Then tell the property manager you will call back so that you have some time to run the numbers. 1st - Fill up your units to increase unit occupancy. 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. Caretakers’ Guide to Moving Seniors Into a Facility, Babyproofing (0-6 Months): What to Do before Coming Home from the Hospital, Childproofing for Your Toddler (18 Months to 4 Years), Childproofing for Your Young Infant (6 Months to 18 Months), Comparison Shopping: Cardboard Boxes vs. For instance, a 10 ft. x 10 ft. climate-controlled unit in Salt Lake City costs $103 per month, … Finally, to catch all customers who are getting discounts on sizes that are full, you’ll use the same occupied-units report. The industry standard for price increases is to increase rates every nine months, but many REITs increase their prices more than that. You’re going to find customers who meet your criteria for increases by length of stay. How much self storage should cost. About one in 10 households rents a self-storage facility according to the latest survey by the Self Storage Association. If your self-storage location increased your storage unit rent, we can answer a few of your questions. Average costs and comments from CostHelper's team of professional journalists and community of users. I have a store in Florida that has to review street rates almost weekly since demand is so high. We hope all of the above helps you resolve the issue – but in the event this advice still fails to eliminate your storage unit rent increase or you wish to leave but are unable to move your items out of storage, call Closetbox at 877-433-9636. So we will resume and are resuming our existing customer rate increase program, market by market as they open up, subject … Analyzing these rates enables owners to maximize income. After just a few short months, they raised the rental rate approximately 20%. All you need to do is reserve your pickup and we will take care of the rest for you. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Its managers do an incredible amount of marketing and hold onsite events to keep it that way. After you pull this report, look for unit sizes that have 90 percent or higher occupancy or inventory of three or fewer. Also, it’s a less harsh way to say, “Your rent is going up by $30 a month.”. You can’t wait three years and then raise all existing tenant rates to match your standard rates. After following these two simple steps, you have the information necessary to negotiate with the property manager of your storage unit. Most management-software programs today offer some type of rental-activity report. Standard (street) rates are reviewed by unit type or size, particularly ones that are full or about to be, which can spur a rate increase. 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. A 5x5 foot storage unit usually runs about $40-$50 … What to do about my storage rent increase? 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. When creating an official or organisation letter, discussion style as well as format is essential to … 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. And finally, ask: What is the cost of a smaller storage unit? Finding the best storage … Armed with the above information, call back the storage unit property manager and attempt to negotiate. Number 8860726. As of September 30, 2019, the Company owned and/or operated 1,797 self-storage … About Extra Space Storage Inc.: Extra Space Storage Inc., headquartered in Salt Lake City, Utah, is a self-administered and self-managed REIT and a member of the S&P 500. Before you call the storage facility that raised storage rents, find out what other storage facilities are charging for storage units like yours. Rent usually must increase marginally each year in order to keep pace with market rates, inflation, tax changes, and other factors that make owning that property just a little bit more expensive. This has resulted in double-digit growth to our same-store sales and year-over-year improvements. Extra Space Storage - RATE INCREASE, RATE INCREASE, RATE INCREASE! Thanks storage increase every other minute. The Company's properties comprise approximately 1,010,000 units and over 585M square feet of rentable storage … Collection of self storage rent increase letter template that will completely match your requirements. Don’t bother asking: “Why did my storage rent increase?” You know they increased your rent either to make more money or because rents at comparable storage units are rising – or both. These activities have produced outstanding income improvements. Let’s take a look at how each can be examined to bring in more profit. Pacific Northwest Wedding Trends: What the Pros Have to Say. NOTE: Even if you are unable to easily move your items out of the storage unit, never discuss your personal situation with the storage facility. Copyright © 2021. For more information, call 770.801.1888; visit www.universalstoragegroup.com. This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. The next step is to send these tenants a discount-reduction letter. 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. Storage units can range from $60 to $225 per month, depending on the size, location and other features. Statistics on this page will be updated as we receive new data. However, this time you’ll sort the report by percent discount or variance to your standard rate. Up until now, supply has kept up with demand, with over 90% occupancy rates being typical since 2015, according to the … Tips for Packing Paper, Bubble Wrap, Packing Peanuts, Etc. 8 expert tips to make it smooth, Apartment checklist: 9 tips for your child’s first place. 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. Next, look to the occupied percentage column. If your self-storage location increased your storage unit rent, we can answer a few of your questions. 