Thread: Raise Rental Rates

I was wanting to see how often you raise rent on long term customers.

Thanks.
Jeff

I was going to vote on your poll, but the category I needed was not there. At my old facility, after working there 2 1/2 yrs we raised the rent for the very 1st time for tenants that had been there 3-5 yrs & had never had an increase. We didn't raise to "street rate" we came up about $10 per month higher on average for 50 customers. We lost one customer over the increase, had a few phone calls. The letter sent out to customers explained what people were paying for the same size unit in today's rate terms...and that we were not going to increase to that amount....hope that helps!

Thanks Pat !

I answered 1 year, but I'm not sure. I am to understand that in 2010 they had 2 rounds of rate increases, as stated by the ownership "that was a lot more aggressive than we've been before" and overall tone suggests they won't do that again. But approximately once a year, possibly 15 months, seems to be about right.

Usually it is annual however, sometimes we hold off depending on the rentals coming in at the current rate, number of move outs etc. We try hard to watch the market close and to remain as fair to the customer and our bottom line as possible. I have to agree that we do show our appreciation to the long term customer by not taking them up as high as the current rent rate may be and explaining that their valued business is something we have taken seriously and very much appreciate. It helps them to understand and they seem to respond well.

Wow, we've been open since late 2003 and have NEVER raised our rates. We are within $1.00 - $2.00 of all of the other facilities in Oakdale--a little higher than some and a bit lower than others. We've talked about raising rates, but in this economy it just doesn't seem smart for us.??

Thank You all ! I have some customers in here without a price increase in three years, They are about $10 to $15 below our rental prices for that size unit now. I guess will do a small price increase for them. Thanks for your help again !
Jeff

I do it once a year - IF I am in need of that size unit. If I have several available in a particular size, then no increase. It is completely based on supply and demand. If I need the size, either the current customer will pay more, or they will move out so I can rent it to a new customer who will pay more.