A simple self storage pricing strategy has four moves: survey nearby competitors, set a street rate for each unit size, adjust each size up when it is nearly full and down when it sits empty, and raise rent on long-term tenants in small steps. You can run it with a phone, a spreadsheet and one hour a month.
What you are trying to do
Price is a tool for two things: filling units and earning more from the units that fill. Too high and units sit empty. Too low and you give away rent every month for years. The goal is the highest rate at which a size still rents in a reasonable time.
Two terms to know:
- Street rate: the standard price you advertise for a unit.
- Web rate: the price shown online. Some owners set it a little lower than street rate to win online renters. Many small owners use one price for both, which is simpler.
Step 1: Survey your market
Do this once, then update every quarter.
- List the facilities within a reasonable drive of your site.
- For each size you offer (5x5, 5x10, 10x10, 10x15, 10x20, 10x30), write down their posted rate and note whether the unit is drive-up, interior or climate controlled.
- Call as a customer. Ask what is available and whether there are discounts. Posted prices online can be old.
- Note condition: lights, paint, gates, cameras, and how full they look.
Put it in a table.
| Size | You | Competitor A | Competitor B | Competitor C |
|---|---|---|---|---|
| 5x10 | $65 | $60 | $70 | $62 |
| 10x10 | $95 | $90 | $110 | $100 |
| 10x20 | $150 | $155 | $170 | $140 |
Numbers above are examples only. Fill in your own.
If you are not sure about sizes, read the unit sizes guide.
Step 2: Set a starting rate for each size
Start near the middle of what comparable facilities charge. Then adjust for what makes you different:
| Your facility has | Lean |
|---|---|
| Newer doors, good lighting, cameras, gate | Higher |
| Drive-up access, when others are interior | Higher |
| Climate control, when others have none | Higher for those units |
| Older buildings, no cameras | Lower |
| Longer drive from town | Lower |
| Online rentals and a good website when others lack them | Neutral to higher |
You do not need to be the cheapest. Many renters care more about a clean, safe, close unit and how easy it is to rent than about a few dollars.
Step 3: Adjust by occupancy
For each size, look at how many units are rented. Then follow a simple rule set that you write down.
| Occupancy of that size | Action |
|---|---|
| Below 70 percent | Hold or lower a little; look at photos, listing and marketing |
| 70 to 90 percent | Hold |
| Above 90 percent | Raise the rate for new rentals |
| 100 percent with a waitlist | Raise the rate more and consider adding units |
These thresholds are a starting suggestion, not an industry standard. Change them to suit your market. The point is to have a rule so you decide once.
Worked example (illustrative)
Say you have 20 units of 10x10 at $95. Eighteen are rented, so occupancy for the size is 90 percent. A competitor charges $110 and is full. You raise the new-tenant rate to $100.
- If a 10x10 rents next month, you earn $5 more per month on that unit, or $60 a year.
- If you rent 6 of them over the next year at $100 instead of $95, you add 6 x $5 x 12 = $360 a year in the first year at full run rate.
That is small per unit. Over 120 units and many years, it adds up, and it all comes from small, steady moves.
Use the revenue and occupancy calculator to test changes before you make them.
Step 4: Know the difference between physical and economic occupancy
Physical occupancy counts rented units. Economic occupancy compares rent actually collected to what you would collect if every unit rented at the street rate. A facility can be 95 percent full and still have low economic occupancy if many tenants pay far below the street rate, or if discounts are deep.
Say you have 100 units with a street rate of $100. Ninety-five are rented, with an average of $85 collected. You collect 95 x $85 = $8,075. If all 100 rented at $100, you would collect $10,000. Economic occupancy is 8,075 / 10,000 = 80.75 percent. The gap is the room to improve: new rates, rate increases on old tenants, and fewer free months.
Step 5: Use discounts with care
A discount costs you rent, so treat it like spending. Ask three questions:
- How much does one empty month cost me? (One month of rent, plus the chance the unit stays empty longer.)
- How much does the discount cost? (A first month at half price costs half a month.)
- Will it bring someone I would not have gotten?
Compare:
| Offer | Cost per rental (on a $95 unit) |
|---|---|
| First month free | $95 |
| Half off first month | $47.50 |
| $1 first month | $94 |
| No discount | $0 |
Keep offers short, tied to a date, and limited to sizes you want to fill. Avoid offers that run all year, because tenants learn to wait. See move-in specials and the move-in special glossary entry.
Step 6: Handle your existing tenants
New-rental pricing is only half of it. Long-term tenants often pay less than today's street rate. Raise their rent in small steps, in batches, with proper notice. The full process is in how to raise rent on existing storage tenants, and the rent increase calculator shows the effect.
Step 7: Keep the website and the phone in sync
If you change a rate, change it everywhere on the same day: your website, your Google listing and any other listing. A price mismatch sends a renter to the next facility. Online rentals show current rates and availability on your facility page, so the web price stays correct as long as you update your units.
A monthly pricing review
Set aside an hour on the first of the month.
- Open your occupancy by unit size.
- List sizes above 90 percent and below 70 percent.
- Check one or two competitors for changes.
- Change the rates you decided to change.
- Write down what you changed and why in a notebook.
- Note the date to check the effect (30 days later).
When to change the plan
- A new competitor opens nearby
- A big local employer opens or closes
- A season shifts demand. See seasonal demand in self storage
- Your photos, signs or website changed
- You added climate control or a new building
Mistakes
- Racing to the bottom. The cheapest unit in town attracts the most price-sensitive renters.
- Never raising rates. Costs go up every year.
- Changing too often. You will not know what worked.
- Hiding the price. Renters leave if they cannot see a number.
- Ignoring fees. Admin fees and lock sales are part of what a tenant pays. If you charge them, show them.
The Self Storage Association offers research and education for owners who want to go deeper on pricing and revenue. For most small facilities, the monthly routine above is enough.