§ 3901. Definitions
As used in this chapter:
(1) “Default” means the violation or failure to perform a duty or obligation created in
this chapter or in a rental agreement.
(2) “Electronic mail” means the transmission of information through computer or other
electronic means or a communication sent to a person identified by a unique electronic
address.
(3) “Last known address” means the mailing address, and the email address if applicable,
provided by the occupant in a rental agreement or in a subsequent written notice of
a change of address.
(4)(A) “Late fee” means a fee or charge assessed for an occupant’s failure to pay rent or
other fees, charges, or expenses when due.
(B) “Late fee” does not include:
(i) interest on a debt;
(ii) reasonable expenses, fees, or charges incurred in the collection of unpaid rent or
expenses; or
(iii) fees or charges associated with the enforcement of any other remedy provided by law
or a rental agreement.
(5) “Occupant” means a person, successor, assignee, agent, or representative entitled
to use storage space under a rental agreement to the exclusion of others.
(6) “Owner” means the owner, operator, lessor, or sublessor of a self- storage facility,
an agent, or any other person authorized by the owner to manage the facility or to
receive rent from an occupant under a rental agreement.
(7) “Personal information” means written information about a person that is not publicly
available and that readily identifies that person or is closely associated with that
person, including a Social Security number, credit or debit card information, a bank
account number, medical information, or passport information.
(8) “Personal property” means movable property not affixed to land, and includes goods,
merchandise, and household items.
(9) “Rental agreement” means a written agreement that establishes or modifies the terms,
conditions, rules, or any other provision concerning the use and occupancy of storage
space.
(10)(A) “Self-storage facility” means real property designed and used for the purpose of renting
or leasing individual storage space to an occupant.
(B) A self-storage facility is not a “warehouse” as defined in 9A V.S.A. § 7-102.
(11) “Storage space” means the individual space at a self-storage facility that is rented
to an occupant under a rental agreement. (Added 2007, No. 183 (Adj. Sess.), § 2, eff. Jan. 1, 2009; amended 2021, No. 168 (Adj. Sess.), § 1, eff. July 1, 2022.)
§ 3903. Disclosures
(a) A rental agreement shall contain the following:
(1) the name and address of the owner and occupant;
(2) the actual monthly occupancy charge, rent, or lease amount for the storage space provided,
expressed in dollars;
(3)(A) disclosure of the charges the owner may impose for the occupancy;
(B) a description of the charges, including any security deposit and the conditions for
retaining or returning the deposit;
(C) whether the charges are mandatory or optional; and
(D) the amount of each charge, expressed in dollars;
(4) a provision that states:
(A) whether property stored in the storage space is insured by the owner against loss
or damage; and
(B) the requirement that the occupant must provide his or her own insurance for any property
stored; and
(5) notice to an occupant that:
(A) this chapter creates a lien on property stored in the storage space;
(B) the owner may sell the property stored in the storage space to satisfy the lien;
(C) the owner is not liable for damage, loss, or alienation of items of sentimental nature
or value; and
(D) if the owner offers notice by electronic mail, the occupant may elect to receive notice
by electronic mail only by indicating the election in the rental agreement.
(b) If a rental agreement contains a limit on the value of property that may be stored
in a storage space, the limit is deemed to be the maximum value of the property in
the storage space and the maximum liability of the owner for any claim.
(c)(1) An owner may impose a late fee of not more than $20.00 or 20 percent of a rental payment,
whichever is greater, for each service period that an occupant does not pay the rent,
charges, fees, or expenses when due.
(2) An owner shall not impose a late fee if the occupant pays the rent, charges, fees,
and expenses in full not later than five days after the due date.
(3) An owner shall not impose a late fee unless the amount of the fee and the conditions
for imposing that fee are stated in the rental agreement.
(d) Except as otherwise provided in a rental agreement, an occupant has the exclusive
care, custody, and control of property in a storage space until the property is sold
or otherwise disposed pursuant to this chapter.
