A storage rental agreement is a legal document stating the conditions under which a landlord rents a storage space to a commercial tenant.
What Is a Storage Rental Agreement?
A storage rental agreement outlines the terms and conditions under which a landlord lets a business tenant use a storage unit for a defined period. It’s useful for tenants with smaller-scale storage needs, such as document or minor inventory storage.
An Alternative to a Storage Rental Agreement
Business tenants with greater operational needs may consider entering a warehouse lease agreement instead.
Elements of a Storage Rental Agreement
Here are the key elements of a storage rental agreement:
- Parties involved: Identify the landlord and tenant, giving their names and contact information.
- Storage unit description: Describe the storage unit, including its size (dimensions) and location on the property.
- Lease term: Explain how long the lease lasts. Storage unit leases are typically month-to-month, as tenants may need them on a more short-term basis.
- Payment terms: Provide information for the payment terms, including the rent amount, payment schedule, security deposit, and late payment provisions.
- Storage unit uses: Explain the permitted and banned uses of the storage unit. For example, you may disallow storing illegal items or hazardous materials.
- Access rights: Explain how and when the tenant can access their unit and the items inside it.
- Damage provisions: Describe what happens if the tenant damages any part of the unit or if the landlord’s carelessness results in damage to the tenant’s items.
- Termination provisions: Explain the conditions under which either party can terminate the lease.
How to Choose the Right Storage Space
Here are some factors to consider when choosing the right storage space for your company:
- Storage Needs: Consider how much space you’ll need and whether the available storage space or unit can accommodate all the items you want to set aside. Think about the size and number of items and whether you’ll need extra space in the future for additional equipment.
- Location: Ensure that the storage space or unit you choose is easily accessible. If you anticipate needing to visit the unit frequently, pick a location close to your business operations. Consider the convenience of the location for pickups and deliveries, especially if you need regular access.
- Security: Look for storage facilities with strong security features. Features you may want include 24/7 surveillance cameras, individual unit alarms, gated access, and on-site security guards. With certain security features, you may have greater peace of mind that your items are protected from theft or unauthorized access.
- Climate Control: If you need to store sensitive items like artwork, documents, or electronics, choose a storage facility offering climate-controlled units. Climate control features regulate the unit’s temperature and humidity, preventing damage from extreme moisture, cold, and heat.
- Pest Control: Ensure that the storage facility implements effective pest control measures. Ideally, the facility will perform regular inspections and preventative treatments to ward off rodents, insects, and other pests.
- Administrative Charges: Familiarize yourself with administrative charges that come with the unit. These charges may include late payment fees, lock fees, move-in fees, and additional costs for using specific services.
- Insurance Costs: The facility may require you to seek additional insurance to protect against loss or damage.
- Reviews and Reputation: Read customer reviews to learn about the facility’s reputation. Look for former customers’ comments on the facility’s customer service, cleanliness, security, and overall experience.
Storage Rental Agreement Sample
Download a storage rental agreement template in PDF or Word format below:
