Vehicles, boats and RVs in storage: lien and title issues

By [AUTHOR NAME] · Reviewed by [REVIEWER NAME], [ROLE] · Review date [YYYY-MM-DD]

This is not legal advice. Vehicle and vessel lien rules come from your state's storage lien statute and its motor vehicle and vessel titling laws. Talk to a lawyer in your state before you sell or tow a titled vehicle or vessel.

Vehicles, boats and RVs are good business for many facilities. They also make lien enforcement harder. A car or boat usually has a title, may have a lender with a recorded lien, and may be registered in another person's name. A buyer at your sale will want a title they can register. This guide explains the issues in general terms, shows one state's approach as an example, and lists what to collect at move-in.

Why titled property is different

Household goods in a unit change hands at a lien sale with a bill of sale. Titled property does not work that simply. The buyer usually needs a title from the state to register and use it.

That raises questions a regular sale does not:

Who is the owner on the title? It may not be your tenant.
Is there a lender with a recorded lien on the title?
What notice do those people need before a sale?
Can a buyer get a new title after your sale, and how?
Does your statute let you tow the property instead of selling it?

Each state answers these differently. The general lien process is covered in self storage lien laws by state.

The general process

In general terms, a lien on titled property follows the same order as any lien sale, with extra steps for the title.

Confirm default under your agreement and statute.
Identify the vehicle or vessel by VIN or hull number.
Search the state title records for owners and lienholders. [SOURCE NEEDED: cite your state's motor vehicle or vessel agency.]
Send the tenant's lien notice, and any notice your state requires to owners and lienholders.
Advertise and sell, or tow, as your statute allows.
Give the buyer the documents your state requires to issue a title.
Handle proceeds and any surplus, with lienholders paid in their order of priority.

Step-by-step sale mechanics are in running a storage auction.

One state's approach: Florida

Florida's storage lien statute has a specific provision for motor vehicles and watercraft. It is shown here as an example only.

If rent and related charges stay unpaid for 60 days after they come due, the owner may sell the vehicle or watercraft under the statute, or have it towed. See Florida Statutes section 83.806, subsection (10).

Once a wrecker takes possession, the owner is not liable for the vehicle or watercraft or any damage. The wrecker must follow the notice and sale rules in Florida Statutes section 713.78. See section 83.806.

Florida's statute also protects other lienholders. If the facility's lien does not have priority, proceeds are held for the higher-priority lienholders. See section 83.806.

Do not apply Florida's rules in another state. Read your own statute.

Sell or tow: weighing the options

Where your statute offers both, compare them before you choose.

Sell vs tow, where the statute allows both
Factor	Sell under storage lien	Tow (where allowed)
Who handles title work	You, under state rules	The towing company, under its own rules
Rent recovered	From sale proceeds, after any prior liens	Often none from the vehicle
Space freed	After sale and removal	When towed
Your liability after	Depends on statute	Florida: none once the wrecker has it
Staff time	Higher	Lower

Towing frees the space faster but may recover nothing. Selling may recover rent but takes more steps.

What to collect at move-in

Most title problems at lien time start at move-in. Collect the information then, while the tenant is at the counter.

Copy of current registration.
VIN, hull identification number or trailer serial number.
Make, model, year and color.
Name of the titled owner, if not the tenant.
Name and address of any lender or lienholder.
Proof of insurance on the vehicle or vessel.
Photos of the vehicle and its condition.
Signed vehicle storage addendum.
Military status question answered.

Ask the tenant to update you when registration renews. Store all of it with the rental agreement.

Servicemembers and stored vehicles

Federal law bars enforcing a storage lien on a servicemember's property during military service and for 90 days after, without a court order. See 50 U.S.C. 3958.

This includes vehicles. Check military status before any sale or tow. Ask counsel if the tenant is or may be on active duty.

Worked example: proceeds with a lender lien

Worked example (example inputs)

Splitting proceeds when a lender has priority

These are example inputs, not market data. Priority between your lien and a lender's lien is set by state law. Here the lender is assumed to have priority.

Example boat sale
Item	Amount
Winning bid	$8,000
Lender's recorded lien (assumed priority)	$6,500
Remaining after lender	$8,000 - $6,500 = $1,500
Facility lien (rent and allowed charges)	$1,100
Surplus held for tenant	$1,500 - $1,100 = $400

If the bid were $7,000, the facility would recover $500 of its $1,100. Priority order changes the result, so confirm it first.

Setting up vehicle storage to avoid problems

Vehicle, boat and RV storage needs its own setup. A few rules at the start save time when an account goes into default.

Use a separate vehicle storage addendum to your rental agreement.
Require the tenant to keep registration and insurance current.
Ban storing fuel cans, propane tanks and other hazards outside what the vehicle carries, if your agreement allows.
Assign each space a number and record which vehicle is in it.
Photograph the vehicle at move-in and at each inspection.
Do not accept keys unless your policy covers what you do with them.

Check the space count against your records each month. A vehicle in the wrong space or with no record is a problem to fix early.

When an account goes past due, flag it for title review right away. Title searches and lienholder notices take time. Starting early keeps you within your statute's deadlines.

For a broader look at policies, see the legal and operations section.

When to call a lawyer

Titled property is where a short call to counsel pays off. Call before you act in any of these cases.

The titled owner is not your tenant.
The title search shows a lender lien.
The vehicle or vessel is registered in another state.
There is no title, registration or VIN on file.
The tenant is or may be on active military duty.
A buyer cannot get a title after a past sale.
You are unsure whether your statute allows towing.

Bring the account file, the title search results and your statute to the call. That keeps the review short.

Record counsel's advice in the file. Follow the same steps for the next similar case.

Frequently asked questions

Can I sell a car in a unit like other goods?

Usually not the same way. Titled property often needs owner and lienholder notice and title paperwork. Check your statute.

Can I just have it towed?

Some states allow it. Florida allows towing after 60 days unpaid. See section 83.806.

What if the registered owner is not my tenant?

Your state may require notice to that owner. Ask counsel before you proceed.

Does a lender get paid before me?

It depends on lien priority in your state. Florida holds proceeds for higher-priority lienholders. See section 83.806.

What about a vehicle owned by a servicemember?

You need a court order during service and 90 days after. See 50 U.S.C. 3958.