Updated 3/7/2020 This page contains statistics about the U.S. self-storage industry compiled by The SpareFoot Storage Beat. You never want to be 100 percent occupied because then you have nothing to sell. After following these two simple steps, you have the information necessary to negotiate with the property manager of your storage unit. Lines and paragraphs break automatically. M. Anne Ballard is president of training, marketing and developmental services for Universal Storage Group and the founder of Universal Management Co. She’s president of the Georgia Self Storage Association and has served on the national Self Storage Association’s board of directors. Now the rental rates are $95, $100 and $175. With the industry currently experiencing its highest occupancy in 17 years, most of us are aggressive with rent increases. Large operators have developed processes for defining their revenue-management programs. Consistent, well-defined actions are the key for successful rate improvements. For over 40 years, the Association has served as the official trade organization and voice of the U.S. and international self storage … Check out this list of the best places to raise kids based on quality of living, affordability, crime rates, and local schools. We can move you out of your storage unit and carefully haul your belongings to a Closetbox storage center. About one in 10 households rents a self-storage facility according to the latest survey by the Self Storage Association. All rights reserved. Self-storage … This has resulted in double-digit growth to our same-store sales and year-over-year improvements. 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You can also. Be sure you speak with the on-site property manager, not the self-storage company’s call center. Storage units can range from $60 to $225 per month, depending on the size, location and other features. The 10-by-10s are now only $5 more than the next smaller size and $75 less than the next larger size, so most customers will view those units as a bargain, and you’ll fill them faster. Unit size: Extra Space Storage offers unit sizes ranging from from 5 feet by 5 feet to 10 feet by 30 feet. Average costs and comments from CostHelper's team of professional journalists and community of users. https://www.insideselfstorage.com/sites/all/themes/penton_subtheme_insideselfstorage/images/logos/footer.png. If your self-storage location increased your storage unit rent, we can answer a few of your questions. Its managers do an incredible amount of marketing and hold onsite events to keep it that way. Any empty units I would raise to a competitive street rate now. Number 8860726. After just a few short months, they raised the rental rate approximately 20%. How to Hope for the Best and Clean for the Worst, Decluttering this Spring? 8 expert tips to make it smooth, Apartment checklist: 9 tips for your child’s first place. Informa Markets, a trading division of Informa PLC. This will just create stress and a lot of work. If your storage rent increased by a small amount in January, it was likely an across the board rent increase dictated by someone at headquarters of the big, publicly traded storage facility in order to improve their bottom line. ZIP codes, length of stay, household income, unit type and location, amount of current discount, and competitor-pricing comparisons are just a few of the influencers being used to dictate new rental rates for customers. If you see a size that rarely has any availability, you can be more aggressive on standard rates as well as those for existing tenants. This isn’t to say that the rate-management tools aren’t effective; using them is certainly more profitable than doing nothing or leaving it to chance. The Company's properties comprise approximately 1,010,000 units and over 585M square feet of rentable storage … Go through the report and find those getting discounts of more than 15 percent. Instead, stay on top of your rental rates for existing and new tenants and look for areas in which you can improve. When creating an official or organisation letter, discussion style as well as format is essential to … Then, call the storage facility that raised your storage rent and ask the property manager a few questions. She’s also participated in the planning, design and operation of numerous self-storage facilities. Leave the 10-by-10 price where it is, but raise pricing for the 5-by-10s to $95 and the 10-by-15s to $175. At day 210, start the increase process. You may also want to look into listing your brand on an affordable self storage … Then tell the property manager you will call back so that you have some time to run the numbers. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Tips for Packing Paper, Bubble Wrap, Packing Peanuts, Etc. The units with tenants need to be raised asap to a larger increase like the $26 with a reminder in the rent raise notice that the rate is still lower than any competitors rates and then start the rent raise … As of September 30, 2019, the Company owned and/or operated 1,797 self-storage … Self-Storage Technology and Modernization, The Storage Group Adds SureScan ID Verification to ClickandStor Self-Storage Rental Tool, NSAT Acquires 14-Property Self-Storage Portfolio From The Jenkins Organization, Building a Strong LinkedIn Profile: 7 Steps for Self-Storage Professionals, India Valet-Storage Operator SafeStorage to Expand Into 5 New Cities, Self Storage India Expands in National Capital Region, KO Enters North Dakota With Purchase of RH Rebel Storage, Former Owner Returns to E-Commerce, Texas Self Storage Association Announces Board Changes, Annual Shriners Hospital Donation, Self-Storage Real Estate Acquisitions and Sales: January 2021, Allowed HTML tags: . Self-Storage Financing for 2021: Options, Market Sentiment and More, NexPoint Launches Investment Platform to Finance, Develop Self-Storage Properties, Self-Storage Financing Through the SBA 504 Loan Program, It’s an Optimal Time to Secure Self-Storage Financing … Find Out Why. If you have data that you’d like to share or have a question about data on this page, please email editor@sparefoot.com. Also, it’s a less harsh way to say, “Your rent is going up by $30 a month.”. Registered in England and Wales. Also check your occupied-history report, which will show you the strength of occupancy by unit type over the past year. Lekeshia Lekeshia Sep 01, 2019 #1741368 … Unit sizes: Public Storage offers unit sizes ranging from 5 feet by 5 feet to 10 feet by … While these two rate structures are completely separate, one certainly does influence the other. These are the sizes on which you should raise rates. 1. Hence, if you start at 210 days, the rates should go into effect at 270 days. Instead, increase the rent on the smaller and larger sizes around this vacant size to create a perceived discount. Now, evaluate the increased rent on your storage unit and compare that to the prices of storage units nearby. Know that most property managers have the ability to reverse the increased storage rent. And look out for updated Australian agreements, due for release in the first half of 2017! Now that you’ve maximized your potential rents with new, existing and discounted customers, you need to repeat this process at least monthly. Armed with the above information, call back the storage unit property manager and attempt to negotiate. And finally, ask: What is the cost of a smaller storage unit? Your 5-by-10s are $70 and your 10-by-15s are $140. 