California's Self-Storage Lien Laws: How to Navigate in 2025

Self-Storage Compliance Hub
Written By Jennifer Aubert

In California's competitive self-storage market, proper lien management isn't just about legal compliance—it's a critical business process that directly impacts your bottom line. With recent legislative changes and the ever-present risk of litigation, understanding California's specific requirements is more important than ever.

Alert: California self-storage operators are facing increased legal challenges under the Rosenthal Fair Debt Collection Practices Act. Read our section below on these important compliance requirements.

The High Cost of Non-Compliance

When a tenant stops paying, the clock starts ticking on a complex legal process. California's self-storage lien laws provide a pathway to recover your space and lost revenue, but one misstep can be costly:

  • Legal liability: Improper lien processing can lead to lawsuits from tenants claiming wrongful sale

  • Extended vacancy: Delays in the lien process mean units stay occupied without generating revenue

  • Administrative burden: Staff spend hours on paperwork instead of serving paying customers

  • Increased legal costs: Fixing compliance errors often requires expensive legal consultation

Recent changes to California law have added new requirements while also offering more flexibility in certain areas—making compliance both easier and more complex depending on how you approach it.

California's Recent Legislative Changes

California has updated several key provisions of its self-storage lien laws that facility operators need to know:

AB 542 (Effective January 1, 2024)

This legislation made significant changes to the publication requirements for lien sales:

  • Reduced the number of required newspaper advertisements from two to one if the sale is also advertised online

  • Expanded where advertisements can be published to include either the public notice district or the county where the facility is located

  • Eliminated the requirement to describe the goods in the advertisement

AB 1916 (Effective January 1, 2025)

This newer law addresses abandoned property and rental agreements:

  • Creates a streamlined process for handling abandoned property after a rental agreement ends (or the lease is terminated)

  • Allows operators to amend rental agreements with 30 days' written notice

  • Eliminates the need for court involvement when tenants abandon property

These changes reflect California's evolving approach to balancing operator needs with tenant protections. Maintaining compliance with these updated regulations is essential for avoiding legal complications.

The California Lien Process: A Step-by-Step Overview

California's lien process follows a specific timeline that must be carefully observed:

Step 1: Identify Default (Day 14+)

Under California Business & Professions Code (BPC) § 21703, a tenant is in default after 14 consecutive days of non-payment. Only then can you begin the formal lien process.

Step 2: Send Preliminary Lien Notice

This first required notice must:

  • Be sent via certified mail, first-class mail with certificate of mailing, or email (if authorized in the rental agreement)

  • Follow the specific format outlined in BPC § 21704

  • Give the tenant at least 14 days to pay before termination of access rights (unless otherwise addressed in the parties’ rental agreement).

Step 3: Send Notice of Lien Sale

If payment isn't received by the deadline in the Preliminary Notice:

  • Send a Notice of Lien Sale via the same approved methods

  • Include a blank "Declaration in Opposition to Lien Sale" form

  • Allow at least 14 more days before the scheduled sale

Step 4: Publish Notice of Sale

California now offers two options for publication:

  • Option 1: Publish once per week for two consecutive weeks in a newspaper of general circulation

  • Option 2: Publish once in a newspaper AND once on a publicly accessible internet website that conducts online auctions

    • The online advertisement must remain visible for at least 7 days before the sale

Step 5: Conduct the Sale

The auction must be conducted in a "commercially reasonable manner" and can be held:

  • In person at the facility or suitable location

  • Online through a reputable auction platform

  • At least 14 days after the Notice of Lien Sale was sent

For a comprehensive timeline with all required notices and deadlines, download our California Self-Storage Lien Compliance Checklist. (coming soon!)

Special Handling Requirements in California

Vehicles, Boats and Trailers

California requires different procedures for titled vehicles and vessels:

  • Vehicle and vessel liens must follow California Civil Code § 3071, in conjunction with the self-storage lien process

  • You must notify the Department of Motor Vehicles (DMV) and any lienholders of record

  • The sale cannot proceed until all DMV requirements are satisfied

Military Service Members

The Servicemembers Civil Relief Act (SCRA) provides additional protections to active-duty military personnel:

  • Always check military status before proceeding with a lien sale

  • Court approval may be required before selling property of active-duty military

  • Additional notice requirements may apply

Publication Options: Traditional vs. Online

One of the most significant changes in California's lien laws is the option for online advertising. Storage operators now have two approaches to meet publication requirements:

Traditional Newspaper Publication

  • Publish auction notices once per week for two consecutive weeks in a newspaper of general circulation

  • Must be in the public notice district or county where the facility is located

  • Typically more expensive but familiar to most operators

Hybrid Approach (New Option)

  • Publish once in a newspaper of general circulation

  • AND publish once on a publicly accessible website that customarily conducts online auctions

  • Online advertisement must remain accessible for at least seven days before the sale

  • Can reduce costs while potentially reaching more potential bidders

For most operators, the hybrid approach offers both compliance and marketing advantages. Online auction platforms often provide documentation of the advertisement, helping with record-keeping requirements.

