Senate Bill 709 (SB709) has many in the self-storage industry on high alert. This rent control bill, introduced on Feb. 21, 2025, and brought forth by California Senator Caroline Menjivar (Burbank / San Fernando Valley) and coauthor Assembly Member Nick Shultz (Burbank / San Fernando Valley), is directed toward Golden State self-storage operators and will limit rental increases to no more than once every three months. The bill also aims to limit the amount of each rent increase. If it is signed into law, self-storage owners across the country can expect the dominoes to fall, with other states introducing and passing similar bills. Now, a dedicated team of industry experts and business leaders are working to kill the bill before it can harm the industry.
To get the bill vetoed, the California Self Storage Association (CSSA) has enlisted the assistance of two key partners, the California Business Roundtable (CBRT) and the California Business Properties Association (CBPA). The CBRT, established in 1976, brings together top executives from California’s largest companies, providing a platform for collaboration and strategic advocacy on issues critical to the state’s economic health. Meanwhile, the CBPA, established in 1972, represents the largest commercial real estate consortium with over 10,000 industry members who advocate for property owners, tenants, developers, retailers, contractors, land use attorneys, brokers, and other professionals in the industry. Together, this trio forms a formidable opponent to the bill.
The CSSA has also put together a leadership team to tackle this issue made up from the Board and Legislative and Legal Committee. Additionally, the Self-Storage Association (SSA) has expanded the role of their lobbyist, Naomi Padron, partner with McHugh Koepke Padron, and brought in additional outside counsel with the Capital Advocacy. The group also consists of government affairs/legal counsel and lobbyists from several of the REITs and other large operators.
Lastly, a legislative and communications program has been secured with Russo McGarty & Associates to assist in every step of the process. Founder Tony Russo has a strong, 30-year track record in political strategy and public policy, particularly in opposition to ballot initiatives. He has been involved in successful opposition campaigns against Proposition 10 (2018), which would’ve allowed cities to limit rent increases on single-family rental properties, and Proposition 21 (2020), which would have expanded the local government’s authority to enact rent control on residential properties. The firm also quashed California’s Proposition 15, the “split roll” bill, which the CSSA also fought against. The bill would have forced commercial and industrial properties to be assessed at market value at least every three years, leading to an increase in property taxes for these businesses.
“We have a great team in place ready to tackle this serious matter, and we meet three times per week,” says Steve Mirabito, CSSA Chairman, Legal & Legislative Committee. “We have developed a strategy and are working to defeat or mitigate the risk of this bill that is unfairly targeting self-storage businesses and will ultimately hurt consumers too.”
Today, the bill has been assigned to the California State Senate Judiciary Committee (the committee chair is Senator Tom Umberg, and the bill’s author, Menjivar, happens to be a member). A hearing date has been set for May 6. Because the bill does not have a monetary impact on the state budget, if approved, in whatever form, it will move to the California State Senate for a vote. If it passes, it goes to the California State Assembly, where amendments could be made to the bill, for another vote. If approved here, it will land on Governor Newsom’s desk for his signature.
At this time, the CSSA and its partners in opposition to the bill are considering options on what they feel they could do to alleviate the impact of SB709. MSM reached out to Hutchings for an update. “There are many steps in legislation, so moving through the process takes time,” he says, “but we have a solid group working hard on this, and we’ve had several meetings planned with key legislators. We will be moving forward with a coordinated strategy.”
The main point that all involved agree on is that no one wants to see a bill that restricts pricing. “This is especially true when you look at what consumers receive in the way of benefits for their storage,” says Hutchings, noting that self-storage is affordable, flexible, offers discounted entry fees, and supports local communities during disasters and through other charitable deeds. Industry-wide customer satisfaction is high, and the self-storage supply has kept pace with consumer demand. “Consumers are getting tremendous benefits, which would change drastically should price controls be implemented.”
Hutchings adds that this issue has brought everyone together, as they anticipate self-storage will continue to be scrutinized. “We all believe it is time to be legislatively active by participating in an industry defense fund and creating a political action committee (PAC). We’re going to move from low profile to pro-active.”
The CSSA says SB709 will not just hurt self-storage owners but consumers and the Golden State itself. The organization says that rent control would reduce:
“Price control legislation is modeled on residential rent control regulations, which are based on a completely different business model with long-term leases, tenant deposits, and tenant credit checks,” adds Hutchings. “This bill would force consumers into long-term leases designed to recoup the higher and inflated business costs of insurance, utilities, online marketing, and labor, and nobody wants that.”
In recent communications to CSSA members, donations have been sought in order to help defend the self-storage industry. “We need to raise over $2 million to defeat SB709,” an email sent on April 8th stated. “Please donate money directly to the CSSA in support in order to defend your business. Make no mistake, if this measure passes, every self-storage facility within the state will suffer extreme value impairment.”
Those who wish to make an online donation can visit the CSSA Advocacy Campaign Page. Checks made out to the CSSA can be sent to 5325 Elkhorn Boulevard, #283, Sacramento, CA 95842.
Hutchings says that when the time is right, a grassroots effort will get underway to appeal to local legislators. The leadership team will be reaching out to self-storage owners and other businesses, providing information on whom to contact, how to reach them, and the best way to address the situation so that everyone is on the same page.
“We’re at a pivotal moment,” says Hutchings. “Our industry needs to come together to defend us from this dire regulatory threat. The self-storage industry will never be the same if SB709 passes.”
MSM will continue to keep you up to date on the latest developments regarding SB709.
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Brad Hadfield is the web manager and a staff writer for MSM.
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