Rate Changes

[MyStorageOps]

I manage 8 different facilities across NC. A few of us just got to talking about what other operators are doing when it comes to rate increases/changes at their stores. My stores depending on market do as little as a 7% increase annually up to 9.5% every 10 months. What do you folks do?

[AngelaESSTX]

We haven't done a rate increase since early 2017. When we do raise them, it's just by a few dollars to bring us up to current street rates.

[allsecure]

We usually raise the rent about every 4 years.

[Storman]

I raise street rates based on the competition, not more than once a year. After 2 raises of street rates, I generally then go back and raise current tenants to just under the current street rate. I guarantee customer rates won't change for a least a year, and usually it takes 3-4 for a long term customer to get a rate increase. All the while though, new move-ins are paying more.

I can't tell you how many refugees I have here from other facilities that got hopping mad about their rate increases every 90-120 days. VERY mad, that practice has pushed more tenants to me than I can count.

[twotoejoe]

I haven't had an increase in about 6 years, but I'm in line with all my competition. I was planning one for June 1st but decided it wasn't a good idea because of COVID. I'll probably raise them with 3 months of when we get a vaccine AND it seems to be effective. About 6%

[MamaDuke]

I haven't done any since March. But normally, I do 8% annually. And I don't lose customers over it.

I have started scheduling them to take effect after January 1st, but I've set it for 18 months instead of 12 for the time being, and I reduced it to 6%.

[SimplySpace]

We raise tenant rates 3-7% every year depending on how far off our standard rates they are. We are really aggressive with our push rates too so it allows for a lot of flexibility. Some months we might be $20 more than our closest competitor and not losing business over it.

[pacnwstorage]

Popular size units get rent increase once a year. We have never done a blanket increase on all units.

[Grizz]

We haven't had a rate increase in at least 10 years, the owner fears too many people will move out. That being said, all the other facilities in the area are pretty much at the same rates as us. They seem to believe that success is calculated using occupancy numbers vs revenue numbers

[Storman]

We haven't had a rate increase in at least 10 years, the owner fears too many people will move out. That being said, all the other facilities in the area are pretty much at the same rates as us. They seem to believe that success is calculated using occupancy numbers vs revenue numbers

Man, that's just tragic. At the very least rates should increase with the cost of living, otherwise they're losing money every single year. Inflation since 2010 is almost 20%.

[MyStorageOps]

Storman I couldn't agree more and that's just inflation. What about the increase in doing business over these same 10 years. Thats likely 12-15%.