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This isn’t to say that the rate-management tools aren’t effective; using them is certainly more profitable than doing nothing or leaving it to chance. In X days (which should be at least 30 days from the date of your letter), your discount will be 19 percent." And then, if so, ask: Which unit types did you not increase rent? For example, you may have several 10-by-10s priced at $100 per month. At day 210, start the increase process. Any empty units I would raise to a competitive street rate now. Here’s an example: “Dear Mr. Jones, you have been getting a 48 percent discount that has been in effect since X date. Remember, when you raise standard rates, it only affects your new customers, not current ones. 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. Along with self-storage they can accommodate business storage needs and vehicle storage needs. Is Spring Cleaning the Right Time for Your Basement Remodel? For over 40 years, the Association has served as the official trade organization and voice of the U.S. and international self storage … Raising rental rates is common practice among self-service storage facilities, though the justification behind increases will vary from company to company. You are entitled to increase storage fees as long as you are using the SSAA’s agreements and you follow the guidelines above. Due to overwhelming demand, we are currently at our storage capacity in Boston, the San Francisco Bay Area, Rhode Island and Seattle. If you spent $100 each month on a storage unit, that’s $1,200 a year. You never want to be 100 percent occupied because then you have nothing to sell. https://www.insideselfstorage.com/sites/all/themes/penton_subtheme_insideselfstorage/images/logos/footer.png. Self-Storage Financing for 2021: Options, Market Sentiment and More, NexPoint Launches Investment Platform to Finance, Develop Self-Storage Properties, Self-Storage Financing Through the SBA 504 Loan Program, It’s an Optimal Time to Secure Self-Storage Financing … Find Out Why. Shop around online. However, this is the opposite of the action needed to improve revenue. Plastic Containers, Comprehensive Solutions for Your Trade Show Storage, Creating a sensory safe haven for kids with autism, Curb appeal for resale value: A guide to the basics, Disaster Planning: The Need for Business Storage in the Event of Severe Weather, Don’t Fall Victim to this Home Staging Myth, Don’t Skip this Early Step for Your Basement Remodeling Plan. Inside Self-Storage is part of the Informa Markets Division of Informa PLC. All rights reserved. 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. 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Simone Hill BA (Hons) LLB, LLM, is the Legal Advisor to the Self-Storage … Much like any other storage facility, Extra Space Storage’s prices fluctuate from location to location. You may also want to look into listing your brand on an affordable self storage … It’s sort of an if/then system: When A occurs, action B takes place. Aug 26, 2014 772 views 6 comments WITHIN 3 MONTHS OF MOVING IN THEY JACKED MY RENT $20 A MONTH, A … And look out for updated Australian agreements, due for release in the first half of 2017! Then, call the storage facility that raised your storage rent and ask the property manager a few questions. When you have a size with a lot of vacancy, your natural tendency would be to reduce the price. She’s also participated in the planning, design and operation of numerous self-storage facilities. Consistent, well-defined actions are the key for successful rate improvements. Someone renting a 5x5 for $50 per month would get a rate increase of $2.50, and the new payment would be $52.50. Wonder why I’m so broke. Now the rental rates are $95, $100 and $175. Reply 1 0. Self-storage … Find what works for your business and stick to it - consistency is key with rate … For your facility, raising rates for all tenants once per year might be just perfect. Follow this advice to expertly raise rates for new and existing customers. Check out this list of the best places to raise kids based on quality of living, affordability, crime rates, and local schools. If prices of storage units nearby or smaller storage units within the same facility are comparable to (or less than) the increased rent on your storage unit, you can threaten to leave the facility, which will sometimes force their hand. Instead, stay on top of your rental rates for existing and new tenants and look for areas in which you can improve. I rented a 10 x 10 storage unit online at the Tempe, Arizona storage facility. Large operators have developed processes for defining their revenue-management programs. Updated 3/7/2020 This page contains statistics about the U.S. self-storage industry compiled by The SpareFoot Storage Beat. Now imagine investing that money and earning 6% interest rather than spending $100 on a storage … 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 … And yes, I just got another rate increase today!!! A. Particularly if your unit occupancy rate is low, you may want to focus on putting out specials and self storage discounts. Some are using complex algorithms to determine which demographic groups get more of an increase and how often. 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. Now the rental rates are $95, $100 and $175. Lines and paragraphs break automatically. While these two rate structures are completely separate, one certainly does influence the other. 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. If your storage unit rent increased a small amount on the one year anniversary of your move in, it is also likely an across the board policy triggering on your move in date in order to target those long term storage customers who are less likely to move out. Going to find customers who meet your criteria for increases by length of stay programs today offer some type rental-activity! 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