Note: This summary is not intended to be an all inclusive discussion of abandoned property law, but does include basic provisions. You should check the State Laws for updates.
Minnesota Liens on Personal Property in Self-Service Storage Act
MINNESOTA STATUTES PROPERTY INTERESTS AND LIENS
Chapter 514 - Liens; labor, material
Title.
Sections 514.970 to 514.979 may be cited as the "Minnesota Liens
on Personal Property in Self-Service Storage Act."
Chap. 514, §514.970
Definitions.
Subdivision 1. Scope.
For the purposes of sections 514.970 to 514.979, the terms defined
in this section have the meanings given them.
Subd. 2. Self-service storage facility.
"Self-service storage facility" means real property that is designed
and used only for renting or leasing individual storage space in the facility
under the following conditions:
(1) the occupants have access to their individual storage space only for the purpose of storing and removing their personal property;
(2) the owner does not issue a warehouse receipt, bill of lading, or other document of title for the personal property stored in the storage space; and
(3) the property has two or more individual storage spaces. The term does not include a garage used principally for parking motor vehicles or any property of a financial institution that contains vaults, safe deposit boxes, or other receptacles for the uses, purposes, and benefits of the financial institution's customers.
Subd. 3. Owner.
"Owner" means one or more persons, jointly or severally, who are
either the owner of a self-service storage facility, or the lessor of an
entire self-service storage facility, and who receive rent from an occupant
under a rental agreement entered into with the occupant.
Subd. 4. Occupant.
"Occupant" means a person who rents storage space at a self-service
storage facility under a rental agreement entered into with the owner.
Subd. 5. Rental agreement.
"Rental agreement" means a written agreement that is entered into
by the owner and the occupant and that establishes the terms and conditions
of the occupant's use of storage space at a self-service storage facility.
Subd. 6. Personal property.
"Personal property" means money and every inanimate tangible thing
that is the subject of ownership. The term does not include anything forming
part of a parcel of real estate and agricultural commodities.
Subd. 7. Default.
"Default" means failure of the occupant to pay the rent and other
charges becoming due under the rental agreement within 15 days after the
rents and other charges become due under the terms of the rental agreement.
Subd. 8. Storage space.
"Storage space" means an enclosure, cubicle, or room that is fully
enclosed and equipped with a door designed to be locked for security by
the occupant.
Subd. 9. Security deposit.
"Security deposit" means any deposit of money with the owner used
to secure performance under the rental agreement.
Chap. 514, §514.971
Lien against property.
Subdivision 1. Creation.
The owner of a self-service storage facility has a lien against
the occupant on the personal property stored under a rental agreement in
a storage space at the self-service storage facility, or on the proceeds
of the personal property subject to the defaulting occupant's rental agreement
in the owner's possession. The lien is for rent, labor, and other charges
in relation to the personal property specified in the rental agreement
that have become due and for expenses necessary for the preservation of
the personal property or expenses reasonably incurred in the sale or other
disposition of the personal property under law. The lien provided for in
this section is superior to other security interests except those perfected
before the date the lien attaches.
Subd. 2. Attachment.
The owner's lien created by this section attaches as of the date
the occupant is in default unless the occupant obtains a court order to
recover possession of personal property in the self-service storage facility.
No lien is created under subdivision 1 or shall attach under this subdivision
to any personal property listed under subdivision 5, unless the occupant
fails to remove the personal property before the sale authorized by section
514.973. An owner loses the lien on personal property that the owner permits
to be removed from the self-service storage facility or unjustifiably refuses
to permit to be removed from the facility.
Subd. 3. Security deposits.
No lien is created under subdivision 1 if the owner has possession
of a security deposit sufficient to cover rents and other charges at the
time of an alleged default.
Subd. 4. Denial of access.
Upon default the owner shall mail notice of default to the occupant
at the last known address of the occupant. The owner may deny the occupant
access to the personal property contained in the self-service storage facility
after default, service of the notice of default, expiration of the date
stated for denial of access, and application of any security deposit to
unpaid rent. The notice of default must state the date that the occupant
will be denied access to the occupant's personal property in the self-service
storage facility and that access will be denied until the owner's claim
has been satisfied. The notice of default must state that any dispute regarding
denial of access can be raised by the occupant beginning legal action in
court. Notice of default must further state the rights of the occupant
contained in subdivision 5.
