The CSSA and its coalition have succeeded in turning back the self-storage price controls laid out in SB709. This also bodes well for the industry in other states that may have been considering rent control bills based on the outcome in California.
As MSM covered previously, the CSSA coalition includes the SSA, the CA Business Round Table, the CA Business Property Association, and five Sacramento lobbying firms. Together, they convinced the CA Senate Judiciary Committee yesterday that price controls are inappropriate for the self-storage industry.
As introduced, SB709 would have limited self-storage annual rent increases to the lower of 5% + CPI or 10%. The coalition engaged in numerous meetings with Chairman Tom Umberg, Senator Carolyn Menjivar (the bill's author), and other Committee members to successfully negotiate substantive changes to the bill.
The CSSA and SSA each testified at the hearing on Tuesday, May 8, resulting in the adoption of disclosure and transparency language in place of price controls, including a provision requiring a maximum monthly rate during the initial 12-month period of the rental agreement. "Our coalition opposes the 12-month period and continues to work with the author on further potential modifications to these requirements which, if passed, will be enacted as of January 1, 2026," wrote the CSSA in an email update to members.
While the outcome is preferable to the original bill, the CSSA maintains that any regulation limiting market-based pricing for self storage is inappropriate and ultimately harmful to both consumers and businesses. To advocate for the self-storage industry in the future, the CSSA is in the process of establishing Political Action Committees (PACs) to better position the industry for the California political arena.
SB709's new language can be seen below:
This bill would prohibit the owner of a self-storage facility from increasing the gross rental rate for a storage unit by more than the lower of 5% plus the percentage change in the cost of living, or 10%, over the course of any 12-month period, as specified, and would define various terms for that purpose. The bill would require the gross per-month rental rate and any owner-offered discounts, incentives, concessions, or credits to be separately listed and identified in the lease or rental agreement or any amendments to an existing lease or rental agreement. require a rental agreement to disclose, in a prescribed manner, certain items, including whether the rental fee is discounted or promotional, whether the rental fee is subject to change, and the maximum rental fee that the owner could charge during the first 12 months following the date of the rental agreement.
"We thank those who have already contributed to the Industry Advocacy Fund, which fueled the CSSA’s fight against SB709," writes the CSSA. "These funds are just the beginning of what will be required to adequately defend the industry from future regulations that will hamper our ability to best serve our customers. As we enter a new era requiring political and public relations initiatives, we ask all members to consider supporting the CSSA’s continuing efforts to defend our industry."
You can read the entire amended bill here.
Further Reading: