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Legal – Electronic Locks

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MAINTENANCE

MAINTENANCE

Electronic locks

by Hunt and Hunt Lawyers

Arelatively recent development in self storage facilities, electronic locks create a series of questions for facilities. The current agreements apply equally to the use of electronic locks and traditional locks by facilities.

However, the question is whether the relationship between storers and the facility when using electronic locks is best managed by the Standard Agreement or a Managed Agreement. This will be determined by how each facility uses the electronic locking system and the impacts on the overall relationship.

Managed storage services come with an increased responsibility for storage facilities. If you wish to avoid these additional requirements, you must ensure that the use of electronic locks is not the equivalent of ‘keeping keys’.

To reduce the risk that a facility could be deemed to have ‘kept’ keys while using electronic locks, you should: l Keep tamper-proof records of every time an electronic lock is opened; l Provide notification to the Storer every time the electronic lock to their space is opened; and l Ensure only the Storer and the provider of the electronic lock can open the electronic lock.

In following these steps, you will ensure that the facility cannot open the lock itself. Should a facility require access, they might ask the product provider to open the electronic lock in limited circumstances. These circumstances are the same as those allowing a facility to ‘force’

“You must ensure that the use of electronic locks is not the equivalent of ‘keeping keys’.

Tony Raunic.

or ‘break’ a lock under the Standard Agreement; for example, in the event of an emergency or after a Storer is in default for more than 42 days.

A facility could maintain the ability to open the electronic locks themselves in these agreed circumstances. However, this access should be restricted to a limited number of facility staff, and access should be strictly protected. It is worth seriously considering if you need this functionality, as it would be more likely to suggest a facility is ‘keeping keys’ than if the facility could not open the electronic locks themselves.

Electronic locks are new to the self storage industry. It is not certain that taking any or all of these measures will guarantee that a facility will not be seen to be ‘keeping keys’ and the additional responsibilities that come with the changed relationship in the event of a dispute. However, as SSAA’s Australian legal advisers, we think these measures are worthwhile to minimise that risk.

If you are looking to install electronic locks within your facility, these are all key points to keep in mind when evaluating the risks and benefits that electronic locks bring. The SSAA Legal Help Desk can help you evaluate these risks and give you a clear understanding of the potential effects on your responsibilities and relationships with storers. l

Disclaimer: The information contained in these answers is of a general nature and is not intended as legal advice. It is important that you seek legal advice that is specific to your circumstances. Please refer to the SSAA’s website for more information on the SSAA’s Legal Help Desk.

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