Understanding Storage Unit Laws in Indiana: The Complete Rundown
A Close Look at the General Indiana Storage Unit Laws
Indiana Storage Unit Laws: A Comprehensive Guide
For those who wonder how storage units fit into the legal framework, the answer is simple: they’re a lot like other types of leases. These spaces are rented for a periodic payment-either weekly, monthly, or some other time interval-for a tenant’s use; in this case, of housing for their goods. Tenants also have the right to arrange a "sub-lease," renting their space to someone else for a specified period of time. Indiana has five statute sections dealing with storage units:
Indiana Code Sec. 32-31-6.5: Commercial and Residential Units
This section allows for both residential and commercial storage units, defines what an operator must do to terminate a month-to-month lease, and itemizes the consumer’s responsibilities.
Indiana Code Sec. 32-31-9: Licenses
Out of the five sections, four are devoted to licensing and regulations for household storage spaces. This is the first of them . It specifies how much space they can take up, what their signage requirements are, and how high a lot can be divided into sections.
Indiana Code Sec. 32-31-10: Licensing, Certification, and Fees
The second licensing section shows variety by addressing the issue of educational requirements to operate storage spaces, as well as prohibiting any operators from firing/evicting tenants because they’ve joined a class action lawsuit. If there wasn’t already an Indiana assembly to handle this kind of problem, there is now.
Indiana Code Sec. 32-31-13: Certification of Spaces
This part of the code requires operators to certify that their spaces are up to code with regard to safety and construction materials. Operators must renew their licenses yearly.
Indiana Code Sec. 32-31-12: Sanitary Conditions
After analysts examine how many laws are devoted to licensing and certification, it becomes clear that the state of Indiana is very serious about creating generous protections for consumers and tenants.
Key Points About the Rental Agreement
When a person goes to a storage facility to enter into a rental agreement for storage, he will be handed a lengthy agreement to sign. It is important to understand from the onset that it is not merely a receipt or acknowledgment of payment, but rather a contract between the owner of the facility and the person renting the unit. Within that contract the owner defines his or her rights and responsibilities as well as the rights and responsibilities of the person renting the storage unit. The problem with most agreements is that the owner has likely drafted the rental agreement with his best interests in mind. This is human nature for everyone, but by signing off on the rental agreement the person renting from the owner is locked into the contract when it is completely in favor of the owner. As an example of this here is a basic list of terms one should find in most rental agreements for storage. The above list are many typical terms in rental agreements for storage. There are other terms not mentioned above, but those are likely specific to the company leasing the unit. The owner has been practicing law for hundreds of years now, so they have developed a good system of letting you know what your responsibilities are in the rental agreement. If your rights are listed at all, they are very limited. As an example of what I mean we can look at the discharge of lien provision. In it the owner is only required to give you 1-TEN days notification before selling and he is not required to apply any of the proceeds of the sale to your account. In other words when your personal property is sold to satisfy a debt apparently you have to this company, they can keep the money and you still owe them. Perhaps the owner is going to argue that he is giving you a great deal. That is probably true, but there is no reason it should come at an extreme risk to you and your personal items. Ultimately, it is important to realize that the person renting the unit is entering into a contract that if enforced as it is written, cuts much more into the rights of the person renting the unit than it protects it.
Tenant Rights and Obligations
Tenants renting storage units have certain basic rights under Indiana law. Two main rights are discussed below: the right to correct any non-payment of rent for ninety days and the right not to have a tenant’s property sold without a court order approving the sale. By statute, a landlord may only sell a tenant’s property after: (1) giving sixty days notice to the tenant; (2) giving sixty days notice to any lien-holder of the property; (3) providing a detailed notice of the sale stating the place, date and time of the sale (which must be at least ten days after the notice to the tenant); and (4) giving at least four hours to inspect the property before the sale.
