Storage lien laws · State guide
Indiana storage lien laws
Indiana Code Title 26, Article 3, Chapter 8 — Self-Service Storage Facilities →Verified 2026-06-10
Indiana grants self-service storage operators a lien on all personal property in the facility the moment it is placed in a rented space (IC 26-3-8-11). Enforcement begins after five consecutive days of default. The operator sends one written notice by email or verified mail giving the renter at least 30 days to pay; sale cannot occur until at least 60 days after default. For motor vehicles, trailers, and watercraft, the operator may choose to tow the property instead of holding a sale (IC 26-3-8-12(d), added by P.L.93-2023). Late fees are statutorily capped at the greater of $20 or 20% of monthly rent per month in default (IC 26-3-8-11.5). Rental agreements must include a bold-type lien disclosure and a space for the renter to designate an alternative notice contact.
At a glance
IN · verified 2026-06-10- Statute
- Indiana Code Title 26, Article 3, Chapter 8 — Self-Service Storage Facilities
- Notice delivery
- Electronic mail (email) to the renter's last known address — permitted without any separate contractual authorization (IC 26-3-8-12(c)) · Verified mail — any USPS or private-carrier method that provides evidence of mailing, such as certified mail or first-class mail with certificate of mailing (IC 26-3-8-9.5; IC 26-3-8-12(c))
- Sale method
- Public sale held at the self-service storage facility (or the nearest suitable place) or through a publicly accessible internet website. The owner may purchase the property at the sale. The sale must be conducted in the exact manner, place, and time stated in the lien enforcement notice (IC 26-3-8-12(e); IC 26-3-8-15(a)–(b)).
- Late fees
- The statute imposes a cap: per month the renter is in default, the owner may charge the greater of $20 or 20% of the monthly rent (IC 26-3-8-11.5(a)). In addition to the capped late fee, the owner may separately recover all reasonable costs and expenses of rent collection and lien enforcement from the defaulting renter (IC 26-3-8-11.5(b)). Both the capped late fee and the enforcement costs are included in the owner's lien under IC 26-3-8-11(a).
- Vehicles & boats
- IC 26-3-8 does not grant the storage operator a direct title-transfer mechanism. For the auction path, a buyer at a compliant lien sale would obtain title through the Indiana Bureau of Motor Vehicles using sale documentation. For the towing path under IC 26-3-8-12(d), the operator transfers physical custody to the towing company; what title or abandoned-vehicle process applies after that transfer is not addressed in IC 26-3-8, and no statutory provision in that chapter explicitly cross-references any other Indiana code chapter or BMV process. Operators should confirm the post-tow title handling procedure with Indiana counsel before exercising this option.
The lien clock
Each station below is a statutory checkpoint. Miss one and the sale can be challenged — this is the timeline LotWarden tracks automatically.
- 01
Day 0 — property is placed in the rented space
Lien attaches
The statute requires that the lien attaches on the date personal property is placed in the rented space (IC 26-3-8-11(c)). The lien covers rent, labor, other charges under the rental agreement (including late fees and rent-collection costs), preservation expenses, and reasonable sale costs. Every rental agreement must contain a bold-type statement notifying the renter of the lien and enforcement method.
IC 26-3-8-11(a)–(c)
- 02
Day 5 — after five consecutive days of default
Default threshold — enforcement may begin
The statute requires that the renter must be in default continuously for at least five days before the owner may begin enforcement. "Default" is determined by the rental agreement. Once the five-day threshold is crossed, the owner may immediately deny the renter access to the facility and the rented space, and may move the renter's property to another storage space pending resolution.
IC 26-3-8-12(a)–(b)
- 03
Day 5 or later — as soon as the owner chooses to enforce
Send lien enforcement notice
The statute requires the owner to send a written notice by email or verified mail to the renter's last known address. The notice must include an itemized claim, a payment deadline at least 30 days from the mailing date, a lien statement, any access-denial or property-move notice, contact information, and a conspicuous warning of sale or — for vehicles, trailers, and watercraft — of towing. The sale (or tow) cannot occur until at least 60 days after the renter's default.
IC 26-3-8-12(c)
- 04
Days 1–30 after notice mailing date
30-day cure period
The renter has at least 30 days from the notice mailing date to pay the full amount of the claim and redeem the property. The statute requires that the redemption amount must be sufficient to satisfy the entire lien (IC 26-3-8-13). Upon full payment the owner must immediately return the property; the owner then has no further liability for it.
