You’re going to find customers who meet your criteria for increases by length of stay. Americans have a hard time letting go of their stuff. Reply 1 0. Updated 3/7/2020 This page contains statistics about the U.S. self-storage industry compiled by The SpareFoot Storage Beat. Instead, ask three questions: Did you increase rents on all unit types? You are entitled to increase storage fees as long as you are using the SSAA’s agreements and you follow the guidelines above. Then tell the property manager you will call back so that you have some time to run the numbers. If your storage unit rent is higher than comparable units, plan to mention this to the property manager when you call back. When creating an official or organisation letter, discussion style as well as format is essential to … Storage units can range from $60 to $225 per month, depending on the size, location and other features. 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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. And yes, I just got another rate increase today!!! Unit sizes: Public Storage offers unit sizes ranging from 5 feet by 5 feet to 10 feet by … This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. 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. Follow this advice to expertly raise rates for new and existing customers. Pacific Northwest Wedding Trends: What the Pros Have to Say. Along with self-storage they can accommodate business storage needs and vehicle storage needs. Also check your occupied-history report, which will show you the strength of occupancy by unit type over the past year. The next step is to send these tenants a discount-reduction letter. Now the rental rates are $95, $100 and $175. And look out for updated Australian agreements, due for release in the first half of 2017! Self-storage … 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. When assessing rates for existing customers, you’ll want to pull an occupied-units report. For your facility, raising rates for all tenants once per year might be just perfect. Why did my storage rent increase? The software should be able to sort the report to show you all customers by the number of days the rent has remained unchanged. Web page addresses and e-mail addresses turn into links automatically. At day 210, start the increase process. I have a store in Florida that has to review street rates almost weekly since demand is so high. After following these two simple steps, you have the information necessary to negotiate with the property manager of your storage unit. We can move you out of your storage unit and carefully haul your belongings to a Closetbox storage center. Number 8860726. I suggest using 210 days as the trigger, which makes the actual rate increase effective at nine months. Raising rental rates is common practice among self-service storage facilities, though the justification behind increases will vary from company to company. 1st - Fill up your units to increase unit occupancy. Extra Space Storage Inc., headquartered in Salt Lake City, Utah, owns and/or operates over 1,850 self-storage properties in 43 states, Washington, D.C. and Puerto Rico. 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. For over 40 years, the Association has served as the official trade organization and voice of the U.S. and international self storage … If your storage rent increased by a small amount in January, it was likely an across the board rent increase dictated by someone at headquarters of the big, publicly traded storage … Know that most property managers have the ability to reverse the increased storage rent. Discussion Rate Increase Letter Author Date within 1 day 3 days 1 week 2 weeks 1 month 2 months 6 months 1 year of Examples: Monday, today, last week, Mar 26, 3/26/04 Finally, to catch all customers who are getting discounts on sizes that are full, you’ll use the same occupied-units report. You can’t wait three years and then raise all existing tenant rates to match your standard rates. Consistent, well-defined actions are the key for successful rate improvements. 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. Copyright © 2021. 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. 8 expert tips to make it smooth, Apartment checklist: 9 tips for your child’s first place. Some are using complex algorithms to determine which demographic groups get more of an increase and how often. https://www.insideselfstorage.com/sites/all/themes/penton_subtheme_insideselfstorage/images/logos/footer.png. With the industry currently experiencing its highest occupancy in 17 years, most of us are aggressive with rent increases. You’ll also need to give customers 30 days notice before the new rate becomes effective. Now, evaluate the increased rent on your storage unit and compare that to the prices of storage units nearby. Ever-increasing demand growth is a fact of the self storage industry. This will just create stress and a lot of work. Much like any other storage facility, Extra Space Storage’s prices fluctuate from location to location. As of September 30, 2019, the Company owned and/or operated 1,797 self-storage … However, this time you’ll sort the report by percent discount or variance to your standard rate. 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. 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. Now imagine investing that money and earning 6% interest rather than spending $100 on a storage … Tips for Packing Paper, Bubble Wrap, Packing Peanuts, Etc. Finding the best storage … It’s sort of an if/then system: When A occurs, action B takes place. 1. However, this is the opposite of the action needed to improve revenue. 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. 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. And finally, ask: What is the cost of a smaller storage unit? For instance, a 10 ft. x 10 ft. climate-controlled unit in Salt Lake City costs $103 per month, … About one in 10 households rents a self-storage facility according to the latest survey by the Self Storage Association. Let’s take a look at how each can be examined to bring in more profit. Aug 26, 2014 772 views 6 comments WITHIN 3 MONTHS OF MOVING IN THEY JACKED MY RENT $20 A MONTH, A … 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. These are the sizes on which you should raise rates. Then, call the storage facility that raised your storage rent and ask the property manager a few questions. Is Spring Cleaning the Right Time for Your Basement Remodel? Unit size: Extra Space Storage offers unit sizes ranging from from 5 feet by 5 feet to 10 feet by 30 feet. Collection of self storage rent increase letter template that will completely match your requirements. Any empty units I would raise to a competitive street rate now. Statistics on this page will be updated as we receive new data. A. Hence, if you start at 210 days, the rates should go into effect at 270 days. And then, if so, ask: Which unit types did you not increase rent? If your storage rent increased by a small amount in January, it was likely an across the board rent increase dictated by someone at headquarters of the big, publicly traded storage facility in order to improve their bottom line. Find what works for your business and stick to it - consistency is key with rate … Then, evaluate the raised rent on your self-storage unit versus downsizing to a smaller unit or to multiple smaller units at the same property. The industry standard for price increases is to increase rates every nine months, but many REITs increase their prices more than that. 