California Governor Schwarzenegger Signs Bill Amending State's Self Storage Lien Law Effective January 1st, 2011

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The legislation (AB 655) was championed by the California Self Storage Association (CSSA) with significant funding support from the Self Storage Association (SSA). The law addresses the “Declaration in Opposition” provision of the lien law resulting in a more cost-effective process and eliminating the number of baseless “declaration” scenarios. It also provides for a more reasonably-priced lien notification method.

“We believe that the updates to the law will create a more efficient and cost effective process for operators and their tenants to communicate when customers have fallen behind in their rent,” says Shelley Geiler, president of the CSSA

Previously self storage lien circumstances where the “declaration” had been employed were settled in superior court creating a lengthy and expensive legal course of action. The new law enables self storage operators to resolve lien and auction disputes in small claims court. Taking into account the typical number of lien situations each year, the potential savings from the new process will be thousands of dollars for each facility and millions annually throughout the state. Also under the new law, verification of delivery of lien notices can be satisfied through certificate of mailing rather than certified mail, a much more costly method.

“We congratulate our partners of the California Self Storage Association for all of their hard work in streamlining that state’s lien law,” said Michael T. Scanlon, Jr., president & CEO of the SSA. “The national SSA is working from state-to-state to modernize many of the lien laws so that they are fair to storage operators and take advantage of today’s more efficient technologies.”

According to Jim McNamee, President of West Coast Self Storage and past president of the CSSA, “It was a lengthy three year battle for these common sense changes to become law; however it was well worth it. The passage of this bill is a win-win, and will save self storage operators and their customers time and money.”

About the California Self Storage Association
Founded in 2002, the California Self Storage Association (CSSA) is the state not-for-profit trade organization dedicated to serving the California self storage industry including owner-operators, facility managers and vendors in the industry. The CSSA represents some 380 direct member companies that own and operate over 800 facilities in California. CSSA direct members range from individual facility owner-operators to multiple-facility operations, to the industry's largest publicly traded Real Estate Investment Trusts (REITs).

About the Self Storage Association
Founded in 1975, the Self Storage Association (SSA) is the national not-for-profit trade organization serving the $22.4 billion (revenues) self storage industry including owner-operators, facility managers and vendors in the self storage industry. The SSA represents some 3,000 direct member companies and another 3,000 indirect member firms [via twenty-four (26) affiliated associations] that own and operate a total of some 20,000 facilities in the US, Canada and 16 other nations. SSA direct members range from individual facility owner-operators to multiple-facility operations, to the industry’s largest publicly traded Real Estate Investment Trusts (REITs).

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