Rental Rates in Self-Storage are a Science

You never charge the same amount for every unit in your facility. There is a science to managing your rates and you want good software to help you manage your pricing. You are going to have bargain priced units that are farther away from the entry door and premium units that are easy to access. Part of the process of getting the most for your units is going to be your manager and how they present these units to your potential renters.

If you are marketing lower priced units to increase your occupancy levels, you may be able to convert some of those leads into premium leads. Your discounted units are going to be the ones at the end of the hall, in the worst locations, where no one really want to rent. However, if your manager doesn’t mention that some of those premium units are available for just a few dollars more, they won’t know that they have an option to access those.

You want to train your manager to say, “By the way, for just a few dollars more a month, this unit is available. I wanted to point it out to you because it is much closer to the elevator and so it is easier to access your belongings.” Sometimes people have issues carrying large items farther back. They may say no, but either way, you have a client.

You will be advertising for bargain shoppers and then you will give them the opportunity to decide if they want a bargain or if they want convenience. Some of your units are more valuable based on their location. You may rent out a smaller sized unit for more than a larger unit based on its location.

When you are laying out your facility, keep in mind the size of unit that most people want. Make sure that you offer the most of those and then fit in other sizes around those. This is why you may have a much smaller unit in a great location.

You will also change your rates based on the day of the week. Less people are going to rent on a Tuesday so you might try to secure more rental agreements by lowering your prices on a Tuesday. Lots of people are looking for self-storage on a Saturday so that is a good time to raise your rates. People have to move that weekend and so they will pay what they have to pay.

Stay on top of the rates within your community and stay on top of the rates within your own facility. Make sure that you are getting as much for each self-storage unit as you can. As always, happy investing.