DEAR LEGAL HELP DESK Q
A Storer has requested to have their storage fees reduced because they cannot access their goods, due to COVID-19. Do I have to do this?
A
(Australian Members):
The storage relationship is governed by the storage agreement (and of course other laws). The storage agreement makes it clear that the only service provided by the facility is a licence to use the space provided for the sole purpose of storing goods and no other services are provided. Here you are continuing to allow the storage of goods – being the service you agreed to provide
A
(NZ Members):
The storage relationship is governed by the storage agreement (and of course other laws). The storage agreement does not provide for any reduction in fees or similar during a no access period such as in a pandemic. The storage agreement makes it clear that the only service provided by facility is a licence to use the space provided for the sole purpose of storing goods and no other services are provided. Here you are continuing to allow for the storage of goods – being the service you agreed to provide. Storers have been temporarily denied access by the restrictions imposed by the government but they are still getting storage. The position might be different if a storer has genuinely reached the end of its term and wanted to remove goods from storage – as the storer would otherwise not have continued incurring
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storage fees. Members would want to avoid a complaint to the Commerce Commission that might lead to the Commerce Commission considering how much facilities can charge over the lockdown period. We are of the view that each facility should consider each request from storers on a case-by-case basis and consider what is fair. These are unprecedented times and there is at least a moral imperative to support storers who may be facing hard times. In the absence of any applicable rules, the Association and members may wish to consider for themselves what is a fair and reasonable position to take during the lockdown, and whether storers ought to have some form of voluntary reduction. At the very least it would seem to be the best approach to show empathy towards storers and those in financial difficulties. The Association and members may wish to consider how to deal with those who find themselves in the hard times that are forecast for many people.
Q
We are seeking assistance with the announcement on 29/3/2020 relating the Tenancy Relief Principles.
A
(Australian Members):
This announcement relates to commercial and residential leases. The SSAA storage agreements do not grant storers a lease of the space. The only service provided by a storage business is the facilitation of the storage of goods by the storer in the space. Therefore, our position remains that it does not apply to self storage.
Members will need to develop their own procedures and deal with requests from storers who are unable to pay their storage fees. Each request will need to be assessed on a case-by-case basis, keeping in mind the tough times we all find ourselves in now.
A
(NZ Members):
As at 24 April 2020, the NZ Government has not provided any relief for commercial leases. However, if the Government does introduce such relief, it would not apply to storage agreements as they are licences, not leases (so the position is the same as that in Australia). Our comments above also apply here.
Q
We’d like to reach out for your opinion on selling secondhand boxes. We’re focused on being environmentally responsible and would like to consider the life cycle of our products and potentially offer our customers the opportunity to buy used boxes as well as sell their boxes back to us for resale.
A
(Australian Members):
The Facility can sell secondhand storage boxes, however like selling any goods, your facility needs to comply with various requirements under the Australian Consumer Law. First, your facility needs to disclose to the potential buyers that the storage boxes have been used. Secondly, your facility must make sure the boxes are still of sound quality, by ensuring that the boxes: l are of acceptable quality;
www.selfstorage.org.au
