Every industry faces significant risk of consumer litigation. Self-storage is not risk-free. As a result, wise business owners are prepared to face the unique challenges of their business with proper legal representation and carefully following the laws specific to their state.
Today, we will discuss common legal issues facing self-storage business owners, and we will cover the steps necessary to keep your business out of legal trouble. Keep in mind that even when following the laws of self-storage, some tenants may still look for a loophole to work to their advantage. Expert legal counsel will be prepared to address these types of situations before they arise.
Common legal issues in self-storage
- Wrongful sales
- Deed restriction violations
- Theft
- Personal injury
These are the top 4 issues facing self-storage businesses today. The first order of business is always this: secure legal counsel prior to needing them. As a business owner, it’s important to always have legal counsel when legal issues come up. Their name says it all: they provide counsel and legal advice when needed.
It is unwise to think that legal counsel is too expensive to retain. Instead, see it as an investment in protection for the longevity of your business.
Wrongful sales
It’s essential to know the sales and lien statutes in your state. You can find information on Florida here.
Coastal Storage has also written about this topic before, and you can read it here. The important thing to take away from this is to use legal counsel and follow the exact steps of the law in order to protect yourself from frivolous lawsuits.
Deed Restriction Violations
When a self-storage business opens and operates within the legal property of a deed-restricted area, that business and any others are subject to the same deed restrictions specific to commercial enterprises. For example, deed restrictions can dictate the brick color, the landscaping, the facade and exterior of the building spaces, etc. It is important for business owners to read and know the deed restrictions in the area so they do not incur violations and need costly repairs to remove the wrong landscaping or signage.
Theft
Self-storage businesses can be a magnet for theft. Criminals see a self-storage facility as an endless buffet of available items. Owners must provide a safe and secure storage space for all clients, but also make no promises about security. Savvy owners will take necessary precautions to ensure that their businesses have 24/7 video surveillance, coded gate access to track entrances and exits, and adequate lighting so that a more than reasonable effort to secure the property is evident.
Owners cannot prevent every bad thing from happening, but the lengths they take to mitigate these issues should be evident if they ever face a lawsuit from a tenant.
Personal injury
Personal injury can ruin a business. A slip, trip, or fall on self-storage property can provoke lawsuits from tenants. Regular property inspection should be made and trackable through security camera footage in the event of a lawsuit. A maintenance plan that is detailed and followed closely should be available in the event of a crisis. Smart owners will be able to demonstrate that every precaution was taken that was within their control in order to avoid an accident on their property.
At Coastal Storage, self-storage is all we do. We love this industry, and we love connecting investors with new properties. Call us today at 904-591-0140 to find your next self-storage investment.