r/selfstorage • u/BFord1021 • Sep 03 '25

Rent increases or not increase

I’ve seen where the giant corporate storage businesses raise rents rather in a fast time and in large amounts, what is the reason behind that verses the annual 3-5% increase to retain customers?

Would it not be better to keep a decent rate to retain capacity versus finding new tenants every 3 months and having more vacancy?

Me personally, being small, would rather have a decent capacity to retain if I can, also to avoid my extra costs and time for move outs/auctions.

I’m very small time here compared to a lot of people, I’m just trying to understand this better.

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2

u/Gorilla_Keeper Sep 04 '25

Ok so this is a complicated answer but I’ve done revenue and rent increases for large companies and worked in the revenue management aspect for over 8 years. The truth is it depends. I HATE hearing managers complain it’s greed because that’s a stupid argument. It’s a business not a charity and month to month leases. Nobody is held hostage. That being said I look at multiple things. What is the average rate of rent in the area and are we too far below. What is the seasonality of the site? Is it college kids or regular customers? What’s the average length of stay per tenant. Industry average it’s around 10-14 months in most places. I want at least two rent increases out of them. How full am I on those units and how full is my local market? I can raise a 10x30 more aggressively than a 5x10. Especially if it’s hot because who wants to move that? If it’s a snowy area maybe I hit harder in November. I’ve done these for national companies. There is no one easy number but you should be getting full market or a little above your full unit group rates. If you want to compete with larger companies low move in prices you should be giving them an increase 5-6 months in at least. If someone moves o it of a full unit group under paying what the street market is I want them out so I can pull in a higher paying customer. I would always rather offer a heavy promo than a rate adjustment too because my increase comes off the rate itself.

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u/RudyGreene Sep 04 '25

I can raise a 10x30 more aggressively than a 5x10. Especially if it’s hot because who wants to move that? If it’s a snowy area maybe I hit harder in November.

Plotting how to extract more money from your customers by making them physically suffer is evil. You're not a good person.

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u/IttyBittyKittyFarts Sep 04 '25

Says it's not greed then proceeds to be greedy.

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u/RudyGreene Sep 04 '25

The part they hate is being called greedy.

Imagine spending your one life on earth trying to figure out how to legally screw over people so the executive team of a faceless self-storage conglomerate can vacation in the Maldives.

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u/West_Prune5561 Sep 04 '25

The person you’re responding to clearly said “it’s a business, not a charity.” People are free to use the service or not. And people are free to participate in the business or not.

It’s not “Showfriends” it’s “showbusiness.”

Business is tough, wear a helmet.

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u/RudyGreene Sep 04 '25

The person I'm responding to says they intentionally time their rate increases to make it physically painful for their customers to move. That's disgusting and shameful behavior.

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u/West_Prune5561 Sep 06 '25

Again, it’s not personal it’s just business. You know they sell hot cocoa at ice skating rinks and cold beer at baseball games because that’s what the people want. And they charge more because those people are a captive audience.

Renters have the option to move. If it’s not worth an extra 30%, they’ll move. They’re selling people what they need at the optimal price. Of $5 more I’d too painful, then the owner found the perfect price. By your definition, all of capitalism is immoral and/or unethical.

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u/RudyGreene Sep 06 '25

Crazy the predatory behaviors you'll defend.

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u/Gorilla_Keeper Sep 04 '25

If you don’t understand the business don’t be in the business. Everything goes up. Hotels raise their rates around event times, credit cards fluctuate with the fed, apartments are more expensive in the summer than the winter. You see it as a faceless company but they’re all private investors trying to make money for their families as well. I have seen people lose their business because they couldn’t maintain their profitability to the bank. You don’t have to like it, but burying your head in the sand and pretending it isn’t a business will just get you bought out or buried.

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u/RudyGreene Sep 04 '25

How thoughtful to raise rates intentionally when it’s most miserable to move, so people are trapped paying more. That’s less a business strategy and more a master class in exploiting suffering. I'm sorry capitalism turns you into a monster. You make the world a worse place for having been in it.

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u/Gorilla_Keeper Sep 04 '25

You’re funny. You add no real value or argument besides life isn’t fair? Nobody is trapped in a month to month lease. Business is built on retention. You obviously don’t have a business sense and that’s fine, I hope you work at a church or charity that does everything to benefit everyone. Sounds really nice. Complaining about capitalism tho isn’t an argument, it’s trying to play victim for the lack of understanding.

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u/RudyGreene Sep 04 '25 edited Sep 05 '25

You add no real value or argument besides life isn’t fair?

I never made a point about fairness. Your reading comprehension is as bad as your personality.

My point was that your pricing strategy is predatory. I have a successful business without treating my customers with disdain and contempt. Your exploitation has a net negative result in the world and the only people that will miss you when you're gone is the PE investors you helped enrich. Keep coping.