Rate Increases For Prepaid Tenants

fstopn

Hi,
I wanted to know how you handle a rate increase on a tenant that has prepaid?  

Orkocean

Schedule it for whenever you want, just don't try and retroactively charge customers. So if if a customer is paid until the end of the year, the increase hits in July they should not be required to pay any additional rent until January of next year as it would be their next bill due.

MamaDuke7

fstopn said:

Is the customer still locked into that rate even though it doesn't state that on their contract?

Yes, as long as you sent a rate increase notice with 30-day advanced notice.  That's the beauty of month-to-month rentals.

i43storage

Our policy is to wait until the end of their prepaid date to start charging the new increased rate.

fstopn

Thank you so much that is what I thought.  You ROCK!  I love your feedback and how you explain everything so perfectly.  Thank you, thank you, thank you

fstopn

Is the customer still locked into that rate even though it doesn't state that on their contract?

fstopn

Thank you so much

CVSSSTORAGE

we wait to schedule the increase until after they are paid up but we send a letter right away because some times people pay early and ahead again if not we always send another 30 days before like normal again just as a reminder

MamaDuke7

CVSSSTORAGE said:

we wait to schedule the increase until after they are paid up but we send a letter right away because some times people pay early and ahead again if not we always send another 30 days before like normal again just as a reminder

I have a customer that paid 2 years ahead to beat the increases.  So I immediately scheduled an increase to start with his next payment at that time.  He came in 2 weeks later wanting to pay another year to still beat increases, but changed his mind when he found out an increase was already scheduled!  

So that's one reason to go ahead and get it scheduled even if they've paid for a year.

Orkocean

MamaDuke7 said:

CVSSSTORAGE said:

we wait to schedule the increase until after they are paid up but we send a letter right away because some times people pay early and ahead again if not we always send another 30 days before like normal again just as a reminder

I have a customer that paid 2 years ahead to beat the increases.  So I immediately scheduled an increase to start with his next payment at that time.  He came in 2 weeks later wanting to pay another year to still beat increases, but changed his mind when he found out an increase was already scheduled!  

So that's one reason to go ahead and get it scheduled even if they've paid for a year.

Exactly... I had a customer at my first store where the asst let it slip that the owners were going to put increases in on all the RV spots the next month. So before his was put in on his 3 spots he came in with a little over 10k in cash to pay all 3 of them up as far as it would get him. Each spot was currently at I believe $139 or near that and were gonna be getting like a $40 increase each.

Never underestimate the length people will go to so they can save some $$, especially if they have the $$ to spend.