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  1. #1
    Texanadian is offline Senior Member
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    Default Rate increases in this economic climate

    The big boss says, "Up rates 5%." I asked, "What about tenants with mulitple units?" I was told, "Even when gas prices were high last summer, you still drove didn't you? They still need storage." It was especially emphasized that people who's rates were below standard rate needed to be brought up to standard rate.

    So I went ahead and sent out over 100 rate increase letters today. Now I'm shaking in my boots that these folks are going to be leaving in droves. We've been lucky here in Houston that we haven't felt the economic woes like the rest of the country, but with the slow down in the energy sector, layoffs are coming fast and furious. Is anyone else raising rates right now?

  2. #2
    Lisa T's Avatar
    Lisa T is offline Senior Member
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    Default

    yup 5% here...April 1...we'll see how it goes

  3. #3
    Texanadian is offline Senior Member
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    Default

    Good luck to you Lisa--mine will hit on March 31st. I'm sure we'll be commiserating together by the end of April.

  4. #4
    Autodoc's Avatar
    Autodoc is offline Mod eMeritus
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    We raised our street rates last summer, but have not raised our4 existing tenants rates since 2006 and we wont till things get better!
    Wayne
    Jamestown, ND


    All arguments can be resolved ... with high explosives and Humor!!!

  5. #5
    Texanadian is offline Senior Member
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    I don't have a problem with jacking up street rates, but I'm sure not liking having to raise rates on long-term tenants. Especially ones with multiple units. Guess I'm getting soft in my old age.

  6. #6
    centexguyz is offline Senior Member
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    Feeling the same here - they haven't told us to raise any rates. Other than a test they perform - where they pick 5 customers and raise the rates on them and them alone. They call them the 'lucky 5' or something like that. But, they are sniffing about and I wouldn't be surprised.

    One of our bosses believes that if you are over 90% occupancy, you are not charging enough. We are hovering at around 93% or so.

    Troy
    just looking for our 'forever place' ..

    http://selfstoragemgrteam.webs.com/

  7. #7
    Texanadian is offline Senior Member
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    I have never heard of a test where they pick 5 tenants and raise the rates on just these few. What is the purpose of this test? If the tenants you raised the rates on don't come into the office "going postal" on you, everything is good??? Troy, you have some bizarre people for bosses!

  8. #8
    centexguyz is offline Senior Member
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    We hadn't either.

    The letters went out the last of last week - right before our auctions. We should be hearing something from them - the tenants - in the next day or so.

    Troy
    just looking for our 'forever place' ..

    http://selfstoragemgrteam.webs.com/

 

 
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