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NOTE: Even if you are unable to easily move your items out of the storage unit, never discuss your personal situation with the storage facility. Extra Space Storage - RATE INCREASE, RATE INCREASE, RATE INCREASE! Standard (street) rates are reviewed by unit type or size, particularly ones that are full or about to be, which can spur a rate increase. And yes, I just got another rate increase today!!! A good standard for a typical annual rent increase … It's a clever little trick they use...get your stuff moved … Now the rental rates are $95, $100 and $175. What to do about my storage rent increase? You’ll also need to give customers 30 days notice before the new rate becomes effective. Finding the best storage … Shop around online. For example, if you continue to hit 95 percent occupancy after raising rates, you’ll need to review your street rates more frequently. These activities have produced outstanding income improvements. Discussion Rate Increase Letter Author Date within 1 day 3 days 1 week 2 weeks 1 month 2 months 6 months 1 year of Examples: Monday, today, last week, Mar 26, 3/26/04 If prices of storage units nearby or smaller storage units within the same facility are comparable to (or less than) the increased rent on your storage unit, you can threaten to leave the facility, which will sometimes force their hand. Because almost all Web-based software programs for self-storage include rate-management tools, you can easily program when and how much you want increases to be, and they’ll show up in your pending-rate-increases folder for approval. For example, you may have several 10-by-10s priced at $100 per month. Most management-software programs today offer some type of rental-activity report. More common, though, are rules-based methods for monthly evaluations of the common two-rate structure of standard rates (often called street rates) and existing tenant rates. A motivated owner can outperform the computer by taking advantage of all opportunities. Thanks storage increase every other minute. This is likely the easiest method for many facility owners, but it doesn’t allow for as much consideration and improvement as the process outlined above. For your facility, raising rates for all tenants once per year might be just perfect. Is Spring Cleaning the Right Time for Your Basement Remodel? Rent usually must increase marginally each year in order to keep pace with market rates, inflation, tax changes, and other factors that make owning that property just a little bit more expensive. About Extra Space Storage Inc.: Extra Space Storage Inc., headquartered in Salt Lake City, Utah, is a self-administered and self-managed REIT and a member of the S&P 500. Web page addresses and e-mail addresses turn into links automatically. It’s sort of an if/then system: When A occurs, action B takes place. Raising rental rates is common practice among self-service storage facilities, though the justification behind increases will vary from company to company. 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Reply 1 0. Particularly if your unit occupancy rate is low, you may want to focus on putting out specials and self storage discounts. 11 Best Cities to Raise a Family in 2021 | Extra Space Storage Someone renting a 5x5 for $50 per month would get a rate increase of $2.50, and the new payment would be $52.50. To make this easy, I suggest owners use a few simple operating-system reports to identify triggers for raising rents, and then review them at least once per month. Knowing when and to whom rental-rate increases should be given, as well as how much they should be, is one of the most important aspects in operating a profitable self-storage facility. All you need to do is reserve your pickup and we will take care of the rest for you. Why did my storage rent increase? Collection of self storage rent increase letter template that will completely match your requirements. So we will resume and are resuming our existing customer rate increase program, market by market as they open up, subject … For more information, call 770.801.1888; visit www.universalstoragegroup.com. If your storage unit rent increased a small amount on the one year anniversary of your move in, it is also likely an across the board policy triggering on your move in date in order to target those long term storage customers who are less likely to move out. Some are using complex algorithms to determine which demographic groups get more of an increase and how often. Someone renting a 10x15 at $150 per month would get a rate increase of $7.50, and would pay … Statistics on this page will be updated as we receive new data. If your self-storage location increased your storage unit rent, we can answer a few of your questions. After you pull this report, look for unit sizes that have 90 percent or higher occupancy or inventory of three or fewer. How much self storage should cost. The industry standard for price increases is to increase rates every nine months, but many REITs increase their prices more than that. If you spent $100 each month on a storage unit, that’s $1,200 a year. Much like any other storage facility, Extra Space Storage’s prices fluctuate from location to location. Not Sure How to Start Your Wedding Planning? Before you call the storage facility that raised storage rents, find out what other storage facilities are charging for storage units like yours. A. Along with self-storage they can accommodate business storage needs and vehicle storage needs. The next step is to send these tenants a discount-reduction letter. Wonder why I’m so broke. I have a store in Florida that has to review street rates almost weekly since demand is so high. Your Guide to Packing Tape Dispensers, Guns, and Applicators, Photo Storage: If a Picture is Worth 1,000 Words, Be Sure it Lasts 1,000 Years, Real estate vocabulary terms you need to know, Room for one more: How to modify your child’s room to include a new foster or adoptive child, Securing the fort: How to prepare your home before a long-term trip, Selling Your Owner-Occupied Home? If your storage facility increased your self-storage rent on your unit type only, it’s likely in response to low vacancy rates on your particular unit type or in your specific submarket. This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. When you have a size with a lot of vacancy, your natural tendency would be to reduce the price. 1st - Fill up your units to increase unit occupancy. You’re going to find customers who meet your criteria for increases by length of stay. Circumstances will dictate the need for more frequent reviews and actions. A 5x5 foot storage unit usually runs about $40-$50 … Due to overwhelming demand, we are currently at our storage capacity in Boston, the San Francisco Bay Area, Rhode Island and Seattle. Finally, to catch all customers who are getting discounts on sizes that are full, you’ll use the same occupied-units report.