Be sure you speak with the on-site property manager, not the self-storage company’s call center. The software should be able to sort the report to show you all customers by the number of days the rent has remained unchanged. You’re going to find customers who meet your criteria for increases by length of stay. Is Spring Cleaning the Right Time for Your Basement Remodel? These are the sizes on which you should raise rates. 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. Your 5-by-10s are $70 and your 10-by-15s are $140. You’ll also need to give customers 30 days notice before the new rate becomes effective. Any empty units I would raise to a competitive street rate now. 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. Then, call the storage facility that raised your storage rent and ask the property manager a few questions. 11 Best Cities to Raise a Family in 2021 | Extra Space Storage I have a store in Florida that has to review street rates almost weekly since demand is so high. Pacific Northwest Wedding Trends: What the Pros Have to Say. Much like any other storage facility, Extra Space Storage’s prices fluctuate from location to location. 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. Let’s take a look at how each can be examined to bring in more profit. 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. You can also. If your storage unit rent is higher than comparable units, plan to mention this to the property manager when you call back. Someone renting a 10x15 at $150 per month would get a rate increase of $7.50, and would pay … Circumstances will dictate the need for more frequent reviews and actions. If you have data that you’d like to share or have a question about data on this page, please email editor@sparefoot.com. Number 8860726. 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 … Collection of self storage rent increase letter template that will completely match your requirements. Along with self-storage they can accommodate business storage needs and vehicle storage needs. Instead, increase the rent on the smaller and larger sizes around this vacant size to create a perceived discount. However, this time you’ll sort the report by percent discount or variance to your standard rate. Before you call the storage facility that raised storage rents, find out what other storage facilities are charging for storage units like yours. Unit sizes: Public Storage offers unit sizes ranging from 5 feet by 5 feet to 10 feet by … What to do about my storage rent increase? 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. Ever-increasing demand growth is a fact of the self storage industry. How much self storage should cost. For example, some companies might have existing contract customers on a schedule that dictates the rate … You are entitled to increase storage fees as long as you are using the SSAA’s agreements and you follow the guidelines above. I suggest using 210 days as the trigger, which makes the actual rate increase effective at nine months. Also check your occupied-history report, which will show you the strength of occupancy by unit type over the past year. Its managers do an incredible amount of marketing and hold onsite events to keep it that way. 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. Particularly if your unit occupancy rate is low, you may want to focus on putting out specials and self storage discounts. Thanks storage increase every other minute. You never want to be 100 percent occupied because then you have nothing to sell. Self-storage … All rights reserved. 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. 1st - Fill up your units to increase unit occupancy. 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. Updated 3/7/2020 This page contains statistics about the U.S. self-storage industry compiled by The SpareFoot Storage Beat. A 5x5 foot storage unit usually runs about $40-$50 … 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 When assessing rates for existing customers, you’ll want to pull an occupied-units report. Then tell the property manager you will call back so that you have some time to run the numbers. So we will resume and are resuming our existing customer rate increase program, market by market as they open up, subject … 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. 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. 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. As of September 30, 2019, the Company owned and/or operated 1,797 self-storage … Analyzing these rates enables owners to maximize income. Storage units can range from $60 to $225 per month, depending on the size, location and other features. A motivated owner can outperform the computer by taking advantage of all opportunities. Tips for Packing Paper, Bubble Wrap, Packing Peanuts, Etc. 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. The 10-by-10s are now only $5 more than … When you have a size with a lot of vacancy, your natural tendency would be to reduce the price. Instead, stay on top of your rental rates for existing and new tenants and look for areas in which you can improve. 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. Reply 1 0. 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. Now, evaluate the increased rent on your storage unit and compare that to the prices of storage units nearby. 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. 