Spring Rate Increases

[Amy_ISS]

It's a hot topic right now as operators continue to enjoy high occupancies. Have you raised your rates for existing or new customers in the past 60 days?

[lady5563]

We are on a 9 month rental increase.

[T_Champeau]

We do rate increases yearly and just raised rates on our 10x30s for new customers. In 2 years they've gone from $375 to over $500!

[Storman]

I just sent out ~325 rate increases to existing customers, which will take effect on June 1. I increased my street rates about 6 months ago and haven't had any slowdown in rentals. I brought up the existing customers to just under those street rates and made sure that they know as a loyal tenant they'll always pay less than street rates. I offer a 12 month rate guarantee, so over the next months I'll be raising rates on those that hadn't reached their 12 month already.

I've only received 2 reply emails to the rate increase letter, both of them thanking me!

I think it's a good idea to get rate increases out there now while everybody is talking about how prices are going up, I think people seem to *understand* why you have to increase the rate. If we fall into a recession soon, they will probably not be nearly as understanding.....

One of the joys of management is setting up the rate changes in the software, crafting the explanation letter, and pushing SEND. Ba da bing, ba da boom. $8500 monthly revenue increase.

[SBAZ]

I just sent out ~325 rate increases to existing customers, which will take effect on June 1. I increased my street rates about 6 months ago and haven't had any slowdown in rentals. I brought up the existing customers to just under those street rates and made sure that they know as a loyal tenant they'll always pay less than street rates. I offer a 12 month rate guarantee, so over the next months I'll be raising rates on those that hadn't reached their 12 month already.

I've only received 2 reply emails to the rate increase letter, both of them thanking me!

I think it's a good idea to get rate increases out there now while everybody is talking about how prices are going up, I think people seem to *understand* why you have to increase the rate. If we fall into a recession soon, they will probably not be nearly as understanding.....

One of the joys of management is setting up the rate changes in the software, crafting the explanation letter, and pushing SEND. Ba da bing, ba da boom. $8500 monthly revenue increase.

I LOVE it!!!!

[AngelaESSTX]

Until recently, we hadn't done a rate increase since Spring 2017. 2 months ago we raised street rates, April 1st we raised half of our tenant rates that have been here more than 12 months, and in June, the other half of tenants here 12 months or longer will be raised (I mailed out a total of abt 450 letters). We only did a 5% increase so some of our long time tenants aren't nearly at street rates, but I have had 0 complaints about the increases. We are still at about 98% full! We have entered busy season and anticipate the turn-over needed!

[Amy_ISS]

Is anyone getting pushback on these increases?

[MamaDuke]

Is anyone getting pushback on these increases?

I have 1 long-term customer that has complained for 2 months. He's still $10 under the street rate. And I'd love to have him leave because I could easily bump it to $30 over street rate and rent it the same day!

Otherwise, no complaints. No move outs.

[SBAZ]

No pushback for me.

[Storman]

Only 2 emails thanking me. So far no pushback, and no increase in the normal vacate notices.

[RHS_TX]

No pushback for me, either.

A tenant last week emailed and said, "Good to see you're running this place like an actual business (the former owner sure didn't) let me know if you ever want to sell."

Also, I'm floored by the number of owners in my market that aren't raising rates.

If not now, when?

[Bubba]

I've always wondered why other places don't raise rents. I bet these mom and pop operators leave hundreds of millions of dollars on the table every year because they are afraid to raise rent on someone they know.

[RHS_TX]

I've always wondered why other places don't raise rents. I bet these mom and pop operators leave hundreds of millions of dollars on the table every year because they are afraid to raise rent on someone they know.

And they're doors are rusty, roofs leak and drive aisles are cracked and full of weeds. All of which could be addressed with regular rate increases.

[lady5563]

I get the normal complaints, but those are from the longest staying tenants!

I remind them that we didn't raise during the height of the pandemic and raises the rates are LIFE.

They just like to hear themselves complain and they know that I do not listen! HA HA HA

of course I do I just nod and smile!
Nod and smile!

[Storman]

I get the normal complaints, but those are from the longest staying tenants!

When I received a couple of complaints a few increases ago, I quietly listened to their rant and then said "I can understand where you're coming from, money is tight for many. Would you like me to enter a vacate notice on your account for the end of the month? I'll be sorry to see you go, but I have a waiting list and that size unit has been renting for $10 more than you'll pay if you decide to stay with us"

Crickets. They know they're getting the best value for their money.