Storage owners would notify lenders when tenants default

The section says a storage owner must notify holders of certain perfected security interests when a tenant defaults. The rule covers holders of perfected security interests under the listed code provisions when the tenant is named as a debtor. Notice is required when the tenant defaults on the rental agreement.

At the start of a rental agreement, the owner must give the tenant a written notice about missed payments and possible sale of stored property. The notice applies to rentals at self-service storage facilities and for self-contained storage units. The notice says the tenant will be told the amount due before a sale, by first-class mail or email. It also tells tenants to report address changes in writing and says they may name another person to receive the same notice. The owner must provide the notice when the rental agreement begins.