Did you know this about self storages in Ontario

In Ontario, a vehicle storage operator is an individual or business that provides secure storage for vehicles — from impounded cars to motorcycles, boats, RVs, and even heavy trucks. These operators are required to meet specific provincial regulations to ensure fairness, safety, and accountability.

 Certification is Mandatory
Since January 1, 2024, anyone storing vehicles for a fee (especially related to towing or impoundment) must obtain a Towing and Vehicle Storage Certificate from the province of Ontario. This helps protect consumers and maintain high service standards across the industry.

More Than Just Parking
Vehicle storage operators often manage impounded vehicles, provide long-term or seasonal storage solutions, and offer services like security monitoring, retrieval scheduling, and maintenance access.

 Opportunities for Investors
With growing demand for vehicle storage — driven by urban densification, seasonal storage needs, and stricter towing regulations — investing in vehicle storage operations can offer attractive, recession-resistant returns.

Considering investing or expanding into the self-storage sector?
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In Ontario, placing a shipping container on your property—whether for personal storage or as part of a self-storage business—may require a building permit.

Size Matters
According to the Ontario Building Code, any structure exceeding 10 square meters (approximately 108 square feet) is classified as a building and typically requires a building permit.

Zoning Regulations Apply
Beyond size, local zoning by-laws also play a crucial role. Some municipalities prohibit shipping containers in residential zones altogether, while others have specific restrictions on how and where containers can be placed.

Safety and Compliance
Obtaining a building permit ensures that the container meets important safety standards, including proper structural integrity, secure anchoring, and setback compliance.

Investor Insight
For investors interested in the self-storage sector, understanding local regulations is critical. Non-compliance can lead to costly fines, forced removal of containers, or legal challenges that delay projects and impact profitability.

Considering investing or expanding into the self-storage sector?
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In Ontario, the size and design of a self-storage facility directly affect the fire safety measures that must be implemented under the Ontario Building Code and Fire Code.

Fire Resistance and Sprinkler Systems
For buildings over four storeys, the Ontario Fire Code typically requires fire-resistance ratings of at least 45 minutes for floor assemblies and the structures supporting them. Buildings made with combustible materials may also require the installation of sprinkler systems to meet fire safety standards.

Means of Egress and Fire Escapes
The Ontario Building Code outlines specific requirements for safe evacuation. Fire escapes must be constructed of non-combustible materials like metal or concrete, securely attached to the building, and extend to the ground level. Access to fire escapes must be provided from corridors through doors at floor level to ensure a safe and efficient evacuation route.

Investor Insight
For investors and developers planning self-storage projects, it's critical to account for these fire safety and building code requirements early in the design phase. Compliance not only protects your investment but also enhances the facility's operational safety and long-term value.

Considering investing or expanding into the self-storage sector?
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In most self-storage facilities, the operator does not automatically insure the tenant's stored items.
While the facility may have insurance for the building itself, it typically does not cover personal belongings stored inside individual units.

What Tenants Need to Know
Tenants are usually responsible for obtaining their own insurance, either through an extension of their home insurance policy or by purchasing a separate tenant storage insurance policy.

Why It Matters for Operators and Investors
Facility owners often include clauses in rental agreements stating that the tenant’s belongings are stored at their own risk. Some even offer insurance products as an optional add-on, creating an additional revenue stream while protecting the business from liability claims.

Clear communication about insurance expectations helps manage risk, reduce disputes, and strengthen your operational practices.

Considering investing or expanding into the self-storage sector?
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In Ontario, self-storage facilities are regulated under the Repair and Storage Liens Act (RSLA), not the Residential Tenancies Act. This means the eviction and non-payment process is different from typical residential leases.

Contractual Agreements
If there is a signed rental agreement, it usually spells out the steps for handling non-payment, including deadlines for payment, late fees, lien rights, and when the facility can take action. Typically, the agreement will outline the grace period before any enforcement starts.

No Written Contract
If no written contract exists, the RSLA still applies. However, without clear terms, it becomes even more important for storage operators to document all transactions, communications, and the tenant’s payment history. You would still have the right to enforce a lien under the RSLA, but the process may take longer and involve additional proof.

Lien Rights and Seizing Contents
Under the RSLA, once a tenant falls into arrears, the storage operator may place a lien on the stored goods.

The general process includes:

• Sending a formal written notice to the tenant stating the amount owed.
   
• Waiting a reasonable period — typically 60 days after the notice is issued — before selling or disposing of the contents.
   
• Conducting a search under the Personal Property Security Registry to ensure no other party has a prior claim on the stored property.
   
• Selling the contents publicly if payment is still not received, and applying the proceeds against the debt.
   

Who Regulates It
The Repair and Storage Liens Act governs how storage operators can handle non-payment situations, including the seizure and sale of tenant property.

How to Approach It

• Always use clear rental agreements that specify payment terms, lien rights, and timelines for enforcement.
   
• Communicate in writing and maintain thorough records.
   
• Follow the legal notice requirements strictly.
   
• Consult legal counsel if you are unsure or if disputes arise.

Considering investing or expanding into the self-storage sector?
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A well-drafted lease agreement can significantly limit a self-storage operator’s liability for tenant losses.
Operators often include "limitation of liability" clauses that specify that the facility is not responsible for damages to tenants' goods caused by theft, fire, water, weather, or other unforeseen events.

Important Considerations
While Ontario law allows operators to limit liability to some extent, the lease terms must be clear, reasonable, and not violate consumer protection laws. Simply stating "we are not responsible" is not always enough — the wording must be enforceable and properly explained to tenants at the time of signing.

