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Raising rates what should our turnover be?

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  • Raising rates what should our turnover be?

    Hey yall,

    When you raise your rates what is your expected turnover rate?

  • #2
    Not very much usually. I would say maybe 1-3% depending on lots of factors.

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    • #3
      When I first took over here 7+ years ago, I started the "no crediting late fees" policy and I lost approximately 25 tenants that were used to getting late fee credits all the time. I also raised rates for everyone and lost probably 10 tenants that told me they were leaving because of that. I then started being picky about who I rented to and being completely up front, full disclosure, when renting units about policies. Slowly but surely I got the right tenants in here and now when we do a rate increase, I may have 1-2 tenants that complain but may stay or leave but if they do leave it is not right away and when they leave they don't tell me they are leaving because of the rent increase. Having the best security in town, the cleanest facility in town and being in an upscale neighborhood helps justify any increases we do. Once we do a facility wide increase a year or so goes by and then if we want to increase we just do it for new rentals.
      "Never let the inmates run the asylum!"

      "Honk if you love Jesus, text if you want to meet him"

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      • #4
        Only a few call to complain. A few years back I sent RR's to over 275 tenants. Only one complained. He ended up staying. A few may have moved out over the next few months but did not mention why.
        Joe Krezdorn
        DAK Self Storage
        Leesport, PA 19533
        www.dakselfstorage.com

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        • #5
          I have a facility with over 1000 units. When we do site wide increases, usually 1-5 tenants move out and its usually the smaller units.

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          • #6
            We increased rents 9% (which were like 30-40% below market) for 60 units and noone left for that reason as far as we know. We will probably just go for it for the rest of the facility.

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            • #7
              The industry usually says 3% or less will move out due to rate changes. This varies based on: Frequency of rates, % of rate change and your market in general.
              I manage in 3 very unique and separate markets. Some I can do a rate change every 9 months at 9.5% others it's every 13 months at 8%. It's all very market driven. The consistent thing here is that over the following 3 months after a rent change less then 3% of my tenants move out that got rate changes. Most that are going to move out will move out BEFORE the rate change goes into effect.
              Chasing Perfection to catch Excellence

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              • #8
                We raised rents 10% for 200ish tenants out of 350 and so far we have had a handful of people acknowledge the rent increase, but no complaints and so far we've only had a few people leave but not sure that was due to rent increase. That said, we are way below market and we emphasized that to our customers.

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                • #9
                  I read somewhere, "If you don't get people complaining you didn't raise it high enough.". The cost to call and complain is pretty small when you compare it to the cost of moving everything. If you have 10 calls and complains you might have 1 move. The best time to raise rent is when it is more inhospitable to move like in winter.

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