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  • Unit Pricing

    I posted a poll yesterday about rental pricing during the pandemic. I have another question: What method do you use to determine price increases?
    Amy Campbell
    Editor
    Inside Self-Storage
    [email protected]

    @AmyCampbell_ISS
    480.281.6091

  • #2
    I regularly check my competitions prices, but it ultimately comes down to occupancy.

    Comment


    • #3
      I use the guideline that was part of a big study a few years ago that said 9% every 9 months was a good rule of thumb. But I tweaked it a bit and do 8% annually and not on units with less than 80% occupancy for the size. Somewhere around 30% of our 1300 units are 5x6 and I always have a lot of those vacant, so I leave them alone since I don't want anyone to move out over an increase there! Pretty much 5x5 and 5x6 are the only sizes that don't get increases. And I'm thinking in October I'm going to start the increases again. In this 6 month stretch, I have nearly 250 rate increases that haven't been done! I'll do about 50/month until I catch up.
      MamaDuke

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      • #4
        It is directly related to the occupancy of any given size. My 10x20 drive up units are $170 but I have been renting them for $180 or more because it is hard to get an empty one and this neighborhood is the most desirable neighborhood in all of Eugene, Or.
        "Never let the inmates run the asylum!"

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        • #5
          We raise rents on a 9 month basis.
          Don't put off until tomorrow, what you can do today.

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          • #6
            We have not raised any rents for current customers in 2 years (due to expansion), but have raised street rates on a few sizes. Since covid, we have not changed anything (up or down) and are full. We will be doing increases across the board for everyone plus street rates in the spring if we are still full. In 8 years, we have never lowered rates so we price accordingly. We price slightly above our competitors, but have a better location and a clean/safe facility so we can get away with it. It drives them nuts lol

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            • #7
              We put a hold on ours through the beginning of Covid but then in the past month we have had a lot of our rents go up as we are quite full and the only property within 6 miles for many brand new housing communities surrounding me. There will be another facility 2.9 miles away from my present one that I got to come on board with my management company and the investors that own my present property are buying it when it is finished so it will be a sister property with the same name and a location separator.
              Throw kindness around like Confetti - But don't get glitter in your eyes!

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              • #8
                I've been here for 4 years and the owners/other manager insist on lowering prices to get occupancy up. they are losing $1,000's per month and don't listen to my 29 years experience in owning and managing retail and service businesses.

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                • #9
                  Grizz thats whacky! I am beginning to think the majority of Owners have no clue but think they do.

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                  • #10
                    Originally posted by Middlebury.storage View Post
                    Grizz thats whacky! I am beginning to think the majority of Owners have no clue but think they do.
                    You're right, I just wish I could find owners as good as PAC's but I wont hold my breath. I have an exit plan, just need a partner ($$$) to get the ball rolling

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                    • #11
                      LOL! Wait for me to kick the bucket and take this place over.
                      "Never let the inmates run the asylum!"

                      Comment


                      • #12
                        Originally posted by pacnwstorage View Post
                        LOL! Wait for me to kick the bucket and take this place over.
                        Uhhh, very slim chance I'll be moving out of AK but thanks for the offer and dont plan on kicking any buckets before the election, we're gonna need you and all the help we can get

                        Comment


                        • #13
                          I will be in line to vote, no problem and will be willing to pick up anyone and deliver at the polling station. The thing is the state of Oregon does mail in voting but you don't have to take to a post office where the chance is 50/50 of getting lost. There are drop boxes just for ballots.
                          "Never let the inmates run the asylum!"

                          Comment


                          • #14
                            I agree "It's all about Occupancy". We haven't had any rate increases this year due to an expansion, but did the year before. Other area facilities, normally follow our lead when it comes to rates. I've had people come in and say that (John Doe) down the street had their 10x10s $25 cheaper but never had any available. And I wanted to tell them that it didn't matter how much their rates were then if they never had any available. Supply and Demand. If you're always full it's time to raise your rates....OR build more! LOL

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