skip to content
January 28, 2025

Natural Disasters May Trigger Price Gouging Laws

by Carlos Kaslow

The last 12 months have been the year of natural disasters. The country has been responding to various disasters, from hurricanes in the southeast to wildfires in California, with occasional tornados and flooding in between. Natural disasters also trigger the President and Governors to declare states of emergency. While these orders put the wheels of government in motion to provide badly needed help, they also trigger laws that prohibit price gouging by businesses providing goods and services. 

In many states, these laws apply to self-storage rent increases. For example, California has a 30-day “hard” 10% rent increase limit on self-storage rent increases. The initial 30-day restriction period may be extended, and extensions are common. While the limit is in effect, a tenant’s rent cannot be increased by more than 10%.   

States vary in the types of price gouging limits they impose. Many laws state that price increases cannot be unconscionable. This is a fuzzy term, but charging $10 for a gallon of gas may fall into this category when the price before the disaster was $3.50 per gallon. In the states with hard rent increase limits, operators must be very careful about rent increases and avoid exceeding the maximum.  

While a state of emergency may last for months and, in rare situations, for years, the price-gouging regulations applicable to self-storage rent increases may not last for the duration of the emergency. Using California as an example, several counties have declared emergencies for fires and flooding in the spring of 2024 that are still in effect. However, self-storage rent increase restrictions have expired and not been renewed. Storage operators whose facilities are located where a long-lasting emergency declaration is in effect must keep informed when rent increase restrictions expire. The initial term of rent increase restrictions is typically 30 or 60 days. Beyond that initial period, local or state governments must extend the restrictions.    

The SSA Legal Center (only members have access) has a page on its website outlining the price-gouging laws of all 50 states. Several states do not have price-gouging laws, including Arizona, which is currently considering such legislation. A dozen states currently do not have price-gouging laws, and several likely may follow Arizona’s lead.   

Currently, 38 states have implemented price gouging laws. These states include Alabama, Arkansas, California, Colorado, Connecticut, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Nevada, New Jersey, New York, North Carolina, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Utah, Vermont, Virginia, West Virginia, and Wisconsin.

Not all states have specific regulations that clearly apply to self-storage operators, so it’s important to consult with legal counsel about potential rate changes during a state of emergency or its extension. The legal experts at Self Storage Legal Network can provide valuable guidance.

Understanding how these laws impact pricing strategies is crucial for compliance and maintaining customer trust. By staying informed about state-specific price gouging laws, operators ensure their business adheres to all applicable regulations while effectively serving customers’ needs during challenging times.

Copyright 2025. All Rights Reserved