Every self-storage owner stresses over raising rent, but raising rent is often necessary for more than one reason. The most common concern surrounding raising rent is that current tenants will head for the door, but consider that most self-storage businesses raise rent periodically also. A tenant would need to find a weekend, rent a truck, and find a new place to store their belongings to avoid the new, increased rent. Time is also valuable, so they may reconsider staying rather than spending more to move. Here are some best practices when raising rent to encourage clients to stay long-term.
1-Provide advanced, detailed information
Communicate the increased rent via email and mail at least 60 days before changing the rental rates. Explain the reason for the change in rates and thank them for being a valued tenant. Provide a phone number where they can reach you to inquire about the rate change.
2-Provide excellent customer service
The majority of self-storage businesses across the US raise rent at least once per year. If a self-storage business is at a high occupancy, it’s often time to raise rent to increase revenue. Additionally, with the current economic climate, everything costs more. Financial adjustments to offset increasing costs to operate a business are necessary and expected. Providing excellent customer service at every interaction is an important step to building customer loyalty. Treat tenants with respect and kindness, and they will be more amenable to the increase in rent while remaining loyal to the brand.
3-Routine rent changes
If you have never raised rent at a facility, but suddenly need to do it, this will be a shock to tenants. Routine rent changes encourage tenants to be aware that rent changes occur so they are less likely to leave when it occurs. Consider an annual rent increase so that tenants know to expect this at a set point each calendar year.
4-Communicate property improvements often
Communicate frequently with tenants about the amenities available at the property. Anytime there is a change to the property, communicate this information also. This demonstrates to tenants the commitment to excellence and security at the property.
If a tenant is in a bind financially and brings it to your attention, use discretion in reaching a solution that works for both parties. A solution that allows the tenant to stay at the property will likely result in a loyal customer because of your commitment to customer service and the extension of grace in a difficult situation.
If you’re still feeling unsure about how to handle rent increases, call Coastal Storage. We work with our clients to provide expert consultations on the best practices for managing a self-storage business. Our team of experts awaits your call today at 904-591-0140.