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Storage lien laws · State guide

Vermont storage lien laws

Vermont Statutes Annotated Title 9, Chapter 98 (Storage Units), §§ 3901–3908 →Verified 2026-06-11

Vermont Title 9, Chapter 98 gives a self-storage owner a possessory lien on stored property for unpaid rent, late fees, labor, and enforcement expenses. The lien attaches on the storage date. Enforcement requires two notices: a first notice by regular or electronic mail no sooner than day 7 of default, then a second notice (certified mail, first-class mail, or email) at least 14 days later. If the second notice is emailed with no response within 2 days, the owner must also send it by postal mail. The second notice must demand payment within at least 15 days. The owner then advertises once a week for two consecutive weeks in a local newspaper, or uses a commercially reasonable method with at least three bidders. Sale may not occur before 15 days after the first ad. Motor vehicles: 23 V.S.A. Ch. 21; vessels, snowmobiles, and ATVs: Ch. 36 — or tow at 51 days unpaid. Surplus goes to the State Treasurer. Late fees are capped at $20.00 or 20% of rent, with a 5-day grace period.

At a glance

VT · verified 2026-06-11
Statute
Vermont Statutes Annotated Title 9, Chapter 98 (Storage Units), §§ 3901–3908
Notice delivery
First notice — regular mail or electronic mail to the occupant's last known address — 9 V.S.A. § 3905(1) · Second notice — certified mail, first-class mail with a certificate of mailing, or electronic mail to the occupant's last known address — 9 V.S.A. § 3905(2)(A) · If electronic mail is used for the second notice and no response is received within two days, the owner must also send the notice by certified mail or first-class mail with a certificate of mailing — 9 V.S.A. § 3905(2)(B)
Sale method
The sale may be held at the self-storage facility, at the nearest suitable place, or on a publicly accessible website (online auction platform). The owner may not purchase property at the sale. The sale must conform to the terms stated in the lien-enforcement notices. A commercially reasonable sale is one that conforms to recognized practices within the relevant market for the goods. Selling more goods than necessary to satisfy the obligation is not commercially reasonable unless required by the nature of the goods or customary sales method. A better price obtainable at a different time or by a different method does not by itself make the sale commercially unreasonable.
Late fees
Vermont caps late fees at the greater of $20.00 or 20% of a rental payment per service period for rent that is unpaid past the due date. The statute prohibits charging any late fee if the occupant pays within five days after the due date. Late fee terms must be disclosed in the rental agreement. The cap applies to each charge for failure to pay rent when due; it does not cover interest, collection expenses, or enforcement-related fees, which are defined separately. There is no statutory provision authorizing additional fees beyond the cap.
Vehicles & boats
Motor vehicles: disposal follows 23 V.S.A. Chapter 21 (Title to Motor Vehicles), which covers certificate of title requirements, security interest perfection and release, and abandoned vehicle disposal (§§ 2151–2158). Vessels, snowmobiles, and ATVs: disposal follows 23 V.S.A. Chapter 36 (Titling of Vessels, Snowmobiles, and All-Terrain Vehicles), which covers title certificates, transfer of interest (§ 3816), security interest perfection and release (§§ 3823, 3826), and destruction or dismantling (§ 3833). Trailers: § 3905(7) expressly permits towing trailers at 51 days of unpaid charges, but § 3905(6)(D) does not list trailers alongside motor vehicles, vessels, snowmobiles, and ATVs in the statutory-sale reference to Chapters 21 and 36. The chapter does not provide a separate lien-sale path for trailers.

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

    On the date the occupant stores personal property under the rental agreement

    Lien attaches on storage date

    The owner's possessory lien on all personal property in the storage space attaches automatically as of the date the occupant stores property under a rental agreement. The lien covers unpaid rent, labor, late fees, other valid charges, expenses for preserving the property, and reasonable expenses of sale. The owner is not required to take any affirmative step for the lien to attach.

    9 V.S.A. § 3904(a)–(b)

  2. 02

    Not sooner than 7 days after the occupant's default

    First notice of default

    The statute requires the owner to notify the occupant of the default by regular mail or electronic mail sent to the occupant's last known address. "Last known address" includes both the mailing address and the email address (if any) provided in the rental agreement or a subsequent written change-of-address notice. The statute sets a floor of 7 days after default but no ceiling — operators typically send this notice promptly after the 7-day window opens.

