Storage leases can be a tricky subject. Especially if you are renting out your garage, driveway, barn, or land for the first time. This page is meant to be a resource for renting out your garage, barn, land, or storage unit and a starting guide to storage lease agreements. It is not legal advice.
Storage Contract Basics
There are 5 categories of a storage agreement that every good simple storage lease agreement should cover.
- Storage Payments
- Use of the Storage Space
- When Things Go Wrong with a Storage Lease
- Landlord and Renter Powers
- Storage Liability
Storage Payments
You need to establish 3 things in your rental agreement:
How much is the rent? – This should cover the monthly amount due.
How is the rent paid? – How will you have the renter pay and on what date? What types of payments do you accept i.e., credit card, check, etc.?
Fees and Deposits – Make sure you mention any deposits and the return date of the deposits. This is also where you set the late payment fees and what constitutes a late payment.
We always recommend having renters on some sort of autopay with a credit card on file. When assessing late fees, you want to look at state laws, but a good general rule of thumb is that most states do not allow you to charge late fees within 5 days of a payment date. Here is a breakdown of state-by-state late fee laws.
Use of the Storage Space
Be very detailed on what the tenant can and can’t use the space for. Here are some times to consider:
How often may the renter access the space? – If this is private property and you do not allow renters to have 24/7 access, you need to establish the rules here so that you and the renter are clear on what type of access the renter will have to the space.
Will you allow working in the space? – We never believe it is a good idea to allow working in the space. Spaces should be for storage and it is recommended that any type of maintenance is prohibited. If you do allow work, you will want to specify the type of work and include additional liability clauses.
Illegal goods or hazardous materials – You will want some type of clause stating that the tenant may not store illegal goods or hazardous materials in the unit and doing so is a violation of the lease and subject to fines and eviction.
Storage Evictions: When things go wrong
Hopefully, you will never have to use this part of the contract but just in case, this is another section where you want to be very detailed for unforeseen circumstances.
There are 3 main parts to this:
- Lien – Will you place a lien over the renter’s property? This is standard in most housing leases and storage contracts. This will give you the right to sell the items in a worst-case scenario.
- Evictions – You want to be detailed about how the storage eviction will be handled. Different states and counties may require certain processes to be completed before you may evict a tenant. For more information on this subject, check out our blog on Storage Evictions.
- Fees – This is another place where you can include late fees, but also fees for having to start the eviction process. Starting the process takes time and you may incur a few costs such as mailing a certified letter. You may also choose to reference any legal fees that you may incur in this section.
It's crucial to consider the uses and access a tenant can have if it is a shared storage space such as a barn or multiple-car garage and to have a written out plan in place if termination of a lease occurs.
Landlord and Renter Powers
It may seem best to have all the power as a landlord, but this is not a place in the contract whereby you want to lose a potential renter. The important thing with powers is to be fair. You already have the eviction process in place for a worst-case scenario.
The main considerations here are:
Ending the Lease Term – What kind of notice does the renter have to give to end the lease and can you end the lease with the same type of notice? You want to ensure notices are in writing so that you have a written record and not a verbal agreement.
Entering the Unit - This is especially important if you are renting your garage or barn for storage. Can you enter the unit as you wish or do you have to provide advanced notice to the tenant?
Storage Liability
The last section covers liability. As a Landlord, you want to protect yourself from the unknown and ensure that the contract has strong language about indemnifying you from anything that is not your direct fault. Bad things do happen from time to time, so it is important to be covered.
Usually, the language sounds something like this:
General Storage Liability Clause
The Lessee agrees to accept all liability for the property stored in the storage unit. Lessee understands that the landlord makes no warrants ensuring the safety or security of such items.
The Lessor will not be responsible for any damages or loss that incur from the storage of the property during the rental term or hereafter.
For more examples, Law Insider has many versions of standard liability clauses.
Other considerations are:
Acceptance of the Unit as is – The tenant needs to agree to accept the unit as is, in its current condition. You do not want a tenant to move in and make multiple requests for repairs.
Storage Agreement Tips
It is up to you how stringent or relaxed you want your contract to be. Each section of a storage lease agreement can be customized to a varying degree of coverage. The top things to keep in mind when crafting a contract are:
How does the tenant pay and what can they store in the space?
What happens if something goes wrong?
What are your powers as a Landlord?
We wish you the best of luck renting your unit! Below are two versions of storage rental lease documents. One version covers the basics and another version is more in-depth. We have made these in word format so that you can easily edit the contracts.
Downloadable Storage Lease Agreement Templates
Disclaimer: STOW IT is not a lawyer and does not represent these contracts. The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information on this website may not constitute the most up-to-date legal or other information.