(e) The disclosures required under subdivisions (a)(4) and (a)(5) and subsections (b)–(d)
of this section shall be written in bold type and of a font size equal to or greater
than the general text of the agreement. (Added 2007, No. 183 (Adj. Sess.), § 2, eff. Jan. 1, 2009; amended 2021, No. 168 (Adj. Sess.), § 1, eff. July 1, 2022.)
§ 3905. Enforcement of lien
If an occupant defaults under a rental agreement, the owner may enforce the lien created
in section 3904 of this title pursuant to this section.
(1) First notice of default. Not sooner than seven days after a default, the owner shall notify the occupant of
the default by regular mail or electronic mail sent to the occupant’s last known address.
(2) Second notice of default.
(A) Not sooner than 14 days after mailing the first notice, the owner shall notify the
occupant of the default by certified mail, first-class mail with a certificate of
mailing, or electronic mail sent to the occupant’s last known address.
(B) If the owner sent the second notice of default to the occupant by electronic mail
and does not receive a response, return receipt, or delivery confirmation from the
same electronic mail address within two days, then before proceeding with a sale,
the owner shall send the notice to the occupant either by certified mail or by first-class
mail with a certificate of mailing.
(C) The second notice shall contain the following:
(i) An itemized statement of the owner’s claim showing the sum due at the time of the
notice and the date when the sum became due.
(ii) A brief and general description of the personal property subject to the lien. An owner
is not required to describe the specific contents of a storage space in a self-storage
facility beyond stating that it is the contents of a specific storage space in a specific
self-storage facility rented by a specific occupant.
(iii) A notice of denial of access to the personal property, if such denial is permitted
under the terms of the rental agreement.
(iv) A demand for payment within a specified time not less than 15 days after the mailing
of the second notice of default.
(v) A conspicuous statement that unless the claim is paid in full within the time stated
in the notice, the personal property will be advertised for sale and sold according
to law.
(3) Advertisement. Except as otherwise provided in subdivision (C) or (D) of this subdivision (3):
(A) After the expiration of the time given in the second notice under subdivision (2)
of this section, the owner shall publish an advertisement of the sale once a week
for two consecutive weeks in the print or electronic version of a newspaper of general
circulation where the self-storage facility is located.
(B) The advertisement shall contain the following:
(i) a brief and general description of the personal property as provided in subdivision
(2)(C)(ii) of this section;
(ii) the address of the self-storage facility;
(iii) the number, if any, of the space where the personal property is located;
(iv) the name of the occupant; and
(v) the time, place, and manner of the sale.
(C) If there is no newspaper of general circulation where the self-storage facility is
located, the owner shall post the advertisement at least 15 days before the date of
the sale at the town hall where the self-storage facility is located in the same manner
as the auction sales of real property are posted.
(D) As an alternative to the advertisement required in subdivisions (A)–(C) of this subdivision
(3), an owner may advertise the sale of personal property in a commercially reasonable
manner. For purposes of this subdivision (D), a manner of advertisement is commercially
reasonable if three or more independent bidders attend or view the sale.
(4) Notice to other lienholders. Before the expiration of the time given in the second notice under subdivision (2)
of this section, the owner shall determine whether the occupant owns any personal
property subject to an active lien registered with the Vermont Secretary of State.
If any such lien exists, the owner shall notify the lienholder by certified mail not
less than 21 days prior to the sale of the property. The notice shall include the
following:
(A) A statement describing the property to be sold. There shall be no requirement to describe
the specific contents of a storage space in a self-storage facility beyond stating
that it is the contents of a specific storage space in a specific self-storage facility
rented by a specific occupant.
(B) A statement of the lienholder’s rights under this chapter.
(C) A statement of the time, place, and manner of the sale of the property.
(5) Delivery. For purposes of this chapter:
(A) notice by regular mail or first-class mail with a certificate of mailing is delivered
when deposited with the U.S. Postal Service if the mail is properly addressed to the
occupant’s last known address and postage is prepaid; and
(B) notice by electronic mail is delivered when properly addressed and sent to an occupant’s
last known electronic mail address.
(6) Sale.
