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ARIZONA STATE SENATE
Fifty-Sixth Legislature, Second Regular Session
self-storage facilities; valuation; vehicles
Purpose
Allows a self-service storage facility rental agreement to limit the value of property stored on the premises and prescribes requirements for the removal of a vehicle, watercraft or trailer if a self-storage facility occupant is in default for more than 30 days.
Background
A self-service storage facility operator has a possessory lien from the date that rent is unpaid and due on all personal property stored within a leased space. The self-storage rental agreement must contain a statement advising the occupant: 1) of the accrual of the lien as of the date the rent is unpaid and due; 2) that property stored in the leased space may be sold or otherwise disposed of if the occupant is in default; 3) that any insurance protecting the stored personal property against fire, theft or damage must be provided by the occupant; and 4) that a late fee may be charged for each month that rent is not paid when due. The self-service storage facility operator must provide adequate notice before a late fee is imposed.
If a self-storage facility occupant is in default for more than 30 days, the self-service storage facility operator may foreclose the lien by selling the stored property at a public sale. The self-storage facility operator must provide notice of a property sale, as prescribed. At any time before a public sale, the self-storage facility occupant may pay the amount necessary to satisfy the lien and redeem the occupant's personal property. If the stored personal property includes a vehicle, any person listed as a registered owner or lienholder may pay the lien, redeem the vehicle and recover possession of the vehicle.
A self-storage facility operator may deny a self-storage facility occupant who is in default access to the leased space. If the occupant is in default for more than 30 days, the operator may transfer the personal property to a place of safekeeping until the public sale (A.R.S. §§ 33-1703 and 33-1704).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Allows a self-service storage rental agreement to provide for a limit on the value of property stored by the occupant on the premises and deems the limit the maximum value of stored property for all purposes.
2. Allows a self-service storage facility operator to contract with a towing company to remove a vehicle, watercraft or trailer if the occupant is in default for more than 30 days.
3. Requires a self-service storage facility operator to send notice by verified mail or email to the occupant at the occupant's last known address as least 10 days before the towing company removes the property.
4. Requires the notice to provide the name, address and telephone number of the towing company that will remove the property if the occupant does not cure the default by the date prescribed in the notice.
5. Specifies that on receipt of the property by the towing company the self-service storage facility operator is not liable to the occupant or any other person who claims an interest in the property.
6. Makes technical and conforming changes.
7. Becomes effective on the general effective date.
House Action
RA 1/17/24 DP 6-0-0-0
3rd Read 2/6/24 55-0-2-0-3
Prepared by Senate Research
February 22, 2024
MG/cs