Adding new build Units, price New ones the same as the old or up the price??

sdgr35

We our an 40 year old facility. Lowest in our area for 10x20 which is $160, competitors with newer facilities are charging $240 for a 10x20.

Should we price the new 10x20 units the same our old units?  We are filled up, no rentals available with constant calls coming in. Currently have 280 units and will be adding 60 more by the end of November. Currently being built now. keeping a list of possible renters. Thanks

themage

Basically, if you are at 100% occupancy, your rates are too low. If there is that large a difference between you and your competitors, definitely time to raise the rates. You have plenty of room to increase your rate and still be cheaper than the competition.

sdgr35

Should the new units be priced the same as the older units?

AnitaJohnson1269

I'm with @themage.  We added on and all of our unit rates increased to meet competition.  So to answer your question.  Set the rate you want for the new units and up the rate on the old ones to match.  Any current tenant older than 1 year needs a rate increase (10-20%) if they haven't already gotten one.  Our tenants are reviewed annually for increases. 

sdgr35

Thanks. Sounds good. I'm all set with rent rate increases, just did them in July.

teamcapitola

What's that old saying? "Things are worth exactly what people will pay"

If you are at 100% occupancy, then your pricing is too low, your not doing rent increases regularly, or both. 

I'd price the new units higher, maybe do some marketing for the new units, and see what kind of interest you get.

you can always lower prices later or give concessions if you need to.

Dixie1980

I would price the new units higher. They pay a premium for a brand new storage room.