One of the most common conversations I have with self storage operators goes something like this:

My answer is usually the same.

Over the years, I’ve reviewed dozens of self storage facilities across the UK, Canada and the United States. Time and again, I see operators spending enormous amounts of time focusing on attracting new customers while largely ignoring the customers they already have.

They monitor competitor pricing, run introductory promotions, invest in Google Ads and obsess over occupancy levels. Yet many haven’t reviewed existing customer rates for years.

The result is often a facility full of customers paying rents that no longer reflect market reality.

In some cases, I’ve found customers paying 30%, 40% or even 50% less than a new customer would pay for exactly the same unit today.

Occupancy may look healthy, but profitability is quietly being eroded.

The reality is that existing customer rate increases are one of the most powerful revenue management tools available to a self storage operator.

The Objective Is Profit, Not Occupancy

Many operators become emotionally attached to occupancy.

They reach 90%, 95% or even 100% occupancy and view it as a badge of honour.

While high occupancy is generally a positive sign, it should never be the primary objective.

The objective is profit.

A facility operating at 90% occupancy with customers paying market rents will often generate significantly more profit than a facility operating at 100% occupancy with customers paying outdated rates.

I once reviewed a facility that was virtually full. The owner was delighted with occupancy levels and saw little reason to change anything.

However, when we compared existing customer rates with current market rates, it became clear that a large proportion of customers were significantly underpaying.

When I suggested introducing rent increases, the response was predictable.

They didn’t.

A handful complained. A few moved out. Most stayed exactly where they were.

The increase generated tens of thousands of pounds of additional annual revenue with virtually no increase in operating costs.

Why Customers Are Less Price Sensitive Than You Think

One of the biggest misconceptions in self storage is that customers will move out at the first sign of a rent increase.

In reality, moving storage is inconvenient, time-consuming and often expensive.

Think about what is involved. A customer storing the contents of a three-bedroom house may need to:

• Hire a van.
• Take time off work.
• Pack and load their belongings.
• Find another facility.
• Complete new paperwork.
• Unload everything again.

All to save perhaps £10 or £15 per month.

For many customers, the hassle simply isn’t worth it.

I often compare storage to a gym membership. People complain about a modest increase on a storage unit they visit twice a year, yet happily continue paying for a gym membership they haven’t used since February.

That doesn’t mean operators should be aggressive or unreasonable. It simply means that customers are often far stickier than operators assume.

Understanding the Revenue Opportunity

Let’s look at a simple example.

A 7% increase across the customer base would generate an additional £4,200 per month.

That’s more than £50,000 per year.

When Should You Increase Existing Customer Rates?

There is no universal rule, but I strongly believe operators should have a structured programme rather than relying on occasional reviews.

A common framework is:

The exact timing should depend on factors such as:

• Occupancy levels.
• Unit availability.
• Local competition.
• Market rental growth.
• Inflation.
• Operating cost increases.

Facilities with high occupancy and limited availability generally have greater pricing power than facilities with significant vacancy.

Identify the Gap

Before implementing increases, it is important to understand how existing customer rates compare to current market rates.

I generally divide customers into three groups.

In many cases, I prefer a series of gradual increases rather than a single large adjustment.

If a customer is paying 30% below market rate, it is usually easier to implement several measured increases over time than attempt to recover the entire gap immediately.

Occupancy Should Influence Your Strategy

Occupancy should always influence pricing decisions.

If a facility is operating at 60% occupancy, aggressive rent increases may not be appropriate.

However, if occupancy exceeds 90% and availability is limited, every remaining unit becomes increasingly valuable.

At this point, operators should become more focused on revenue optimisation than occupancy growth.

This is where existing customer rate increases become particularly effective.

Communication Matters

How you communicate a rent increase is often more important than the increase itself.

I recommend:

• Providing adequate notice.
• Keeping the message concise.
• Clearly stating the new rate.
• Explaining the effective date.
• Maintaining a professional tone.

One mistake I see repeatedly is operators over-explaining the increase.

You don’t need a three-page letter justifying every decision.

A simple, professional communication is usually all that is required.

Don’t Negotiate Against Yourself

Another common mistake is immediately offering discounts when customers question an increase.

Most customers will simply accept the new rate. Some will ask questions. A few may threaten to leave. Only a small proportion will actually move out.

If every complaint results in a discount, the entire pricing strategy quickly loses credibility.

Remain professional, remain consistent and monitor the results.

Measure the Outcome

Every rate increase programme should be measured.

Track:

• Revenue growth.
• Customer move-outs.
• Occupancy levels.
• Complaint rates.
• Net operating income.

Over time, this data will help refine your strategy and identify the approach that works best within your market.

Final Thoughts

Over the years, I have found that many operators dramatically underestimate the value of their existing customer base.

New customers receive most of the attention because they are visible. Marketing campaigns, promotions and enquiry reports all focus on generating move-ins.

Yet the greatest revenue opportunity is often sitting quietly behind the roller doors.

A well-managed programme of regular rent reviews can generate substantial revenue growth with very little additional cost.

In many cases, it will have a greater impact on profitability than a significant increase in occupancy.

The key is to approach it strategically, communicate professionally and treat pricing as an ongoing discipline rather than a one-off decision.