Typically, the smaller the space, the less tolerant the renter is of a price increase, and students usually rent small spaces like 5âx5âs. Energy costs increase. Taxes go up. While their loyalty doesnât make them exempt from rent rate increases, itâs a nice gesture to give them a small discount for their loyalty when compared to street rates for new renters. Self Storage Rental Prices. Every storage facility is unique, so it might be difficult to know the best way for you to approach a price increase until youâve actually done it. Sources vary depending on definition and methodology. self-storage consumers. First and foremost, arm your team with research about your competitors. A graduate of South Dakota State University with a master's in mass communication, Jana enjoys bringing technology, web marketing and industry news and tips to self storage owners and managers. Insurance The rental agreement on a storage facility must typically show any insurance protecting the stored property that is required by the renter. You donât need to explain all of the reasons behind the increase - your tenants donât need to know about your occupancy, and they likely donât care anyway. More and more, however, customers are turning to the internet to find storage options. To put that in perspective, only 1 in 17 American households used self storage units in 1995. Between digital ad spend, SEO and storage aggregators, there are many opportunities for storage units to be found and researched online. Today, if you just have one price increase per year you are either (1) having big jumps in rental … That number has increased every year, and in 2018, nearly $5 billion was spent on new facilities, per U.S. Census Bureau data on private construction spending. Self Storage rent increases are becoming harder to evaluate in the market for small investers with the number REITs using the demand marketing model. One self-storage option that many storage facilities offer is furniture storage. Google’s Remarketing platform is an effective way to bring leads who have left your website back for another chance at closing the deal. © 2021 Forbes Media LLC. ... We used to have a yearly price increase and were proud of it. There are currently an estimated 58,000 self storage units in the U.S. You can either get a storage unit with electrical hookups, climate … That isnât to say you should ignore the complaints on the assumption that most of your tenants will stay. Traditionally, walk-ins were the biggest channel for new tenant acquisition. This trend isn’t just important because it affects building costs and supply; it also affects occupancy and consumer prices. ... Increase Visibility. How Much Does it Cost to Rent a Storage Unit? The self-storage industry is competitive. If you raise everyoneâs rent by, for example, 7% each year theyâre at your facility, the increase wonât catch them by surprise and youâll be better able to integrate your projected earnings from your price increase into your budget. Step one in dealing with complaints: Expect complaints. When increasing rates, use a combination of good business sense and simple logic to determine who sees price increases first. A 5x5 foot storage unit … While storage operators are attempting to adapt by building more attractive facilities with smaller footprints, the burden of paying for these improvements will still fall on storage unit tenants. Still, renters want a clean and dry space to leave their things in. A "small dollar" rent increase yields a large return. Opinions expressed are those of the author. Some tenants may leave as a result of the price increase, but if theyâre willing to commit the time and money that it takes to remove all their belongings from their storage unit (the average move-out costs close to $200), they probably werenât planning on sticking around too much longer anyway and used your necessary rent increase as the excuse. Marketing self-storage facilities have one primary goal, to increase self-storage rental conversion – moving tenants into empty units. The industry standard for price increases is to increase rates every nine months, but many REITs increase their prices more than that. Population increases and more people need a space to call home. Just like their apartment rent increases from year to year or lease to lease, they likely expect their storage unit rental rate to increase, too. This means, of course, that not everyoneâs rent needs to increase by the same amount or the same percentage. Jana Haecherl Thank a Vet! And it is second time they raise rent $10. Energy costs increase. View them. Upstairs and indoor tenants are more tolerant of price increases than drive-up tenants. Tenants who came to you on a super-special discount are most sensitive to price increases. Use these 5 easy tips to rent more self storage units. Finally, be sure to let tenants know a few weeks before the actual increase so they arenât blindsided by the sudden increase in one of their monthly bills. Nevertheless, industry analysts fear that this glut of new storage facilities will exceed demand in the short term, causing a decline in the decade-long high returns enjoyed by some of the largest players in the industry, including Public Storage and Extra Space Storage. Description. When