HOUSE BILL NO. 4711

A bill to amend 1985 PA 148, entitled

"Self-service storage facility act,"

by amending section 3 (MCL 570.523), as amended by 2014 PA 61.

the people of the state of michigan enact:

Sec. 3. (1) The owner of a self-service storage facility or a self-contained storage unit and the heirs, personal representatives, successors, and assignees of the owner have a lien upon on all personal property, whether or not owned by the tenant, located at the self-service storage facility or self-contained storage unit for rent or other lawful charges incurred relative to the storage of the personal property, including expenses necessary for its preservation, or reasonably incurred in its sale pursuant to under this act. The lien attaches on the date the personal property arrives at the self-service storage facility or self-contained storage unit or the date a rental agreement for the storage space is signed by the tenant, whichever is earlier.

(2) The priority of a lien under this act is as provided in section 5(14).

(3) If a tenant defaults on a rental agreement, the owner shall give notice to all holders of a perfected security interest under the uniform commercial code, 1962 PA 174, MCL 440.1101 to 440.11102, 440.9994, in which the tenant is named as a debtor.

(4) At the commencement of a rental agreement for storage space at a self-service storage facility or in a self-contained storage unit, the owner shall provide the tenant with the following written notice:

"NOTICE: If you fail to make your required payments, you will have to vacate the unit or your property may later be sold at a public sale. Before the sale, you will be notified by first-class mail or by electronic mail of the amount due. The notice will be mailed to your last known address. In order to preserve your right to be notified, it is important that you notify us in writing of any change in your mailing address. Also, you should supply us with the name and address of another person who can reach you if you are not at your mailing address, and we will notify that person at the same time and in the same manner as we notify you.".

(5) A rental agreement under this section may provide for a limit on the value of the property stored at the self-service storage facility or self-contained storage unit. The stated limit shall must be considered the maximum value of the stored property for all purposes.

(6) A rental agreement under this section may provide for a reasonable late charge fee for failure of the tenant to timely make payments for the storage space when due. A monthly late fee of $20.00 or 20% of the monthly rental amount, whichever is greater, shall be is considered reasonable and is not a penalty. The owner of the self-service storage facility or self-contained storage unit has the burden of justifying the reasonableness of any higher late fee.

(7) A rental agreement under this section may be delivered and accepted electronically.

(8) If a tenant does not sign a rental agreement under this section, the tenant is considered to have accepted the rental agreement only if both of the following apply:

(a) The owner delivered the rental agreement to the tenant by hand delivery, first-class mail, or email.

(b) The tenant continues to use the self-service storage facility or self-contained storage unit for not less than 30 days after delivery of the notice described in subdivision (a).

(9) A tenant may not use a self-service storage facility or self-contained storage unit after the owner has delivered a written notice to the tenant by hand delivery, first-class mail, or email of the termination or non-renewal of the tenant's rental agreement. A notice delivered under this subsection must provide the tenant with not less than 15 days after delivery of the notice to remove all personal property from the self-service storage facility or self-contained storage unit. An owner may place reasonable restrictions on a tenant's use of a self-service storage facility or self-contained storage unit after delivery of a notice under this subsection, including, but not limited to, denying the tenant access to the self-service storage facility or self-contained storage unit except to allow the tenant to remove personal property during the owner's normal business hours, as posted by the owner.

(10) An owner may dispose of any personal property remaining in a self-service storage facility or self-contained storage unit after the date provided in the notice described in subsection (9).