Texas Self-Storage Lien Law Guide: Compliance Requirements for 2025

Self-Storage Compliance Hub
Written By Jennifer Aubert
Texas Self-Storage Lien Law Guide: Compliance Requirements

As a self-storage operator in Texas, navigating the state's lien laws is essential to protecting your business and maintaining compliance. The Lone Star State has specific requirements that, when misunderstood, can lead to legal complications and lost revenue.

What's New for 2025

Texas self-storage operators should be aware of several important updates to lien law compliance requirements for 2025:

  • COVID-related temporary changes have expired - Any temporary modifications to enforcement processes implemented during the pandemic have now been completely phased out. All operators must now follow standard procedures without pandemic-related exceptions.

  • Online auctions fully integrated - Following the passage of HB 1951 in 2019, online auctions are now well-established as a legal method for lien sales. The law has been fully implemented, giving operators flexibility to conduct auctions either physically at the facility/nearest suitable location or via online platforms.

  • Increased judicial scrutiny - Recent Texas court decisions have emphasized strict compliance with notice requirements. Courts are showing less leniency toward operators who fail to follow proper notification procedures, making documentation of all steps in the lien process more critical than ever. Pursuant to Sec 59.043:

    ‘The lessor must deliver the notice in person or by e-mail or verified mail to the tenant’s last known e-mail or postal address as stated in the rental agreement or in a written notice from the tenant to the lessor furnished after the execution of the rental agreement. Notice by verified mail is considered delivered when the notice, properly addressed with postage prepaid, is deposited with the United States Postal Service or a common carrier. Notice by e-mail is considered delivered when sent to the last known e-mail address of the tenant. 

    If an Operator is going to use e-mail the Statute provides: “The notice may not be sent by e-mail unless a written rental agreement between the lessor and the tenant contains language underlined or in conspicuous bold print that notice may be given by e-mail if the tenant elects to provide an e-mail address.”

  • Unclaimed funds clarification - Under 59.046: If the proceeds of a sale under this subchapter are greater than the amount of the lien and the reasonable expenses of the sale, the lessor shall deliver written notice of the excess to the tenant’s last known address as stated in the rental agreement or in a written notice from the tenant to the lessor furnished after the execution of the rental agreement. The lessor shall retain the excess and deliver it to the tenant if the tenant requests it before two years after the date of the sale. If the tenant does not request the excess before two years after the date of the sale, the lessor owns the excess.

  • Record-keeping best practices - While not a legal change, the recommended record retention period has been updated to a minimum of 4 (four) years for all lien-related documentation, reflecting evolving industry standards.

Understanding Texas Delinquency Timeline

In Texas, a tenant is considered in default when they fail to pay rent or other charges within 15 days of the due date. While the state doesn't mandate a specific grace period, operators typically set their own reasonable timeframes before beginning the lien enforcement process.

Once a tenant is in default, Texas law allows operators to begin the lien enforcement process. The key is understanding exactly when and how to proceed.

First Notice Requirements

After a tenant defaults, you must send a properly formatted notice before proceeding with a sale. This notice must provide the tenant at least 15 days before any auction can occur.

Pursuant to Sec 59.043: ‘The lessor must deliver the notice in person or by e-mail or verified mail to the tenant’s last known e-mail or postal address as stated in the rental agreement or in a written notice from the tenant to the lessor furnished after the execution of the rental agreement. Notice by verified mail is considered delivered when the notice, properly addressed with postage prepaid, is deposited with the United States Postal Service or a common carrier. Notice by e-mail is considered delivered when sent to the last known e-mail address of the tenant.  If an Operator is going to use e-mail the Statute provides: “The notice may not be sent by e-mail unless a written rental agreement between the lessor and the tenant contains language underlined or in conspicuous bold print that notice may be given by e-mail if the tenant elects to provide an e-mail address.