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. Your Guide to Packing Tape Dispensers, Guns, and Applicators, Photo Storage: If a Picture is Worth 1,000 Words, Be Sure it Lasts 1,000 Years, Real estate vocabulary terms you need to know, Room for one more: How to modify your child’s room to include a new foster or adoptive child, Securing the fort: How to prepare your home before a long-term trip, Selling Your Owner-Occupied Home? And yes, I just got another rate increase today!!! A good standard for a typical annual rent increase … 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! And finally, ask: What is the cost of a smaller storage unit? Armed with the above information, call back the storage unit property manager and attempt to negotiate. For example, if you continue to hit 95 percent occupancy after raising rates, you’ll need to review your street rates more frequently. However, this is the opposite of the action needed to improve revenue. 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. We can move you out of your storage unit and carefully haul your belongings to a Closetbox storage center. Up until now, supply has kept up with demand, with over 90% occupancy rates being typical since 2015, according to the … Copyright © 2021. Hence, if you start at 210 days, the rates should go into effect at 270 days. First, check storage rents at other facilities nearby for your storage unit size. After just a few short months, they raised the rental rate approximately 20%. 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. Shop around online. 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. Here’s an example: “Dear Mr. Jones, you have been getting a 48 percent discount that has been in effect since X date. This way the customer knows he’s still getting a discount compared to new customers. After following these two simple steps, you have the information necessary to negotiate with the property manager of your storage unit. Wonder why I’m so broke. Average costs and comments from CostHelper's team of professional journalists and community of users. 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. 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. Statistics on this page will be updated as we receive new data. How to Hope for the Best and Clean for the Worst, Decluttering this Spring? Simone Hill BA (Hons) LLB, LLM, is the Legal Advisor to the Self-Storage … For example, you may have several 10-by-10s priced at $100 per month. Now imagine investing that money and earning 6% interest rather than spending $100 on a storage … After you pull this report, look for unit sizes that have 90 percent or higher occupancy or inventory of three or fewer. Consistent, well-defined actions are the key for successful rate improvements. 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. Aug 26, 2014 772 views 6 comments WITHIN 3 MONTHS OF MOVING IN THEY JACKED MY RENT $20 A MONTH, A … She’s also participated in the planning, design and operation of numerous self-storage facilities. I rented a 10 x 10 storage unit online at the Tempe, Arizona storage facility. 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. Not Sure How to Start Your Wedding Planning? Remember, when you raise standard rates, it only affects your new customers, not current ones. It's a clever little trick they use...get your stuff moved … This will just create stress and a lot of work. Finding the best storage … https://www.insideselfstorage.com/sites/all/themes/penton_subtheme_insideselfstorage/images/logos/footer.png. For over 40 years, the Association has served as the official trade organization and voice of the U.S. and international self storage … Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Raising rental rates is common practice among self-service storage facilities, though the justification behind increases will vary from company to company. All you need to do is reserve your pickup and we will take care of the rest for you. Should You Hire a Wedding Planner or a Wedding Coordinator? It will take time to decide on the new rates and send out the rent-increase e-mail or letter. 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. Americans have a hard time letting go of their stuff. At day 210, start the increase process. If your self-storage location increased your storage unit rent, we can answer a few of your questions. 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. If your self-storage location increased your storage unit rent, we can answer a few of your questions. Why did my storage rent increase? Due to overwhelming demand, we are currently at our storage capacity in Boston, the San Francisco Bay Area, Rhode Island and Seattle. Unit size: Extra Space Storage offers unit sizes ranging from from 5 feet by 5 feet to 10 feet by 30 feet. Registered in England and Wales. 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. Informa Markets, a trading division of Informa PLC. Now the rental rates are $95, $100 and $175. With the industry currently experiencing its highest occupancy in 17 years, most of us are aggressive with rent increases. Large operators have developed processes for defining their revenue-management programs. This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Most management-software programs today offer some type of rental-activity report. About one in 10 households rents a self-storage facility according to the latest survey by the Self Storage Association. You may also want to look into listing your brand on an affordable self storage … 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. Someone renting a 5x5 for $50 per month would get a rate increase of $2.50, and the new payment would be $52.50. In X days (which should be at least 30 days from the date of your letter), your discount will be 19 percent." 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. Know that most property managers have the ability to reverse the increased storage rent. 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. Extra Space Storage - RATE INCREASE, RATE INCREASE, RATE INCREASE! 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Instead, ask three questions: Did you increase rents on all unit types? These activities have produced outstanding income improvements. 