    9 V.S.A. §§ 3905(1), 3901 (definitions of "last known address" and "default")

  3. 03

    Not sooner than 14 days after mailing the first notice

    Second notice of default (lien-enforcement notice)

    The owner must send a second, more formal notice by certified mail, first-class mail with a certificate of mailing, or electronic mail to the occupant's last known address. If sent by electronic mail and no response is received within two days, the owner must also send the notice by certified mail or first-class mail with a certificate of mailing. The notice must contain: (i) an itemized statement of the amount owed and the date it became due; (ii) a brief general description of the property subject to the lien; (iii) a notice of access denial if the rental agreement permits it; (iv) a demand for payment within at least 15 days of mailing; and (v) a conspicuous statement that the property will be advertised and sold if the claim is not paid in full.

    9 V.S.A. §§ 3905(2)(A)–(C)

  4. 04

    Before the expiration of the payment demand period in the second notice; certified-mail notice to lienholder at least 21 days before the sale

    Lienholder search and notification

    Before the payment deadline in the second notice expires, the owner must search the Vermont Secretary of State records to determine whether any active lien is registered on the occupant's personal property. If a registered lienholder exists, the owner must notify that lienholder by certified mail at least 21 days prior to the sale. The lienholder notice must include: (A) a description of the property to be sold; (B) a statement of the lienholder's rights under Chapter 98; and (C) the time, place, and manner of the sale. A perfected lienholder may take possession of its liened property at any time before the sale.

    9 V.S.A. §§ 3905(4), 3905(10)

  5. 05

    After the payment demand period in the second notice expires; published once a week for two consecutive weeks before the sale

    Advertisement published

    The statute requires the owner to publish an advertisement of the sale once a week for two consecutive weeks in the print or electronic version of a newspaper of general circulation where the self-storage facility is located. If no such newspaper exists, the owner must post the advertisement at least 15 days before the sale at the town hall where the facility is located in the same manner as auction sales of real property are posted. As an alternative, the owner may advertise in a "commercially reasonable manner" — defined as any method that results in at least three independent bidders attending or viewing the sale (e.g., an online auction platform). The advertisement must include: (i) a brief general description of the property; (ii) the facility address; (iii) the unit number; (iv) the occupant's name; and (v) the time, place, and manner of the sale.

    9 V.S.A. §§ 3905(3)(A)–(D)

  6. 06

    Not sooner than 15 days after the first advertisement; must conform to the terms stated in the notices

    Lien sale conducted

    The sale may be held at the facility, at the nearest suitable place, or on a publicly accessible website. The sale must conform to the terms stated in the notices; if it will not occur as originally notified, the owner must reissue notices in the same manner. The owner may not purchase property at the sale. The owner may not knowingly sell personal information (Social Security numbers, financial data, medical information, passport details) found in the space, and may destroy such information without liability. Before a buyer takes possession, the owner must give written notice requiring the buyer to return any personal information to the owner. A good-faith purchaser takes the property free of all liens, even if the owner did not fully comply with procedural requirements. If no qualified buyer appears, the owner may dispose of the property without liability.

    9 V.S.A. §§ 3905(6)(A)–(C), 3905(11), 3905(12)

  7. 07

    After the sale; surplus delivered to State Treasurer per 27 V.S.A. Chapter 14 (unclaimed property)

    Proceeds allocated; surplus remitted to State Treasurer

    After satisfying the owner's lien from the sale proceeds, the owner must hold any balance for delivery on demand to the occupant. If the occupant does not claim the balance, the owner must deliver it without interest to the Treasurer of the State of Vermont in accordance with Vermont's unclaimed property statute, 27 V.S.A. Chapter 14. Vermont does not allow the owner to retain unclaimed surplus — it must be remitted to the State.