The notice must include:

    • An itemized account of the claim

    • Name, address, and telephone number of the lessor

    • Statement that the contents have been seized under the contractual lien

    • Statement that if the claim is not satisfied before the 14th day after notice delivery, the property may be sold at public auction

Auction Requirements

Before conducting an auction, you must wait at least 14 days after sending the notice at least the “15th day”. The sale must be conducted at your self-storage facility, the nearest suitable location, or via an “Internet website”.

Texas law requires a public sale to the highest bidder. Although online auctions are now permitted under Texas law, the operator should not purchase items at the auction directly due to conflict of interest concerns.

Special Considerations in Texas

Vehicle Lien Requirements

When a storage unit contains motor vehicles, boats, or trailers, additional steps are required. You must provide notification to registered lienholders, and notification to the DMV including using Form VTR-265-SSF and providing proof of notification. These extra steps can be easily overlooked but are critical for compliance.

Military Service Member Protections

Active military service members have additional protections under the Servicemembers Civil Relief Act (SCRA). In some cases, a court order may be required before selling the property of active-duty military personnel. Failing to verify military status before proceeding with a lien sale can expose your business to significant legal liability.

Common Compliance Pitfalls in Texas

Many operators run into trouble with Texas lien laws due to:

  • Failure to properly document the mailing of notices

  • Inadequate itemization of charges in lien notices

  • Incorrect calculation of deadlines (calendar days vs. business days)

  • Special handling required for motor vehicles, boats, and trailers

  • Failure to provide opportunity for tenant access before sale

Any of these mistakes can invalidate your lien process and potentially expose your business to lawsuits.

After the Auction: Excess Funds

If your auction generates more money than the tenant owed, you must provide written notice to the tenant about the excess proceeds.

Under 59.046:  If the proceeds of a sale under this subchapter are greater than the amount of the lien and the reasonable expenses of the sale, the lessor shall deliver written notice of the excess to the tenant’s last known address as stated in the rental agreement or in a written notice from the tenant to the lessor furnished after the execution of the rental agreement. The lessor shall retain the excess and deliver it to the tenant if the tenant requests it before two years after the date of the sale. If the tenant does not request the excess before two years after the date of the sale, the lessor owns the excess.

Record-Keeping Requirements

Thorough documentation is essential throughout the lien process. Be sure to maintain:

  • Copies of all notices sent to tenants

  • Proof of mailing (certificate of mailing or certified mail receipt)

  • Inventory of items sold (recommended)

  • Record of sale proceeds and distribution

  • Documentation of all notification attempts

While Texas doesn't explicitly define a retention period, we recommend keeping these records for at least 4 years.

How Automation Simplifies Texas Lien Compliance

The complex requirements of Texas lien law create multiple opportunities for human error. Automated lien management systems like Ai Lean can significantly reduce these risks by:

  • Automatically tracking all Texas-specific deadlines

  • Generating compliant notices with all required language

  • Documenting all communication attempts with audit trails

  • Adapting to Texas' unique requirements, including vehicle lien notification

  • Maintaining comprehensive records for the recommended retention period

Stay Compliant, Protect Your Business

The details matter when it comes to Texas lien law compliance. By understanding the specific requirements and implementing robust processes to meet them, you can protect your business from legal challenges while efficiently recovering revenue from delinquent units.

For more information about Texas self-storage regulations or to learn how automation can streamline your lien process, contact our team today.

This information is provided for educational purposes only and does not constitute legal advice. Laws change frequently, and this article may not reflect the most current legislation. Always consult with a qualified attorney for specific legal advice regarding your situation.

Related Resources


References

  1. Primary Source: Texas Property Code, Chapter 59 (Self-Service Storage Facility Liens) [Texas Property Code §59.042, §59.044, §59.045] Available here.

  2. Industry Association Resources:
    Texas Self Storage Association

  3. Legal Consultations:
    Scott Zucker 
    Carlos Kaslow

Jennifer Aubert
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