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Storage Space Lease Agreement basics

The storage unit industry is often a lucrative business, to keep your business profitable it helps to have a good Storage Space Lease Agreement. Our contracts include necessary information such as payment due dates, terms, termination details and security information.

Use the Storage Space Lease Agreement document if:

  • You are leasing storage space to an individual or business.

Any type of rental arrangement should begin with a contract. It protects the business as well as the customer. Plus, it makes sure that the renter understands the terms of their agreement such as when they can visit their unit, when payments are considered late and what items are not allowed in storage.

Other names for this document:

Storage Rental Agreement, Storage Unit Lease Agreement, Storage Unit Contract, Storage Space Lease Contract

What is included in a Storage Space Rental Agreement?

Contracts can include any type of unique information that you want to include, but most include at least the following:

  • Contact information
    The address of the storage facility, both parties' phone numbers, the renter's address and the unit number. You can include email addresses or alternate phone numbers if you want.
  • Terms
    When the contract begins and whether there is an end date, such as one year or if the contract is month-to-month. Also include instructions for how the renter can quit the agreement.
  • Payment information
    How much the payment is and whether it may change. Also include due dates, grace periods, security deposit and late fees.
  • Termination details
    What happens if the rent is not paid or the renter violates one of the terms. Most often the contents of the unit are sold to help pay the debt. Some unit owners may also proceed with legal collections.
  • Access hours
    Details when the renter can access their unit and how long they can be in their unit. Time limitations can help deter people from trying to live in their units.
  • Use of premises
    You can say how you will allow the unit to be used, such as whether they can run a business out of the unit, if they can use power, if they can keep equipment such as refrigerators plugged in and so on.
  • Restricted items
    It is a good idea to tell the renter what they cannot store such as explosives, live animals or illegal substances. Some unit owners also limit the value of the items stored.
  • Liability
    In this section, you can encourage the renter to purchase insurance to protect their possessions and release your business from liability from any type of loss, damage or injury.

Can I sell the contents of a storage unit?

Yes, you can in almost every state. If the renter doesn't pay their rent according to the terms of your rental contract, you can sell the contents one-by-one or everything together. Often storage unit owners will hold a public auction to sell the contents of storage units. Some websites are dedicated to helping people sell storage unit contents. Selling stored items is time consuming, but it is a way to recoup some of your loss. Information about what happens to storage unit contents if the contract is violated should be included in the contract.

What if someone tries to live in a storage unit?

While it doesn't happen often, it does happen. You should consider having specific language in your contract about how living in storage units is prohibited. No matter how bad you may feel about a renter's situation, living in storage units can be dangerous and a huge liability to your business. Storage unit managers should routinely monitor the access logs, so they can see if it looks like someone is checking in and not checking out within a reasonable amount of time. Many storage unit managers also keep information such as what public services are available in the office to help those who may not have a place to sleep.

What is the best legal entity for my storage unit business?

Many storage unit owners choose to form a Limited Liability Company (LLC) to protect their personal assets and liabilities. While you could form a C-corp or S-corp, LLCs are the most commonly chosen entity, since it is easy to do, even if you are small company or a single person. If your business is an LLC, it is more difficult for creditors to jeopardize your personal assets for a business debt or liability.

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