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  • Rate increase

    If I have 2 tenants paying the same rate for the same unit, one rented in 2009 and the other in 2017, is it fair to raise the one who's been here longer but not the other one? The current rate for a vacant unit of this same size is higher than what the 2017 tenant is paying, but I don't feel it's fair to raise the rate on some who have only been here a couple of years. I'm doing increases but keeping mainly to people who have not had one in more than 5 years (some have never), so many won't get one this go round. I am setting up my increases to be done at least every 2 years, so next year others will go up.
    Too many freaks, not enough circuses.

  • #2
    Don't look at it as a 'fair and not fair'. They both moved in at different times therefore they're paying different rates-period. Do your rent increases, raising the older one definitely. Then next year the newer one.
    Even duct-tape can't fix stupid. But it can muffle the noises.

    WA State

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    • #3
      What Kris said.
      "Never let the inmates run the asylum!"

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      • #4
        Originally posted by KrisinNC View Post
        Don't look at it as a 'fair and not fair'. They both moved in at different times therefore they're paying different rates-period. Do your rent increases, raising the older one definitely. Then next year the newer one.
        That's how I'm trying to look at it. I'm thinking of going with 10% on these folks, as many are well below what newer folks are paying.
        Too many freaks, not enough circuses.

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        • #5
          You probably should have done this a lot sooner, then they would not be so far apart. We look at ours every year where we never use to and try to bring those people closer to the street rate. No more than $10 at a time, most people that have been there for awhile will not move over $10 IMO
          Dave (Woodee) Scott

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          • #6
            Originally posted by Dave Scott View Post
            You probably should have done this a lot sooner, then they would not be so far apart. We look at ours every year where we never use to and try to bring those people closer to the street rate. No more than $10 at a time, most people that have been there for awhile will not move over $10 IMO
            Oh I know it should have been done long ago. I was going to do 10%, but $10 is better?? Say I have someone paying $55 on a $80 unit with no increase and here since 2002. $10 or 10%??
            Too many freaks, not enough circuses.

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            • #7
              Originally posted by DairyGirl View Post

              Oh I know it should have been done long ago. I was going to do 10%, but $10 is better?? Say I have someone paying $55 on a $80 unit with no increase and here since 2002. $10 or 10%??
              I would go with $10, but that is me. But do one of the two.
              Dave (Woodee) Scott

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              • #8
                Originally posted by DairyGirl View Post

                Oh I know it should have been done long ago. I was going to do 10%, but $10 is better?? Say I have someone paying $55 on a $80 unit with no increase and here since 2002. $10 or 10%??
                Depending on the demand I would go 15% or $15 in that example. Someone that has been in that unit that long will likely not move out. Or do a $10 and then $10 again in 6-9 months. We have several large units, 10x30 and 10x40, that people get in and stay there and there is always a waiting list. We did a rent increase in July and on the 10x30 went from $210 a month to $240 a month. On the 10x40 we went from $275 a month to $310. Not one person moved out.
                "Never let the inmates run the asylum!"

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                • #9
                  We do rent increases every year-We tell them due to the increasing cost of operations ( garbage, water, power, property taxes, etc..) we have to increase the rent in order to provide the level of service they come to expect. The way we figure it-if they haven't had an increase in atleast 6 months and they are paying below current rates they get an increase anywhere from $5 to $30 depending on the size unit they are in. A few folks complain but I'll meet them in the middle if its needed to keep them on as a tenant. The ones that worry me are the ones who call in saying I see online you guys are offering the same size unit I am in for $40 less a month than I have been paying, I want that price. Those are the ones where its harder to explain why you cant lower their rent. I just tell them during the slow season we lower the prices to get those empty units filled but they do get raised. Trying to explain supply and demand is tricky!
                  You Laugh, I laugh. You cry, I cry. You take my coffee...may God have mercy on your soul....

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                  • #10
                    What about tenants with multiple units? Raise them all at the same time, or spread them out a little?
                    Too many freaks, not enough circuses.

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                    • #11
                      Multiple units means they are used to paying multiple rents. If they are all due for an increase you should do it. depending on the quality of the tenant you may increase a smaller amount than normal but I would do all effected units that need the rent increase.
                      "Never let the inmates run the asylum!"

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                      • #12
                        Originally posted by wc1974 View Post
                        The ones that worry me are the ones who call in saying I see online you guys are offering the same size unit I am in for $40 less a month than I have been paying, I want that price. Those are the ones where its harder to explain why you cant lower their rent. I just tell them during the slow season we lower the prices to get those empty units filled but they do get raised. Trying to explain supply and demand is tricky!

                        This is what I say when this happens, please, by all means vacate your unit, please leave it broom swept, leave the gate/property area and feel free to come right back and I will then be able to move you in as a new tenant!!!

                        PS, well I only say this to people in a 10x10 and larger unit!
                        LOL
                        Don't put off until tomorrow, what you can do today.

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                        • #13
                          Originally posted by pacnwstorage View Post
                          Multiple units means they are used to paying multiple rents. If they are all due for an increase you should do it. depending on the quality of the tenant you may increase a smaller amount than normal but I would do all effected units that need the rent increase.
                          With one tenant in particular, I'm actually hoping an increase of any kind nudges him out the door. He's paying well below what others with same size units are paying, but I don't want to jump it up too high too soon and end up with late issues.
                          Too many freaks, not enough circuses.

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                          • #14
                            DG if you want him/her gone just increase the rent at the normal rate and see what happens. I would never let a "late issue" sway my opinion for rent increase. If I have a tenant that needs nudged out, I will shove them out.
                            "Never let the inmates run the asylum!"

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                            • #15
                              I can say that no matter what, rate increases rarely lead to move-outs. If you are listing units for $40 lower than the increased rent then you may be backing yourself into a corner. You don't want another empty unit that you then are getting less than what you were getting. This is one reason we keep rates constant. We don't lower them in the off season, we offer specials instead. Also, if you are doing any facility upgrades that is always good to throw in as a reason. To me that warrants the increase to anyone instead of saying it's increased costs when you are renting another unit for much lower. That's deceiving and I wouldn't want to mislead a customer in that way.

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