Michigan storage lien laws

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.

1. 01

   Day 0 — when property arrives at the facility or the rental agreement is signed, whichever is earlier

   Lien attaches

   The statute creates a lien automatically on all personal property stored at the facility for unpaid rent and other lawful charges. No court action or additional act by the operator is required for the lien to attach. The lien takes priority as provided in MCL 570.525(14).

   MCL 570.523(1)

2. 02

   Day 5 after rent is due and unpaid — no prior notice required

   Access denial permitted

   The operator may deny the tenant access to the stored property without prior notice once rent remains unpaid for at least 5 days past the due date. This is a separate right from lien enforcement; denying access does not by itself trigger the enforcement timeline.

   MCL 570.524(1)

3. 03

   Any time after default — the statute sets no minimum waiting period before sending the enforcement notice

   Deliver enforcement notice to tenant

   The operator delivers a written notice of intent to enforce the lien. The notice must be itemized (charges and dates), demand payment within at least 14 days of delivery, state that property will be sold if unpaid, include the operator's contact information, and include the military-deployment protection statement. Delivery may be in person, by first-class mail, or by email to the last known address. If the tenant has a non-tenant occupant on file under MCL 570.524(2), that occupant must also receive notice.

   MCL 570.525(2)–(3)

4. 04

   At or before the time of advertising the sale

   Notify UCC security interest holders

   The operator must give notice to all holders of a perfected security interest under the Uniform Commercial Code in the stored property in which the tenant is named as debtor. This is a separate notice obligation from the tenant notice and is required before conducting a sale.

   MCL 570.523(3)

5. 05

   Days 1–14 after enforcement notice is delivered

   14-day cure period

   The tenant has at least 14 days from delivery of the enforcement notice to pay the full amount owed and avoid sale. The tenant may redeem the property at any point before the sale by paying all outstanding charges. No sale may be advertised or conducted during this window.

   MCL 570.525(2)

6. 06

   After the 14-day cure period expires with no payment — advertise once per week for 2 consecutive weeks

   Advertise the sale

   If the tenant does not pay, the operator must publish a sale advertisement once per week for two consecutive weeks in the print or electronic version of a newspaper of general circulation, or post the notice once per week for two consecutive weeks on a publicly available website. If no newspaper circulates in the area, the operator may instead post notice in at least three conspicuous places in the neighborhood at least 10 days before the sale. The advertisement must include: a brief general inventory of the property, the facility address and unit number, the tenant's name, and the time, place, and manner of the sale.

   MCL 570.525(5)–(6)

7. 07

   No sooner than 15 days after the first publication or posting date

   Conduct the public sale

   The operator holds a public sale. The property is sold to the highest bidder. A good-faith purchaser takes the property free of claims even if the operator did not fully comply with the statute's procedural requirements (MCL 570.525(13)). The operator may purchase property at the sale; the statute contains no prohibition on owner bidding.

   MCL 570.525(13)

8. 08

   Immediately after the sale

   Apply proceeds and return any surplus

   Proceeds are distributed in this order under MCL 570.525(14): first, to the operator's lien (up to four months' rent); second, to prior perfected lienholders; third, to the remaining balance of the operator's lien including any unpaid rent and fees beyond the initial four months. Any remaining surplus must be returned by two steps: mailing the proceeds to the tenant's last known address by certified mail, and separately notifying the tenant by first-class mail (MCL 570.525(15)). If the tenant does not claim surplus funds within two years of the sale date, the funds escheat to the State of Michigan.

   MCL 570.525(14)–(15)

Notice requirements

MCL 570.525(2)–(3); MCL 570.522(c) (definition of "last known address" including email)

Sale rules

Method

A public sale open to any bidder, conducted in person at or near the facility or online. The property goes to the highest bidder. A good-faith purchaser takes the property free of other claims even if the operator did not perfectly comply with the statute's procedures (MCL 570.525(13)). The statute does not prohibit the operator from bidding at its own sale.

Advertising

Publication once per week for two consecutive weeks in the print or electronic version of a newspaper of general circulation, OR posting once per week for two consecutive weeks on a publicly available website. If no newspaper circulates in the area, the operator may post notice in at least three conspicuous places in the neighborhood at least 10 days before the sale. The advertisement must include: a brief general inventory of the property; the address of the facility and the unit number; the tenant's name; and the time, place, and manner of the sale. The sale may not be held until at least 15 days after the first publication or posting (MCL 570.525(5)–(6)).

Proceeds & surplus

Applied in priority order: (1) operator's lien up to four months' rent; (2) prior perfected lienholders; (3) remaining balance of the operator's lien. Any surplus after full distribution must be returned to the tenant by two steps: mailing the proceeds by certified mail to the tenant's last known address, and separately notifying the tenant by first-class mail. If unclaimed for two years after the sale date, surplus escheats to the State of Michigan (MCL 570.525(14)–(15)).

MCL 570.525(5)–(6), (13)–(15)

Late fees

The statute does not impose a cap on late fees but provides a safe-harbor: a monthly late fee of $20.00 or 20% of the monthly rental amount, whichever is greater, is expressly declared reasonable and is not a penalty (MCL 570.523(6)). Operators may charge above this floor if the rental agreement so provides; the statute does not prohibit higher fees, it only guarantees that fees at or above the safe-harbor level cannot be challenged as a penalty. Fees must be set in the rental agreement.

MCL 570.523(6)

Operator questions