3 minute read
Dear Legal Help Desk
QCan a Facility refuse storage to a new storer if they do not consent to a search of StorerCheck or other applicable credit reporting agency?
A(Australian members):
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The Facility may also refuse storage if a Storer does not consent to a credit check or a search of StorerCheck. The Facility may prefer that all new Storers are searched against the StorerCheck database to reduce the likelihood of signing up a new Storer who, for example, has a history of being in default, missing payments, or abandoning goods. Accordingly, refusing storage to a new Storer who does not consent to a credit check helps to avoid a risk to the Facility and is not for an improper reason.
Although the Facility can refuse storage in the above situation, the Facility should ensure that storage is not refused on any other grounds.
QIf a storer says they do not want insurance, and signs their agreement accordingly, then later decides they do want insurance, do we need to get a new agreement signed or can we just add a note to the client’s file saying they now want insurance and have them fill-out the appropriate insurance paperwork?
A(Australian Members): You do not need to enter into a new agreement with the Storer now that they wish to insure their goods. It will be sufficient to make a note on the Storer’s file. You should include the policy number/ insurance agreement number or the name of the insurance company as well as the date that the policy commenced.
Over the past few months, the SSAA and Jackson Russell Lawyers have prepared a new Storage Room Addendum for New Zealand members and updated the New Zealand Vehicle Hire and Trailer Hire Agreements.
The updated Vehicle Hire and Trailer Hire Agreements now allow facilities to record the credit card details of hirers. This will make it easier for facilities to recover fees payable by hirers under the agreements, for example for damage caused by hirers. The agreements have also been updated to comply with the Privacy Act 2020.
The new Storage Room Addendum allows facilities to offer their existing storers the option of having goods delivered (by a courier, for example) to the facility and held in a storage room for 7 days until collected by the storer. The Storage Room Addendum: l can only be used if there is an existing Self Storage Agreement in place; l is designed to be used for storers who need goods to be delivered for business purposes only; l works on a pay-per-use basis – with the storer being invoiced each time a delivery is received; and l works on the basis that only facility staff have access to the storage room – and have possession of the goods while they are in the storage room.
The Customer Storage Agreement (CSA) Guidelines have been updated with further information to help you use and understand these agreements. l
As always, legal support is also available from the SSAA. Please email your questions to legalsupport@selfstorage.com.au If you have any questions you would like to ask about accounting or finance, our Service Member, Bishop Collins Accountants, would also be happy to answer them. Here is an example.
QHow much tax do I pay on the sale of my self storage facility?
AUltimately, this will depend on your individual circumstances. However, some of the key matters which will impact your tax liability include the structure the asset is held in. A company will pay a flat rate of tax, whereas a trust will distribute the gain to the beneficiary. If you can access the capital gains tax small business concessions, the taxable gain may be significantly reduced if not eliminated entirely. This is particularly valuable in connection with your retirement.
Please forward any questions to marketing@selfstorage.com.au
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.