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Self Storage Lien Sales in the 21st Century
Cheli Rosa
Business in the 21st Century
Self Storage in the 21st Century
• Online payments and reservations• Online rentals• Paperless Rental Agreements• E-Mail Communication• Online lien sales• Online legal advertisements• Use of tablets and mobile devices in daily operations• Use of social media as a legitimate form of advertising• SEO and Google Rankings• Web based management software
Self Storage Lien Sale Changes in the 21st Century
21st Century Changes Affecting Self Storage Lien Sales• The rise of the digital age• The growth of the millennial generation• The popularity of reality TV
The Digital Age
Much more difficult and time consuming to communicate ideas if
not in person
Communication of many different forms at your
fingertips
Millennial Generation
• The “Net Generation”• Electronics filled, increasingly online, and social networked• Over 80 million people in the US; more than any other generation.• They communicate digitally about anything and everything!
Reality Television
Even Grandma is Talking About Storage Auctions
Places One Can Get Information About Storage Auctions
• Blogs• Vlogs• Auction Company Websites• Amazon• Pinterest• Google • TONS of Social Media Websites• Reality TV
Perception is Nine Tenths of the Law
The perception of self storage is being shaped by reality television.
What Reality TV Does Not Show
• Late notices and calls• Certified mail receipts• Payment plans• Debt owed/lost income• The lock cut procedures and over locking• The amount of time the operator spends attempting to get a payment prior to a sale• The paperwork and effort that goes into notifying tenants• Your many, many attempts to prevent a lien sale
Class Action Lawsuitswww.bigclassaction.com
They are Watching You
Insurance Claims
• Be on the lookout for scams! • Be careful what you determine abandoned and decide to throw away.• Tenants are renting units, leaving what appears to be trash, and letting it go to sale. After the sale or after the lock cut, they come back to you and claim there were valuables in the unit.• Be wary of tenants that you cannot reach or collect from immediately after the move-in.
What do you do??
Educate Yourself1. Do you know where to find your state statutes pertaining to self
storage?http://www.leg.state.fl.us/statutes/index.cfm?
App_mode=Display_Statute&Search_String=&URL=0000-0099/0083/Sections/0083.801.html
2. Study the statute; become one with the statute.
3. Know all of the rules regarding lien letters and advertisements.
UCC SearchesThe Uniform Commercial Code (UCC) is a set of policies governing commercial transactions.
FL 83.805 “ …In the event of default, the owner must give notice to persons who hold perfected security interests under the Uniform Commercial Code in which the tenant is named a debtor.”
Florida Secretary of State UCC Filings
www.floridaucc.com/uccweb/search.aspx
Tenants in Bankruptcy• Automatic Stay - If your tenant notifies you that they have filed bankruptcy, you must cease all collections efforts. This includes: late calls, late notices, late emails, late text messages, late social media messages. • The tenant must pay ALL rent and fess that become due after filing for bankruptcy. • Find out who the bankruptcy trustee (attorney) is and contact them regarding the status of the case. They might sign an abandonment at which time you would be able to sell the contents.
PACER – Public Access to Court Electronic Records
https://www.pacer.gov/
Actions During Bankruptcy Stay
• All collection actions during a bankruptcy stay must halt. However, can I deny access to the unit? • The answer to this question depends on several factors, including:
• Was the unit over locked prior to the bankruptcy being filed?• What chapter bankruptcy was filed? • Has the tenant been making payments since the bankruptcy was filed?
• If you find yourself in a situation in which the timing of the bankruptcy filing and your collection actions are in question, it is best to consult an attorney about the best way to proceed.
Active Military Tenants
You cannot sell personal property belonging to a
member of the active military or their spouse until they have been removed from active duty for 90 days.
Why? Servicemembers Civil Relief Act (SCRA)
https://www.justice.gov/sites/default/files/crt/legacy/2011/03/23/scratext.pdf
Active Military SearchesHow do you know if your tenant is on active duty military
status?
1. Ask them! Ask this question on your rental agreement or customer information sheet.
2. FREE SEARCH - https://www.dmdc.osd.mil/appj/scra/single_record.xhtml
3. PAID Search - https://www.servicememberscivilreliefact.com/?gclid=COC5vIm6-MsCFYMehgodm7QN5A
Deceased Tenants
• Confirm any information you are getting regarding your tenant is accurate. Ask for documentation. • Request a certified copy of the “Letters of Testamentary”• Request a copy of the death certificate.• Request a picture ID of the executor or administrator of the account. • Confirm the identity of the executor with the probate court.
Granting Access
What do you do if someone other than your tenant claims to have a right to the property and requests access?• Ask for paperwork from the probate court dictating they are now responsible for the estate.• Ask for an affidavit proving responsible party.• Collect the rent owed.
Selling Vehicles at Auction• Florida statutes do not provide you with a towing alternative.• You are bound by FL Self Storage lien laws and DMV procedures.• The description in your letter and your advertisement must have the Make, Model, and VIN of the vehicle.• You must send a letter to and advertise your tenant, any other known owners, and any known lien holders. • VIN Search for Info???
• Request info from your auction company.• Request the info from the FL DMV
https://www.flhsmv.gov/dmv/forms/BTR/90510.pdf
Selling Vehicles at Auction• You must send your letters for all vehicles via CERTIFIED MAIL with RETURN RECEIPT!• The FL DMV has a list of requirements for forms that you must give to the buyer of the vehicle in order for the buyer to obtain a title. • You can find these requirements in the FL DMV Rule TL-28
http://www3.flhsmv.gov/dmv/proc/TL/TL-28.PDF
• You will also need to provide the buyer with a Florida Notice of Sale form. You will fill out sections 1&3
https://www.flhsmv.gov/dmv/forms/BTR/82050.pdf
#1 Defense
A Well Written Rental
Agreement
