May 082014
 

Reprinted with permission from Inside Self-Storage, the leader in industry insight and education. Originally published on March 1, 2014.

What’s one thing self-storage operators can do that will have an immediate and positive impact on their business? The answer is simple, at least from a legal perspective: Remove any reference to “authorized access” from their rental agreement and other forms. Collecting the names of people who have access to a tenant units causes trouble for operators every day.

On your rental agreement and other intake forms, you may be asking the customer what appears to be a simple, innocuous question: Who else may have access to the unit? Many of you put this in your agreement because you’ve followed previous advice (perhaps even from me) to avoid having more than one tenant on the contract. Maybe you’ve added such a line to appease a spouse or significant other who want to be named on the lease. The problem is it puts you in a potentially terrible position down the road.

When you take names of those who have “authorized access,” you’re gratuitously expanding the services you offer to the tenant. The business model of a storage facility is to rent a unit where a customer can store personal property, accessing the space at will with no involvement on the operator’s part. The tenant rents the unit, you collect the rent and, hopefully, both sides are happy with the transaction.

When you allow for authorized access, you increase your responsibility to your tenant. You’ve essentially assumed the role of gate-keeper. Like it or not, you’ve implied that you stand at the gate to ensure only the tenant and authorized parties are allowed into the unit. Otherwise, why would you ask the customer to identify authorized visitors?

Authorized access should be defined confidentially between the tenant and whoever he wants to allow into the unit. Your involvement in that process adds another layer of bureaucracy, liability exposure and risk. Instead, simply tell your customer, “Whoever has your gate code and key will be able to come and go at will until you change your code or lock.” That way it remains a private matter between your tenant and his invited guests. You’re not making decisions about letting people come and go or cutting locks for people who may or may not be authorized.

Don’t Be a Referee

Allowing for authorized access may appear to be a convenience for your tenant and the other person, but it sets you up for potential legal problems. For example, someone who’s approved to access the unit might show up without the gate code or a key and expect your assistance. This is not your business. If a person doesn’t know the gate code, he should be able to get it from the tenant. If he doesn’t have a key, he needs to get it from the tenant rather than cut the lock.

Don’t let one fill-in-the-blank field on your rental agreement expose you to liability and risk. There are many operators who’ve being “bitten” by the authorized-access clause.

For example, a woman who had filed an emergency divorce stopped by her self-storage unit to change her lock and keep out her soon-to-be ex-husband. However, she forgot to delete him from her authorized-access list. Two days later, the husband showed up and tried to get into the unit, asking the manager to cut the lock. When the manager wouldn’t comply, the man summoned the police.

Here’s another point to remember about authorized access: People’s feelings change. Someone might be given access to a tenant’s unit at the time of lease signing. Then the tenant might change his mind down the road due to a fight, break-up, divorce, etc. If he fails to notify the facility operator in a timely fashion, the other party may already have accessed the unit. If the operator facilitated that access, he could potentially face a lawsuit.

You’re in the business of renting space in exchange for rent. Nowhere in that relationship should you be acting as a referee, deciding who can access a unit.

Avoid Additional Risk

This is all extra risk you don’t need to take. In truth, there isn’t a single benefit to extending authorized access in your rental agreement. Let your tenants decide who can enter the unit by distributing their own gate code and key. If they change their mind, they can swap their lock or code and keep you out of it. This will keep your business relationships cleaner, simpler and safer.

  2 Responses to “Why Self-Storage Operators Should Avoid the Danger of ‘Authorized Access’ and How to Do It”

  1. […] an excellent article on the subject and why you should NOT keep authorized access information. http://selfstoragelegal.com/2014…-how-to-do-it/ MusicCity Gal and pacnwstorage like this. Reply With […]

  2. I agree that it is best to stay clear from the responsibility of being a middle person. Whoever your tenants decide to grant access to their storage unit should totally be their own judgment and none of your concern. You as the storage owner should just inform them prior to signing the agreement that they shall be held liable for their belongings and access to them including the removal and adding of items. That would draw the line and you have already safeguarded yourself from unnecessary accountability.

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