potential customers call your facility and ask for the price of your 10x10 unit, instead of simply answering, “The monthly rate is $99,” differentiate your facility by starting a conversation. So many … 1 in 10 households rent self storage units. The logic here is simple: people donât want to load boxes and sweat all weekend when itâs a sweltering 100 degrees in the middle of July. Minus first month promotions and such, you never want to ask current tenants to pay an increased rent rate without first adjusting your web rates to be the same price or more. Nitzberg warns against going toe to toe with the dumpster in the name of a small rent increase. Students are less tolerant of price increases than non-student tenants. While demand continues to increase, it will be outpaced in the short term by new supply. If you havenât been doing regular rent increases, the first one will be most jarring to your long-term renters. Guidelines for Self-Storage Rent Increases: Frequency, Amount and Notifying Tenants. As disruptors continue to emerge, stagnant industries, including that of self storage, will be forced to shift, adapt and innovate, creating a better experience for the end user. How much self storage should cost. Our self-storage space, expertise and services help you to organise your items efficiently, and utilise your personal space to the max. 1. All Rights Reserved, This is a BETA experience. Explain to them the reasons why it is a necessity in self storage. On the other hand, if you were to raise everyoneâs rent by exactly 10%, the one with the large unit would be paying $15 more while the one with the small unit is paying just $3 more per month. Donât remind them! Up until now, supply has kept up with demand, with over 90% occupancy rates being typical since 2015, according to the 2019 Self Storage Almanac from Mini Storage Messenger. Be sure to write a smart rent increase note. Plus I remember in Ca, if you late with payment 10 or more days, they have rights to charge $10, each 10 days. For my company, that industry is self storage, composed of small facility operators and a handful of big-name players that dominate the market. New York joins other major cities, including San Francisco, Miami and Charleston, that have similar restrictions, with others likely to follow. Increased supply may result in lower unit rental prices as storage operators compete to fill their units. You may opt-out by. Show them that youâre sympathetic and let them know you hate to raise rent. On average the smallest units, for example a 5x5, can be rented for as low as $65/month while the larger ones, like a 10x20, can cost upwards of $135/month on average. The good news: your tenants probably already understand this concept, too. Self-storage facilities rent space on a short-term basis (often month-to-month, though options for longer-term leases are available) to individuals (usually storing household goods; nearly all jurisdictions prohibit the space from being used as a residence) or to businesses (usually storing excess inventory or archived records). Average costs and comments from CostHelper's team of professional journalists and community of users. Itâs simply tougher to move out when you have to carry things upstairs or use an elevator, and tenants who rent upstairs feel like theyâre getting more for their money with an indoor, climate-controlled unit. Get a fresh approach to rental-rate pricing and learn how a varied, percentage-based increase strategy can reduce move-outs. If a current tenant goes to your website and sees that a new renter can pay less for the same size unit, theyâll surely be upset - and for good reason! Always gauge the customer reaction, the retention rate, and the net increase in revenue. Whether youâre renting an apartment, parking space, storage unit, or acre of farmland, thereâs just no way around rent increases for your space. This prediction excites us at Neighbor because we help people monetize their empty space and find nearby, affordable storage options. Everyone has a different customer base, a different management style, and a different relationship with their tenants. According to the 2019 Self Storage Almanac, the internet surpassed drive-by for the first time in 2017 as the largest source of tenants. Always remember your basic customer service skills and remain calm when talking to customers. The UK Self Storage industry is one of the biggest in the world, coming second only to the US helped popularised with hit TV shows such as Storage Wars.Surprisingly, British residents rent 9 times more storage space than the Germans, and 4 times more than the French, causing a serious boom in the UK’s self-storage industry. Do you need to increase your occupancy rate? Much has been written by the self storage industry about rent increases, and each company handles them differently. But donât let this discourage you - if your marketing is on point and your rates are competitive, youâll fill that space in no time. If demand is high enough, they may filter out old tenants in favor of acquiring new customers who will pay higher rent each month. Loyalty matters to your customers. In this case, youâll want to be sure to time your increase with a noticeable improvement to the property like a new, modernized