No announcement yet.

First rate increase

  • Filter
  • Time
  • Show
Clear All
new posts

  • First rate increase

    We’ve been open almost 3 yrs and we just did our 1st rate increase! We only raised the rate to people that have been there right at a year or have been late paying every month.
    so we get a message today and the guys says instead of a $10 increase how about a $10 decrease!!!!
    I really want to send something back like we’ll how about if you’re employers instead of giving you a $2 raise, they lower it $2, would that work for you?
    but we’re not even going to reply back to him.

  • #2
    You're always going to have a couple complaints in one form or another when you raise rates. That's all part of the business. I just ignore it as I know they're blowing off steam. And if they decide to move out, that's okay too, because I'll rent it to someone new at the higher rate!


    • #3
      I would tell them that my taxes, insurance, and everything else cost more every year. Not to mention this year if you plan to add on, the building is about double the cost of a year ago. The rates need to go up to remain viable, especially if you plan to grow the business.


      • #4
        Or say "bite me." Probably not a good idea. We have had one price increase in ten years. Mamaduke is right, you will always get a few complainers.


        • #5
          Just reply back that it was not open for discussion OR debate!

          Or write back and say, Oh, I am sorry, YOUR rent did not go up by $10. That was a typo, it went up by $100

          Don't put off until tomorrow, what you can do today.


          • #6
            Originally posted by MamaDuke View Post
            And if they decide to move out, that's okay too, because I'll rent it to someone new at the higher rate!
            Precisely. This is definitely a renter's market right now for self-storage! It's unbelievable how many people just waltz in here with a loaded UHaul with no reservation expecting us to have available space for them, and they don't believe me when I tell them we literally have no units to rent (or if we have 1 or 2, that they're not the size they wanted). If there's ever a time to raise rent, it's now.

            We guarantee rates for 1 year, and most of our rent-raises have gone more than that since their previous rate/raise, so I always reply to complainers with those facts. And if they still don't see the light and they move out anyway, then that's just more money in our pocket like you said - because in this market that vacant unit will be snatched up in a second at the full rate no questions asked.


            • #7
              You need to be raising the rent every 9 months. Lord only knows how many billions of dollars operators are leaving on the table by not doing so. As others have said, all of your other expenses go up each year. Nearly every market is on fire and has no available units. We raised our rent through the roof and had about 20 people move out over 2-3 weeks. We also received a few one-star reviews and people bashing us about it. It bothered me for a second but the rate increases look great in our bank account.


              • #8
                Over the last ten years, we have averaged about one increase per year of $5-10 per unit depending on the size of the unit. So this winter we raised existing tenants by $10. Nobody moved out. So we raised street rates by 10-50% and every unit that comes open is renting immediately. So a 10x20 in January was $79. Now its $119.

                The challenge now is to raise existing tenants again without upsetting all of them. Expect a few to leave and a few to complain. Track your competitors websites for pricing and availability so you know if the market is cooling off.

                Strike while the iron is hot. People know and understand that prices of everything are going up. Time to raise the rent!!


                Latest Topics