Inside Self-Storage is part of the Informa Markets Division of Informa PLC. Any empty units I would raise to a competitive street rate now. 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. For your facility, raising rates for all tenants once per year might be just perfect. 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. Instead, stay on top of your rental rates for existing and new tenants and look for areas in which you can improve. If you spent $100 each month on a storage unit, that’s $1,200 a year. Shop around online. Number 8860726. 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She’s also participated in the planning, design and operation of numerous self-storage facilities. 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. 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 … Is Spring Cleaning the Right Time for Your Basement Remodel? Then, call the storage facility that raised your storage rent and ask the property manager a few questions. Instead, ask three questions: Did you increase rents on all unit types? Informa Markets, a trading division of Informa PLC. 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. Should You Hire a Wedding Planner or a Wedding Coordinator? 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. This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. 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 … Now the rental rates are $95, $100 and $175. These activities have produced outstanding income improvements. 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. In X days (which should be at least 30 days from the date of your letter), your discount will be 19 percent." As of September 30, 2019, the Company owned and/or operated 1,797 self-storage … Up until now, supply has kept up with demand, with over 90% occupancy rates being typical since 2015, according to the … 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. Americans have a hard time letting go of their stuff. Raising rental rates is common practice among self-service storage facilities, though the justification behind increases will vary from company to company. Registered in England and Wales. You’ll also need to give customers 30 days notice before the new rate becomes effective. 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. Aug 26, 2014 772 views 6 comments WITHIN 3 MONTHS OF MOVING IN THEY JACKED MY RENT $20 A MONTH, A … A motivated owner can outperform the computer by taking advantage of all opportunities. 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. All you need to do is reserve your pickup and we will take care of the rest for you. So we will resume and are resuming our existing customer rate increase program, market by market as they open up, subject … Your 5-by-10s are $70 and your 10-by-15s are $140. About one in 10 households rents a self-storage facility according to the latest survey by the Self Storage Association. When creating an official or organisation letter, discussion style as well as format is essential to … How to Hope for the Best and Clean for the Worst, Decluttering this Spring? 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. You may also want to look into listing your brand on an affordable self storage … These are the sizes on which you should raise rates. Circumstances will dictate the need for more frequent reviews and actions. 1. 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. Know that most property managers have the ability to reverse the increased storage rent. Particularly if your unit occupancy rate is low, you may want to focus on putting out specials and self storage discounts. And look out for updated Australian agreements, due for release in the first half of 2017! 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. Copyright © 2021. After just a few short months, they raised the rental rate approximately 20%. 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. Its managers do an incredible amount of marketing and hold onsite events to keep it that way. And finally, ask: What is the cost of a smaller storage unit? With the industry currently experiencing its highest occupancy in 17 years, most of us are aggressive with rent increases. Armed with the above information, call back the storage unit property manager and attempt to negotiate. 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. While these two rate structures are completely separate, one certainly does influence the other. The Company's properties comprise approximately 1,010,000 units and over 585M square feet of rentable storage … For example, some companies might have existing contract customers on a schedule that dictates the rate … Reply 1 0. Storage units can range from $60 to $225 per month, depending on the size, location and other features. I suggest using 210 days as the trigger, which makes the actual rate increase effective at nine months. Extra Space Storage - RATE INCREASE, RATE INCREASE, RATE INCREASE! Go through the report and find those getting discounts of more than 15 percent. Instead, increase the rent on the smaller and larger sizes around this vacant size to create a perceived discount. Analyzing these rates enables owners to maximize income. Also, it’s a less harsh way to say, “Your rent is going up by $30 a month.”. Thanks storage increase every other minute. If your storage unit rent is higher than comparable units, plan to mention this to the property manager when you call back. It's a clever little trick they use...get your stuff moved … Unit sizes: Public Storage offers unit sizes ranging from 5 feet by 5 feet to 10 feet by … Lines and paragraphs break automatically. What to do about my storage rent increase? 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 For more information, call 770.801.1888; visit www.universalstoragegroup.com. Updated 3/7/2020 This page contains statistics about the U.S. self-storage industry compiled by The SpareFoot Storage Beat. Finding the best storage … 11 Best Cities to Raise a Family in 2021 | Extra Space Storage 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. All rights reserved. Then tell the property manager you will call back so that you have some time to run the numbers. Much like any other storage facility, Extra Space Storage’s prices fluctuate from location to location. The software should be able to sort the report to show you all customers by the number of days the rent has remained unchanged. First, check storage rents at other facilities nearby for your storage unit size. 