While this may not be the first thing you think of, it can be very useful when youve downsized, bought a new item of furniture, inherited some furniture from a relative, or are moving into a new home. ' He recalls a Self-Storage Association study which found that the sectors single biggest competition was the dumpster. Self storage less volatile than other real estate types. Dont remind them! Many will complain, but few will leave. It costs tenants a big chunk of time and money to move out - theyll need to get a moving truck or friend with a pickup, and take time out of their busy schedule to lift heavy boxes and sort through stuff before trashing or selling. Self-storage facilities rent space on a short-term basis (often month-to-month, though options for longer-term leases are available) to individuals (usually storing household goods; nearly all jurisdictions prohibit the space from being used as a residence) or to businesses (usually storing excess inventory or archived records). A 5x5 foot storage unit Financial Independence In 3 Years Instead Of 30? If you liked this blog post, you may also like: The complete guide to offering move-in trucks, Homelessness + self storage: How to be compassionate while preventing live-in renters, and A 4-step guide to attracting the college student market. Storage Space for Rent Increasing real estate costs are just part of life. Importantly, many of these laws create so-called strict liability offenses. Energy costs increase. Minus first month promotions and such, you never want to ask current tenants to pay an increased rent rate without first adjusting your web rates to be the same price or more. The easiest way to explain an increase is to time it along with a property improvement. Marketing self-storage facilities have one primary goal, to increase self-storage rental conversion moving tenants into empty units. You may opt-out by. But if you put in the time and effort, you can increase your rapport with your customers and reduce the number of unhappy callers later on. Make sure managers know your competitors rates, how often they increase rent on average, when their last break-in was, and what makes your facility the better choice. Whether youre renting an apartment, parking space, storage unit, or acre of farmland, theres just no way around rent increases for your space. Much has been written by the self storage industry about rent increases, and each company handles them differently. Pointing out the ways in which the facility has improved during their tenure will give them tangible proof of the necessity of their rent hike. For your facility, raising rates for all tenants once per year might be just perfect. Just like their apartment rent increases from year to year or lease to lease, they likely expect their storage unit rental rate to increase, too. While that was likely only one small part of the various cost increases that led to your decision to increase rent prices, it is the easiest for the customer to accept. Up until now, supply has kept up with demand, with over 90% occupancy rates being typical since 2015, according to the 2019 Self Storage Almanac from Mini Storage Messenger. Without any note. Personal car ownership will likely become less and less popular, which will free up garage space. Use these 5 easy tips to rent more self storage units. In New York, for example, the city recently signed a zoning freeze into law. If your facility is enjoying near 100% occupancy, its a clear sign that your rates are too low. Long-lasting, A Rent with me, use this truck for free or similar slogan can be particularly effective. Always remember your basic customer service skills and remain calm when talking to customers. Dont forget about seasonal renters, either - if youve got a guy who stores his boat with you every winter, consider giving him a (slightly discounted) managed rate for his loyalty and willingness to come back to your facility year after year. Jana Haecherl Opinions expressed are those of the author. For my company, that industry is self storage, composed of small facility operators and a handful of big-name players that dominate the market. Tenants who came to you on a super-special discount are most sensitive to price increases. Your self-storage investment has greater potential value for increased profitability if you offer products to sell in addition to the storage fees you charge. Plus I remember in Ca, if you late with payment 10 or more days, they have rights to charge $10, each 10 days. 4. To put that in perspective, only 1 in 17 American households used self storage units in 1995. The decision cited a lack of space, displacement of businesses that produce high-quality jobs and a negative impact on the aesthetics of the city for the enactment of the law. But consistent rental rate increases are a necessary part of a successful self storage business model. If a current tenant goes to your website and sees that a new renter can pay less for the same size unit, theyll surely be upset - and for good reason! Get a fresh approach to rental-rate pricing and learn how a varied, percentage-based increase strategy can reduce move-outs. Everyone has a different customer base, a different management style, and a different relationship with their tenants. Despite being a mature industry, self storage is experiencing innovations and growth that continue to make it a worthwhile investment and an interesting area to do business. Too much and too often could have your tenants racing to your competitors. 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