Summary: SB 559 (HB 1154) — Tennessee, 114th General Assembly
Jurisdiction: Tennessee | Title: Personal Property - Self-service storage facilities
Effective date: July 1, 2025
Purpose
- To modify the legal framework governing self-service storage facilities (also known as storage units) in Tennessee, clarifying how changes to rental agreements are accepted, and establishing procedures related to termination or nonrenewal of rental agreements and disposition of abandoned property.
Key Provisions
1) Acceptance of rental agreement revisions by non-signature
- New provision: If the storage occupant is delivered a written revision to the rental agreement (by hand delivery, first-class mail, or electronic mail) and the occupant continues to use the storage space for at least 30 days without signing the revision, the revised terms are binding as if the occupant had signed them.
- Purpose: Streamlines the ability of the facility owner to update terms without requiring explicit signed assent from the occupant after notice.
2) Termination/nonrenewal notice and removal timeline
- Occupant prohibition on use after notice: After the owner delivers a written notice of termination or nonrenewal (by hand delivery, certified mail, or electronic mail), the occupant may not use the storage facility.
- Removal period: The occupant must remove all personal property within at least 15 days after delivery of the termination/nonrenewal notice.
- Disposal rights: The rental agreement may include a provision informing the occupant of the owner's right to dispose of personal property more than 15 days after termination/nonrenewal.
- Access restrictions during removal: Prior to removal of all personal property, the owner may impose reasonable restrictions on the occupant’s use of the facility (e.g., limiting access outside the owner’s office hours).
3) Disposal of remaining property
- If personal property remains after the deadline in the termination/nonrenewal notice, the owner may dispose of it.
4) Miscellaneous
- The act applies to conduct occurring on or after July 1, 2025.
- Provisions focus on private party agreements; fiscal and commerce impacts are deemed not significant.
Who Is Affected
- Occupants (tenants) of self-service storage facilities: subject to updated terms by revised rental agreements and subject to termination/nonrenewal procedures.
- Storage facility owners/operators: gain clearer rights to enforce updated terms after notice, restrict access during removal periods, and dispose of abandoned property after specified deadlines.
Procedural and Timeline Aspects
- Rental agreement revisions: 30-day window of continued use after delivery to trigger acceptance of the revision (if not signed).
- Termination/nonrenewal notice: At least 15 days for the occupant to remove property after notice.
- Disposal: Owners may dispose of remaining property after the 15-day removal window per the notice.
- Effective date: July 1, 2025; the act applies to conduct occurring on or after that date.
Fiscal and Commerce Impact
- Fiscal impact: Not significant; legislation concerns private agreements and property handling.
- Commerce impact: Not significant; no anticipated large effects on jobs or commerce in Tennessee.
Notes
- The bill was enacted as Public Chapter 67, with the governor signing completed in March 2025.
- The summary reflected in fiscal notes emphasizes routine administration of self-storage facilities and private contractual relationships.
