Michigan Laws 570.523 – Lien; attachment; priority; written notice; limit on property value; late payment charge
Current as of: 2023 | Check for updates
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Terms Used In Michigan Laws 570.523
- facility: means any real property designed or used for the purpose of renting or leasing individual storage space to tenants who are to have access to that space for the purpose of storing and removing personal property. See Michigan Laws 570.522
- in writing: shall be construed to include printing, engraving, and lithographing; except that if the written signature of a person is required by law, the signature shall be the proper handwriting of the person or, if the person is unable to write, the person's proper mark, which may be, unless otherwise expressly prohibited by law, a clear and classifiable fingerprint of the person made with ink or another substance. See Michigan Laws 8.3q
- Last known address: means the street address, post office box, or electronic mail address provided by the tenant in the latest rental agreement or in a subsequent written notice of change of address by hand delivery, first-class mail, or electronic mail. See Michigan Laws 570.522
- Lien: A claim against real or personal property in satisfaction of a debt.
- Owner: means the owner, operator, lessor, or sublessor of a self-service storage facility or self-contained storage unit or his or her agent or any other person authorized by him or her to manage the facility or to receive rent from a tenant under a rental agreement. See Michigan Laws 570.522
- person: may extend and be applied to bodies politic and corporate, as well as to individuals. See Michigan Laws 8.3l
- Personal property: All property that is not real property.
- Rental agreement: means an agreement or lease that establishes or modifies terms, conditions, rules, or any other provision concerning the use and occupancy of a self-service storage facility or use of a self-contained storage unit. See Michigan Laws 570.522
- Self-contained storage unit: means a unit not less than 500 cubic feet in size, including, but not limited to, a trailer, box, or other shipping container, that is leased by a tenant primarily for use as storage space whether the unit is located at a facility owned or operated by the owner or at another location designated by the tenant. See Michigan Laws 570.522
- Tenant: means a person or the person's sublessee, successor, or assign entitled to the use of storage space to the exclusion of others at a self-service storage facility or in a self-contained storage unit under a rental agreement. See Michigan Laws 570.522
- Uniform Commercial Code: A set of statutes enacted by the various states to provide consistency among the states' commercial laws. It includes negotiable instruments, sales, stock transfers, trust and warehouse receipts, and bills of lading. Source: OCC
(1) The owner of a self-service storage facility or a self-contained storage unit and the heirs, personal representatives, successors, and assignees of the owner have a lien upon all personal property, whether or not owned by the tenant, located at the self-service storage facility or self-contained storage unit for rent or other lawful charges incurred relative to the storage of the personal property, including expenses necessary for its preservation, or reasonably incurred in its sale pursuant to this act. The lien attaches on the date the personal property arrives at the self-service storage facility or self-contained storage unit or the date a rental agreement for the storage space is signed by the tenant, whichever is earlier.
(2) The priority of a lien under this act is as provided in section 5(14).
(3) If a tenant defaults on a rental agreement, the owner shall give notice to all holders of a perfected security interest under the uniform commercial code, 1962 PA 174, MCL 440.1101 to 440.11102, in which the tenant is named as a debtor.
(4) At the commencement of a rental agreement for storage space at a self-service storage facility or in a self-contained storage unit, the owner shall provide the tenant with the following written notice:
“NOTICE: If you fail to make your required payments, you will have to vacate the unit or your property may later be sold at a public sale. Before the sale, you will be notified by first-class mail or by electronic mail of the amount due. The notice will be mailed to your last known address. In order to preserve your right to be notified, it is important that you notify us in writing of any change in your mailing address. Also, you should supply us with the name and address of another person who can reach you if you are not at your mailing address, and we will notify that person at the same time and in the same manner as we notify you.”.
(5) A rental agreement under this section may provide for a limit on the value of the property stored at the facility or unit. The stated limit shall be considered the maximum value of the stored property for all purposes.
(6) A rental agreement under this section may provide for a reasonable late charge for failure of the tenant to timely make payments for the storage space when due. A monthly late fee of $20.00 or 20% of the monthly rental amount, whichever is greater, shall be considered reasonable and is not a penalty. The owner of the self-service storage facility or self-contained storage unit has the burden of justifying the reasonableness of any higher late fee.