A recent post in a community forum for Inside Self Storage, which you can find here, got us thinking about what it takes for a self-storage owner/operator to immediately terminate a tenant. After all, a good tenant means regular rental income, and termination might feel uncomfortable. At Coastal Storage, we encourage owners and operators to be comfortable with discomfort to avoid worsening behavior, but we strongly recommend ways to mitigate the issues many owners and operators face in this business.
When it is time to terminate a tenant contract, decisive action is required while following the laws of your state to avoid unnecessary legal challenges. Let’s discuss the steps required to legally terminate a tenant and how to know when to proceed.
- Consult your attorney for assistance with your lease agreement in order to ensure that the business is covered for all possibilities.
- Every lease agreement must contain a clause that reflects the month-to-month nature of the lease agreement. Something along these lines should be included to make it possible to end the lease. “This agreement shall continue from month to month unless the Occupant or Owner delivers to the other party a written notice of its intentions to terminate the agreement five (5) days prior to the end of the then current rental month. Upon termination of this agreement, Occupant shall remove all personal property from the space and shall deliver possession of the space to Owner within five (5) working days unless its property is subject to Owner’s lien rights as referenced in this lease agreement.”
- Provide written notice of the termination and the terms of the expected removal of contents. While it is not necessary to provide a reason, the tenant may request information about it. Be prepared to answer specifically, but also to keep the answer within the confines of the lease agreement.
What are some reasons that an owner/operator might seek to terminate a lease?
- Failure to pay rent
- Storage of prohibited items
- Living in a storage unit
- Property damage
- Loitering and noise pollution
- Inappropriate behavior (see the link referenced above)
Owners and operators do not enjoy this part of the job. It is uncomfortable, but it is necessary. Knowing your legal rights and limits when executing a termination is essential to fulfilling your obligations at any self-storage business.
At Coastal Storage, we work with owners and operators to acquire, develop, and maintain self-storage facilities through expert consultation and decisive strategy. Call us today to speak with our team of experts at 904-591-0140.