates that upon receipt of the property by the towing company, the self-storage facility's operator is not liable to anyone claiming an interest in the property. (Sec. 3)

6. Makes technical changes. (Sec. 1, 2, 3)

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10.                   HB 2087

11. Initials DC           Page 0 House Engrossed

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