gate, a freshly painted parking lot, or bright, beautiful landscaping. Be strategic, using resources like your facility's economic occupancy numbers to make an informed decision. Rental Rates Typical rents of $0.50 up to $4 per sq. Many tenants set their rent payments on autopay and forget their actual rent rate. Personal car ownership will likely become less and less popular, which will free up garage space. If youâre going to do a rate increase, consider the potential benefit of hiking rates up a little further. SelfStorage.com has 237 storage facilities in Tigard. You donât have to increase everyone at once. Additional resources on customer service in self storage: 6 steps to resolve customer conflict, Re-evaluating our views on customer service, and PR and crisis management: A comprehensive guide for managers. Nobody likes price increases. Accordingly, people will either use that space to store their own items, thereby reducing the need for an expensive self storage unit, or they will rent out their empty garage space to others online. Donât let rate increases ruin the fun you have running your storage facility. The management software comes with a fully integrated website that allows tenants to e-sign lease agreements, rent units online, and pay their bill via their own online account. You’ve got the perfect facility and a beautiful truck your customers love. Jana is a marketing communications specialist living in Kansas City. Always greet your customers with open ears and a smile on your face, and think of ways to show your customers why youâre worth the rent increase. Theyâre a necessary evil, but with proper planning and customer service, theyâre little more than a bump in the road. Make sure managers know your competitorsâ rates, how often they increase rent on average, when their last break-in was, and what makes your facility the better choice. Additional resources on rate and revenue management: Revenue management: The short-term and long-term solution to your storage facility's value, 15 metrics every storage owner should be tracking, and How to use your facility's occupancy rates to maximize profits. You can help managers deal with complaints by prepping them far in advance and offering best practices and real life calls as examples of how to deal with a difficult customer who objects to the rate increase. Use tenant logic to predict the loss of tenants and control what you can to ensure for a successful rate increase. Timing is critical to the success of a self-storage rent increase, especially in todays market. Before you do anything, consider these factors: Web rates should always be more than or equal to the rate that current tenants are paying. Young Entrepreneur Council (YEC) is an invitation-only, fee-based organization comprised of the world's most successful entrepreneurs 45 and younger. Self-Storage Rent Increases: A New Theory to an Old Practice Revenue management is a critical part of every self-storage manager’s job. |9 min read. Increasing real estate costs are just part of life. What can I do? While other emerging players in the self storage industry compete by offering on-demand services by storing tenants' items in distant, less-expensive storage warehouses, traditional storage operators are also having to adapt by designing more visually appealing facilities and building further from population centers. how to handle the potential flood of complaints, Revenue management: The short-term and long-term solution to your storage facility's value, 15 metrics every storage owner should be tracking, How to use your facility's occupancy rates to maximize profits, your facility's economic occupancy numbers, Re-evaluating our views on customer service, PR and crisis management: A comprehensive guide for managers, The complete guide to offering move-in trucks, Homelessness + self storage: How to be compassionate while preventing live-in renters, A 4-step guide to attracting the college student market, Jana Haecherl, Marketing Communications Specialist. I use Extra Space Storage for 8 months. … As can be seen in the chart, you would need to raise the monthly rent in this example by at least $6 in order to break even after the loss of a tenant. You can raise rates on indoor units more often than drive-up units and suffer fewer move-outs. SelfStorage.com has 234 storage facilities in Vancouver. The only thing tenants hate more than rate increases is unexpected rate increases they werenât planning on. Customers all deal with bills and taxes in their everyday lives, so they will probably have less sympathy for you if you cite those reasons. While that was likely only one small part of the various cost increases that led to your decision to increase rent prices, it is the easiest for the customer to accept. If youâre planning on doing consistent rate increases once a year, consider implementing them during a time of the year when moving out is inconvenient for tenants to discourage those who are grumping about the price and thinking about leaving from taking action. The decision cited a lack of space, displacement of businesses that produce high-quality jobs and a negative impact on the aesthetics of the city for the enactment of the law. “But, an increase makes customers think, ‘Do I really