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Lockout Question

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  • Lockout Question

    We are in Indiana an have been locking out on 7th. But today I was reading the Indiana law (bad idea) and it says:

    IC 26-3-8-12 Enforcement of owner's lien; notice; towing of motor vehicle or watercraft
    Sec. 12 (a) After a renter has been id default continuously for at lest thirty (30) days, an owner may begin enforcement of the owner's lien under this chapter.
    (b) an owner enforcing the owner's lien under this chapter may:
    (1) deny the renter access to the rented space.

    Does this mean we can not lockout until the renter is in default continuously for at lest thirty (30) days? Is anyone else in Indiana waiting 30 days to lockout?

    Just a dumb Hoosier Boy,

    Brian

  • #2
    Get the facility attorney and ask them to be sure. Oregon law says we can charge a late fee after the "time assigned" by the owner and the unit can be locked out. Find your section in the statutes that talks about late fees. I bet the time frame is there. IMO, a lock out after a late fee date is not a lien process. The lien process starts, in your case, after the tenant is late for 30 days and my lien process includes further rent and late fees and lock cut and taking pics and advertising for auction, all done within the minimum parameters of the statutes.
    "Never let the inmates run the asylum!"

    Comment


    • #3
      In Missouri under the section relating to late fees, it states that once a lessee is in default the lessor can restrict the lessee's access to their property.

      Comment


      • #4
        Something else to remember, because I just thought of it after re-reading your post. The facility owner has a lien on a tenant's belongings when the tenant is in default and in order to recover for the default the owner or manager have to follow statute guidelines thru the lien process. The initial process starts with the first late fee and lock out restriction. After that it all accelerates in to the step by step of the lien process. I believe Indiana is just saying that the accelerated steps cannot start till that 30 days period. It says "after the tenant has been in default for 30 days can start the lien process and if not locked out already, (following your facility late fee and lock out process), then you can lock out now."

        One thing for sure. Become very aware and in tune with your state's statutes and know them by heart. I would not just focus on certain parts of the statutes when you feel confused. If you are new to the self storage industry, can't remember what you have said in other posts, there is no time like the present to get a copy of the statutes and start learning.
        "Never let the inmates run the asylum!"

        Comment


        • #5
          Originally posted by bcollett View Post
          We are in Indiana an have been locking out on 7th. But today I was reading the Indiana law (bad idea) and it says:

          IC 26-3-8-12 Enforcement of owner's lien; notice; towing of motor vehicle or watercraft
          Sec. 12 (a) After a renter has been id default continuously for at lest thirty (30) days, an owner may begin enforcement of the owner's lien under this chapter.
          (b) an owner enforcing the owner's lien under this chapter may:
          (1) deny the renter access to the rented space.

          Does this mean we can not lockout until the renter is in default continuously for at lest thirty (30) days? Is anyone else in Indiana waiting 30 days to lockout?

          Just a dumb Hoosier Boy,

          Brian
          It is as the law states very clearly. You can not deny the tenant until unpaid for thirty days.
          However, to remind the customer that their account is past due, we de-activate the gate code much earlier making the tenant come into the office so we can remind them the rent is not paid. When never tell them they are locked out. If a tenant requests, we let them walk back to their space, only before the notice of lien and over-lock.
          --
          Ron

          http://advancedministorage.com
          http://zolezzistorage.com


          email ron at advancedministorage.com

          Comment


          • #6
            Scott Zucker, one of the leading Self Storage attorneys said this, You can deny them access to the gate just not the unit. It's a fine line but it's be litigated.
            If you are in Indiana I would join the ISSA and ask them. It would be well worth the money and you will have the correct answer. Looks like it's only $140-$190 to join. I bet you could call one of these people : http://www.ssaindiana.org/Advisory-Board on the ISSA advisory board and they could help as well.
            Chasing Perfection to catch Excellence

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            • #7
              Just called Greg Michael with the ISSA. Sound like most operators in Indiana O/L @ 6 days past due.
              Chasing Perfection to catch Excellence

              Comment


              • #8
                Originally posted by Advantage IT View Post
                Just called Greg Michael with the ISSA. Sound like most operators in Indiana O/L @ 6 days past due.
                Then there must be a reason that they do it. To me, it doesn't make sense to only allow a lock on the unit at 30 days. Facilities would have lots of move outs while tenant owes money. Gate lock or not, they would tailgate in and out if need be. It wouldn't be the first time a politician made decisions like this that made no sense though.

                "Never let the inmates run the asylum!"

                Comment


                • #9
                  o/l in 6 days....wow. When I sue for wrongful sale, I will tell the judge I was not able to access my tools I needed for my job to make money to pay my bill. And because the facility was in violation of IC 26-3-8-12 Enforcement of owner's lien.... Be safe, kill the code whenever you want, (never say they are locked out), and over lock when your statutes state. In 24 years we have never had someone move out on us because we waited to the notice of lien to overlock.
                  --
                  Ron

                  http://advancedministorage.com
                  http://zolezzistorage.com


                  email ron at advancedministorage.com

                  Comment


                  • #10
                    I am in Indiana and you can not over lock unit until 30 days delinquent. That is when your lien goes into effect.
                    Dave (Woodee) Scott

                    Comment


                    • #11
                      Sounds like the ISSA needs to get everyone on the same page and start a " Back to the Basics" on the do's and don't, cans and Can'ts

                      pacnwstorage I would agree. We gate lock on the 2nd and O/L on the 6th for that exact reason, too many people running on the bill.

                      ams In the litigious society, that is California, you might be right but the gate lock has been litigated and considered settle law. I think so long as the law is followed when it comes to dates and sale time frame your not going to get sued. The IC statue to clear Deny access to the RENTED SPACE. Let's not interpret it for what it's not.

                      Dave Scott When do you lock out of gate? Or is there a gate. Seems like the Lien Law may need to be updated in bring it in line with the industry standards....

                      NCSSA just released a time a minimum time line on the Past Due/Auction process. It's going to be a huge help for our operators.
                      Chasing Perfection to catch Excellence

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