Why It Matters for Operators and Investors
Limiting liability reduces the risk of costly lawsuits and protects your business reputation. It’s a crucial safeguard for anyone operating or investing in self-storage facilities, especially as the industry grows and consumer expectations evolve.

Professional legal review of your rental agreements is highly recommended to ensure full compliance.

Interested in building a resilient, profitable self-storage investment?
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During major emergencies, including the COVID-19 pandemic, many self-storage facilities in Ontario were classified as essential services.
This allowed them to continue operating — with restrictions — even when many businesses were forced to shut down.

Why Were They Considered Essential?
Self-storage supports critical services like medical supply storage, business continuity, emergency housing transitions, and logistics operations. Many small businesses, healthcare providers, and government agencies rely on storage facilities to access important inventory and equipment.

Why It Matters for Operators and Investors
This classification highlights the resilience and stability of the self-storage industry during uncertain times. Facilities that stayed open maintained occupancy, collected rents, and, in some cases, even experienced increased demand as people and businesses adapted to changing conditions.

Self-storage remains a strong, recession-resistant asset class — and emergency resilience is a powerful advantage for investors to consider.

Looking to invest in resilient real estate sectors?
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In Ontario, you can’t always build a self-storage facility wherever you want.

Municipal zoning laws play a major role in deciding where storage operations are permitted, and what types of structures or uses are allowed.

Common Zoning Restrictions

• Some municipalities prohibit self-storage in residential zones altogether.
   
• Others allow storage but require it to be indoor-only, or heavily screened with landscaping.
   
• Outdoor storage (like boats, RVs, or containers) often faces stricter rules or outright bans.
   

Why It Matters for Operators and Investors

Ignoring local zoning laws can lead to costly legal battles, forced removal of units, and lost investment.
Before purchasing land or developing a site, it’s crucial to perform thorough due diligence with municipal planning departments and, if needed, apply for proper zoning amendments or variances.

Knowing the zoning landscape early ensures you invest in projects that are viable, compliant, and profitable.

Want to make smarter, safer self-storage investments?

Connect with INVSTY.ca today for expert advice and access to high-potential storage projects across Ontario.

Many storage operators don’t realize that they — not the tenant — could be held responsible for environmental damage if hazardous materials are improperly stored.

The Hidden Risk
Even if your lease agreement forbids the storage of dangerous goods, if a tenant improperly stores hazardous substances and contamination occurs, the property owner may still be liable for environmental cleanup costs.

This can include chemical spills, toxic waste, flammable liquids, and other pollutants.

Why It Matters for Operators and Investors
Environmental cleanup is extremely costly and can severely impact the value of your property. Insurance may not always cover damages if due diligence wasn't properly exercised.
Having clear lease agreements, strict tenant screening procedures, regular inspections, and clear operational rules can dramatically reduce this risk.

For investors, it’s critical to ensure environmental risk management practices are in place before acquiring a facility.

Looking for safer, smarter self-storage investments?

Connect with INVSTY.ca to learn how to spot opportunities — and avoid hidden liabilities — in Ontario’s storage market.

Not all self-storage facilities are treated the same when it comes to taxes.
Depending on how the property is structured and operated, you may qualify for different tax benefits under Canadian law.

Key Factors That Influence Tax Treatment

• The ratio between land and building value can affect property tax assessments.
   
• Facilities operated as a "passive rental" (simply renting space) may be taxed differently than facilities offering active business services like package receiving, retail sales, or truck rentals.
   
• Certain renovations or upgrades may qualify for capital cost allowance (CCA) deductions.
   

Why It Matters for Operators and Investors

Understanding the tax implications can significantly impact your net returns. Structuring your facility correctly — and taking advantage of available deductions — can mean the difference between average and exceptional profitability.

Before finalizing an acquisition or starting development, a thorough tax strategy review is highly recommended.

Want to maximize the returns on your self-storage investment?

Reach out to INVSTY.ca to explore smart investment strategies built for long-term success.

Even if a tenant stops paying and seemingly abandons their storage unit, facility operators cannot simply dispose of the contents without following formal legal procedures.

What the Law Requires

Under Ontario’s Repair and Storage 

Liens Act, operators must:

• Send a written notice to the tenant and any known interested parties.
   
• Allow a waiting period — typically 60 days — giving the tenant an opportunity to reclaim their goods by paying the outstanding balance.
   
• If no payment is made, the facility can sell the goods publicly to recover losses.
   

Skipping any part of this process could expose the operator to legal liability, even if the tenant appears to have "disappeared."

Why It Matters for Operators and Investors

Following proper procedures protects your business from lawsuits, preserves your reputation, and ensures compliance with provincial regulations.

Proper documentation and clear tenant communication are key.

Looking to build a compliant and profitable storage business?
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Unlike towing and vehicle storage operators, traditional self-storage facility owners in Ontario currently do not require a provincial license to operate.

However, There’s a Catch
While there is no specific licensing requirement today, operators must still comply with:

• Municipal zoning and building code regulations.
   
• Consumer protection laws regarding contracts and communications.
   
• The Repair and Storage Liens Act when dealing with overdue accounts or abandoned goods.
   

As the industry grows and government scrutiny increases, licensing requirements could be introduced in the future — making it important to stay informed and operate with best practices now.

Why It Matters for Operators and Investors

Entering the market today is easier compared to other regulated industries. However, staying ahead of potential regulatory changes will protect your investment and business stability over the long term.

Thinking about entering the self-storage sector?
Talk to the experts at INVSTY.ca to build a future-ready, high-performing storage business.