We hear self-storage is booming right now, the housing market was a slow starter but has recently really taken off. If you operate a self-storage unit/s maybe now is the right time to look at an increase in what you charge the client? We have run stories on this very subject before and recommended seasonal and capacity pricing.
We saw the following story in the brilliant Inside Self Storage which promotes much the same philosophy titled Increasing Self-Storage Property Value Through Rental Rate Increases….or more briefly putting your prices up.
In it the author Justin Quinto argues that ‘if you aren’t regularly assessing and increasing your self-storage tenants’ rental rates, you’re leaving money on the table. It’s time to take the emotion out of rate adjustments and increase your property’s value through smart revenue management’.
He believes that the smaller operators cringe when they hear the phrase rent increase. He maintains that you may well know your tenants personally making it really tough to up your prices. All the same the reality of running a business these days is to adjust to prices increases that you face. Therefore don’t ignore increasing your prices. He goes further suggesting something called ‘Create Churn’ or support a change of tenants to assist in putting up those prices.
With many practical suggestions perhaps you should have a look at the article and see if you can identify with some or all of his suggestions.