Let's talk about self storage.

communities_1.jpg
 View Only

  • 1.  New Trends- Tenants staying for only a few weeks?

    Posted 06-28-2023 12:11 PM

    Recently we have been running lease up specials and we are noticing that tenants are taking advantage of the specials and then scooting out before the first full month's rent is due.  This is the first time I have seen that trend at such a high scale.

    Does anyone have ideas to overcome this?  We have tried to charge for the first full month and the special at the same time, so that they are paid up for two months.  Does anyone else have other solutions?  These guys are like ants- in and out and in and out.  Seems like a poor use of time and resources.  We've also been watching them like hawks to make sure they aren't partaking of other tenant's units.  ;-)



    ------------------------------
    Megan Baker
    T-5 Investments
    ------------------------------


  • 2.  RE: New Trends- Tenants staying for only a few weeks?

    Posted 06-28-2023 02:23 PM
    Megan,
    My suggestion is make sure you have a current market survey and evaluate the effective rate on each unit size, after factoring in any specials. If your market is super price sensitive then lower your rental rates enough to compete without offering specials. As you lease up on each type of unit, then raise rents on both occupied and vacant units of that unit type.
    Good luck,



    Original Message


  • 3.  RE: New Trends- Tenants staying for only a few weeks?

    Posted 06-28-2023 04:01 PM

    Hi Megan,

    I have not been in lease up for many years so the way I do things may be old and outdated. But I try to never let anyone on the property for less than one month's rent. If they can't pay that up front, it is not likely they will be able to pay it later and that is not a hassle I want. I am first of the month, so we charge the pro-rated portion up front as well. When occupancy slides and I decide to run a special, it is Full 2nd Month Free. They still have to pay the proration and first month upon move in. Helps keep the delinquency numbers lower.  Mike's advice of temporarily lowering your rates is something I would do too if everyone around me was much lower. 



    ------------------------------
    JoLea Conn
    OnSite Manager
    ALL*STAR STORAGE
    Richmond TX
    (281) 341-7867
    ------------------------------

    Original Message