    9 V.S.A. §§ 3905(9)(A)–(B)

Notice requirements

Permitted delivery

  • First notice — regular mail or electronic mail to the occupant's last known address — 9 V.S.A. § 3905(1)
  • Second notice — certified mail, first-class mail with a certificate of mailing, or electronic mail to the occupant's last known address — 9 V.S.A. § 3905(2)(A)
  • If electronic mail is used for the second notice and no response is received within two days, the owner must also send the notice by certified mail or first-class mail with a certificate of mailing — 9 V.S.A. § 3905(2)(B)

The notice must include

  • An itemized statement of the owner's claim showing the sum due at the time of the notice and the date when the sum became due — 9 V.S.A. § 3905(2)(C)(i)
  • A brief and general description of the personal property subject to the lien (no requirement to describe specific contents beyond identifying the storage space, occupant, and facility) — 9 V.S.A. § 3905(2)(C)(ii), (4)(A)
  • A notice of denial of access to the personal property, if denial of access is permitted under the terms of the rental agreement — 9 V.S.A. § 3905(2)(C)(iii)
  • A demand for payment within a specified time of not less than 15 days after the mailing of the second notice — 9 V.S.A. § 3905(2)(C)(iv)
  • A conspicuous statement that unless the claim is paid in full within the time stated in the notice, the personal property will be advertised for sale and sold according to law — 9 V.S.A. § 3905(2)(C)(v)

9 V.S.A. §§ 3905(1), 3905(2)(A)–(C)

The part most guides skip

Vehicles, boats & RVs

Vermont gives outdoor lot operators two distinct paths for disposing of titled vehicles, vessels, snowmobiles, ATVs, and trailers stored at a self-storage facility. PATH 1 — STATUTORY DISPOSAL UNDER MOTOR VEHICLE OR VESSEL TITLE LAW (9 V.S.A. § 3905(6)(D)): When the owner elects a lien sale (rather than a tow-out), motor vehicles must be disposed of under 23 V.S.A. Chapter 21 (motor vehicle title law), and vessels, snowmobiles, and all-terrain vehicles must be disposed of under 23 V.S.A. Chapter 36 (titling of vessels, snowmobiles, and ATVs). These chapters govern how title transfers for these vehicle types and incorporate DMV procedures. The self-storage chapter does not itself provide an expedited DMV sale path — operators must follow the applicable title-transfer and lien-sale procedures in Chapters 21 and 36. PATH 2 — TOW-OUT (9 V.S.A. § 3905(7)): If rent, charges, fees, or expenses remain unpaid after 51 days, the owner may instead have any vehicle, vessel, snowmobile, trailer, or ATV towed away by a towing company. This path bypasses the Chapter 21/36 title-transfer sale procedure. Not later than five days after the tow, the owner must notify the occupant by regular mail or electronic mail at the occupant's last known address, including the name, address, and telephone number of the towing company. Once the towing company takes possession, the owner has no liability for the tow or for any damage to the property afterward.

Titled property path

Motor vehicles: disposal follows 23 V.S.A. Chapter 21 (Title to Motor Vehicles), which covers certificate of title requirements, security interest perfection and release, and abandoned vehicle disposal (§§ 2151–2158). Vessels, snowmobiles, and ATVs: disposal follows 23 V.S.A. Chapter 36 (Titling of Vessels, Snowmobiles, and All-Terrain Vehicles), which covers title certificates, transfer of interest (§ 3816), security interest perfection and release (§§ 3823, 3826), and destruction or dismantling (§ 3833). Trailers: § 3905(7) expressly permits towing trailers at 51 days of unpaid charges, but § 3905(6)(D) does not list trailers alongside motor vehicles, vessels, snowmobiles, and ATVs in the statutory-sale reference to Chapters 21 and 36. The chapter does not provide a separate lien-sale path for trailers.

9 V.S.A. §§ 3905(6)(D), 3905(7); 23 V.S.A. Chapter 21; 23 V.S.A. Chapter 36

Sale rules

Method
The sale may be held at the self-storage facility, at the nearest suitable place, or on a publicly accessible website (online auction platform). The owner may not purchase property at the sale. The sale must conform to the terms stated in the lien-enforcement notices. A commercially reasonable sale is one that conforms to recognized practices within the relevant market for the goods. Selling more goods than necessary to satisfy the obligation is not commercially reasonable unless required by the nature of the goods or customary sales method. A better price obtainable at a different time or by a different method does not by itself make the sale commercially unreasonable.
Advertising
Publication once a week for two consecutive weeks in the print or electronic version of a newspaper of general circulation where the facility is located. If no such newspaper exists, the owner must post at the local town hall at least 15 days before the sale, in the same manner as real property auction sales are posted. Alternative: any commercially reasonable method that results in at least three independent bidders attending or viewing the sale (e.g., an online auction platform). Required ad contents: a brief general description of the property, the facility address, the unit number, the occupant's name, and the time, place, and manner of the sale.
Proceeds & surplus
Proceeds are applied first to satisfy the owner's lien (rent, late fees, enforcement expenses). Any surplus must be held by the owner for delivery on demand to the occupant. If the occupant does not claim the surplus, the owner must remit it without interest to the Treasurer of the State of Vermont under Vermont's unclaimed property law (27 V.S.A. Chapter 14). Unlike many states, Vermont does not allow owners to retain unclaimed surplus after a waiting period — timely remittance to the State Treasurer is required.

