Price Changes

rbadbunch

Rent increases are common in the storage world but I would like to know how are decreases handled?   Does anyone have experience with rent prices going down and if so how do you handle?  Leave alone and hope current tenants aren't paying attention?  Or do we adjust our current tenant's monthly rent?  And if the answer is leave it alone what do we tell the tenant who brings it to our attention?

MamaDuke7

I have always had tenants above current street rates.  They never find out, and it's part of the business.

AnitaJohnson1269

We tell tenants above street rates that question, "It's an introductory rate for new rentals." Only a few times has someone rented a new unit and vacated their higher rated unit. Less than 1%

sonyawiprud

I just explain that the rate they are paying is what it was at the time they moved in, they usually understand but if they ask to transfer to the same size unit to get the lower rate, I either let them do it or I adjust their rent on a case by case basis. I don't get very many people finding out. I fear the most recent rate increases that already processed might cause people to search for cheaper units and see that mine dropped way down! Thanks for that corporate! 

rbadbunch

Thank you that was great info!!

helenatim

I would keep street rates at whatever the market will bear, leave your current tenants at as close to street rate as possible.  If you are suggesting offering to reduce current tenant rates across the board, I don't think that is a good idea.  If you get a few tenants who are looking for a discount, address them one by one.  It's pretty rare for a tenant to research current rates and ask for a discount in my experience.

rbadbunch

Thank you!

GlenMark

We've never done rental rate decreases. Instead, our desk rate is what it is, and occasionally (when the economy dictates such things), we've raised our desk rate, then start doing a series of increases to our tenants which eventually gets them up to that rate.