Arkansas Law on Self- Storage Facility Lien on Personal Property

Arkansas Code Annotated
Title 18. Property
Subtitle 2. Real Property (Chapters 10 to 26) (Refs & Annos)
Chapter 16. Landlord and Tenant
Subchapter 4. Self-Service Storage Facilities

§ 18-16-401. Definitions

As used in this subchapter:
(1) “Default” means the failure to timely perform an obligation of a rental agreement;
(2) “Electronic mail” means an electronic message, a file, data, or other information that is transmitted:
(A) Between two (2) or more computers, computer networks, or electronic terminals; or
(B) Within or between computer networks;
(3) “Electronic mail address” means a destination commonly expressed as a string of characters to which electronic mail may be sent or delivered;
(4) “Last known address” means the address or electronic mail address provided by the occupant in:
(A) The rental agreement; or
(B) A subsequent written notice of a change of address;
(5) “Leased space” means individual storage space at a self-service storage facility that is rented to an occupant under a rental agreement;
(6) “Net proceeds” means the proceeds from the sale authorized upon a default under this subchapter after deduction for:
(A) Expenses incurred by the operator to exercise its rights under this subchapter, including without limitation attorney's fees, auctioneers' fees, postage, and publication costs;
(B) The debt owed by the occupant to the operator for leased space; and
(C) Charges related to preserving, assembling, advertising, and selling personal property under this subchapter;
(7) “Occupant” means a person or entity entitled to the use of leased space at a self-service storage facility under a rental agreement;
(8)(A) “Operator” means:
(i) The owner, operator, lessor, or sublessor of a self-service storage facility;
(ii) An agent of the owner operator, lessor, or sublessor of a self-service storage facility; or
(iii) Any other person authorized to manage a self-service storage facility.
(B) “Operator” does not include a warehouseman, unless the operator issues a warehouse receipt, bill of lading, or other document of title for storing personal property;
(9)(A) “Personal property” means movable property not affixed to land.
(B) “Personal property” includes without limitation goods, wares, merchandise, motor vehicles, watercraft, and household items and furnishings;
(10) “Rental agreement” means a written agreement that establishes or modifies the terms, conditions, or rules concerning the use and occupancy of a self-service storage facility; and
(11) “Self-service storage facility” means real property used for renting or leasing leased space in which an occupant stores and removes personal property on a self-service basis.

§ 18-16-402. Operator's liens--Authorization

(a) The operator of a self-service storage facility has a lien on all personal property stored within each leased space for rent, labor, or other charges and for expenses reasonably incurred in its sale, as provided in this subchapter.
(b) The lien provided for in this section attaches as of the date the personal property is brought to the self-service storage facility and shall be superior to any other lien or security interest except the following:
(1) A lien which is perfected and recorded in Arkansas in the name of the occupant, either in the county of the occupant's last known address or in the county where the self-service storage facility is located, prior to the date of the rental agreement;
(2) Any tax lien; and
(3) Any lienholder with a perfected security interest in the property.
(c) Nothing in this subchapter shall be construed to prohibit the occupant, operator, lienholder, or any other person or entity claiming an interest in the property stored in the leased space from applying to a court of competent jurisdiction to determine the validity of the lien or its priority.

§ 18-16-403. Prohibition on residential use

(a) An operator may not knowingly permit a leased space at a self-service storage facility to be used for residential purposes.
(b) An occupant may not use a leased space for residential purposes.
  § 18-16-408. Sale proceeds--Disbursement

(a) Proceeds from the sale shall be applied to satisfy the lien, and any surplus shall be disbursed as provided in subsection (b) of this section.
(b) If a sale is held under this subchapter, the operator shall:
(1) Satisfy the lien from the proceeds of the sale; and
(2) Hold the balance, if any, for delivery on demand to the occupant or any other recorded lienholders. If demand is not made within two (2) years after the date of the sale, the surplus shall escheat to the county.

§ 18-16-409. Notice requirements

 (a) Unless otherwise specifically provided, all notices required by this subchapter shall be sent by first class mail with certificate of mailing.
(b)(1) Notices sent to the operator shall be sent to the self-service storage facility where the occupant's property is stored.
(2) Notices to the occupant shall be sent to the occupant at the occupant's last known address.
(3) Notices shall be deemed delivered when deposited with the United States Postal Service, properly addressed as provided in § 18-16-407(a) with postage prepaid.

§ 18-16-410. Limits on value of stored property

If the rental agreement contains a specified limit on the value of property allowed to be stored in an occupant's storage space, the operator is not liable for a loss or damages to the property stored in the occupant's storage space that exceeds the specified limit.
§ 18-16-411. Conditions and limitations for imposing late fees

 (a) If the amount of a late fee and the conditions for imposing a late fee are stated in the rental agreement or in an addendum to the rental agreement, the operator may impose a late fee on the occupant for each month the occupant does not pay rent when due that does not exceed the greater of:
(1) Thirty dollars ($30.00) per month; or
(2) Twenty percent (20%) of the amount of monthly rent.
(b) Expenses incurred as a result of rent collection or lien enforcement by an operator may be charged to the occupant in addition to the late fees permitted by this section.


Ark. Code Ann. §§ 18-16-401-11