9 V.S.A. §§ 3905(3), 3905(6), 3905(9)

Late fees

Vermont caps late fees at the greater of $20.00 or 20% of a rental payment per service period for rent that is unpaid past the due date. The statute prohibits charging any late fee if the occupant pays within five days after the due date. Late fee terms must be disclosed in the rental agreement. The cap applies to each charge for failure to pay rent when due; it does not cover interest, collection expenses, or enforcement-related fees, which are defined separately. There is no statutory provision authorizing additional fees beyond the cap.

9 V.S.A. § 3903(c); see also § 3901 (definition of "late fee")

Operator questions

Does Vermont's self-storage lien law cover my outdoor RV, boat, and trailer storage lot?

Yes. Section 3901 defines a "self-storage facility" as real property designed and used for renting individual storage spaces to occupants — it does not limit coverage to enclosed buildings. "Personal property" is defined as movable property not affixed to land, which is broad enough to include vehicles and watercraft. Section 3905(6)(D) and § 3905(7) expressly address motor vehicles, vessels, snowmobiles, ATVs, and trailers, confirming they fall within the chapter. An outdoor lot renting designated spaces under written rental agreements is covered.

When can I have a customer's RV or boat towed for non-payment, and what notice do I need to give?

Under § 3905(7)(A), you may order a tow once rent, charges, fees, or expenses have remained unpaid for more than 51 days. You do not need to complete the motor vehicle or vessel title-transfer sale process if you elect the tow path. Within five days after the tow, you must notify the occupant by regular mail or electronic mail at the occupant's last known address, and the notice must include the name, address, and telephone number of the towing company (§ 3905(7)(B)). Once the towing company takes possession, you have no liability for the tow or for damage to the property afterward (§ 3905(7)(C)).

Can I sell a customer's boat or RV at my normal lien sale, or do I need to go through DMV?

If you elect a lien sale rather than a tow-out, § 3905(6)(D) requires that motor vehicles be disposed of under 23 V.S.A. Chapter 21 and that vessels, snowmobiles, and ATVs be disposed of under 23 V.S.A. Chapter 36. These chapters govern title transfers for those vehicle types and incorporate Vermont DMV procedures — the self-storage chapter does not create its own expedited vehicle-sale path. The tow-out option (§ 3905(7)) is available at 51+ days and bypasses the Chapter 21/36 requirement. For most outdoor lot operators, the tow-out path is simpler than a separate DMV sale proceeding.

Can I send lien notices by email, and what happens if the occupant doesn't respond?

Yes, but there are two different email rules depending on the notice. The first notice (§ 3905(1)) may be sent by regular mail or electronic mail — no follow-up is required. For the second notice (§ 3905(2)(A)–(B)), you may send by electronic mail, but if no response is received within two days you must also send the notice by certified mail or first-class mail with a certificate of mailing. For RV and boat operators whose customers may be seasonal or hard to reach, sending both the electronic mail and the postal notice simultaneously from the start of the second-notice step is the safest approach.

What happens to surplus proceeds after I sell a unit's contents? Can I keep unclaimed money?

No. Under § 3905(9)(B), if the occupant does not claim the surplus balance after the sale, you must deliver it without interest to the Treasurer of the State of Vermont in accordance with Vermont's unclaimed property statute (27 V.S.A. Chapter 14). Vermont does not allow you to retain unclaimed surplus after any waiting period — remittance to the State is required. Check 27 V.S.A. Chapter 14 or contact the Vermont State Treasurer's office for the applicable reporting deadlines and procedures.

How much can I charge as a late fee, and is there a grace period?

Section 3903(c) caps late fees at the greater of $20.00 or 20% of a rental payment per service period. You may not charge any late fee if the occupant pays within five days after the due date — the statute mandates a 5-day grace period before a late fee can be assessed. Late fee terms must be disclosed in the rental agreement. The cap covers fees for failure to pay rent; it does not apply to interest, collection expenses, or enforcement-related fees as defined in § 3901.

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