Georgia’s New Storage Laws: No Signature? No Problem! 🏠📦

Understanding Georgia's House Bill 934: New Regulations for Self-Service Storage Facilities

Introduction

In 2023, the Georgia General Assembly passed House Bill 934, bringing significant changes to how self-service storage facilities operate in the state. This bill aims to streamline rental agreement procedures, clarify lien enforcement, and provide clear guidelines for removing stored property. In this post, we'll break down the key aspects of HB 934, explain its implications for storage facility owners and occupants, and highlight the main takeaways.

Georgia HB934 | 2023-2024 | Regular Session

Bill Text (2024-05-06) Self-service storage facilities; enforcement of unsigned rental agreements under certain circumstances; provide [Act 577]

LegiScan

Key Provisions of House Bill 934

1. Unsigned Rental Agreements

One of the notable changes introduced by HB 934 is the handling of unsigned rental agreements:

• Automatic Acceptance: If an occupant does not sign the rental agreement within 14 days of delivery (by hand or verified mail) but continues to use the storage space, the agreement is automatically deemed accepted. This must be clearly stated in bold type within the agreement: "THE OCCUPANT'S CONTINUED USE OF THE STORAGE SPACE SHALL BE DEEMED AN ACCEPTANCE OF THE RENTAL AGREEMENT AND SUCH RENTAL AGREEMENT SHALL BE ENFORCEABLE AGAINST THE OCCUPANT AS IF IT HAD BEEN SIGNED BY THE OCCUPANT."

2. Electronic Agreements

• Digital Execution: HB 934 allows rental agreements to be executed and delivered electronically, making it more convenient for both storage facility owners and occupants to manage contracts without the need for physical paperwork.

3. Vacating Storage Units

• Notice and Access Restrictions: If a storage facility owner terminates or decides not to renew a rental agreement, they must provide the occupant with written notice (delivered by hand or verified mail). The occupant then has 14 days to remove their belongings from the storage unit.
• Owner's Rights: During this period, the owner can impose reasonable access restrictions, such as limiting entry to business hours. If the occupant fails to remove their property within the specified time, the owner can dispose of it.

4. Lien Enforcement Procedures

HB 934 outlines detailed procedures for enforcing liens on stored property:

• Without Judicial Intervention: Owners can enforce liens without going to court if they comply with specific requirements, including having a written rental agreement in place.
• Default and Notice: If an occupant defaults (e.g., fails to pay rent by the seventh day of the month), the owner can deny access to the stored property and initiate lien enforcement.
• Notification Process: The owner must notify the occupant and any other lienholders of the lien and the intent to sell the property via personal delivery, verified mail, or email. If the owner does not receive a response or delivery receipt from the email, they must send the notice by verified mail.
• Public Auction: If the amount due is not paid within the specified time (not less than 14 days from the notice), the owner can sell the property at a public auction after advertising the sale for two consecutive weeks in a local newspaper.
  • Commercial Reasonableness: To ensure the sale is commercially reasonable, at least three independent bidders must attend the auction.
• Disposition of Unsold Property: If the property is not sold at auction, the owner can dispose of it and must inform the occupant of the action taken.

5. Sale Proceeds and Owner’s Liability

• Managing Proceeds: The proceeds from the sale can be used to satisfy the lien. Any remaining funds must be held for the occupant or other lienholders for up to two years before being disposed of under Georgia’s unclaimed property laws.
• Limitation of Liability: The owner's liability is limited to the proceeds from the sale of the property.

6. Special Provisions for Vehicles

• Towing Option: If the stored property is a motor vehicle, trailer, or watercraft and remains unpaid for 60 days, the owner has the option to have it towed instead of selling it. Once the towing company takes possession, the owner is not liable for any damages.

7. Repeal of Conflicting Laws

• Consistency: HB 934 repeals any existing laws that conflict with these new regulations, ensuring a consistent legal framework for self-service storage facilities.

Key Takeaways

House Bill 934 introduces several important changes that impact both storage facility owners and occupants in Georgia:

1. Automatic Acceptance of Agreements: Occupants must be aware that continued use of a storage space without signing the rental agreement within 14 days will result in automatic acceptance of the agreement.
2. Convenience of Electronic Agreements: The ability to execute and deliver rental agreements electronically simplifies the process for all parties involved.
3. Clear Guidelines for Property Removal:
   • Owners must provide written notice for termination or nonrenewal of agreements.
   • Occupants have 14 days to remove their belongings after receiving the notice.
   • Owners can restrict access to business hours during this period.
4. Detailed Lien Enforcement Procedures:
   • Owners can enforce liens without judicial intervention if requirements are met.
   • Default occurs if rent is unpaid by the seventh day of the month.
   • Notice must be sent to occupants and lienholders, and if no response from email, verified mail must be used.
   • Public auction of property must be advertised for two weeks and attended by at least three independent bidders.
   • Unsold property can be disposed of, with notice to the occupant.
5. Sale Proceeds and Owner’s Liability:
   • Proceeds from sales first satisfy the lien, with any excess held for up to two years.
   • Owner's liability is limited to the sale proceeds.
6. Special Provisions for Vehicles:
   • Vehicles, trailers, and watercraft can be towed after 60 days of unpaid rent.
   • Owners are not liable once the towing company takes possession.
7. Repeal of Conflicting Laws: The bill repeals conflicting laws to ensure consistency in the legal framework governing self-service storage facilities.

Overall, HB 934 aims to create a fair and efficient system for managing self-service storage facilities, balancing owners' and occupants' rights and responsibilities. Understanding these new regulations is crucial for anyone involved in the self-storage industry in Georgia.

The full text of the bill can be found here.

🔒📚 Hi! I'm Eric Manning, a self-storage operations nerd and lifelong learner. 🗝️ My articles blend industry know-how with a dash of humor and wisdom. Whether you're a storage newbie or a pro, join me as we explore the world of storage, one witty insight at a time! 📦😊🔑