Key Elements To Include In Digital Lease Contracts

We live in the future now. Everything’s online: Swipe right to find a date, scan a QR code at restaurants to read the menu, and order laundry detergent to get delivered to your front door. To remain competitive, industries across the board need to have a compelling online presence.

 

Within the self-storage industry, you may be able to get away with a simple website, but when it comes to offering tenants digital leasing contracts, it’s crucial to implement multiple safeguards.

 

That may sound like common sense, yet it may also be overwhelming to keep track of all the pieces of the puzzle. What should you be looking for to ensure you’re implementing digital leasing effectively? Fortunately, there are plenty of industry veterans willing to offer guidance.*

 

Tim Hall, senior vice president of sales at Tenant, Inc., provider of self-storage software, points out that the online rental flows of some storage websites enable customers to choose a unit and pay for it from their mobile devices without actually executing a rental agreement while taking the payment. “This causes a level of exposure to the operator who is relying on staff to ensure the agreement is executed. Without a completed rental agreement, it becomes difficult to initiate the lien process or proceed to auction.” When evaluating software, he advises that it’s critical to choose a provider that builds all the necessary capabilities to ensure statutory compliance.

 

“The biggest gaps I ever see come from owners who have a DIY mindset on this,” says Shannon Charbonneau, vice president of client solutions at XPS Solutions. “I know it can seem tempting to think that you’re going to build your own lease agreement, or your own website, or run everything on QuickBooks. All of these can be done; but if you’re looking for accurate, complete documentation that is stored properly, is available when needed, and protected around the clock, I would argue that it isn’t about whether it can be done, but rather whether it should be done.”

 

Hall takes it a step further. “We work directly with storage attorneys Scott Zucker and Carlos Kaslow from Self Storage Legal Network to ensure we have all the relevant statutory information needed to design the right functionalities. We also provide a library of leases to our customers that are state compliant to reduce legal cost for our customers. You can significantly reduce the billable legal hours required to write a lease agreement by starting with a quality compliant template written for the states where you operate.”

 

This is the most fundamental step. “I recommend that you partner with a reputable Facility Management Software (FMS) and website provider, especially ones that specialize in self-storage,” says Charbonneau. “When you combine those two elements, you will have a document process that properly records IP addresses and timestamps for validation of the document.” She also advises requiring information specific to the tenant, including driver’s license number, cell phone, and home address. “These are all verifiable points of data for you to ensure you’re accepting leases from real people.”

 

Ashley Oblinger, partner at Weissman Zucker Euster + Oblinger P.C., stresses the importance of recording IP addresses and timestamps as well. “And there are additional alternatives to verify tenant identity, including email verification links and one-time authorization codes sent via SMS, along with the customer sending a selfie so that the facility has a picture of the tenant without any personal data attached to it. “Some operators also move to software that allows tenants to upload a picture of their government ID, as we have seen in other industries.”

 

Chuck Gordon, CEO of Storable, advises taking additional action when verifying customers. “In addition to building a step into the digital lease where customers upload a photo of their government-issued ID, staff should also visually compare that ID to the lease information and, where available, to a selfie or in-person visit.”

 

This is one of those safeguards that not only ensures you get paid, but it also becomes part of your administrative record should you later need it down the road. “Requiring a credit card or bank account at signing helps confirm the person has control of a legitimate payment method,” says Gordon. “The payment token, the last four digits, and the transaction record become part of your evidentiary trail.”

 

As with many Software-as-a-Service (SaaS) offerings, there are multiple facility management software (FMS) options, and choosing the right one is crucial. Oblinger recommends looking for one that makes it easy to view documents, extrapolate all necessary information from the rental agreement that is needed for the operation of the facility (name, unit number, rent amount, rent due date, etc.), and incorporate that information with lien enforcement.

 

Charbonneau strongly advises joining your local self-storage association. “Please join the state where your business is headquartered, or where the bulk of your facilities are located, if those are different. I also recommend using the state lease for your SSA.” Factors to pay close attention to include lien laws, insurance, and fees. “You want a lease that protects you in all locations and requires the least administrative burden. However, you may be forced into a higher level of burden, depending on where you’re located.”

 

For his part, Oblinger points out that operators are required to comply with their state’s Self-Storage Act, which governs what terms are required to be in the rental agreement. “Other than that, the Electronic Signatures and Global and National Commerce Act, along with the Uniform Electronic Transactions Act, allow the enforcement of electronic signatures,” he says. “It can help an operator to also have an internal date/timestamp of when the rental agreement was electronically signed along with the IP address of the customer who signed the lease.”

 

Gordon offers additional practical advice, such as using a modifiable master lease, then enabling your software to enforce the right version. “Once you have a core lease, also prepare state/province-specific addenda for lien laws, notices, disclosures, surcharging, and consumer protections,” he says. “Then configure your leasing platform so that staff can only send the jurisdiction-appropriate template, with taxes, fees, and required clauses automatically driven by the facility’s location and, where needed, the tenant’s address.”

 

That said, he cautions that this isn’t a matter of setting it once and going on about your day. “Assign ownership—whether it’s internal or outside counsel—to track tenant, lien, privacy, and surcharging rules by jurisdiction, then update lease language and configuration on a defined schedule. Include staff training into that timeline before a clear go-live date.”

