FAQs

What are price increases in self storage?

Price increases in self storage refer to the periodic adjustments in rental rates for storage units. These adjustments are typically implemented by facility operators to enhance profitability, align with market demand, operational costs, and other economic factors.

Why should I implement price increases?

Implementing regular price increases can significantly enhance your facility's profitability. Many customers are reluctant to move their belongings due to the inconvenience and effort involved, making them more likely to accept reasonable rent hikes. This strategy allows operators to boost net operating income without adversely affecting occupancy rates.

How often should I raise rental rates?

The frequency of rent increases varies among operators. Some industry professionals recommend adjusting rates for existing customers no more than twice a year, while others suggest evaluating rental rates monthly or even weekly, depending on occupancy rates and market conditions. Regularly reviewing and adjusting rates ensures your facility remains competitive and profitable.

How much should I increase the rent by?

Standard self storage rent increases typically range from 8% to 15% per customer. The exact percentage can depend on factors such as market demand, facility occupancy, and the availability of premium features like climate control or enhanced security.

Will raising rents cause customers to leave?

When implemented thoughtfully, rent increases usually result in minimal customer turnover. Many customers prefer to accept a reasonable increase rather than face the hassle and cost of moving their belongings to a new facility. Clear communication about the reasons for the increase and providing adequate notice can further reduce the likelihood of customers leaving.

How can I effectively communicate rent increases to customers?

Transparent and timely communication is key. Provide customers with written notice well in advance of the increase, explaining the reasons behind the adjustment. Highlight any facility improvements or enhanced services that add value. Being open and considerate in your communication can help maintain positive customer relationships. Stora's price increases feature automates this process.

Are there legal considerations when raising rental rates?

Yes, it's important to be aware of the legal considerations when increasing rental rates, as regulations can vary by country and region. In the UK and EU, there aren't specific laws regulating self storage rent increases beyond general consumer rights, meaning providers can adjust prices as long as they adhere to the terms outlined in the rental contract.

In the U.S., regulations can differ by state, with some states having specific statutes that dictate how often and by what percentage you can raise rents, as well as notice requirements. To ensure compliance, it's essential to review your rental agreements and consult local laws to understand the specific requirements in your area.