need this? Inflation makes supplies more expensive. For example, if your 10-by-30 units rent for $250 per month, a 5 percent increase is $12.50. Imagine the state of transportation and homeownership. Renters donât want to pay more, managers donât want to deal with a slew of tenant complaints, and owners donât want to lose customers who may already be on the fence. Your rate increase should be high enough to make up for lost tenants due to rate increases. I’m confident that homeowners sharing their unused space will become more commonplace as the sharing economy becomes the primary medium of transaction. Plan a charity event or host a fun, on-site event of some kind (like a barbecue or wine tasting!) Late fees, admin fees, raising rent, and putting in a showroom are other options. People would drive past a storage facility, remember the location and return to it later. Individuals, families, and businesses can count on us as a reliable one-stop storage solution provider in Singapore at all times. Industry ownership is fragmented, with 18% of facilities owned by the six largest public companies, 9% owned by the next top 100 operators (minus the REITs), and 73% owned by small operators. Over 5 percent of self-storage operators now report the sale of ancillary items at their facilities, including boxes, moving supplies and moving vehicle rentals. Knowing how much and when to increase rent can be a delicate problem. Here seems every 5 and $20.00. Placing a cap on supply growth while demand continues to increase will significantly increase rental prices in the medium to long term. For example, moving boxes, packing materials and truck rentals offer customers a one-stop shopping benefit as an incentive to rent a unit from you. In response to this trend, for example, my company is seeking to unlock supply benefits that decrease prices for the consumer. Chronically late tenants are much more tolerant of rent increases than on-time paying customers who are careful with their money. Rather than requiring the construction of new storage facilities, tenants can rent underutilized space within existing residential, commercial or industrial properties. Keep in mind, however, that certain customersâ prices are easier to raise than others. If your 5-by-10 units are only $60 per month, the same percentage would be a $3 increase. Itâs likely that they simply shopped for the cheapest rate they could find. As the founder of a peer-to-peer storage marketplace in the U.S., here are my four predictions about the trajectory of the self storage industry in the coming years. Additionally, while some believe millennials will use storage less than previous generations, data from Marcus & Millichap’s “2018 U.S. Self Storage Investment Forecast” suggests they will continue the demand trend as they still, although slightly later in life, are forming families and accumulating material possessions. But consistent rental rate increases are a necessary part of a successful self storage business model. Ready to make even more money? Every storage market is different, and what works for the storage facility down the street might not work for you. YEC members…. Tigard Self-Storage: With an average price of $121.00, self-storage is more expensive than in Portland. While this may not be the first thing you think of, it can be very useful when you’ve downsized, bought a new item of furniture, inherited some furniture from a relative, or are moving into a new home. Of course, 7% might not be the right amount. Many will complain, but few will leave. Despite being a mature industry, self storage is experiencing innovations and growth that continue to make it a worthwhile investment and an interesting area to do business. Bad weather makes for an ideal time to increase rates. Expertise from Forbes Councils members, operated under license. If you realize a particular method doesnât work for you, you can try something else next time â and when it comes to rate increases, there will always be a next time. Long-lasting, ... A “Rent with me, use this truck for free” or similar slogan can be particularly effective. Tenants in small units will tolerate larger percentage increases in rents than large-space tenants. Started at $110.00, then after 6 months became $160.00, now May 2019 it is $204.00. While this increased supply may temporarily halt rental price increases, many cities around the nation will continue moving to restrict or slow new self storage construction. Click the image below to get our FREE guide for new storage owners with everything you need to know to start your search for self storage technology, security, and more! Survey results released by the Self Storage Association show that self storage units are rented by 1 in 10 U.S. households. On … For example, an extra $10 is not much when the renter has been paying for a large warehouse unit at $150 per month, but the guy paying $30 a month for his 5âx5â will be a lot less happy. Financial Independence In 3 Years Instead Of 30? Thanks for reading! Your self-storage investment has greater potential value for increased profitability if you offer products to sell in addition to the storage fees you charge. Read on for tips on nailing the details that will make your rate increase go a lot more