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  • New Lease

    I've just been informed that our rental lease is being re-written. And it's 9 pages long! I have not seen it yet, but the managers at our other location have. According to them only the first 2 pages are necessary, so I have no idea what the remaining 7 pages could possibly contain. Is this normal for a lease to be this long? Most of my tenants don't even bother to read the 2 pages they get now. (I cannot imagine printing out 2 copies of this at every move-in) Because of this, the use of a tablet for move-ins is being discussed as an option, and the tenant would be emailed a copy. Kinda sounds like we won't be keeping paper copies on file then.
    Too many freaks, not enough circuses.

  • #2
    9 PAGES? Yikes!
    When I had all of my ducks in a row-I realized that most of them were not even mine!

    WA State

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    • #3
      Lots of disclaimers and addressing so many things we talk about here at the forum. I always tell the tenant that if they read the lease or not they are still held responsible for all it states.
      "Never let the inmates run the asylum!"

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      • #4
        Originally posted by KrisinNC View Post
        9 PAGES? Yikes!
        Right! Holy cow thats excessive!
        You Laugh, I laugh. You cry, I cry. You take my coffee...may God have mercy on your soul....

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        • #5
          Owners been having issues lately perhaps at sites? I just remade the leases for our 7 sites, I crammed as much as I could in as the owners had numerous requests for items to be pointed out in the lease other than the standard items. I managed to get it to 4 pages for the lease and 1 page for the rules and regulations addendum but if I truly put every single thing they wanted into it I could see it going to 6+ pages easily.

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          • #6
            Entitlement=someone else is at fault=litigious society=lawyer up=owners that see the bottom feeders=leases getting numerous updates to try and fight against the ridiculous claims. Let's see, watch out when on a ladder=you are off the ground you dumb a$$. Get a cup of coffee=it's hot dummy.
            "Never let the inmates run the asylum!"

            Comment


            • #7
              Originally posted by Orkocean View Post
              Owners been having issues lately perhaps at sites? I just remade the leases for our 7 sites, I crammed as much as I could in as the owners had numerous requests for items to be pointed out in the lease other than the standard items. I managed to get it to 4 pages for the lease and 1 page for the rules and regulations addendum but if I truly put every single thing they wanted into it I could see it going to 6+ pages easily.
              The only reason I can see it changing is our other facility is set to open a new RV storage area, but that shouldn't have any effect on me. The managers there told me of the new lease yesterday, but, I haven't been told by anyone that I am getting a new one (we are just assuming I am at this point). So, it is possible that they are getting a new lease, but I am not. I've had RV parking here since the place opened and my lease covers it. They've never had outside parking so this will all be new to them. I'll update when I find out whether or not it includes my facility.
              Too many freaks, not enough circuses.

              Comment


              • #8
                We used Jeff Greenberger for our lease (he is a Self Storage specific attorney, so knows his stuff).

                The lease is 4-6 pages long, and depending on how many addendums needed, it could be longer. (Outdoor storage, indoor vehicle storage, optional power in your unit, etc).

                From an owner standpoint, it's important to cover all bases. This is a contractual agreement with your tenants after all, so you want to avoid gray area as much as possible. Everything needs to be black and white, and spelled out. The goal of the lease is not to be as simple or short as as possible, but rather to cover as many bases as possible to ensure there is no question as to expectations (from you, or the tenant).

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                • #9
                  Originally posted by PKStorage View Post
                  We used Jeff Greenberger for our lease (he is a Self Storage specific attorney, so knows his stuff).

                  The lease is 4-6 pages long, and depending on how many addendums needed, it could be longer. (Outdoor storage, indoor vehicle storage, optional power in your unit, etc).

                  From an owner standpoint, it's important to cover all bases. This is a contractual agreement with your tenants after all, so you want to avoid gray area as much as possible. Everything needs to be black and white, and spelled out. The goal of the lease is not to be as simple or short as as possible, but rather to cover as many bases as possible to ensure there is no question as to expectations (from you, or the tenant).
                  We (the managers at our other facility and I) think this is stemming from a water leak incident that took place at that facility. I won't go into details, but we think that is the reason for the new lease. I should mention it is being written by an attorney, but I still have some concerns about it. My hope is that it is being written according to the statute, and includes things it should. One thing I do know is that there is a $ value limit that can be stored (oddly, our current lease doesn't mention anything like that), and I think that's a result of the water leak. Tenants will be REQUIRED to list all items being stored, and there doesn't appear to be, at this point, a listing of items that are prohibited...explosives, chemicals, flammables, etc...that kind of thing, which is concerning. I'm dropping by the other facility Saturday morning to pick up a copy of what they've been given so I can read it for myself. I'm hoping not to be horrified by it.
                  Too many freaks, not enough circuses.

                  Comment


                  • #10
                    You can still have an addendum for the items you prohibit from storage.