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. You never want to be 100 percent occupied because then you have nothing to sell. 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 … Be sure you speak with the on-site property manager, not the self-storage company’s call center. The 10-by-10s are now only $5 more than … Not Sure How to Start Your Wedding Planning? Up until now, supply has kept up with demand, with over 90% occupancy rates being typical since 2015, according to the … 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. A good standard for a typical annual rent increase … Inside Self-Storage is part of the Informa Markets Division of Informa PLC. Your 5-by-10s are $70 and your 10-by-15s are $140. I rented a 10 x 10 storage unit online at the Tempe, Arizona storage facility. Armed with the above information, call back the storage unit property manager and attempt to negotiate. 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. 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. For example, some companies might have existing contract customers on a schedule that dictates the rate … In X days (which should be at least 30 days from the date of your letter), your discount will be 19 percent." Someone renting a 10x15 at $150 per month would get a rate increase of $7.50, and would pay … If you spent $100 each month on a storage unit, that’s $1,200 a year. 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. Now that you’ve maximized your potential rents with new, existing and discounted customers, you need to repeat this process at least monthly. After you pull this report, look for unit sizes that have 90 percent or higher occupancy or inventory of three or fewer. Its managers do an incredible amount of marketing and hold onsite events to keep it that way. Here’s an example: “Dear Mr. Jones, you have been getting a 48 percent discount that has been in effect since X date. For example, if you continue to hit 95 percent occupancy after raising rates, you’ll need to review your street rates more frequently. Instead, stay on top of your rental rates for existing and new tenants and look for areas in which you can improve. 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. Simone Hill BA (Hons) LLB, LLM, is the Legal Advisor to the Self-Storage … For more information, call 770.801.1888; visit www.universalstoragegroup.com. A 5x5 foot storage unit usually runs about $40-$50 … You may also want to look into listing your brand on an affordable self storage … Check out this list of the best places to raise kids based on quality of living, affordability, crime rates, and local schools. Should You Hire a Wedding Planner or a Wedding Coordinator? 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. Thanks storage increase every other minute. While these two rate structures are completely separate, one certainly does influence the other. 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. This way the customer knows he’s still getting a discount compared to new customers. Now the rental rates are $95, $100 and $175. 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. SpareFoot has four tips for negotiating a self-storage rate: Shop around online first, find the best posted price, try for group discounts or referral bonuses, or lock in a lower rate by signing for a longer rental period. You can also. 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If your storage facility increased your self-storage rent on your unit type only, it’s likely in response to low vacancy rates on your particular unit type or in your specific submarket. Informa Markets, a trading division of Informa PLC. She’s also participated in the planning, design and operation of numerous self-storage facilities. The Company's properties comprise approximately 1,010,000 units and over 585M square feet of rentable storage … So we will resume and are resuming our existing customer rate increase program, market by market as they open up, subject … 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. Most management-software programs today offer some type of rental-activity report. It's a clever little trick they use...get your stuff moved … 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. Because almost all Web-based software programs for self-storage include rate-management tools, you can easily program when and how much you want increases to be, and they’ll show up in your pending-rate-increases folder for approval. It will take time to decide on the new rates and send out the rent-increase e-mail or letter. Particularly if your unit occupancy rate is low, you may want to focus on putting out specials and self storage discounts. Due to overwhelming demand, we are currently at our storage capacity in Boston, the San Francisco Bay Area, Rhode Island and Seattle. All you need to do is reserve your pickup and we will take care of the rest for you. What to do about my storage rent increase? 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. All rights reserved. How much self storage should cost. A motivated owner can outperform the computer by taking advantage of all opportunities. Large operators have developed processes for defining their revenue-management programs. For example, you may have several 10-by-10s priced at $100 per month. Lines and paragraphs break automatically. This has resulted in double-digit growth to our same-store sales and year-over-year improvements. If your self-storage location increased your storage unit rent, we can answer a few of your questions. First, check storage rents at other facilities nearby for your storage unit size. Remember, when you raise standard rates, it only affects your new customers, not current ones. Average costs and comments from CostHelper's team of professional journalists and community of users. Shop around online. Before you call the storage facility that raised storage rents, find out what other storage facilities are charging for storage units like yours. Also, it’s a less harsh way to say, “Your rent is going up by $30 a month.”. Circumstances will dictate the need for more frequent reviews and actions. Instead, increase the rent on the smaller and larger sizes around this vacant size to create a perceived discount. 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. 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. 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. Someone renting a 5x5 for $50 per month would get a rate increase of $2.50, and the new payment would be $52.50. 11 Best Cities to Raise a Family in 2021 | Extra Space Storage Extra Space Storage - RATE INCREASE, RATE INCREASE, RATE INCREASE! 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