At a self-storage facility, rent is the main revenue source. There are additional items to sell or offer in a self-storage business, but rent is the bread and butter. It’s important to remain competitive and conduct rent audits periodically to keep your prices affordable and in line with other businesses.
Currently, a search for self-storage in Jacksonville, Florida for a 10×10 storage unit produces rent results ranging from $53-130. While some lower-priced units are introductory pricing to attract new customers, the average for the area is $93. The 12 prices we compared for this article were all corporate self-storage facilities like Extra Space, Cube Smart, Public Storage, and Life Storage.
As an owner/operator of a self-storage, what’s the best method to determine rent prices? Some factors influence self-storage prices. Location, unit size, amenities, and types of storage will impact the cost of units in a specific area.
Location
If a self-storage business is located in a big city versus a smaller community, a higher rent is possible. Consider things like being located near a college, university, or recreational area. Self-storage businesses in college towns will see seasonal demand as students leave and return to college which a location without a college will not. Recreational areas like lakes, beaches, and ski resorts may see demand at other times since residents will need to store their expensive seasonal equipment.
Unit Size
The unit size will help determine the appropriate price as smaller units will have lower rent. The most common, in-demand size is 10×10. This size may sell out quicker, and as a result, your rent can be slightly higher for this unit, especially if there aren’t many available.
Amenities
When clients store their belongings, they are concerned with security. Accessibility is also an important thing to consider. Clients will want to be sure their items are secure from theft or damage. They will want to access their items 24/7 at their convenience. Amenities like 24/7 secure access, lighting, security cameras, temperature-controlled units, and even smart locks will be attractive to many renters and can affect pricing.
Types of Storage
The type of items being stored will also impact price structure. Boat and RV storage will be higher than most smaller units, depending on the amenities. Outdoor boat and RV storage that is uncovered will be a lower rent than a covered or fully-enclosed unit, and this type of storage can demand a high rent.
As you begin your assessment to determine rental rates for a specific business, consider the above factors. It is also helpful to do some research on your closest competitors. SpareFoot is a great resource for doing competitor research without making any phone calls. Find the nearest 5-10 self-storage businesses that offer similar services and assess their prices. It’s important to remain competitive and keep revenue at the greatest possible level.
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- 1. Make a list of all unit sizes and the number of units available including the rent currently on occupied units.
- 2. Consider any recent property improvements or amenities for specific units. If upgrades have been completed on some units, those units will command a higher price.
- 3. Make adjustments periodically. Supply and demand change throughout the year and will require a new assessment of the rent structure for a business.
There are new customer service management programs that produce rent rates for a business. These programs will tell you when to raise rents and some automatically do it for you. While the owner/operator sets the parameters for the software, the software crunches the numbers and produces revenue scenarios based on different rents.
Which way is better? Do it by personal research and crunching numbers or using technology to do the work for you? While both methods may result in the same conclusions, some self-storage owners may need to do the calculations and see the results themselves. We think most owners will find this article by Inside Self Storage helpful in determining how to calculate the most competitive rent rates.
As owners and operators consider the best way to set or adjust their rent rates, our team at Coastal Storage is ready to work with you every step of the way. We partner with owners and investors who have a vision for the future. We would love to work with you. Call us today at 904-591-0140.