Running a successful self-storage facility requires more than just providing space—it demands careful attention to legal and operational details that safeguard your business. During a recent SBOA Self-Storage Unlocked webinar titled Insurance, Liens, and the Law: What You Should Know, industry experts discussed essential topics that can help self-storage owners navigate complex issues. One key takeaway? A well-written rental agreement and tenant insurance are two powerful tools that work hand-in-hand to protect your business.
Why Insurance as a Condition of Rental Matters
One of the primary topics highlighted during the webinar was the importance of including “insurance as a condition of rental” in your lease agreement. This provision clearly informs tenants that your facility is not legally liable for the items they store and that their personal property is not covered by your business’s insurance policy. Instead, tenants are required to carry their own insurance. Carlos Kaslow, attorney and partner at The Self Storage Legal Network, stressed how this clause can protect operators from lawsuits.
“Everything comes back to the rental agreement,” Kaslow explained.
He recommends including three key elements in every lease:
A value limitation that caps the maximum value of goods tenants can store.
An insurance requirement for tenants.
A release of liability for property damage.
According to Kaslow, combining these provisions provides strong legal defense and reduces exposure to unpredictable legal outcomes.
Benefits for Both Staff and Tenants
Tenant insurance isn’t just about protecting the business—it also benefits staff and tenants. Rachel Lewis, Director of Revenue Management at Absolute Storage Management, emphasized how tenant insurance makes operations easier for staff.
“It takes our team off of the insurance claim side of it so they can focus on what they do best: storage,” Lewis shared.
By eliminating the need for staff to manage claims, insurance providers handle the burden, freeing up time for more critical business tasks. Lewis also pointed out that well-communicated insurance requirements create trust and clarity for tenants. By setting clear expectations through the lease, tenants understand their responsibilities and the limits of liability, minimizing potential disputes.
Consistency in Lease Compliance Is Crucial
Even with a solid lease agreement in place, ensuring compliance is critical. Panelist Luke Shardlow, CEO of AI Lean, highlighted the role of consistency in maintaining compliance. His company focuses on automating processes related to lease enforcement, helping operators adhere to state laws.
“Consistency and accuracy minimize your exposure,” Shardlow said, emphasizing that even the best agreements can fall short if not enforced uniformly.
Shardlow’s advice underscores an important operational practice: a well-written lease is only effective if consistently applied across all locations and staff members. By equipping staff with clear, enforceable processes, operators can reduce liability and improve operational efficiency.
The Role of a Strong Insurance Partner
Choosing the right tenant insurance provider is another critical component of protecting your business. Nate Trone, Senior Business Manager at Cornerstone Insurance Producers, who administers SBOA Tenant Insurance, advised facility operators to partner with providers who understand self-storage compliance laws.
“We give you solutions and processes that you can put in place so compliance doesn’t impede your day-to-day operations,” Trone explained.
Having a reliable partner ensures you stay up to date on legal requirements and have access to tools that make compliance easier.
A Holistic Approach to Risk Management
The webinar didn’t just cover tenant insurance—it also offered practical insights on lien laws, effective rental agreements, and managing difficult tenants. These topics are vital for any operator looking to safeguard their facility while maintaining a positive customer experience.
Ultimately, protecting your business requires a holistic approach. By combining a strong rental agreement, consistent enforcement, and a dependable insurance partner, you can reduce legal risk, improve operational efficiency, and focus on growing your self-storage business.
To learn more about tenant insurance and how SBOA Tenant Insurance can support your facility, click here, or call us at 866-737-8900.