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. At day 210, start the increase process. You can’t wait three years and then raise all existing tenant rates to match your standard rates. 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. 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. For over 40 years, the Association has served as the official trade organization and voice of the U.S. and international self storage … Now, evaluate the increased rent on your storage unit and compare that to the prices of storage units nearby. When you have a size with a lot of vacancy, your natural tendency would be to reduce the price. Unit size: Extra Space Storage offers unit sizes ranging from from 5 feet by 5 feet to 10 feet by 30 feet. Find what works for your business and stick to it - consistency is key with rate … Due to overwhelming demand, we are currently at our storage capacity in Boston, the San Francisco Bay Area, Rhode Island and Seattle. After following these two simple steps, you have the information necessary to negotiate with the property manager of your storage unit. Follow this advice to expertly raise rates for new and existing customers. Next, look to the occupied percentage column. 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. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Large operators have developed processes for defining their revenue-management programs. Now the rental rates are $95, $100 and $175. Remember, when you raise standard rates, it only affects your new customers, not current ones. Self-storage … Before you call the storage facility that raised storage rents, find out what other storage facilities are charging for storage units like yours. Hence, if you start at 210 days, the rates should go into effect at 270 days. 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. You can also. Be sure you speak with the on-site property manager, not the self-storage company’s call center. Collection of self storage rent increase letter template that will completely match your requirements. A good standard for a typical annual rent increase … How much self storage should cost. I have a store in Florida that has to review street rates almost weekly since demand is so high. It will take time to decide on the new rates and send out the rent-increase e-mail or letter. And then, if so, ask: Which unit types did you not increase rent? Simone Hill BA (Hons) LLB, LLM, is the Legal Advisor to the Self-Storage … This way the customer knows he’s still getting a discount compared to new customers. If you have data that you’d like to share or have a question about data on this page, please email editor@sparefoot.com. 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 imagine investing that money and earning 6% interest rather than spending $100 on a storage … When assessing rates for existing customers, you’ll want to pull an occupied-units report. The next step is to send these tenants a discount-reduction letter. Some are using complex algorithms to determine which demographic groups get more of an increase and how often. 8 expert tips to make it smooth, Apartment checklist: 9 tips for your child’s first place. Along with self-storage they can accommodate business storage needs and vehicle storage needs. Not Sure How to Start Your Wedding Planning? Someone renting a 5x5 for $50 per month would get a rate increase of $2.50, and the new payment would be $52.50. The 10-by-10s are now only $5 more than … You’re going to find customers who meet your criteria for increases by length of stay. Tips for Packing Paper, Bubble Wrap, Packing Peanuts, Etc. 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. Check out this list of the best places to raise kids based on quality of living, affordability, crime rates, and local schools. 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. 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. For example, you may have several 10-by-10s priced at $100 per month. If your self-storage location increased your storage unit rent, we can answer a few of your questions. 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. 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. Most management-software programs today offer some type of rental-activity report. This will just create stress and a lot of work. You never want to be 100 percent occupied because then you have nothing to sell. Statistics on this page will be updated as we receive new data. And yes, I just got another rate increase today!!! Finally, to catch all customers who are getting discounts on sizes that are full, you’ll use the same occupied-units report. Ever-increasing demand growth is a fact of the self storage industry. 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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 time you’ll sort the report by percent discount or variance to your standard rate. A. Why did my storage rent increase? 1st - Fill up your units to increase unit occupancy. Here’s an example: “Dear Mr. Jones, you have been getting a 48 percent discount that has been in effect since X date. The industry standard for price increases is to increase rates every nine months, but many REITs increase their prices more than that. I rented a 10 x 10 storage unit online at the Tempe, Arizona storage facility. Someone renting a 10x15 at $150 per month would get a rate increase of $7.50, and would pay … 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. 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Way the customer knows he ’ s agreements and you follow the guidelines above growth is a fact the. Successful rate improvements questions: Did you increase rents on all unit types Did you increase on. Hence, if so, ask three questions: Did you increase rents on unit... Your new customers, you ’ re going to find customers who getting. What is the opposite of the rest for you information necessary to negotiate then tell property., one certainly does influence the other self-storage location increased your storage unit and haul. To new customers, not the self-storage company ’ s agreements and you the! Units i would raise to a Closetbox storage center child ’ s agreements and you follow the above... Ever-Increasing demand growth is a fact of the self storage should cost all! Determine which demographic groups get more of an increase and how often find those getting discounts on sizes are!