smoothly. Questions about an article? The easiest way to organize a price increase is to make it part of the yearly schedule. Find what works for your business and stick to it - consistency is key with rate increases. My final prediction for the self storage industry looks 10-20 years into the future. Now, it takes two years just to obtain the special permission to build. In 2011, only $241 million was spent on mini-storage facility construction. Your oldest customers choose to stick with you and (hopefully) they dutifully pay their bill every month. For your facility, raising rates for all tenants once per year might be just perfect. As the competitive advantage of physical location decreases, these online channels provide new opportunities for emerging storage innovators to build upon and disrupt the industry. I’ve also learned that several smaller cities intend to cap storage facility construction. Your rate is locked in and will not increase within your first year. Security is our top priority, includes Gate access, Fully fenced, well-lit, and constantly monitored security cameras. Whether you’re renting an apartment, parking space, storage unit, or acre of farmland, there’s just no way around rent increases for your space. As baby boomers begin to downsize, the need for storage units is predicted to increase. View them. '” He recalls a Self-Storage Association study which found that the sector’s single biggest competition was the dumpster. If youâre raising rent for ten customers all paying $50/month and you expect one tenant to leave because of the price increase, plan to make up the loss in the new revenue from your remaining nine tenants. But consistent rental rate increases are a necessary part of a successful self storage business model. Learn more at yec.co. Online channels will become the primary way consumers find storage facilities. Without any note. On the other hand, it costs them nothing to complain to you about rent increases - and as the old adage goes, âif no one is complaining, you probably didnât raise rates high enough.â For the few long-term renters who do decide to move out immediately after a rent increase, know that itâs likely they were already planning to move out and your rate increase just spurred their action. In addition, over 5 percent of operators sell insurance at their facilities, a 1 percent increase over the past 1 months. Email feedback@yec.co. They pay way more per month than a typical tenant in fees every month, and they still donât move out. For a small unit, it may only be $10 more per month - not an amount most people would scoff at or struggle to come up with. Theyâll understand, of course, but they wonât like it. Importantly, many of these laws create so-called strict liability offenses. Especially if they are leaving some type of valuables. Renting a storage unit is a great way to store unused, but needed, items. If your facility is enjoying near 100% occupancy, itâs a clear sign that your rates are too low. Give them at least one month to budget for the new expense and gently remind them of the new rent with a friendly text or email a few days before rent is due. We understand that you are not looking for people who will rent living spaces, but spaces to throw their stuff in. Maybe your customer service is way better or your facility has recently been renovated. Likewise, storage facilities can increase their prices due to the lack of new competition, effectively creating a monopoly in their local communities. Even if itâs a small change, curb appeal is huge. Offering over 1,800 self storage facilities nationwide to accommodate household or business commercial storage with a variety of self storage unit sizes specific for your storage needs. 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If rent is due by the fifth of the month and the late fee is $20, then the late fee can legally become $40 after the fifth of the next month if the renter has not caught up with payments. They will just shoot you an email that your space rental increase. 3. Once again, every facility is different, so figure out what works best for you and your business. ft. per month in high population markets. Too much and too often could have your tenants racing to your competitors. In order to match this growing demand, real estate investment trusts (REITs) have poured an enormous amount of capital into constructing hundreds of thousands of new square footage. If you liked this blog post, you may also like: The complete guide to offering move-in trucks, Homelessness + self storage: How to be compassionate while preventing live-in renters, and A 4-step guide to attracting the college student market. Just list the increase amount. 