INDIANAPOLIS — Indiana storage unit owners were delivered a major win in the statehouse as a new law grants them the authority to seize defaulted units and auction off their contents faster than ever.
Under current Indiana law, storage unit renters are granted 30 days after missing a payment before the owner can place a lock on the unit and seize the property stored within. Once the default extends to 90 days, the storage owners can auction off the contents of the unit.
Beginning on July 1, House Enrolled Act 1621 will accelerate these grace periods and lead to quicker seizures and shortened timeframes before auctions.
Under the new law, storage companies will be able to seize the renter’s unit only five days after a missed payment and send the items to auction after 60 days.
The new law goes on to state that five days after a missed payment the renter can be denied access to their stored goods, which would leave them unable to move the property out of the unit until payment is made. The owner is also permitted to move the renter’s personal property to another storage space until payment is made or an auction is held.
In order to enforce the lien, storage owners are required to send written notice via email or verified mail to the renter’s last known address with a demand for payment within 30 days of the mailing of the notice.
Storage unit owners and the Indiana Self Storage Association lobbied for HEA 1621 which was originally authored by Rep. Zach Payne (R-Charlestown).
Republican State Senators Gary Byrne, Andy Zay and Scott Alexander sponsored the bill.
The bill passed through the House on a 62-27 vote and passed the Senate 40-2.