Components of Revenue Optimization for Self Storage

1. Components of
Revenue
Optimization for
Self
Storage

2. Components of
Revenue
Optimization for
Self
Storage
TRAINING

3. Components of
Revenue
Optimization for
Self
Storage
TRAINING
By Monty Rainey

4. COMPONENTS
“A good engineer thinks in reverse and asks himself about the consequences
of the components and systems he proposes.” ~ Helmut Jahn

5. Gross Income
- Expenses
= Net Income

7.  Occupancy

8.  Rate Management

9.  Rent Increases

10.  Occupancy
 Rate Management
 Rent Increases

11. OCCUPANCY
 Think of spaces sizes and types as products on a shelf.

12. OCCUPANCY
 Think of spaces sizes and types as products on a shelf.
 Optimum occupancy may vary according to space mix.

13. OCCUPANCY
 Think of spaces sizes and types as products on a shelf.
 Optimum occupancy may vary according to space mix.
 Rent rates and increases must be adjusted based on
occupancy.

14. Rate Management
 As market conditions change – rates must change.

15. Rate Management
 As market conditions change – rates must change.
 Demand and capture + plus availability = the formula
for rate management.

16. Rate Management
 As market conditions change – rates must change.
 Demand and capture rate + availability = the formula
for rate management.
 Use pricing psychology when setting prices.

17. Rate Management
Size Total Available Occupancy Rate Comp 1 Comp 2 Comp 3 Comp 4
5x5 20 2 90% $32 $25 $30 $35 $40

18. Rate Management
Size Total Available Occupancy Rate Comp 1 Comp 2 Comp 3 Comp 4
5x5 20 2 90% $32 $25 $30 $35 $40
Priced too low. With only 2 spaces available and mid-range of the market, it’s
time to raise these rates.

19. Rate Management
Size Total Available Occupancy Rate Comp 1 Comp 2 Comp 3 Comp 4
10x10 60 1 93% $129 $132 $110 $92 $105

20. Rate Management
Size Total Available Occupancy Rate Comp 1 Comp 2 Comp 3 Comp 4
10x10 60 1 93% $129 $132 $110 $92 $105
You’re already on the high end of market range, but with only one available
space you may want to consider trying to push the market higher.

21. Rate Management
Size Total Available Occupancy Rate Comp 1 Comp 2 Comp 3 Comp 4
10x10 80 16 80% $104 $110 $113 $112 $104

22. Rate Management
Size Total Available Occupancy Rate Comp 1 Comp 2 Comp 3 Comp 4
10x10 80 16 80% $104 $110 $113 $112 $104
With so many spaces available gaining market share is key.
Low revenue is far better than no revenue.

23. Rate Management
Size Total Available Occupancy Rate Comp 1 Comp 2 Comp 3 Comp 4
5x10 100 50 50% $51 $45 $50 $55 $60

24. Rate Management
Size Total Available Occupancy Rate Comp 1 Comp 2 Comp 3 Comp 4
5x10 100 50 50% $51 $45 $50 $55 $60
Even though you are mid-market range, consider lowering even further
if you are not capturing close to 100% of opportunities.
With so many spaces available, you can’t afford to miss rentals.

25. Rent Increases
 Have no fear. The increase in the number of customers
that vacate after a rent increase compared to
customers that did not is minimal.

26. Rent Increases
 Have no fear. The increase in the number of customers
that vacate after a rent increase compared to
customers that did not is minimal.
 Avoid excessive increases – try to keep increases below
10%. 3 – 5% is optimal.

27. Rent Increases
 Have no fear. The increase in the number of customers
that vacate after a rent increase compared to
customers that did not is minimal.
 Avoid excessive increases – try to keep increases below
10%. 3 – 5% is optimal.
 If space type occupancy is low, don’t increase. Think
twice before increasing any space type that is below
80% occupancy.

28. Rent Increases
 Have no fear. The increase in the number of customers
that vacate after a rent increase compared to
customers that did not is minimal.
 Avoid excessive increases – try to keep increases below
10%. 3 – 5% is optimal.
 If space type occupancy is low, don’t increase. Think
twice before increasing any space type that is below
80% occupancy.
 Don’t raise rent on new customers. You’re trying to
turn them into long-term customers.

29. Rent Increases
 Have no fear. The increase in the number of customers that
vacate after a rent increase compared to customers that did
not is minimal.
 Avoid excessive increases – try to keep increases below 10%.
3 – 5% is optimal.
 If space type occupancy is low, don’t increase. Think twice
before increasing any space type that is below 80%
occupancy.
 Don’t raise rent on new customers. You’re trying to turn
them into long-term customers.
 Rent increases can also be used to ease the burden of
problem customers.

30. Components of
Revenue
Optimization for
Self
Storage
TRAINING
By Monty Rainey