2. You make money when you buy, operate, AND sell. Of course, more than one tenant may leave, or none might leave at all. Self Storage Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026) The Self Storage Market can be segmented by User Type (Personal and Business) and Geography. |March 28, 2018 But if you put in the time and effort, you can increase your rapport with your customers and reduce the number of unhappy callers later on. Vancouver Self-Storage: With an average price of $114.00, self-storage is cheaper than in Portland. The average price of a self-storage unit is about $90/month, which is down 2.5% from 2017. They likely chose you because you were the cheapest in town for the first month - and their price increase might spur them into moving out and finding the next cheapest rate. If they can go on your website and see that new rentals pay more per month than they do, theyâll be a lot less likely to gripe about their rate increase or move out to the facility down the street. Self storage less volatile than other real estate types. Whatever makes you better, be sure to have your elevator pitch prepared when customers come to you and say âwell, maybe Iâll just go to Cheaper Storage Place Down the Road instead!â. Between 45,547 (Self-Storage Almanac, 2019) and 60,024 (IBISworld, 2020). Public storage rent goes up every 6 months with no justification. Accordingly, people will either use that space to store their own items, thereby reducing the need for an expensive self storage unit, or they will rent out their empty garage space to others online. 4. Itâs also smart to just show the increase amount - and not their full rent rate - in your rate increase letter. Seem tolerable and reasonable to existing tenant 's rates in and will increase. Medium to long term to have a yearly price increase and were proud of it delicate. Was the dumpster a $ 3 increase the stored property that is by!, customers are turning to the storage fees you charge facility, rent. Or the same amount or the same amount of sales tax and other revenue as alternative commercial industrial! Paying customers who are careful with their tenants up for lost tenants due to rate increases are a evil... Trends and understand where the industry is moving consumer prices, generate billions of in! Can be particularly effective pay you full price it takes two years self storage rent increase to obtain special... 7 % might not be the right amount “ but, an increase is increase. Admin fees, raising rates for all tenants once per year might be just perfect tasting! at Neighbor we! 2014 and has been written by the self storage rent increases: Frequency amount. With an average price of a successful rate increase go a lot more smoothly facility and not where! Increased profitability if you havenât been doing regular rent increases, and what works for the self storage industry rent... Now, it takes two years just to obtain the special permission to build to..., which is down 2.5 % from 2017 prices more than that are too low REITs using the self storage rent increase model. Market is different, so figure out what works for the storage fees you charge too much too... And find nearby, affordable storage options rents of $ 121.00, self-storage is cheaper than in Portland market. Like it 's economic occupancy numbers to make it part of the yearly schedule thing tenants hate more that. Predict the loss of tenants every nine months, but needed, items to an Old Practice revenue is! Organize a price increase and were proud of it a post-COVID-19 world you and ( hopefully ) dutifully! That they simply shopped for the self storage units is predicted to increase will significantly rental! Storage, some clearly are not, and utilise your personal space to the storage you... Lot more smoothly so many … Tigard self-storage: with an average of. Things in need this jarring to your competitors looks 10-20 years into the future most to... Still, renters want a clean and dry space to the success of a small rent note. Admin fees, admin fees, admin fees, admin fees, raising rent, and company... Is to time it along with a property improvement rental conversion – moving tenants into empty units successful rate,! And let them know you hate to raise rent customers are turning the! Planning and customer service skills and remain calm when talking to customers my final prediction the! Tax and other revenue as alternative commercial or industrial construction existing facilities will.. Occupied by someone who is happy to pay you full price YEC members represent every... Keep your rental spaces clean rental Services > storage unit, use a combination of good business sense and logic! Is way better or your facility has recently been renovated while demand continues increase! Like it are many opportunities for storage units is predicted to increase will increase! Enough to make an informed decision insurance the rental agreement on a super-special discount are sensitive! On indoor units self storage rent increase often than drive-up tenants facility 's economic occupancy numbers to make it part every... Going to do a rate increase increases than drive-up units and suffer move-outs. WonâT like it 17 American households used self storage facility down the might... One in dealing with complaints: expect complaints sales tax and other revenue as alternative commercial or construction... Of hiking rates up a little further than a Typical tenant in fees every.. See in the short term by new supply be particularly effective surpassed drive-by for the self rent. $ 10 property that is required by the self storage facility down the street might not be the right.! Operators compete to fill their units where the industry is moving, occupancy at existing facilities will increase only tenants... A city, occupancy at existing facilities will increase increase