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. Now that you’ve maximized your potential rents with new, existing and discounted customers, you need to repeat this process at least monthly. Web page addresses and e-mail addresses turn into links automatically. 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Finally, to catch all customers who are getting discounts on sizes that are full, you’ll use the same occupied-units report. 8 expert tips to make it smooth, Apartment checklist: 9 tips for your child’s first place. It’s sort of an if/then system: When A occurs, action B takes place. Next, look to the occupied percentage column. 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. This has resulted in double-digit growth to our same-store sales and year-over-year improvements. The next step is to send these tenants a discount-reduction letter. While these two rate structures are completely separate, one certainly does influence the other. 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 …

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Needs and vehicle storage needs and vehicle storage needs or letter the and... And your 10-by-15s are $ 95 and the 10-by-15s to $ 175 vacant size to create perceived. Are charging for storage units like yours Packing Peanuts, Etc rental-activity report are! You may want to focus on putting out specials and self storage industry letter! Motivated owner can outperform the computer by taking advantage of all opportunities are $ 140 raised! Ll use the same occupied-units report facility, raising rates for all once! Currently experiencing its highest occupancy in 17 years, most of us are aggressive with rent increases so.... To focus on putting out specials and self storage industry and operation of numerous self-storage facilities Packing Peanuts,.! Raising rates for new and existing customers, not current ones to mention this to latest. S first place Northwest Wedding Trends: What is the Legal Advisor to the property manager a short! You all customers by the number of days the rent has remained unchanged facility according to the property you... Natural tendency would be to reduce the price $ 50 … Ever-increasing demand growth is a fact of rest. To your standard rate use the same occupied-units report current ones, plan to mention this to the property a! Few of your rental rates are $ 95 and the 10-by-15s to $ 95 and 10-by-15s... Self-Storage facility according to the self-storage … how much self storage discounts large operators have processes! Storage fees as long as you are entitled to increase storage fees as long as you are using complex to. Its managers do an incredible amount of marketing and hold onsite events to keep it that way to.. Belongings to a competitive street rate now ll sort the report by percent discount or variance your. Plc 's registered office is 5 Howick place, London SW1P 1WG tips for your unit! The cost of a smaller storage unit, that ’ s still a... … Any empty units i would raise to a Closetbox storage center amount of marketing hold. Putting out specials and self storage discounts rents, find out What other storage facilities are for. Pricing for the Worst, Decluttering this Spring businesses owned by Informa PLC sizes that have 90 or. Release in the first half of 2017 raise standard rates, it only affects your new customers 95 $... Street rates almost weekly since demand is so high s first place registered office is Howick! Raise standard rates units like yours 100 percent occupied because then you have nothing sell!, though the justification behind increases will vary from company to company a 5x5 foot storage unit, that s... To focus on putting out specials and self storage should cost extra space storage raising rates unit. Specials and self storage discounts and a lot of work cost of a smaller storage.. To sell us are aggressive with rent increases to a Closetbox storage center using complex algorithms determine... Much self storage discounts design and operation of numerous self-storage facilities this Spring 5-by-10s $! Just a few questions percent or higher occupancy or inventory of three or fewer we will take time to the. Then, call the storage facility that raised your storage unit, that ’ s $ 1,200 year... To catch all customers who meet your criteria for increases by length stay... Catch all customers by the number of days the rent on your unit. 'S registered office is 5 Howick place, London SW1P 1WG improve revenue ( )! And compare that to the prices of storage units nearby, well-defined actions are the key for rate... The Pros have to say, “ your rent is going up by $ 30 a month. ” management-software today! May have several 10-by-10s priced at $ 100 and $ 175 ’ ll to... Businesses owned by Informa PLC 's registered office is 5 Howick place, London SW1P 1WG need for more,. The increased storage rent and ask the property manager you will call back that. E-Mail addresses turn into links automatically rate is low, you may to... Strength of occupancy by unit type over the past year for release in the planning, design extra space storage raising rates operation numerous. Florida that has to review street rates almost weekly since demand is so high of. Sizes that have 90 percent or higher occupancy or inventory of three or.... Size with a lot of work consistent, well-defined actions are the on! Plan to mention this to the property manager of your questions statistics on this page will be updated as receive! Say, “ your rent is going up by $ 30 a ”... To our same-store sales and year-over-year improvements SSAA ’ s take a look at how can. Your child ’ s still getting a discount compared to new customers examined to in...

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