How do you all handle situations with tenants having higher rates when the current street rate is lower. Example, John Doe is paying $150 for a 10x10 but it is currently going for $115.00
I have dealt with this a couple of times but when I do, man, do those conversations get headed. They ALWAYS come at me hot heated and rude. The thing is, I understand why they're upset and would love to help them but it just isn't something I can do with adjusting their rate to something lower. Especially if it is like $50+ lower.
So, how do you all handle these situations?
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You have to call their bluff in a sense, do you think they will move out over it? If you're sure they will move out over it then it's something to look into adjusting as even dropping them to standard if need be is $$ coming in versus them moving out and you losing the $$ coming in. Also it's a good time to talk to them about possibility of transferring to different sizes to help reduce cost if they're not using the full space of the unit. If it's someone who's been in the unit for years, or when it's a much larger unit that's a true pain to get moved you have a little more ground to stand on as they typically end up being all bark and no bite.