Understanding new California transparency, communication, and consumer protection laws (perhaps coming to your state soon).
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New California Laws Impacting Self-Storage: What You Need To Know

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Two newly enacted provisions in California law—Sections 21712 and 21715.2 of the Business and Professions Code—introduce significant changes for self storage operators. Both laws focus on increasing transparency, modernizing communication, and strengthening consumer protections in rental agreements and lien sale procedures. While the new rules impose additional administrative steps, they also provide clarity and flexibility that, if implemented properly, can enhance operational reliability and reduce disputes.

 

Electronic Mail Notices – Changes to Section 21712

The first of the two new laws, contained in existing Section 21712, involves updates to the electronic delivery of lien notices. The new law allows owners to send required lien notices by email, but only if certain conditions are met. First, the rental agreement must explicitly state that lien notices may be sent by email. Second, the occupant must provide a written signature consenting to receive lien notices electronically.

 

This dual consent structure ensures compliance with California’s electronic transaction laws and prevents disputes over whether notice was properly given. The statute also specifies how an owner can demonstrate actual delivery and receipt of an emailed lien notice. Acceptable evidence includes acknowledgment by electronic signature, proof that the tenant opened or downloaded the message, or a reply from the tenant’s email address. If an owner cannot show proof of delivery through one of these methods, the notice must be resent by verified mail. 

 

From an operational standpoint, this new framework removes any requirement for the operator to have an independent internet website to manage its communications but otherwise maintains some requirement to verify that the e-mail was “delivered” to the tenant. Operators who wish to rely on email delivery must ensure their systems can track electronic acknowledgments and retain proof of delivery. This may require upgrading management software or adopting new email tracking features such as using services like RPost (www.RPost.com/selfstorage).

 

Transparency in Rental Terms – Section 21715.2

The second new law, Section 21715.2, addresses disclosure requirements in self storage rental agreements. It mandates that key terms—such as the rental period, promotional rates, rent increases, and termination procedures—be prominently displayed on the first page of the contract. These disclosures must appear in larger type or contrasting format to make them easily visible to tenants.

 

Specifically, operators must disclose:

  1. The initial term and renewal period of the lease.
  2. Whether the tenant received a promotional or discounted rate, and how long it lasts.
  3. Whether rent is subject to change within the first year, and the maximum amount that could be charged during that time.
  4. The steps required for the tenant to terminate the lease and remove property.
  5. Contact information for the facility owner.

These new disclosure requirements are clearly designed to prevent misunderstandings about rental increases or promotional pricing. For operators, this means reviewing and likely revising lease forms to ensure these elements appear prominently and in compliance with the formatting requirements—larger font, bold type, or contrasting color.

 

Together, these laws signal a broader push toward transparency and digital accountability. Operators should review and update all rental agreement templates to include the new required disclosures and optional alternate contact section, add explicit consent language for email delivery of lien notices if electronic communication is desired, verify that electronic management systems can track delivery evidence in compliance with the law and train staff to explain these new disclosures and obtain valid tenant consent at the time of lease signing. The failure to comply with these requirements could jeopardize the enforceability of lien rights or expose operators to claims of improper notice or deceptive practices.

 

California’s new self storage laws represent a meaningful evolution in the relationship between facility owners and tenants. By emphasizing clear disclosures, optional alternate contacts, and verifiable electronic communications, the legislature aims to protect consumers while offering owners modernized, flexible tools for notice delivery. 

 

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WEISSMANN ZUCKER EUSTER + KATZ

Scott Zucker is a partner in the law firm of Weissmann Zucker Euster + Katz P.C. in Atlanta, GA. Scott specializes in business litigation with an emphasis on real estate, landlord-tenant and construction law. For more visit www.wzlegal.com. 

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This newsletter is for the purpose of providing general legal insight into the self-storage industry. It should not be substituted for the legal advice of your own attorney.

 

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