Subd. 5. Access to certain items.
The occupant may remove from the self-service storage facility
personal papers, health aids, personal clothing of the occupant and the
occupant's dependents, and personal property that is necessary for the
livelihood of the occupant, that has a market value of less than $50 per
item, if demand is made to any of the persons listed in section 514.976,
subdivision 1. The occupant shall present a list of the items, and may
remove them during the facility's ordinary business hours prior to the
sale authorized by section 514.973. If the owner unjustifiably denies the
occupant access for the purpose of removing the items specified in this
subdivision, the occupant is entitled to an order allowing access to the
storage unit for removal of the specified items. The self-service
storage facility is liable to the occupant for the costs, disbursements
and attorney fees expended by the occupant to obtain this order.
Chap. 514, §514.972
Enforcement of lien.
An owner's lien established under sections 514.970 to 514.979 for
a claim that has become due must be enforced in the same manner as warehouse
operator's liens under section 336.7-210.
Chap. 514, §514.973
Additional notification requirement.
In addition to the requirements of section 336.7-210, the notification
of the proposed sale of personal property must include a notice of denial
of access to the personal property until the owner's claim has been satisfied.
Any notice the owner is required to mail to the occupant under sections 514.970
to 514.979 shall be sent to the mailing address and the alternate mailing
address provided by the occupant in the rental agreement.
Chap. 514, §514.974
Rental agreements.
The rental agreement between the owner and the occupant must include
a disclosure of the lien rights of the owner upon failure of the occupant
to pay rent including the right to deny access to certain personal property
contained in the self-service storage facility, and the extent and the
limits of insurance carried by the owner covering the occupant's personal
property stored in the leased premises. A rental agreement may not exempt
an owner from liability for damages to an occupant's personal property caused by the owner's negligence. The rental
agreement must request the occupant to insert an alternate mailing address.
Chap. 514, §514.975
Disclosure and actions.
Subdivision 1. Disclosure.
There shall be disclosed to the occupant either in the rental agreement
or otherwise in writing prior to commencement of the occupancy the name
and address of:
(1) the person authorized to manage the premises; and
(2) an owner of the premises or an agent authorized by the owner to accept service of process and receive and give receipt for notices and demands.
Either in the rental agreement or otherwise in writing the occupant shall also be notified that the owner prohibits the storage of hazardous materials.
Subd. 2. Posting of notice.
A printed or typewritten notice containing the information that
must be disclosed under subdivision 1 must be placed in a conspicuous place
on the premises.
Subd. 3. Alternate service.
If subdivisions 1 and 2 have not been complied with and an occupant
desiring to make service of process upon or give a notice or demand to
the owner does not know the name and address of the owner or the owner's
agent, as that term is used in subdivision 1, then a caretaker or manager
of the premises or an individual to whom rental payments for the premises
are made is deemed to be an agent authorized to accept service of process
and receive and give receipt for notices and demands on behalf of the owner.
Subd. 4. Action.
Except as otherwise provided in this subdivision, an owner may
not maintain an action to recover rent or possession of the premises unless
the information required by this section has been disclosed to the occupant,
or unless the information is known by or has been disclosed to the occupant
at least 30 days prior to the initiation of the action. Failure by the
owner to post a notice required by subdivision 2 does not prevent any action
to recover rent or possession of the premises. Any action begun by the
owner or occupant shall be venued in the county where the facility is located.
If an action to recover possession of personal property in the facility
is begun by the occupant, the burden of proof shall be borne by the owner
that default has occurred and the provisions of sections 514.970 to 514.979
have been followed.
Subd. 5. Application.
This section applies to any successor owner, caretaker, manager,
or individual to whom rental payments for the storage space are made.
Chap. 514, §514.976
Default.
If an occupant defaults in the payment of rent or otherwise breaches
the rental agreement, the owner may commence an unlawful detainer action
under section 504B.281.
Chap. 514, §514.977
Waiver or modification prohibited.
The owner and occupant may not waive or modify the provisions of
sections 514.970 to 514.979.
Chap. 514, §514.978
Advertising.
No owner shall advertise or represent its services, or permit its
services to be advertised or represented, in a manner that uses the word
"warehouse" unless the owner is licensed and bonded as provided in chapter
231.
Nothing in this section prohibits the use of the term "self-service
storage facility" in an advertisement or representation.
Chap. 514, §514.979