(A) An owner that fulfills the notice and advertisement requirements of this section may
sell personal property stored in a storage space, subject to the following conditions:
(i) the sale occurs not sooner than 15 days after the first advertisement under subdivision
(3) of this section;
(ii) the sale conforms to the terms of the notifications required under this section, or,
if the sale will not or does not take place as provided in the notifications, then
the owner makes subsequent notifications in the same manner as the original notifications
consistent with this section;
(iii) subject to subdivision (C) of this subdivision (6), the owner does not knowingly sell
personal information contained in the storage space;
(iv) the sale is held at the self-storage facility, at the nearest suitable place, or on
a publicly accessible website;
(v) the owner does not purchase personal property at the sale; and
(vi) the sale is performed in a commercially reasonable manner.
(B) For purposes of subdivision (A)(vi) of this subdivision (6):
(i) A sale is commercially reasonable if it conforms to commercially reasonable practices
within a recognized market for the goods or among dealers in the type of goods.
(ii) The sale of more goods than apparently necessary to satisfy an occupant’s obligation
is not commercially reasonable unless necessary due to the nature of the goods being
sold or the manner in which they are customarily sold.
(iii) The fact that an owner could obtain a better price by sale at a different time or
by a different method is not of itself sufficient to establish that the sale was not
commercially reasonable.
(C)(i) If an owner has a reasonable belief that the storage space contains the personal information
of an occupant or clients, customers, or others with whom the occupant does business,
the owner shall not hold a lien sale of the personal information and may destroy the
personal information without liability to any person.
(ii) Before the purchaser takes possession of any personal property sold, an owner shall
provide notice and shall require written acknowledgment from the purchaser that, if
any of the contents contain personal information, the purchaser shall return the personal
information to the owner, which the owner may destroy without liability to any person.
(D) Except as provided in subdivision (7) of this section, an owner shall conduct a sale
or disposition of a motor vehicle pursuant to 23 V.S.A. chapter 21 and a sale or disposition of a vessel, snowmobile, or all-terrain vehicle pursuant
to 23 V.S.A. chapter 36.
(7) Towing.
(A) If rent, charges, fees, or expenses remain unpaid after 51 days, an owner may have
a vehicle, vessel, snowmobile, trailer, or all-terrain vehicle towed away by a towing
company.
(B) Not later than five days after having personal property towed pursuant to this subdivision
(7), an owner shall notify the occupant by regular mail or electronic mail at the
occupant’s last known address and shall include the name, address, and telephone number
of the towing company.
(C) An owner has no liability to any person for having property towed or for damage to
the property after the towing company takes possession of the property.
(8) Right of satisfaction.
(A) Before a sale of personal property pursuant to this chapter, the occupant may redeem
the property by paying the amount necessary to satisfy the lien and the reasonable
expenses incurred under this section.
(B) Upon receipt of payment, the owner shall return the personal property and thereafter
is not liable to any person with respect to the personal property.
(9) Proceeds in excess of lien amount.
(A) An owner that sells property pursuant to this section:
(i) may satisfy the owner’s lien from the proceeds of the sale; and
(ii) shall hold the balance, if any, for delivery on demand to the occupant.
(B) If the occupant does not claim the balance of the proceeds, the owner shall deliver
the balance without interest to the Treasurer of the State of Vermont in accordance
with 27 V.S.A. chapter 14.
(10) Rights of other lienholders. The holder of any perfected lien or security interest on personal property stored
in the storage unit and registered with the Vermont Secretary of State may take possession
of its liened property at any time prior to sale or other disposition.
(11) Rights of purchasers. A purchaser in good faith of the personal property sold to satisfy a lien takes the
property free of any rights of persons against whom the lien was valid, despite noncompliance
by the owner with the requirements of this chapter.
(12) Disposal of personal property. If an owner complies with the requirements of this section and a qualified buyer
does not purchase the property offered for sale, the owner may dispose of the property
without liability.
(13) Liability. An owner that has complied with the applicable provisions of this chapter is not
liable to an occupant, lienholder, or any other person. (Added 2007, No. 183 (Adj. Sess.), § 2, eff. Jan. 1, 2009; amended 2021, No. 168 (Adj. Sess.), § 1, eff. July 1, 2022.)