 

Once that process is in place, Gordon recommends validating it with periodic compliance reviews. “Regularly sample executed digital leases across locations to confirm the right template, addenda, disclosures, and signatures are in use and that retention and access policies support audits, disputes, and litigation.”

 

Protecting customer data should always be a priority. “Operators should ensure that all documents are stored with a sufficient level of encryption,” says Oblinger. “Make sure that it complies with industry standards (Advanced Encryption Standard or AES), and that access to those documents is restricted to necessary personnel only.”

 

Gordon gets even more specific with his recommended types of encryption. “Data that’s at rest should be encrypted using modern standards such as AES-256; and when it’s in transit, all communications should be secured using TLS 1.2 or higher to prevent interception of sensitive information.” In addition, he recommends ensuring that vendors and any third-party security you engage are also meeting the appropriate cybersecurity standards.

 

Charbonneau keeps bringing up the importance of finding an FMS platform that works well for you. “I sound a little bit like an FMS salesperson, but the answer is once again to ensure that you’re working with a reputable company. Your leases should be going through your software system, and you want to look for an FMS that provides digital protection for the lease information.”

 

Hall agrees. “We have a new product called SuperLease, which uses one-click signing and cryptographic data capture, including who signed, the signer’s location, and the signature timestamp. It also simplifies the document management process because you can manage the entire lifecycle for that customer within a single document regardless of unit transfers, added spaces, or protection policy adjustments.” He adds that your software should adapt to legislative changes. Take SB709, the California rent disclosure law that passed in January 2026. “We’ve enabled a state-compliant module that verifies each lease, has the disclosures required by law, and automatically adds the required information into each individual rental agreement. How many software solutions on the market have solved this problem?”

 

Once you have all the necessary precautions in place, be mindful that they will only be effective if all hands are on deck. “Staff should be trained to review and audit all newly executed rental agreements to ensure all information was entered and that tenants have provided confirmation of their identity,” says Oblinger. “If something is missing, there should be a procedure set up for the staff to follow to obtain that information.” He also advises that staff should be trained to look for certain indicators that may suggest fraud on the part of the customer. “This is one area where artificial intelligence may help operators in the near future, as these tasks may be handled solely by AI software.”

 

As with any type of relationship, the better the communication, the fewer issues arise later, especially when you need a signature or require a new lease. “Any communication to the tenant should include the dates of the changes, new ownership information, assurance that they will still be receiving the services, etc. Do this at the same time you’re asking for a new signature,” says Charbonneau.

 

Moreover, Oblinger recommends including crucial information on your site. “The operator’s website should contain a privacy policy that discloses data collection and usage, and tenants should also be allowed to access their executed rental agreement through a tenant portal.”

 

Another essential practice is to know what to do with all those leasing agreements once a tenant is no longer a customer. Oblinger advises having a document retention protocol. “All tenant-related documents should be kept for four to 10 years, depending on the state’s statute of limitations on breach of contract matters, after the expiration of the customer’s tenancy. This allows the operator to have access to records if a tenant claim arises during the applicable limitation period.”

 

Gordon highlights additional best practices, such as having secure archival systems for historical lease documentation, encrypted backups and exports when operators retrieve historical data, and secure destruction methods when data reaches the end of its retention period. “This limits exposure of sensitive information over time.”

 

Remember to hope for the best but prepare for the worst. “With regards to audit readiness, I would look again to the FMS,” says Charbonneau. “They will have specific requirements, so follow those thoroughly. Some are standard to all systems, such as making sure that each individual person who accesses the software has a unique and dedicated user ID, as well as a password that is changed at appropriate times and adheres to safety requirements.”

 

She points out that while the FMS will send the leases, it is up to the operator to require and follow up for signed leases for all tenants. It is up to the owner to ensure that all information is documented correctly: names, addresses, ID information, and any forms submitted by the tenant, such as auto pay or address changes.

 

As for Oblinger, he warns that all tenant-related documents should be easily available for authorized personnel to access and produce. “This includes rental agreements, addendums, rent increases, ledgers, file notes, lien notices, etc. Operators should also have all vendor contracts readily accessible.”

 

Any time a question arises, only trust the advice of industry professionals, whether it’s from your local SSA, attorneys with experience in the industry, third-party management companies, or any other relevant source. “Please, for the love, if you have a question about running your facility or about your leases, do not ask it in a crowd-sourcing method like a Facebook group,” says Charbonneau. “Attend your SSA and state self-storage events, and get to know other operators, management companies, or even vendors. This industry is exceptional in that you will almost always be able to find someone knowledgeable who is willing to help if you ask!”

 

She also emphasizes that there are people and companies that provide consulting services to operators on these and many other topics. “If you genuinely don’t know the answer to business-critical items, reach out and hire someone for a short time to ensure you’re getting proper information. Whatever you post on a Facebook group can just as likely get you sued. Save your time and hire someone for an hour to discuss your exact need and get a real, knowledgeable, and accurate assessment.”

 

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*Guidance within this article is for informational purposes only; it should not be construed as legal advice.