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Yield Management is a
hot topic in many industries. Airlines and hotels raise their rates as
their supply diminishes. That's why an airline ticket bought months in
advance is cheaper than one bought the day before the
flight. Self-storage
facilities can do the same thing. NX.gen's Flex Rent option
provides automatic rate management for new rentals, according to your
occupancy levels and the time of year. The rates go up if you have fewer
vacancies in that size and go down again if vacancies increase. Or, you
can just allow temporary discounts when you have a lot of vacancies
instead of reducing the rent. But, in self-storage,
it's just as important to manage rent raises for your existing customers
as they represent the bulk of your income. That's why NX.gen offers
dual rate management, one for new rentals and another for existing
customers. Automatic rent
raises avoid many of the problems of scheduling rent raises. Do you
raise rents when the weather is bad so renters won't be inclined to move
their stuff out? Or do you do it in the summer when you're likely to
re-rent any vacated spaces? Because any time you do an across-the- board
rent raise, you're likely to lose some customers who don't want to pay the
higher rate. And, even though you
want to raise rates one year after move-in or after the last rent raise,
that 12 months can stretch to 15 or more months if you only raise rents
once a year. Because you don't want to raise the rent of someone who just
moved in a couple of months ago. And, by the time another rent raise
occurs, it's been more than a year. The lost income adds
up. NX.gen's
Automatic Rent Raise will let you raise each renter one year after their
move-in and each year after that. Since you will only be raising 1/12th of
your customers each month, you won't get mass move-outs. And renters will
get rent raises exactly one year after move-in and every year thereafter,
automatically. Are you in a
competitive market? Some of our users who are use the Automatic Rent Raise
to keep their move-in rates low. They schedule the first raise after
move-in to be at six months and at 3%. Then the rext rent raise is one
year after that. Some companies schedule the first rent raise to be after
three months. You choose the time periods and percentages yourself, of
course. This increases your
income by allowing you to attract more new renters with lower move-in
rates while increasing your income from these rentals after a few months.
Given that most tenants stay around 8 months, you'll be well ahead of the
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Hope you enjoyed your summer. We got so relaxed that we missed one edition of our newsletter. But it's back to work now that fall is here.
![]() Ramona Taylor Space Control Systems, Inc. email: rtaylor@spacecontrol.com
phone: 1-800-455-9055
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