By Alejandra Zilak

o matter how long you’ve been in the self-storage industry, you likely rely on some form of marketing. Whether utilizing billboards, brochures, social media, ads, and/or emails, you churn out content in aims of luring in new clients. Marketing is a necessary part of business, but we do live in a litigious society, and filing lawsuits has become almost as American as apple pie.

This is why it’s crucial to be mindful of how to limit your exposure to legal risks. After all, you may have the best of intentions, but someone may misinterpret it. Or maybe they interpreted it correctly, and you just failed to anticipate an unfortunate possibility.

Thankfully, there are plenty of people who have been there, done that, or, in the case of lawyers, represented those who have. So if you’re browsing for something to read today, don’t skip this one. You never know when you may need to have some of this advice in your back pocket.

“Any business owner and operator needs to be careful and selective about the words they choose to include in their marketing and advertising,” says Scott Zucker, partner at Weissmann Zucker Euster + Katz law firm. “You should be careful not to use absolutes. This includes using words such as ‘guarantee’ when talking about safety or security of the property being stored at the facilities.”

Zucker also warns against offering discounts that aren’t clear as to the time frame they’re valid or whether they’re limited to a specific type of customer, such as first-time tenants only.

Anything that’s exaggerated, vague, or unverifiable can later be used against your facilities if these result in damages to one of your tenants. Plus, it diminishes your credibility in a world where your reputation is valuable currency.

The solution is to always be as detailed as possible. Be sure to include the specific time periods the offers are available, to whom they apply, and whether there are any exclusions. Avoid unverifiable claims that state that you’re the “only” provider to offer the service, or “the best” one to do so. Even if you think that you are, you could suddenly get a new competitor who offers the same thing. Also, being the best at anything is a highly subjective opinion.

In addition, Zucker advises operators to provide all relevant information when highlighting features. For example, instead of announcing that your facilities are “secure,” it would be better to say, “Our units are surrounded by an exterior fence, LED lighting, and/or surveillance cameras that provide alerts in real time.” A detailed description eliminates the risk of misinterpretation or someone claiming you breached an agreement if an unfortunate event were to happen. Even if you’ve never had a security issue in the past, that doesn’t mean it could never happen.

Speaking of secure properties, using caution in wording about this subject should also extend to what self-storage employees tell prospects and existing tenants. “The most common misleading statement an employee can make is to say that their facility is a secure location,” says Sue Haviland, owner and lead consultant at Haviland Storage Services, a company that specializes in market studies, auditing, training, and operational reviews. “Instead, they should say that the facilities have state-of-the-art security (or words to that effect), without claiming the goods will be secure.” By the same token, she cautions that employees shouldn’t offer an unauthorized commitment to cover an insurance or protection plan claim. “This potentially puts the claims administrator in a position to have a contentious conversation with the customer.”

If it turns out that one of your employees inadvertently makes a misleading statement, you can easily correct it in a private conversation. At the end of the day, we were all rookies once, and we’ve all made mistakes. What’s important is to correct them to ensure they don’t happen again. Haviland recommends providing the team member with different wording they could use when discussing sensitive topics with tenants, and to explain why certain statements could be problematic. Here’s one example: “Remember, because we aren’t authorized to sell insurance, we use the phrase ‘protection plan’ instead.”

Haviland adds, “If the verbal counseling is unsuccessful, follow up in writing.”

The best way to reduce the likelihood of this happening in the first place is to conduct thorough employee training and send them regular reminders about your most important guardrails to protect your business from legal liability. Don’t rely on the information being included in an employee handbook. These are often skimmed at best; and even if a person reads it cover to cover, it’s easy to forget specifics in it as time goes by.

Haviland also agrees with Zucker and advises others to avoid saying that a property is secure, because you never know what might happen in the future, and an upset customer can and will probably use your own words against you. If you’re confident in the security measures in your facilities, she offers a safer wording: “We follow strict security protocols and have many security features in place.” You get to toot that horn while covering your bases.

If you decide to extend an offer from marketing materials to a specific customer, make sure to include said language in your rental agreement. “Operators should add the terms and conditions of any rent specials to their rental agreements in the form of an addendum,” states Zucker.

While on the topic of rental agreements, set aside some time to review them. Zucker suggests avoiding the use of absolute language such as “always,” “only,” or “never.” You must also disclose all possible fees to be incurred in the transaction. Under no circumstances should you surprise tenants with a hidden fee. First, it’s dishonest. Second, you wouldn’t like that to be done to you. Third, you don’t want to hear from anyone’s lawyer.

In addition to your rental agreements, you should also regularly review your website content and marketing materials to ensure that all information is up to date and not misleading in any way. When in doubt, change the wording to be as clear as possible. Also, be mindful that your lease agreement and business website should include a disclaimer regarding the sizes of the units. “Units are often built slightly askew from the original dimensions,” says Haviland. “A disclaimer can protect the company from someone alleging your business made a false claim about the unit size.”

That said, this is only one portion of what should be included in your rental agreements. To diminish the risk of liability as much as possible, always have an attorney in your jurisdiction review it; enlist their help to regularly review it to ensure you remain in compliance even if local statutes change.

If your facilities have previously experienced theft or damage of property, you may be wondering whether failing to disclose such information makes you lack transparency. “There’s a difference between an obligation to disclose certain information and an intentional act to hide information or even provide false information when asked,” says Zucker.

Now, tread carefully here, since the answer may vary depending on your jurisdiction. Some state laws require that self-storage rental agreements disclose whether the facility is located in a flood zone. Meanwhile, other jurisdictions only require disclosing such information if the tenant or prospective tenant specifically asks about it. All things considered, you’ll likely gain a lot more client loyalty if you’re honest from the beginning, so keep that in mind when deciding what to do when the law doesn’t make you do it. This may also be an opportunity to offer ancillary services, such as insurance coverage and tenant protection plans.

If unsure, check your state’s laws requiring disclosure requirements regarding floods, fires, theft, asbestos, or any other type of issue that may ultimately result in injury to your tenants or damage to their property. It may require a lot of leg work, but in the long run, it’ll bring you the peace of mind of knowing that you’ve done everything you can to protect your business. It’s all about CYA.