Rate Increases on tenants with permanent discounts
sonyawiprud
Registered User ✭✭✭✭
How do you explain a rate increase to your tenant that has a permanent discount, because SL drops the discount and rounds up the rate. I have been telling them that the new rate is a percentage of what they had been paying, so they are still getting the discount because of this. However, as the years go by and rate increases keep going up, eventually they are paying the standard rate, with no discount. I wish there was a way to keep the discount intact when conducting rate increases. How are you handling these? Am I doing it wrong?
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I negotiate rate on an individual basis. If the tenant has a permanent discount, it will "fall off" after the rate increase. You can always change the rate to reflect the discount amount, or if it is set up to add in the payment screen you can edit charges and re-add the discount again. Under the manager report click on "Discounts" and it will give you a list of "non-expiring" tenants to check against your pending rate increases and change as needed. Company>Edit Rent1
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I also do individual rate increases. So when I have a tenant receiving a non-expiring discount, I base their rate increase off what they are currently paying. I noticed that when the account would receive the increase it would remove the discount shown in the ledger settings. The problem we had, was with the account not showing a discount, we had an employee put the discount back on thinking we forgot to give them the senior discount and they ended paying less then they were. So I found if you do a rate increase and again this is only if they are done an an individual basis for non expiring discount tenants, that if you go into the ledger settings and put the increase in the new rate box with effective date, it doesn't remove the discount off the account but again they are being increase off what they were paying not based off the unit size. This way when you look up the account it still shows for example Senior Discount. As of right now, we increase about once per year. Unfortunately there will be those long term tenants that pass over the street rates and it's hard for them to grasp that. I explain it by letting them know that normally self storage is meant for short term storage, so if you been in the unit for 10 years, they are most likely going to be paying more, I just suggest they try to downsize in to a lesser priced unit.1
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Thank you for the advice, I get rate increases every day, by the handful, so I could possibly pull this idea off. Yes I have an employee who puts a discount back on for someone every year (she pays yearly) because she bullies him into it and he doesn't check the ledger to see that she started out with a discount. so her rate increase is 6% and her discount is 5% LOL. Then Corporate wants to know why there is such a big variance.GM_SJ_BSS said:I also do individual rate increases. So when I have a tenant receiving a non-expiring discount, I base their rate increase off what they are currently paying. I noticed that when the account would receive the increase it would remove the discount shown in the ledger settings. The problem we had, was with the account not showing a discount, we had an employee put the discount back on thinking we forgot to give them the senior discount and they ended paying less then they were. So I found if you do a rate increase and again this is only if they are done an an individual basis for non expiring discount tenants, that if you go into the ledger settings and put the increase in the new rate box with effective date, it doesn't remove the discount off the account but again they are being increase off what they were paying not based off the unit size. This way when you look up the account it still shows for example Senior Discount. As of right now, we increase about once per year. Unfortunately there will be those long term tenants that pass over the street rates and it's hard for them to grasp that. I explain it by letting them know that normally self storage is meant for short term storage, so if you been in the unit for 10 years, they are most likely going to be paying more, I just suggest they try to downsize in to a lesser priced unit.
Again, thank you!1 -
THANK YOU! I need to pull up that report this will help!AnitaJohnson1269 said:I negotiate rate on an individual basis. If the tenant has a permanent discount, it will "fall off" after the rate increase. You can always change the rate to reflect the discount amount, or if it is set up to add in the payment screen you can edit charges and re-add the discount again. Under the manager report click on "Discounts" and it will give you a list of "non-expiring" tenants to check against your pending rate increases and change as needed. Company>Edit Rent0
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