Documentation: Your Best Defense

Maintaining thorough records is critical for defending against potential claims. For each lien process, document:

  • Copies of all notices sent to the tenant

  • Proof of mailing/delivery (receipts, certificates, etc.)

  • Records of publication (tear sheets from newspapers, screenshots of online listings)

  • Inventory and photographs of unit contents (recommended)

  • Auction results and distribution of proceeds

While California law doesn't specify a retention period, we recommend keeping these records for at least three years.

Automation: The Path to Reliable Compliance

Managing the lien process manually creates numerous opportunities for costly mistakes. Automation offers a more reliable approach:

  • Consistent tracking: Automated systems follow the precise timeline required by California law

  • Compliant notices: System-generated notices include all required language and formatting

  • Documentation: Digital records create an audit trail of all steps in the process

  • Reduced workload: Staff can focus on customer service instead of paperwork

  • Legal protection: Proven compliance processes reduce liability exposure


For a personalized assessment of how automation can streamline your California lien management, request a demo of Ai Lean's lien automation platform.

The Rosenthal Fair Debt Collection Practices Act: A Critical Compliance Area

California self-storage operators face an additional compliance challenge beyond standard lien laws: the Rosenthal Fair Debt Collection Practices Act (“Rosenthal Act”). Unlike the federal Fair Debt Collection Practices Act (FDCPA), which generally applies only to third-party debt collectors, California’s Rosenthal Act applies to original creditors as well—aguably including self-storage facilities.

What Self-Storage Operators Need to Know

The Rosenthal Act governs how businesses collect consumer debts, including:

  • When and how you can contact delinquent tenants

  • What language can be used in collection communications

  • Restrictions on communication with third parties about the debt

  • Required disclosures during collection efforts

Recent developments:

The Rosenthal Act was amended in 2024 (SB 1286) to expand its coverage to certain commercial debts (aggregate of no more than $500,000), effective July 1, 2025. This means many small business/commercial debts—including those owed to self-storage facilities—may soon be covered, not just consumer debts.

The California Self Storage Association (CSSA) has reported a rise in lawsuits against self-storage operators for noncompliance with the Rosenthal Act.

Key Compliance Requirements

When attempting to collect past-due rent, California operators must:

  • Limit communications to reasonable hours (generally 8 a.m. to 9 p.m. for consumers; CSSA recommends 8 a.m. to 8 p.m. for best practice)

  • Never use threatening, profane, or harassing language

  • Avoid excessive or repeated calls to tenants

  • Not contact tenants at their workplace if such contact is prohibited

  • Properly identify themselves in all communications

  • Never misrepresent the amount or status of the debt

  • Do not discuss the debt with third parties, including family or employers, except as permitted by law

  • Notify debtors of discharge due to bankruptcy or other legal reasons

Note: The Rosenthal Act incorporates most of the requirements of the federal FDCPA for consumer debts, but the new commercial debt provisions (effective July 1, 2025) do not incorporate the FDCPA by reference.

Best Practices for Rosenthal Act Compliance

To protect your operation from potential litigation:

  • Review and update all collection policies and procedures for both consumer and (starting July 2025) applicable commercial debts

  • Train staff on proper communication with delinquent tenants
    Implement consistent documentation of all collection efforts

  • Establish clear boundaries for collection timing and methods

  • Consider automating compliant notifications to ensure consistent compliance

  • Consult legal counsel on any questions or for policy review

Looking Ahead: California's Evolving Lien Laws

California's self-storage regulations continue to evolve. Legislative updates typically focus on:

  • Modernizing communication methods

  • Streamlining processes for operators

  • Maintaining consumer protections

  • Adapting to technological changes

Staying informed through industry associations like the California Self Storage Association and working with knowledgeable legal counsel remains essential.

Get Your California Lien Compliance Resources

For more detailed guidance on navigating California's lien laws:

  1. Download our California Self-Storage Lien Law Guide (coming soon)

  2. Get our California Notice Templates (coming soon)

  3. Request a compliance assessment


By maintaining strict compliance with California's lien laws while taking advantage of new options for efficiency, self-storage operators can protect their business while maximizing recovery on delinquent units.

References




DISCLAIMER: This article is provided for informational purposes only and does not constitute legal advice. Laws change frequently, and this document may not reflect the most current legislation. Always consult with a qualified attorney for specific legal advice regarding your situation.

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Jennifer Aubert
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