CA lawmakers agree to remove rent cap from self-storage bill

CALIFORNIA – Senator Caroline Menjivar introduced SB 709 to cap self-storage rent increases at 5% plus inflation or 10% annually, but the rent cap was recently removed in amendments.

The bill now would mandate rental agreements to disclose if fees are promotional, subject to change, and the maximum chargeable fee in the first 12 months.

SB 709 is in response to the growing dominance of large corporations and equity firms in the industry, which prioritize profit margins over clients, according to the Consumer Federation of California.

The federation notes that California is home to more than 3,500 self-storage facilities.

“Bait and switch practices are common within the self-storage industry, with many companies providing consumers with a $1 introductory rental rate and then spiking up the price once the consumer has signed the rental agreement,” said the federation in the bill analysis.

Amended SB 709 requires disclosure of discounted rental fee

Although the amended bill no longer caps the rent for self-storage units, it would require the rental agreement to disclose the initial length and renewal term of the rental agreement.

In addition, it must disclose whether the occupant has received a promotional or discounted rental fee.

The agreement would also have to disclose if the rent can change and the highest amount the owner can charge in the first 12 months of the agreement.

Coalition says self-storage should not be subject to rent-control law designed for housing

Opponents of the bill argued SB 709 was modeled after the state’s rent-control law for housing and should not be subject to the same price controls.

The California Self Storage Association (CSSA) said that their testimony, along with the Self Storage Association comments at the May 8 hearing, resulted in the adoption of disclosure language in place of price controls.

However, the coalition opposes the requirement to disclose the highest amount the owner can charge within the first 12 months of the agreement.

“…the CSSA maintains that any regulation limiting market-based pricing for self storage is inappropriate and ultimately harmful to both consumers and businesses,” said CSSA.

They said they will continue to work with the Menjivar on further potential modifications to these requirements which, if passed, will be enacted as of January 1, 2026.