IC 26-3-8-12(c)(2); IC 26-3-8-13
- 05
After the 30-day cure period expires and property has not been redeemed; sale must be at least 60 days after default
Advertise the sale
The statute requires publication once in a newspaper of general circulation in the county where the facility is located. As an alternative, the owner may use any other commercially reasonable method likely to attract at least three independent bidders. Either way, the advertisement must state that property will be sold to satisfy the lien, the facility address, the space number/designation, the renter's name, the manner of sale, and the time and place of sale. The sale must be held at least 10 days after the advertisement is first published or communicated.
IC 26-3-8-14(b)–(d)
- 06
At least 10 days after first advertisement and at least 60 days after default
Conduct the sale
The statute requires the sale to be held at the facility or — if not suitable — at the nearest suitable place, OR through a publicly accessible internet website. The owner may buy the property at the sale. The sale must be conducted in the same manner, and at the same place and time, specified in the owner's enforcement notice (IC 26-3-8-12(e)). If the sale is not consummated after advertising, the owner must notify the renter in writing at the renter's last known address of the other disposition the owner intends for the property (IC 26-3-8-14(d)).
IC 26-3-8-14(d); IC 26-3-8-15(a)–(b); IC 26-3-8-12(e)
- 07
Immediately after sale
Apply proceeds and handle surplus
The statute requires the owner to satisfy the lien from sale proceeds. If proceeds exceed the lien amount, the owner must hold the balance for delivery to the renter upon demand. If the renter does not claim the surplus within one year after the sale, it becomes unclaimed property under IC 32-34-1.5.
IC 26-3-8-15(c)
Notice requirements
Permitted delivery
- Electronic mail (email) to the renter's last known address — permitted without any separate contractual authorization (IC 26-3-8-12(c))
- Verified mail — any USPS or private-carrier method that provides evidence of mailing, such as certified mail or first-class mail with certificate of mailing (IC 26-3-8-9.5; IC 26-3-8-12(c))
The notice must include
- An itemized statement of the owner's claim showing the amount due and the date it became due (IC 26-3-8-12(c)(1))
- A demand for payment before a specified date at least 30 days after the notice mailing date (IC 26-3-8-12(c)(2))
- A statement that the contents of the rented space are subject to the owner's lien (IC 26-3-8-12(c)(3))
- A statement that the renter has been denied access, if the owner has denied access (IC 26-3-8-12(c)(4))
- A statement that property has been moved to another storage space, if the owner moved it (IC 26-3-8-12(c)(5))
- Name, street address, and telephone number of the owner or a contact person (IC 26-3-8-12(c)(6))
- A conspicuous warning that unpaid property will be advertised and sold (with place and time, at least 60 days after default), or — for a motor vehicle, trailer, or watercraft — will be towed, if the owner elects the towing alternative (IC 26-3-8-12(c)(7))
IC 26-3-8-12(c); IC 26-3-8-9.5; IC 26-3-8-0.5
The part most guides skip
Vehicles, boats & RVs
Indiana created a statutory towing alternative for motor vehicles, trailers, and watercraft stored at self-service storage facilities under IC 26-3-8-12(d) (added by P.L.93-2023, effective July 1, 2023; no further amendments in the 2024 or 2025 sessions as of the date of last verification). When the stored property is a motor vehicle, trailer, or watercraft AND the renter has not paid within the 30-day notice deadline, the owner may — as an alternative to the public auction process under IC 26-3-8-15 — cause the vehicle, trailer, or boat to be towed or removed from the facility. The owner must disclose this towing path in the lien enforcement notice: the notice must state conspicuously that the property will be disposed of by towing (IC 26-3-8-12(c)(7)(B)). Both paths (auction and towing) require the same five-day default threshold and the same written notice. The notice timeline and payment deadline (30 days from mailing; sale/tow no earlier than 60 days after default) are identical for both paths. IC 26-3-8 is silent on any DMV or BMV title-transfer mechanism for the storage operator once a vehicle is towed; what, if any, process applies after the operator transfers physical custody to the towing company is not addressed in the self-storage chapter. Operators considering the towing path should confirm the applicable title or abandoned-vehicle procedure with Indiana counsel before relying on it.
Titled property path
IC 26-3-8 does not grant the storage operator a direct title-transfer mechanism. For the auction path, a buyer at a compliant lien sale would obtain title through the Indiana Bureau of Motor Vehicles using sale documentation. For the towing path under IC 26-3-8-12(d), the operator transfers physical custody to the towing company; what title or abandoned-vehicle process applies after that transfer is not addressed in IC 26-3-8, and no statutory provision in that chapter explicitly cross-references any other Indiana code chapter or BMV process. Operators should confirm the post-tow title handling procedure with Indiana counsel before exercising this option.
