It’s simply tougher to move out when you have to carry things upstairs or use an elevator, and tenants who rent upstairs feel like they’re getting more for their money with an indoor, climate-controlled unit. Individuals, families, and businesses can count on us as a reliable one-stop storage solution provider in Singapore at all times. Tech startups that aim to disrupt existing industries must know defining industry trends and understand where the industry is moving. While their loyalty doesn’t make them exempt from rent rate increases, it’s a nice gesture to give them a small discount for their loyalty when compared to street rates for new renters. Plus I remember in Ca, if you late with payment 10 or more days, they have rights to charge $10, each 10 days. If you’re planning on doing consistent rate increases once a year, consider implementing them during a time of the year when moving out is inconvenient for tenants to discourage those who are grumping about the price and thinking about leaving from taking action. Over 5 percent of self-storage operators now report the sale of ancillary items at their facilities, including boxes, moving supplies and moving vehicle rentals. Of course, 7% might not be the right amount. People would drive past a storage facility, remember the location and return to it later. … The easiest way to organize a price increase is to make it part of the yearly schedule. If you raise everyone’s rent by, for example, 7% each year they’re at your facility, the increase won’t catch them by surprise and you’ll be better able to integrate your projected earnings from your price increase into your budget. As disruptors continue to emerge, stagnant industries, including that of self storage, will be forced to shift, adapt and innovate, creating a better experience for the end user. As the competitive advantage of physical location decreases, these online channels provide new opportunities for emerging storage innovators to build upon and disrupt the industry. Questions about an article? Be strategic, using resources like your facility's economic occupancy numbers to make an informed decision. Self Storage rent increases are becoming harder to evaluate in the market for small investers with the number REITs using the demand marketing model. 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. Marketing self-storage facilities have one primary goal, to increase self-storage rental conversion – moving tenants into empty units. You don’t need to give tenants a lesson on inflation or explain the economy’s effect on small businesses. Accordingly, people will either use that space to store their own items, thereby reducing the need for an expensive self storage unit, or they will rent out their empty garage space to others online. Editor’s note: This post was originally published in January 2014 and has been completely revamped and updated for accuracy and comprehensiveness. Increasing real estate costs are just part of life. My final prediction for the self storage industry looks 10-20 years into the future. Google’s Remarketing platform is an effective way to bring leads who have left your website back for another chance at closing the deal. Survey results released by the Self Storage Association show that self storage units are rented by 1 in 10 U.S. households. According to the 2019 Self Storage Almanac, the internet surpassed drive-by for the first time in 2017 as the largest source of tenants. Nobody likes price increases. Email feedback@yec.co. If you haven’t been doing regular rent increases, the first one will be most jarring to your long-term renters. Customers all deal with bills and taxes in their everyday lives, so they will probably have less sympathy for you if you cite those reasons. Whatever makes you better, be sure to have your elevator pitch prepared when customers come to you and say “well, maybe I’ll just go to Cheaper Storage Place Down the Road instead!”. If you’re raising rent for ten customers all paying $50/month and you expect one tenant to leave because of the price increase, plan to make up the loss in the new revenue from your remaining nine tenants. Marketplace Networks: A Solid Advertising Attribution Opportunity, Navigating Google E-A-T For SEO Success In 2021, When Gatekeepers Become Allies, Everybody Wins, less and less popular, which will free up garage space. Today, if you just have one price increase per year you are either (1) having big jumps in rental … This prediction excites us at Neighbor because we help people monetize their empty space and find nearby, affordable storage options. Imagine the state of transportation and homeownership. Read on for tips on nailing the details that will make your rate increase go a lot more smoothly. So many … For example, adding truck rental can increase income a few thousand dollars on a self-storage facility. Maybe your customer service is way better or your facility has recently been renovated. As the founder of a peer-to-peer storage marketplace in the U.S., here are my four predictions about the trajectory of the self storage industry in the coming years. Between digital ad spend, SEO and storage aggregators, there are many opportunities for storage units to be found and researched online. For example, moving boxes, packing materials and truck rentals offer customers a one-stop shopping benefit as an incentive to rent a unit from you. In order to match this growing demand, real estate investment trusts (REITs) have poured an enormous amount of capital into constructing hundreds of thousands of new square footage. While other emerging players in the self storage industry compete by offering on-demand services by storing tenants' items in distant, less-expensive storage warehouses, traditional storage operators are also having to adapt by designing more visually appealing facilities and building further from population centers. Do you need to increase your occupancy rate? Public storage rent goes up every 6 months with no justification. A 5x5 foot storage unit … As baby boomers begin to downsize, the need for storage units is predicted to increase. While demand continues to increase, it will be outpaced in the short term by new supply. Every storage facility is unique, so it might be difficult to know the best way for you to approach a price increase until you’ve actually done it. Especially if they are leaving some type of valuables. 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. You can raise rates on indoor units more often than drive-up units and suffer fewer move-outs. Keep in mind, however, that certain customers’ prices are easier to raise than others. Late fees, admin fees, raising rent, and putting in a showroom are other options. SelfStorage.com has 237 storage facilities in Tigard. If you’ve recently taken over the property and some of your renters haven’t ever seen a rent increase, some of your long-term renters will be flabbergasted, and you’ll need to handle them with kid gloves. Many tenants set their rent payments on autopay and forget their actual rent rate. |March 28, 2018 Never send out a rate increase letter before you adjust your standard rates to be the same or more than the rent rate you’re asking current customers to pay. If your facility is enjoying near 100% occupancy, it’s a clear sign that your rates are too low. Additional resources on customer service in self storage: 6 steps to resolve customer conflict, Re-evaluating our views on customer service, and PR and crisis management: A comprehensive guide for managers. You’ve got the perfect facility and a beautiful truck your customers love. That number has increased every year, and in 2018, nearly $5 billion was spent on new facilities, per U.S. Census Bureau data on private construction spending. On average the smallest units, for example a 5x5, can be rented for as low as $65/month while the larger ones, like a 10x20, can cost upwards of $135/month on average. 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