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You Shouldn't Raise Rent on Existing Customers!

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  • You Shouldn't Raise Rent on Existing Customers!

    So I just got a call from a customer who didn't open or read her rental rate increase notice we sent in September, about an increase for November 1st.

    I explained the date and time the notice was sent, and told her it indicated that she had not opened the notice.

    She then went on to tell me that she had a unit in Connecticut for 10 years, and they never once raised her rent. (I should of asked her the name of the facility to see if it is for sale)

    She said this is the second increase her unit has had in 2 years, and that we should be making our money from new customers, and not raising the rent on long term multi year customers.

    I really appreciated this piece of knowledge that she dropped on me, I bet it will help me be much more successful in the future.

    I went on to explain that we evaluate rent each year for all customers, and it had been 18 months since the last increase. I also explained that even after the increase her new rental rate was still $10 less than the current street rate. That we do value long term renters, which is why we gradually raise rents as opposed to large increases to make people match the going rates.

    Her response was well you can get your extra $10 a month, I am moving out next spring.

    This happens sometimes, but ultimately if she decides to move she will likely be paying more after she does so.

  • #2
    Yeah...I'm so bothered that I'll move out in 6 months!!!
    MamaDuke

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    • #3
      Honestly, I think you handled that very amicably. When Spring comes she'll probably just avoid eye contact, knowing that the time and effort going towards moving her stuff is not worth the small (if any) savings that she would get elsewhere.
      Kevin Kerr
      Storage Commander Cloud Software
      k[email protected]
      Toll Free: 877.672.6257
      Direct: 951.867.4732

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      • #4
        I think you handled this situation well. I like her response as well...she doesn't like it so she'll move out! Perfect! Beats complaining every month when it comes time to pay rent.

        My landlord has tenants that complain about rent increases every year. Obviously they didn't do one this year because of COVID-19. Granted these some people who complain whine about having to pay late fees. They don't think they should have to pay those if they've been living there 5 years or more.

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        • #5
          One word......Entitlement.......

          "I am giving you fair warning. I am going to stew about this for 6 months and then pay the fees to move my belongings and the new more expensive rent so that I can cut the nose off my face". " I sure showed you".
          "Never let the inmates run the asylum!"

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          • #6
            I would tell her , let me get you scheduled for move out right now for the spring. I have done this and they do not do it, mostly all talk. RandyL
            Last edited by MamaDuke; 6 November 2020, 08:57 PM.

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            • #7
              We get this all the time as well. Its always interesting to me that someone is willing to move all of their stuff to another facility where they would pay the same price, over a $10 increase.

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              • #8
                Originally posted by SimplySpace View Post
                We get this all the time as well. Its always interesting to me that someone is willing to move all of their stuff to another facility where they would pay the same price, over a $10 increase.
                You just can't fix stupid.
                "Never let the inmates run the asylum!"

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                • #9
                  I just raised rent on about half my existing customers (we hadn't raised rents in a few years) and surprisingly nobody has complained. I do have one customer being a jerk and moving out without notice, trying to avoid paying rent for this month. She even told me on the 6th that she wasn't moving out, found it empty today. She's not even one of the customers I gave a rental increase.

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                  • #10
                    She thought she was next or she is just one of the entitled masses.
                    "Never let the inmates run the asylum!"

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                    • #11
                      It's surprising that tenants don't believe you should raise rent rates but not surprised when other things like insurance, healthcare, electricity, price of groceries go up. My initial thought is "Would you be happy if you haven't had A RAISE in 3 years??" Of course prices go up, just like our costs go up.

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                      • #12
                        And yet, they would not think to question the cost of a $6 hamburger at BK. The cost for making that is close to $1.50, including employee wages and insurance but the eater does not care. Whatever you do, don't suggest that they stop smoking cigs or pot, stop drinking, stop gambling or use a less expensive cell and above all else, stop buying the overpriced crap at Starbucks.
                        "Never let the inmates run the asylum!"

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                        • #13
                          You handled that very well. I would have asked her which month & day she will be moving out since I will surely have someone who will want to rent it when it is vacant. Then when she doesn't move out I will remind her that someone off the street has a reservation to move in and if she wants to pay that rate she can stay but it is $50 more than you were paying. OK, so I wouldn't do that but I would like to!
                          The future depends on what you do in the present.

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                          • #14
                            The other day, out of the blue I received an email from a long standing, good paying tenant.
                            Her email was the following>>>>>>>>>>>>>>>>>> I want a lower rate. Thank you.

                            My response was>>>>> Excuse me? How may I help you?

                            She replied>>>>>>> I want a lower rate.

                            I reply>>>> I am sorry, we do not "lower" rates. You could get a lower rate by transferring to a smaller unit.
                            Currently you are paying $XYZ and the current street rate, which is MORE than you are paying now is $ABC
                            So you are currently getting a great rate on the size unit that you have.

                            She replies>>>>> Ok I’ll just empty out soon.
                            I figured you would want to keep my business.
                            No problem
                            Thank you

                            I reply>>>>>>> We are so sorry to hear that you wish to leave the property.

                            At this time we can not lower your rental rate.

                            You are currently being charged for your 5x10 inside unit $64.62 plus sales tax equals $68.90 a month.

                            The current street rate for that unit is $75. plus sales tax.

                            So there is the reason that the rate can not be lowered.

                            Thank you




                            She hasn't written me back!!
                            Don't put off until tomorrow, what you can do today.

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                            • #15
                              You have patience with this nonsense. You explained two times. That took about 2-3 times as long as I would have spent. But then again, I am an old codger.
                              "Never let the inmates run the asylum!"

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