Lien Sales 101: Know the Law

No self-storage operator enjoys a lien sale. Selling the contents of a delinquent tenant’s storage space is an option of last resort and one that has the potential to trigger costly claims and lawsuits if not handled properly.

Follow the Law to Avoid Claims

In addition to keeping detailed, precise records on delinquent tenants, it is extremely important for self-storage operators to understand and follow state lien laws. Most claims and lawsuits related to lien sales stem from the facility’s failure to comply with the law. Owners of multi-state self-storage operations must comply with the applicable laws in each jurisdiction.

It is always advisable to consult an attorney to ensure that the facility’s lien sale process is in compliance with the law. An insurance agent is another valuable resource who can identify coverages and recommend coverage limits to ensure that the self-storage business has adequate coverage in the event of a claim resulting from a lien sale.

Download Lien Laws

The Self Storage Association has compiled a list of the self-storage lien laws for most states and the District of Columbia in a downloadable PDF format.


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