Self-service storage facilities: rental rates.

Senator Menjivar's proposal to regulate self-storage facility rental rates in California establishes new limits on annual price increases while mandating enhanced transparency in rental agreements. The measure caps yearly rental rate increases at either 5% plus the cost-of-living adjustment or 10%, whichever is lower, based on the lowest rate charged for a unit during the previous 12 months.

The bill creates a detailed framework for calculating allowable increases using Consumer Price Index data specific to metropolitan areas across California. For facilities in Los Angeles-Long Beach-Anaheim, Riverside-San Bernardino-Ontario, San Diego-Carlsbad, and San Francisco-Oakland-Hayward regions, the bill requires using local CPI figures. Other areas would reference the statewide Consumer Price Index published by the Department of Industrial Relations.

Under the proposed requirements, storage facility owners must separately itemize the base monthly rental rate and any discounts, incentives, concessions, or credits in all lease agreements and amendments. The bill specifies that these promotional offerings, when accepted by tenants, are excluded from calculations of the lowest gross rental amount used to determine maximum allowable increases. This provision maintains the base rate as the reference point for applying the annual caps while preserving owners' ability to offer temporary promotional pricing.