There’s no need to worry about a stampede of departing tenants when you raise rates on storage prices. It costs renters, on average, about $150 to rent a truck and move their belongings. A price hike would have to be a full 20% above current going rates for a switch to another facility to make good economic sense. It’s smart to avoid the stress of dealing with a throng of angry renters, however. The following are some helpful tips to smooth ruffled feathers over price hikes.
1-Soften the News
Communicate with your self-storage renters about the upcoming price hike in a way that softens the blow. Explain that increasing costs related to keeping belongings safe and secure have made a rental increase unavoidable. Be specific about what that the increasing costs are, such as higher property taxes and utility costs.
2-Good Service Plus Reasonable Increases
Some storage groups raise storage rental prices by 8% to 12% every nine months or so. They combine great service with those price hikes, however. Renters are much more understanding about higher costs when they consistently receive good service.
3-Raise Costs Routinely
The worst scenario at a self-storage facility is to have a renter get accustomed to no price changes over a long period of time. The advice of some experts is to raise the rent after six months and then annually after that. Since your insurance costs, property taxes, and energy bills keep going up, it’s essential that your income increases, too.
4-Highlight Improvements
Customers will feel a lot better about paying more for storage when they see evidence that money is being spent to improve things on the property. Let renters know about repaired potholes, improved security, facility repairs, and new coats of paint. First show renters that the action is being taken and then associate those upgrades with higher rental costs.
5-Negotiate
If you have reliable customers threatening to move out over a price increase, negotiate with them. Offer a small reduction in the increase. If that fails, ask what they suggest. If they are unwilling to negotiate, give them an additional 60 days before the cost goes up.
6-A Self-Storage Brokerage Can Help
When you have Weaver Realty as your self-storage broker, you have the entire Argus Self Storage Network on your side for the tricky aspects of the self-storage industry. We provide a wide range of creative solutions that can help you increase profits. The self-storage market is an ever-changing industry. We are in the know about trends and strategies that can help self-storage owners make the most of their investment. Contact Josh Koerner of Weaver Realty Group at 904-591-01407 for an advocate who can provide tips and advice on experiencing a smooth transition when raising rental prices plus much more.