Thread: 3 Rules of Rental Agreements

Without getting all "legal," what are your top three rules when it comes to your rental agreement? What's most important? Any hang-ups you've come across over the years?

1. It must be signed.
2. Customer must be present - with ID - to sign the contract.
3. Leave nothing blank. If they don't have an alternate, they must write "NONE" and initial next to it. If they don't have an employer, same.

1. The rental agreement must be READ in its entirety.
2. same as #1.
3. same as #1.

Hangups have come from tenants not reading the agreement. Here's an example: A new tenant (an attorney!) clearly had not read her rental agreement as her first month's payment was late... even though I had made a courtesy call to remind her.

1) The unit is rented to only ONE person.
2) The unit is rented to only ONE person.
3) The unit is rented to only ONE person.

MisterJim444

Originally Posted by MisterJim444

1) The unit is rented to only ONE person.
2) The unit is rented to only ONE person.
3) The unit is rented to only ONE person.

MisterJim444

Amen!!!!

Rule #1 - Use an ironclad rental agreement drafted by an attorney that knows the issues relevant to self storage.

Rule #2 - Make sure that every customer signs it.

Rule #3 - Don't be afraid to have more than one tenant on your lease. The more tenants you have on the hook, the more likely you will be paid.

Originally Posted by TheDuke

Rule #3 - Don't be afraid to have more than one tenant on your lease. The more tenants you have on the hook, the more likely you will be paid.

That goes against everything I have ever been told by attorneys in regard to leases. 100% opposite. I don't even rent to husbands AND wives, it's one or the other. Why expose yourself unnecessarily to relationship issues between parties? I'm with Mr. Jim, one tenant and only one tenant, NO EXCEPTIONS. If that one tenant wants to give his gate code and key to another person or 100 other people, that's his business, my responsibility is to one person. Period. If that person doesn't live up to the contract, I can proceed without issue. I think multiple parties on your lease is a recipe for disaster.

BTW, I'd like the name of the attorney you use that has developed an ironclad rental agreement, I've never seen one of those....

Attorney's know and understand that contracts between parties often have multiple lessee's. Having two lessee's on a self storage rental agreement is not complicated nor difficult to administer. There are many situations where contracting parties would want two lessees on a rental agreement and it is foolish to deny them this ability. It simply is not that complicated and I don't know why storage managers have such an aversion to the practice.

The industry has had enough time to develop an iron clad contract. I have an iron clad contract and have seen many others. The problem in self storage litigation is not the language of the rental agreement, but rather the practices of the managers. As a matter of fact, I have never seen an appellate case that focused on the contract language of a self storage rental agreement (which does not mean one does not exist) but rather each case entails unusual fact patterns often violating the contract provisions that the tenant agreed to in the facilities rental agreement, i.e., facilities not notifying the tenant at the last known address, etc.

I agree, if one does not have a good working knowledge of the intricacies of the law, they should probably stay with the one tenant, no exceptions policy.

1) Know what is contained /written in the contract.
2) Make sure it is completely filled out, lists and/or spell out any and all variables and it is signed.
3)Filed in the correct folder or location.

Biggest hang up is the single vs. multiple signatures. But I guess that would be better addressed under another topic. Two signatures

NOTHING is ironclad (everything is subject to a lawsuit, and altho a good attorney will tell you that the chances are slim a decision will go against something, they will always allow that a judge or jury can rule in a way that is a surprise to everyone - it happens often). I do apologize if perhaps my contradictory opinion is based too much on the word "ironclad" - you DO want to make sure your contract is strong and addresses all the issues your state has in it's storage laws, amd having your attorney "bless" it is a good idea - after all, it's likely he will be the one who has to argue an issue in court should things go that far (which they rarely do - but can).

Even if your state doesn't require it, I'd make sure you have a place to annotate an alternate contact. I've had more than one tenant either pass away or go into the hospital, and if I didn't have an alternate to contact I might have started the lien process when all it required was a call to the alternate to get the rent check coming back in, and/or a mutually beneficial process to move out, started.

Altho it's likely more specific to an area, I know it's important in my area to have in the contract specific language that addresses parking and behavior in general while in the yard. Some issues are more adherence to Yard Rules, and so a reference to those in the contract is important. Not everyone gets the concept that all tenants have to cooperate to an extent should they all be trying to access their units at the same time. And, it's surprising (maybe not?) how many folks bring their dogs into the facility (often because they're in the car already) - I have language to protect myself letting the tenants know pest control products may be on the site, and that they are responsible for their pets should they let them out of the car. (and that includes picking up after them should they do their duty in the yard)

Not sure how others feel about this, but I as a renter in addition to an owner have gotten many contracts from facilities I've rented from over the years, and use the language in those to piece together my contract which then was reviewed and critiqued by my attorney. And, I willingly share my contract with some local start-ups who don't have the benefit of having on hand many contracts - as long as they change the names to protect the innocent!