Rate Increase Etiquette

cindy1222

We sent out a notice for an increase in rent.  In the letter I state 30 days from their next due date.  I thought a 30 day notice was probably required by law, but at the very least out of respect.  My boss asked why I did it that way, and I had no good answer other then I thought it was probably required.  Does anyone have insight as to the law, or guidelines on this?

AnitaJohnson1269

I'm not sure of any laws out there as far as how much or when to send rate increases.  I would check with your local/state SSA.  We have it listed on our lease agreement that any changes would be given a 30day written notice.  I would read over your rental agreement carefully and not just rate part.  Our section about the 30 days is found under the "changes" bullet point. 

rmason

Same here, we give them a 30 day notice.  We're a family owned business, but the Corporate owned businesses might have a different set of rules.

cindy1222

Great helpful comments....Thank you!

GSI03

We give 30 day notices also.  I don't know if it is law in SC or not.

MamaDuke7

The thought behind a 30-day notice is that most self-storage is month-to-month.  Therefore it renews every 30/31 days.  You give them a 30-day notice of a change to the terms (rate)and if they agree, they pay the new rate. If they don't agree, they move out before the new rental terms (rate) become effective.  You likely have a clause in your rental agreement that you must give 30 days to make changes.

Also, that's a straight 30 days.  It's not necessary for it to be 30 days after their next payment.

cindy1222

Thanks all!  Very helpful comments!

teamcapitola

What does your Rental Agreement say about increases?  Most contracts have language for increases or changes etc. 

Our agreement has a section that states "The monthly rental rate may be changed at any time by owner giving 30 days written notice to Occupant at the address set forth in this agreement"

There's also the matter of laws/codes in your state too, so contact your state SSA

BusyProperties

We always do a rate change on the 1st of the year, usually every 2-3 years. We send out the letters 30-45 days before. The last time around I sent them out in October and many people didn't remember it by the time January rolled around. Lesson learned.  

i43storage

Our state requires 30-day notice.  You may want to check with your statutes.