                    Having a well thought out new lease is all well and good but if it isn't followed to the letter then it is just ink and paper, IMO. Have said many times that if you deviate from the lease then so can the tenant and that will cause you mucho problems.
                    "Never let the inmates run the asylum!"

                    Comment


                    • #11
                      Originally posted by DairyGirl View Post

                      We (the managers at our other facility and I) think this is stemming from a water leak incident that took place at that facility. I won't go into details, but we think that is the reason for the new lease. I should mention it is being written by an attorney, but I still have some concerns about it. My hope is that it is being written according to the statute, and includes things it should. One thing I do know is that there is a $ value limit that can be stored (oddly, our current lease doesn't mention anything like that), and I think that's a result of the water leak. Tenants will be REQUIRED to list all items being stored, and there doesn't appear to be, at this point, a listing of items that are prohibited...explosives, chemicals, flammables, etc...that kind of thing, which is concerning. I'm dropping by the other facility Saturday morning to pick up a copy of what they've been given so I can read it for myself. I'm hoping not to be horrified by it.
                      Here's an explanation on the money limit.

                      You are stating in your lease that they are only allowed to store up to $2,500 of goods (for example). They can choose to store more than that, but they are acknowledging your liability stops at $2,500. Now...that $2,500 only comes into play if you're at fault (your facility is at fault for whatever happened and now their stuff is ruined). You also should require them to carry insurance.

                      Your facility would be on the hook up to $2,500 and their insurance would be on the hook for rest.

                      That is why there is a dollar limit.

                      Having someone list everything seems a bit unnecessary (except if its a car/trailer/motorcycle/etc...those MUST be listed). But its as if your facility is on the hook for a rather large loss and might be difficult for them to disprove whatever the tenant is claiming was in there, so is now going a bit over the top by requiring people to list each individual item. Might be easier to just go with a dollar limit of liability.

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                      • #12
                        Listing everything is a hassle. Most people will write-HOUSEHOLD GOODS, and really, the limit on goods should work for that.
                        When I had all of my ducks in a row-I realized that most of them were not even mine!

                        WA State

                        Comment


                        • #13
                          Originally posted by PKStorage View Post

                          Here's an explanation on the money limit.

                          You are stating in your lease that they are only allowed to store up to $2,500 of goods (for example). They can choose to store more than that, but they are acknowledging your liability stops at $2,500. Now...that $2,500 only comes into play if you're at fault (your facility is at fault for whatever happened and now their stuff is ruined). You also should require them to carry insurance.

                          Your facility would be on the hook up to $2,500 and their insurance would be on the hook for rest.

                          That is why there is a dollar limit.

                          Having someone list everything seems a bit unnecessary (except if its a car/trailer/motorcycle/etc...those MUST be listed). But its as if your facility is on the hook for a rather large loss and might be difficult for them to disprove whatever the tenant is claiming was in there, so is now going a bit over the top by requiring people to list each individual item. Might be easier to just go with a dollar limit of liability.
                          I agree that a dollar limit only is fine. If they are worried about anything else, then maybe we should be requiring all tenants carry insurance and show proof of that at the time of rental.
                          Too many freaks, not enough circuses.

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                          • #14
                            Originally posted by DairyGirl View Post

                            I agree that a dollar limit only is fine. If they are worried about anything else, then maybe we should be requiring all tenants carry insurance and show proof of that at the time of rental.
                            For sure. Their are several factors in play that make tenants required to carry insurance an important/beneficial thing.

                            - Your insurance doesn't cover their "stuff".

                            - Many people don't carry insurance, renters insurance on their apartment for example, or carry very low limits on their car insurance for example, because they would rather save money then pay for insurance. That is...until they need it. Warren Buffet, when asked whether he felt it was OK for the US Govt to force people to buy health insurance by law, stated he didn't, but...that in todays society if you let people make decisions for themselves that 80% of the time they will make the wrong decisions. Unfortunately I've found this to be true. Folks would rather spend money on Starbucks then insurance.

                            - It saves headache for you. If they have insurance, they'll file a claim and be done. If they don't, then they'll be all over you making a big stink of it all that somehow (even if their own fault) their stuff got ruined and it's your fault and your responsibility to make it right.

                            Ultimately it's good for the tenant, and it's good for you.

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                            • #15
                              IMO a listing of everything stored is a liability in the sense that customers are already worried about "inside jobs" for thefts of storage units as unfortunately that is something that takes place in this industry. By them having to disclose everything in the unit in my mind that creates more worry for the customer. Our insurance provider we offer requires a list if they choose the higher tiered insurance options which that I can understand as it's them covering themselves from insurance fraud. I have a list of things that can't be stored, rather they listen and abide by the rules or not is another story but if something ever comes up from it, they were told and they broke the rules.

                              The money limit i've seen everywhere i've been on leases is $5k, i've even seen companies set up LLC's and run the sites through multiple entity's to shield themselves from larger lawsuits just in case the $5k limit somehow got ignored in a court.

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