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I haven't raised my street rates for many years.

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  • curlymom234
    replied
    That’s fantastic. We did a rate increase for current tenants last winter. Now everyone is paying street rates..

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  • Storman
    replied
    Originally posted by stinsont View Post
    That sounds great. Different business philosophies - neither is wrong. Actually the reason I purchased my properties is because they hadn't increased their rates in years. Great opportunity to build the business and grow
    That's the holy grail. Pay for an underperforming property and dig in!

    Leave a comment:


  • Guest
    replied
    Man, I love raising rates on trouble makers. I giggle all day when I do that.

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  • stinsont
    replied
    That sounds great. Different business philosophies - neither is wrong. Actually the reason I purchased my properties is because they hadn't increased their rates in years. Great opportunity to build the business and grow

    Leave a comment:


  • Storman
    replied
    I put a value on stability. I don't have the turnover that many of the other facilities around me do. My average rental period is nearly 5 years. I have 65 five star yelp reviews, and am the first results in almost every online search for my area and I don't pay a single penny in advertising costs. Not a penny.

    I could be more aggressive on rates, likely cause more turnover, which would result in more empty units and probably require me to spend on advertising to get back up to the occupancy percentage I like. But, to the casual observer, my gross income would be higher, and that's all they look at.

    Instead, I've got a bunch of people that know they can't do better than the service, prices, security and rate stability than what I offer them. They tell their friends, refer their family and the online reviews are stellar. In the meantime, I've got a facility almost completely full of people that appreciate me and my philosophy.

    You can bet that before I sell this place, I'll be jacking up rates and pissing people off left and right!

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  • stinsont
    replied
    If you never raise your rates but are fully occupied then how do you re-coup your rising expenses year over year? Taxes go up, utilities are always increasing, maintenance costs etc...if you're not raising your rates to keep up with this then IMO you are devaluing your business. Literally your business is worth less since EBITA is going in the wrong direction.

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  • Mistore
    replied
    I haven't raised rates on my (good) customers, probably since they moved in. Between tripling the size of the facility in the past four years, turnover, and selective "bumping" rates on headache customers, the difference between my actual $/RSF and my potential $/RSF is pretty minimal.

    I am just finishing up on my final phase build out, once that is done and occupied up, I'll probably circle back around and focus on getting the minority of customers back up to current street rate.

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  • Guest
    replied
    I have done a rent increase about every 2 years and am still at 96% to 98% full. The facilities in the area are either a little lower than me or a little higher. At my facility it is more about location than anything else.

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  • RandyL
    replied
    My street rates have increased significantly over the last 12 months. This coincides with other changes I have made which has significantly increased my demand.

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  • Storman
    started a topic I haven't raised my street rates for many years.

    I haven't raised my street rates for many years.

    I luckily increased existing customer rates to just a few bucks below the old street rates last March, just before the pandemic shut things down. I love those increases, the push of a button and the monthly income grows handsomely.

    I went online to see the rates my competitors are charging, and was shocked how much they had increased their rates. I bumped up between $15 and $20 on every unit, applicable only to units that are now vacant or become vacant. I'm at 97% occupancy, so I won't see a big increase in revenue, but I'm interested to see if I'm still able to rent units as easily I as I have been.

    I'm committed to getting some of that stimulus money one way or another....

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