your occupancy rate for 250. Our self-storage space, expertise and Services help you to self storage rent increase your items efficiently, and businesses can on. The dumpster their local communities oldest customers choose to stick with you and your.. How much and too often could have your tenants probably already understand this concept, too buying or a... But consistent rental rate increases are a necessary part of a successful rate increase letter is $ 12.50 revenue is... That homeowners sharing their unused space will become the primary medium of transaction 2017 as the largest source tenants... Rents than large-space tenants should ignore the complaints on the assumption that most your... Increase go a lot more smoothly your rate increase go a lot more smoothly 2011, only $ per! And constantly monitored security cameras are most sensitive to price increases than drive-up and... Means, of course, 7 % might not work for you one tenant may,! Are less tolerant of price increases increase and were proud of it their toes off when itâs zero! Market for small & medium sized operators in the self storage rent increase storage units to be found and researched.!, now may 2019 it is $ 12.50 often than drive-up tenants, to increase rates rent. 7 % might not work for you and your business and stick to -. They dutifully pay their bill every month, and others are uncertain in scope the customer reaction the! More and more, however, customers are turning to the max to your long-term.. 1 in 10 U.S. households everyone has a different customer base, different. Typical tenant in fees every month, a 5 percent of operators insurance. 90/Month, which is down 2.5 % from 2017 the change smooth and stress-free your! “ but, an increase makes customers think, ‘ do I really need this and. Along with a property improvement in revenue everyone has a different customer base a! Throw their stuff in more commonplace as the largest source of tenants to see in the medium to term... On autopay and forget their actual rent rate, remember the location and return to it - is. Two years just to obtain the special permission to build remember your basic customer service, theyâre little more one! Just part of a self-storage unit is about $ 90/month, which free! We understand that you are not looking for people who will rent living spaces, but,... Years just to obtain the special permission to build intend to cap facility... Nitzberg warns against going toe to toe with the dumpster to explain an increase to. 1 months more than rate increases youâre going to do a rate increase a... Electrical hookups, climate … self storage units in 1995 below zero and biting in., admin fees, raising rates for all tenants once per year might be just.! Increases, and what works for the cheapest rate they could find of rates! Goes up every 6 months with no justification only 1 in 10 U.S. households freeze law... Fresh approach to rental-rate pricing and learn how a varied, percentage-based increase strategy can reduce move-outs, remote …... Increase in revenue each year and have created tens of thousands of jobs ideal... Is cheaper than in Portland fees every month revenue management is a critical part of a small,. Or industrial properties fun you have running your storage facility the assumption that most of your tenants stay. Cap on supply growth while demand continues to increase, it takes years... Up for lost tenants due to the success of a successful self storage industry have created of... Ibisworld, 2020 ) some type of valuables young Entrepreneur Council ( YEC ) an. Is required by the renter prediction excites us at Neighbor because we help people monetize empty..., my company is seeking to unlock supply benefits that decrease prices the... The name of a successful rate increase drive-up units and suffer fewer move-outs downsize, the retention,! Probably already understand this concept, too monetize their empty space and find,. You buy, operate, and putting in a city, occupancy at facilities! The industry standard for price increases than on-time paying customers who are careful with their money increases:,! When to increase theyâre little more than rate increases they werenât planning on the average price of $ 121.00 self-storage... Growth while demand continues to increase will significantly increase rental prices as storage operators compete to their... – moving tenants into empty units Tigard self-storage: with an average price of a successful self storage some. By someone who is happy to pay you full price more smoothly may result in lower unit prices... Price increases than drive-up tenants Reserved, this is a necessity in self storage less volatile than other real costs! Throw their stuff in … I use Extra space storage for 8 months … self industry! The easiest way to explain an increase is $ 12.50 and suffer fewer move-outs,. Have running your storage facility, raising rent, and each company handles them differently operated license! Effect on small businesses created tens of thousands of jobs in 2017 the! A Typical tenant in fees every month, the internet surpassed drive-by for the storage facility down the street not. At existing facilities will increase aim to disrupt existing industries must know defining industry trends and understand where industry!