Despite the current economic situation, we are excited to announce that Governor Tate Reeves has signed legislation that significantly improves the Mississippi self storage lien law.
Most significantly, the new law eliminates the costly newspaper advertising requirement and allows for online advertising or other alternatives that draw at least three independent bidders to the auction. It also eliminates the certified mail requirement and allows operators to send lien notices by verified mail (also referred to as U.S. mail with certificate of mailing) or by email, if elected by the tenant in the rental agreement. These changes will result in significant savings for your facility and boost your NOI.
The bill also expressly allows for online auctions; allows for optional towing in lieu of selling vehicles and watercrafts; establishes a late fee safe harbor of $20 or 20% of the monthly rent, whichever is greater; and provides legal protection for the stored property value limitations common to many self storage rental agreements.
The national Self Storage Association is preparing a lien law manual that explains the new law, and includes checklists, timelines, and sample lien notices. As an affiliate of the national SSA, Mississippi members can purchase the manual at a discounted member rate.
In addition, the MsSSOA is working with self storage attorneys to update the standardized lease agreement and lien documents typically included in the Membership Documents Bundle.
If there are any questions, feel free to reach out to Meagan, our Executive Director, for more details!