Can I rent to someone who has a cell phone?

Mini- Storage Messenger - Can I rent to someone who has a cell phone?

QUESTION: This month’s question: Can I legally rent to people who do not have a hard phone line, just a cell phone number; or no physical address, just a P.O. Box or a temporary address; or no alternate contact address or no alternate phone number, etc., because that makes it less likely I will be able to notify an occupant in the event of a default?

Answer: From a larger prospective the way self storage statutes were written (mostly in the 1970’s), many of these issues were not nearly as prevalent and cell phones did not exist. The answer to this question varies a bit, so this answer is general, with a recommendation to review your state statute for specific information. Every statute requires you to give notice of default or sale at the “last known address” of the occupant. Almost every statute defines the term “last known address” in the definition section of the statute and they are all about the same, and the definition is something along the lines of: “the address provided by the occupant in the latest rental agreement or as changed by subsequent written notice from the occupant” (the way the notice is given varies by state).

Thus, the last known address is the address the occupant provides you, not the last legitimate home address where the occupant was living at the time of the storage contract. Before you get too excited this can present problems as some state self storage statutes require a notice be given at the last known address and the time before you can sell the property begins “x” number of days after delivery of the notice and delivery is not always presumed to be the date of mailing in every state self-storage statute. Most states do presume delivery upon proper mailing as prescribed in the statute. If you are in a state that presumes delivery on mailing, then while it would be nice to enforce a requirement that you have a last known address that is a “legitimate” address where you know you can get mail to the person; it is not actually required by statute. All that is required by statute is that the occupant gives you an address. In my opinion, if that address happens to be a P.O. Box or a temporary address that might be acceptable. However, if you are in a state that does not presume delivery and has a sale requirement based on the days after delivery not the days after mailing, this presents a much larger problem as you may have to be more diligent about getting a good address before you would agree to rent.
As for hard phone lines it is up to you whether or not you want to require a hard phone line or whether a cell phone will work. Just be consistent in your standards about whether or not you will accept only a cell phone number or not. In this day and age some people are opting not to have hard phone lines to avoid the extra expense but they are hardly vagrants, so you may be closing yourself out of the market by refusing occupants who only have cell phones.

As for alternate contacts, every statute that I can think of that discusses an alternate contact requires you to ask for an alternative contact, it does not require you to get one. The occupant always reserves the right not to give you an alternative contact. While refusing to give you an alternate contact is absolutely foolish, it does not violate your self storage statute, in my opinion, to not get an alternative contact if it is refused. However, if you have a statute that requires a demand for an alternate contact and the occupant does not want to give you one, have the occupant write in “none” or “refused” on that line rather than leave it blank.

All in all, this is an industry that has a history of service to people who are “between lives” and sometimes they do not have a hard address or phone number. While we would all prefer to have all pharmacy representatives and corporations renting your spaces, that is not always the market that is served by self-storage. I encourage you to be firm about obtaining the information you desire to run your business, but not to absolutely write off the possibility that some of your clientele may not have this information. Review your statute carefully to know what your are required to obtain and whether written service is presumed in delivery or not.

On prior occasions I have said you want as much information as you can so that you collect the debt if you need to. I am not backing off of that position, the question was “am I required legally to get this information” and the answer is based on the specific question asked… no you are not.

You can send your questions, comments, or suggestions for future topics to Jeffrey Greenberger at info@selfstoragelegal.com or mail them to Jeffrey Greenberger c/o Katz Greenberger & Norton LLP, 105 E. Fourth Street, Suite 400, Cincinnati, Ohio 45202 or you can reach Mr. Greenberger at (513) 721-5151, or visit his website at www.selfstoragelegal.com.