Do you have additional storage units on or off-site from your rental unit – wondering if landlords should sign a lease?
You’re tired of listening to tenants complain about the lack of storage space for tires, bikes, Christmas trees, lights, etc., in your rental unit. If you already have a storage unit on your property, you can include the terms/conditions/usage/additional costs within your lease. Let’s say you decide to offer them an off-site self-storage unit for an additional cost. Should you have them sign a separate lease for the storage unit?
In a word, yes. Including rules and information about payment, maintenance, and indemnity in writing is good practice. Doing so protects both the lessor and lessee. Written agreements can prevent misunderstandings and “he said, she said” disagreements between parties.
What needs to be included in the storage agreement?
• Facility name
• Facility Address
• Unit Number
• Unit Description
Terms and conditions
• month-to-month or fixed term
• agreement date
• cancellation terms
Rent
• security deposit fee
• monthly fee
• tax
• late fees
• penalties/consequences of late/no payment
• method of payment (PayPal, e-transfer, etc.)
Use of premises
• Unit is for storage of personal property only and cannot be used for any other purposes
• Unit cannot be used as a personal dwelling for humans or animals, and perishable goods cannot be stored inside the premises
• Illegal items/activities are strictly prohibited
• Upon cancellation, the Lessee has xx hours to remove all property from the unit being rented; any remaining property past that time shall become the property of the Lessor
• Lessor holds no liability for any damages that may incur from the items stored in the facility
Maintenance
• Unit must be maintained in a clean and well-kept condition during the rental agreement, and to notify the Lessee of maintenance or repair requests
Security and Liability
• Security is/is not included
• Lessor is not responsible for loss or damages including mildew/mold, insects, explosions, burglary, vandalism, Acts of God, power outages, equipment failure
• Include any damage costs/responsibilities
• Lessee agrees to be held solely responsible for any damages to the rented storage unit beyond normal wear and tear
Rules & Regulations
• When storage unit must be vacated
• Condition unit must be left in when vacated
• Access hours
• Office hours
• Number of locks allowed per door latch
• No littering
Indemnity
Lessee agrees to indemnify, defend, and hold harmless the Lessor from all demands, claims, actions,
or causes of action brought by others arising out of the Lessee’s use of the storage unit and common areas
Termination
Either party may request the termination of this agreement with (number) of days prior notice. How notification must be delivered (written, hand-delivered, certified mail, etc.)
Amendment
Whether the storage unit may or may not be amended, redacted, or otherwise altered.
Severability
Terms and conditions in the storage unit deemed unenforceable, illegal, unfair-how they will be replaced by an acceptable court of law
Contact information of Lessor/Lessee
• Legal names
• Addresses
• Phone numbers
• Postal codes
• Signatures
• Dates
In a nutshell, the less you leave up to the imagination and the more you document, the simpler your business relationship.
email: [email protected]Do you have additional on/off-site storage I’d like to hear how you deal with it; I’m at [email protected]
Are you worried that the gaps in your landlord knowledge could cost you? Sign up for Landlord Fundamentals 101.
Would you like to receive articles, tips, and events? My news blast will help!