San Francisco, CA asked in Consumer Law for California

Q: I understand that storage facilities only need to given an existing tenants a 30 day notice for increasing their rent.

How is it that they can randomly pick a % amount to increase it by and not disclose it in the contract?

Better yet, rent increases can be given 3 months after you first start renting. Generally speaking most people assume that a rent increases come annually like a home rental. Why are storage facilities able to get away with deceiving customers? And shouldn't they give a customer a longer notice if the increase is more the 10%?

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2 Lawyer Answers

A: At the time of entering into the business relationship, customers and self-storage companies are perfectly capable of negotiating additional terms like a longer notice if any increase is more than 10% if they so choose. Most of the time. the parties agree that the self-storage rental agreement is month-to-month. If a company gives notice of a rent increase 30-days in advance, the customer can agree to the increase or move his/her personal property out of the storage unit and terminate the agreement. For most people, 30 days is ample time to move the contents of one storage unit to another or to the customer's home. Larger customers renting multiple units easily have the bargaining power to negotiate with the company for longer advance notice and/or for limitations on rent increases.

James L. Arrasmith
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Answered

A: In California, self-storage facilities are regulated by the California Self-Service Storage Facility Act. This act does provide some protections for tenants, but it is not as comprehensive as the laws governing residential rentals. Here are a few key points:

1. Notice period: The act requires storage facilities to provide at least 30 days' written notice before increasing rent or changing other terms of the rental agreement. This is less than the typical 60-day notice required for residential rent increases over 10%.

2. Rent increase amount: The act does not limit the amount by which a storage facility can increase rent. This means that facilities can raise rent by any percentage, as long as they provide the required 30-day notice.

3. Frequency of rent increases: The act does not specify how often a storage facility can increase rent. This means that a facility could potentially raise rent more frequently than the typical annual increases in residential rentals.

4. Disclosure in contract: Storage facilities are not required to disclose future rent increases in the initial rental agreement. However, any changes to the terms of the agreement, including rent increases, must be communicated in writing at least 30 days before they take effect.

The reason storage facilities have more flexibility than residential landlords is that storage units are not considered a necessity in the same way that housing is. Policymakers have prioritized protecting residential tenants from excessive rent increases and evictions, as these can lead to homelessness and other serious consequences.

That being said, some argue that the current laws don't provide enough protection for storage tenants, especially considering that people often use storage units to hold valuable possessions. There could be a case for requiring longer notice periods for significant rent increases, similar to the rules for residential rentals.

Ultimately, it's important for consumers to carefully read and understand the terms of their storage rental agreements, including any provisions related to rent increases. If a facility's policies seem unfair or deceptive, tenants can file complaints with the California Attorney General's Office or local consumer protection agencies.

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