Manager's Corner

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  • 1.  Lease Fees

    Posted 06-21-2022 08:05 PM
    I am setting up the fees for our lease. This is our first storage facility, and I was wondering if there are standard rates for fees that we should follow, or if it is just personal preference on how much you want each fee to be.

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    Amanda McGowen
    Cisco Storage, LLC
    Cisco TX
    (318) 564-5240
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  • 2.  RE: Lease Fees

    Posted 06-22-2022 12:37 PM
    Edited by Ginny Sutton 06-22-2022 12:45 PM

    The fees are not standardized and vary by members' personal preferences and what is typical for the particular market. We can't really have members comparing rents and other fees because of federal laws regarding anti-trust, price fixing and collusion, but you could certainly check around with other members in your area in a friendly call to see what they are charging to justify what is "customary" and "typical." Just don't collude or fix prices for rental amounts.

    At the end of the day, you should charge what you can justify, in terms of covering your own costs and labor and then keep an eye on things that customers comment on or balk at. Many members charge less on the administrative type of things and much more for things like the newspaper ad and cost of sending out claim notices to encourage tenants to avoid those higher fees. And, because there are higher costs involved.

    Some fees are easier, like NSF check fees, since you'll want to cover what your bank charges. There is no limit for the amount banks can charge for NSF fees for banks in Texas but they tend to run in the $25-$30 range.

    A little research to find fees that fit your business model and practices is time well spent.

    And I almost forgot to make this statement: Remember, you can only charge tenants for the the things you've contractually agreed upon, so it is always better to specify a fee and then waive it in certain cases than to have nothing listed and try to collect it after the contract is executed.



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    Ginny Sutton
    Executive Director
    Texas Self Storage Association, Inc.
    Round Rock TX
    (512) 374-9089
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