To raise rent on existing storage tenants, compare each tenant's rate with your current street rate, pick a modest increase, send written notice the way your lease and state require, and roll the increases out in batches so you can watch move-outs. Most storage tenants are month-to-month, which usually lets you change the rate with notice, but check your lease and your state first.
Notice rules are legal matters. This guide is general information, not legal advice. Review your lease and notice wording with an attorney.
Why existing tenants fall behind the market
New tenants pay today's street rate. A tenant who moved in three years ago may still pay the rate from that day. If you never raise rent, your oldest tenants become your cheapest, and your new rentals subsidize nobody. A planned existing customer rate increase, called ECRI, brings them closer to the market in small steps.
Worked example (illustrative)
Say you have 120 units at an average of $95, and 100 are rented. Your current street rate for a 10x10 is $115, but 30 of your 10x10 tenants pay $95.
- Raise each of those 30 by $8 a month. That adds 30 x $8 = $240 a month, or $2,880 a year.
- Say 3 of the 30 leave because of the increase. Each leaves a unit that you can re-rent at $115. If it sits empty for two months, you lose about $95 x 2 = $190 per unit, or $570 for the three, then regain $20 per unit per month after re-renting.
- Net in the first year: $2,880 minus the lost rent on three units, less whatever the three units earn after they re-rent. You usually come out ahead, but not always, which is why you test with a small batch.
These numbers are made up. Plug in yours with the rent increase calculator.
Step 1: Check your lease and your state
Before anything else, read your lease. Look for:
- Is the tenancy month-to-month?
- Does it say you may change rent with written notice? How many days?
- How may you give notice (mail, email, posting)?
- Does it let you give notice with the bill?
Some states have rules on notice length or rent changes for storage. Many say little and leave it to the lease. Email notice may require that your lease specifically allow it. The Texas lien statute is a clear example of this idea for lien notices: email counts only if the rental agreement permits it in underlined or bold print (Tex. Prop. Code 59.043). Rent increase notices are a different matter than lien notices, so ask your attorney what your state requires for yours.
If your lease does not allow rent changes with notice, fix the lease for new tenants first. See writing a good self storage lease.
Step 2: Find who is below market
Pull your rent roll, which lists every unit, tenant and rate. Sort by unit size, then by rate. Compare each rate to your current street rate.
Make a table like this:
| Unit size | Street rate | Tenants below street | Average gap |
|---|---|---|---|
| 5x5 | $55 | 12 | $5 |
| 10x10 | $115 | 30 | $20 |
| 10x20 | $175 | 8 | $15 |
Your own table will differ. A report like the one in Stitch reports makes this faster, and a spreadsheet works too.
Step 3: Decide how much
You have two ways to set the amount.
- Flat dollar. Add $5 or $8 to everyone below market. Easy to explain.
- Percent with a cap. Add a set percent, but never more than a set dollar amount, and never above the street rate.
Rules of thumb that owners use: keep any single increase modest, do not go past the street rate, and give bigger steps to those furthest below. There is no sourced standard, so test small and measure. A tenant who sees a $5 change is less likely to leave than one who sees $30.
Skip these tenants for now:
- Tenants who are late or in the lien process
- Tenants who moved in within the last few months
- Tenants who have just had an unresolved complaint
Step 4: Pick a rhythm
Choose one schedule and keep it. Options:
- Twice a year in batches. For example, tenants with move-in dates in January to June go in one batch, July to December in another.
- On the anniversary of move-in. Each tenant gets an increase at their one-year mark. Smooth workload, but needs software to track.
- Once a year for everyone. Simple, but all notices land at once.
Spread the work out so you can see the effect. Never raise rent so often that tenants feel squeezed.
Step 5: Send the notice
Your notice should be short and plain. Include:
- Tenant name and unit number
- Current rent and new rent
- The date the new rent starts
- A way to ask questions
- Your lease section that allows the change
Sample wording (have your attorney review before you use it):
Your monthly rent for Unit 24 at [Facility Name] will change from $95.00 to $103.00 starting [date]. This notice is given under section [x] of your rental agreement. If you have questions, call [phone] or reply to this email. Thank you for being a tenant.
The rent increase letter template has fuller wording. Keep a copy of every notice and note how and when it was sent.
Step 6: Give them a reason to stay
Tenants don't mind a small increase if the facility looks cared for. Before you send notices:
- Fix lights, doors and signs.
- Reply to messages quickly.
- Offer to move a tenant to a smaller unit if the bigger one no longer fits their need.
Do not offer discounts to everyone who complains, or the increase disappears. If you do give one, write it down and set an end date.
Step 7: Watch the results for 60 days
Create a simple tracking sheet.
| Item | Before | After 30 days | After 60 days |
|---|---|---|---|
| Tenants noticed | 30 | ||
| Move-outs from this batch | 0 | ||
| Calls and complaints | 0 | ||
| New monthly rent added | $0 | ||
| Vacant units |
If move-outs are low, increase the next batch a bit. If they are high, shrink it or hold. The point is to learn your market, not to apply a formula.
How increases connect to pricing
Existing tenants and new tenants are two halves of the same pricing plan. If your street rates climb, your older tenants are further below. If you cut street rates for a special, you may find that an increase on existing tenants makes them feel the new customers get a better deal. Read self storage pricing strategy and self storage move-in specials together with this guide.
When not to raise rent
- A new facility still in lease-up where occupancy is low
- A tenant with an open dispute
- A time of obvious local hardship, such as a plant closing in a small town, where move-outs would spike
In these cases, wait, or use smaller steps.
Common mistakes
- One big jump. Several small increases cost fewer move-outs.
- No notice in writing. A verbal note is hard to prove.
- Raising rent above street rate. Tenants can find a new unit down the road.
- Doing it all in one month. Batches let you see what happens.
- Forgetting autopay amounts. If a tenant is on autopay, make sure the new amount is set up, and tell them the new charge before it hits their card.
- Forgetting taxes. Your CPA handles the tax side of extra income.
Checklist
- Read lease notice terms
- Ask attorney about state notice rules
- Pull rent roll and street rates
- List tenants below market
- Pick amount and batch size
- Send written notices and keep copies
- Update autopay amounts
- Track move-outs for 60 days
This page is general information, not legal or tax advice. Review your lease, notice wording and state rules with an attorney.