A motivated owner can outperform the computer by taking advantage of all opportunities. In X days (which should be at least 30 days from the date of your letter), your discount will be 19 percent." Check out this list of the best places to raise kids based on quality of living, affordability, crime rates, and local schools. Knowing when and to whom rental-rate increases should be given, as well as how much they should be, is one of the most important aspects in operating a profitable self-storage facility. Much like any other storage facility, Extra Space Storage’s prices fluctuate from location to location. If your storage unit rent is higher than comparable units, plan to mention this to the property manager when you call back. It will take time to decide on the new rates and send out the rent-increase e-mail or letter. Before you call the storage facility that raised storage rents, find out what other storage facilities are charging for storage units like yours. Go through the report and find those getting discounts of more than 15 percent. If you see a size that rarely has any availability, you can be more aggressive on standard rates as well as those for existing tenants. M. Anne Ballard is president of training, marketing and developmental services for Universal Storage Group and the founder of Universal Management Co. She’s president of the Georgia Self Storage Association and has served on the national Self Storage Association’s board of directors. Instead, stay on top of your rental rates for existing and new tenants and look for areas in which you can improve. These are the sizes on which you should raise rates. Remember, when you raise standard rates, it only affects your new customers, not current ones. This is likely the easiest method for many facility owners, but it doesn’t allow for as much consideration and improvement as the process outlined above. How to Hope for the Best and Clean for the Worst, Decluttering this Spring? ZIP codes, length of stay, household income, unit type and location, amount of current discount, and competitor-pricing comparisons are just a few of the influencers being used to dictate new rental rates for customers. The next step is to send these tenants a discount-reduction letter. Ever-increasing demand growth is a fact of the self storage industry. To make this easy, I suggest owners use a few simple operating-system reports to identify triggers for raising rents, and then review them at least once per month. At day 210, start the increase process. Know that most property managers have the ability to reverse the increased storage rent. If your storage unit is higher than two smaller units summing to a size approximate to your storage unit size, you’ll also want to mention it when you call your property manager back. The industry standard for price increases is to increase rates every nine months, but many REITs increase their prices more than that. If you have data that you’d like to share or have a question about data on this page, please email editor@sparefoot.com. The Self Storage Association (SSA) is a not-for-profit tax-exempt organization formed in 1975 under Section 501-c-6 of the Internal Revenue Code. And look out for updated Australian agreements, due for release in the first half of 2017! Thanks storage increase every other minute. Number 8860726. How much self storage should cost. Unit size: Extra Space Storage offers unit sizes ranging from from 5 feet by 5 feet to 10 feet by 30 feet. All rights reserved. The units with tenants need to be raised asap to a larger increase like the $26 with a reminder in the rent raise notice that the rate is still lower than any competitors rates and then start the rent raise … Leave the 10-by-10 price where it is, but raise pricing for the 5-by-10s to $95 and the 10-by-15s to $175. The 10-by-10s are now only $5 more than the next smaller size and $75 less than the next larger size, so most customers will view those units as a bargain, and you’ll fill them faster. Shop around online. The software should be able to sort the report to show you all customers by the number of days the rent has remained unchanged. By determining your standard rates prior to executing increases for existing tenants, you can see the variance between current rent and the new higher rate for new customers. Next, look to the occupied percentage column. You are entitled to increase storage fees as long as you are using the SSAA’s agreements and you follow the guidelines above. Finally, to catch all customers who are getting discounts on sizes that are full, you’ll use the same occupied-units report. What to do about my storage rent increase? More common, though, are rules-based methods for monthly evaluations of the common two-rate structure of standard rates (often called street rates) and existing tenant rates. However, this is the opposite of the action needed to improve revenue. Your 5-by-10s are $70 and your 10-by-15s are $140. It's a clever little trick they use...get your stuff moved … Wonder why I’m so broke. Armed with the above information, call back the storage unit property manager and attempt to negotiate. You can also. Instead, increase the rent on the smaller and larger sizes around this vacant size to create a perceived discount. For over 40 years, the Association has served as the official trade organization and voice of the U.S. and international self storage … A good standard for a typical annual rent increase … Lekeshia Lekeshia Sep 01, 2019 #1741368 … Avoid an All-or-Nothing Approach with this Itemized List, Here are All the Extra Steps that Come with Spring Cleaning in New England, How to Remove Your Dirt (and Your Carbon) Footprint this Spring, The Midwest is Best, But Spring Cleaning is the Worst, The One Time it’s OK to Take it Easy with Your Spring Cleaning, The Complete Guide to Preserving and Passing on Your Historic, Precious Heirlooms, The how-to guide for packing your home before deployment, The parents’ guide to decluttering as children grow, The ultimate guide to adapting your home if you are blind or partially-sighted, The ultimate guide to organizing your home for your child with disabilities, The Ultimate Guide to Thriving as a Newly Independent Woman, Wedding Planning and Beyond: From Engagement to Wedding to Ever-After, Asking Family for Money and Other Wedding Budget Tips, Don’t Be a Ticking Time Bomb: Use this 12-Month Wedding Planning Timeline, How to Be Beautiful & Guilt-Free on Your Wedding Day, How to Insure Your Engagement Ring (and Your Own Peace of Mind), How to Make Your Post-Wedding Life Easier, Make Your At-Home Wedding a Success without Going Insane. 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