Generally, a tenants’ primary responsibility is to pay the rent in a timely manner. If a tenant is unable to do so, the tenant has the option of either: (1) paying the full amount of rent due or making arrangements to do so; or (2) vacating the storage unit in accordance with the provisions of the lease. If the tenant is unable to pay the full past due rent, Indiana law allows the tenant to pay "all rent [then] due" to remove the landlord’s lien on the tenant’s property.
Dealing with Late Fees and Liens
When a tenant falls behind on rent, the facility owner has a difficult decision to make: do they offer leniency or take action? Indiana law requires owners to take certain steps when a tenant defaults on their rental agreement, similar to a landlord and tenant.
According to the Retail and Tenants Storage Act, (hereinafter, "the Act"), any provision in a lease, or other agreement, releasing the owner from liability for his acts of negligence toward the tenant is void. The law therefore does not allow owners to be absolved from responsibility in this manner. The statute also states that regardless of whether a facility owner records for lien for storage units in their county, the owner has a lien for all the amounts for which a tenant is in default, including any costs incurred in enforcing the lien, against all personal property stored at the facility by the tenant, or in conjunction with the rental agreement.
A tenant is defined by the Act as an individual that has entered into a rental agreement, occupies a space at the facility, and reserves a right of access to the space. To be a tenant, the person does not have to be the person who signed the rental agreement, it can also be someone who is part of the group of specified people outlined in the rental agreement (for example, those listed as dependents of the tenant), or a holder of a limited liability company share pursuant to a member control agreement. The Act only protects tenants as described above; someone who leaves an item with no intention of paying rent , or who does not take possession immediately, is not considered a tenant under these specifications. A person may also be relieved of the obligation to make payments as a tenant under the rental agreement if they have held a share of stock in the facility that has a value equal to or greater than the value of the stored property.
If a tenant becomes in default, the facility owner must provide the tenant with a default notice in writing that specifies the location and the name of the tenant. This has to be sent either through certified mail or electronic transmission (generally email), the latter of which you must have agreed to in writing with the tenant in advance. Otherwise, only with granted permission before a default occurs can owners send default notices via electronic transmission. If the tenant refuses, or fails, to pay the amount due for storage, it will be subject to sale at auction. The owner must place a legal notice of the auction in a newspaper of general circulation for the next two weeks, at which point the owner can sell to the highest bidder or end the bidding by paying the tenant the amount owed.
Once the sale occurs within prescribed parameters of time and procedure, the owner will then apply the money acquired through the sale towards the costs of the sale, and then apply it to any outstanding balances, as set out in the rental agreement. Any surplus will go to the tenant, unless a written demand from a third party is present, in which case, they will receive it within 30 days.
Restrictions on Hazardous Materials
Indiana law prohibits the storage of explosives and other dangerous goods in a storage unit. In addition to explosives, it is unlawful to store, deposit or keep in a storage unit any nitroglycerine, dynamite, gunpowder, kerosene, gasoline, naptha, benzene, toluol or similar volatile or explosive materials. Indiana Code 16-41-29-4. If you are thinking about putting potentially hazardous materials in a storage unit talk to the facility owner first about the materials you are considering storing in the unit. It is possible the facility has a list of prohibited materials for you to review before you rent a unit.
Options for Legal Action
When disputes arise between storage facility owners and tenants, even with the most specific laws available, the options for resolution can be limited. Here are a few of the options for both parties:
Tenant – the Indiana code essentially provides that upon default of a man or woman’s goods being stored, a tenant’s only recourse is to recover any unearned rent as well as any actual financial losses resulting from a facility owner’s unauthorized sale of tenants goods .
Owner – in accordance with the Storage General Provisions part of the code, an owner has the right to file legal action against tenants or former lessees for disputes regarding the rental contract or other violations of the law. And if the tenant is still in possession, the code allows another cause of action: the owner may file a petition in the circuit to have the person in possession removed from the storage unit. The code requires that the petitioner file a verified complaint and pay the filing fees for this additional action. The petition will be heard as any other civil matter, but the burden of proof is on the party alleging bad faith in the removal of perishable goods.