IC 26-3-8-12(c)(7)(B); IC 26-3-8-12(d); P.L.93-2023, SEC.3
Sale rules
- Method
- Public sale held at the self-service storage facility (or the nearest suitable place) or through a publicly accessible internet website. The owner may purchase the property at the sale. The sale must be conducted in the exact manner, place, and time stated in the lien enforcement notice (IC 26-3-8-12(e); IC 26-3-8-15(a)–(b)).
- Advertising
- One publication in a newspaper of general circulation in the county where the facility is located, OR any other commercially reasonable method likely to attract at least three independent bidders (e.g., an online auction platform). The advertisement must include: a statement that property will be sold to satisfy the owner's lien; the facility address, space number or designation, and renter's name; the manner of sale; and the time and place of sale. The sale must not occur until at least 10 days after first publication or communication of the advertisement (IC 26-3-8-14(b)–(d)).
- Proceeds & surplus
- Sale proceeds are applied to the owner's lien. Surplus must be held by the owner for up to one year and delivered to the renter upon demand. If unclaimed after one year, the balance is treated as unclaimed property under IC 32-34-1.5 (IC 26-3-8-15(c)).
IC 26-3-8-14; IC 26-3-8-15
Late fees
The statute imposes a cap: per month the renter is in default, the owner may charge the greater of $20 or 20% of the monthly rent (IC 26-3-8-11.5(a)). In addition to the capped late fee, the owner may separately recover all reasonable costs and expenses of rent collection and lien enforcement from the defaulting renter (IC 26-3-8-11.5(b)). Both the capped late fee and the enforcement costs are included in the owner's lien under IC 26-3-8-11(a).
IC 26-3-8-11.5(a)–(b); IC 26-3-8-11(a)(1)(A)–(B)
Operator questions
My tenant stores a boat at my outdoor lot and stopped paying. Can I just have it towed instead of auctioning it?
Yes — Indiana added a towing alternative specifically for motor vehicles, trailers, and watercraft in IC 26-3-8-12(d) (effective July 1, 2023). After five consecutive days of default, send the required written notice by email or verified mail. The notice must conspicuously state that the boat will be towed if the claim goes unpaid. Give the renter at least 30 days from the mailing date to pay. If still unpaid, you may arrange the tow — provided at least 60 days have elapsed since the default. You do not need to advertise a sale if you choose the tow route.
What is the minimum time from default to sale or tow?
At least 60 days after the renter's default (IC 26-3-8-12(c)(7)). The five-day threshold must pass before you can send the enforcement notice (IC 26-3-8-12(a)). The notice must give the renter at least 30 days to pay (IC 26-3-8-12(c)(2)). After the notice deadline passes, you still must advertise the sale and wait at least 10 more days before holding it (IC 26-3-8-14(d)). In practice, 60+ days is the minimum; most enforcement runs 65–75 days from default.
Can I send the lien enforcement notice by regular email, or does the rental agreement have to authorize it first?
Indiana expressly permits email without any prior rental-agreement authorization. IC 26-3-8-12(c) says the owner shall send notice "by electronic mail or verified mail." "Electronic mail" is defined broadly in IC 26-3-8-0.5 as any computer or electronic transmission sent to a person at a unique address. Use the email address on file in the rental agreement; document when you sent it.
How much can I charge in late fees each month a tenant is delinquent?
Indiana caps late fees at the greater of $20 or 20% of the monthly rent, per month in default (IC 26-3-8-11.5(a)). On top of the capped late fee, you may also recover all reasonable costs and expenses of rent collection and lien enforcement (IC 26-3-8-11.5(b)) — things like certified-mail postage, locksmith costs, advertising fees, and towing charges. Both amounts are included in your lien.
Can I run the lien auction online instead of holding a physical auction at my facility?
Yes. IC 26-3-8-15(a)(2) expressly permits sale "through a publicly accessible Internet web site." The advertisement must describe the manner of sale and include the time and place (or website URL) of the sale (IC 26-3-8-14(b)). The sale must still be held at least 10 days after the advertisement is first published or communicated, and the total timeline must clear the 60-day minimum from default (IC 26-3-8-12(c)(7)).
What do I do with money left over after a lien sale exceeds what the tenant owes?
Hold it for the renter. IC 26-3-8-15(c) requires the owner to keep any surplus available for delivery to the renter on demand. If the renter does not claim the balance within one year after the sale, it converts to unclaimed property under IC 32-34-1.5 — at that point you must remit it to the Indiana Unclaimed Property Division, not pocket it.
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