How Much Can Storage Units Increase Rent? A Military Tenant’s Guide

Storage unit rental rates aren’t static because of various factors. The higher the demand for self-storage units, the more expensive the rent is. If the storage unit is in the city center, it’d be more costly than one in a rural area. The price of ensuring the storage facility is safe and well-maintained can also drive prices.

Military personnel are no strangers to the self-storage industry. Many service members often turn to a nearby self-storage facility to keep their personal belongings while they’re deployed elsewhere. However, rising storage unit rent can make it challenging for them to manage expenses.

That’s why we’re providing an overview of laws governing rent increases in self-storage facilities. We’ll discuss the parameters around rent spikes throughout the country.

The Legalities of Storage Units Rent

The limit on how much a storage facility can increase its rent prices depends on the state. Select states allow a maximum of five to ten percent increase, while others specify a percentage or an amount, like USD10 or ten percent maximum, whichever is greater.

Some states prohibit rent increases during a State of Emergency. This is why tenants should be vigilant if the state where their storage unit is located is in a State of Emergency or not. It would be wise to check the Self-Storage Association website to confirm the state laws regarding storage units.

Why Storage Facilities Raise Rent

Several factors influence why a self-storage company would increase its prices. These include the following:

Supply and Demand

The economic law of supply and demand plays a huge role in the rising costs of storage units. The main principle is that when more people need units versus the units available, the rent cost goes up. Simultaneously, if the unit is in a state with a surplus of storage units, the rent increases would be modest.

Insurance Premiums

The insurance premiums, as stated in the rental agreement, also play a key role in price hikes. Storage companies usually offer optional insurance coverage plans to protect one’s personal property from damages due to theft, fires, and other emergencies. When these premiums rise, current customers can also expect a slight rent increase.

Location

Location plays a key role in rent increases. In general, facilities located in high-density urban cities or areas with a burgeoning population often have more expensive rent increases because of the demand. Conversely, storage units in rural towns may see minimal increases since lower demand doesn’t justify higher prices.

Upgrade and Maintenance

Let’s say a storage unit undergoes a significant renovation or is upgraded to offer premium services, like 24-hour access to the facility or enhanced security features. The company would be in a better position to justify rent hikes. Meanwhile, older facilities with minimal maintenance can’t explain a vast maintenance-related increase.

Economic Factors

A self-storage company is just like any other business, and its operational costs can increase or decrease due to different economic factors. Inflation hikes lead to more expensive operations expenses, which may prompt rent increases.

Meanwhile, rising property taxes and utility costs can lead to higher operational costs. These costs are often passed to renters.

How to Deal with Storage Unit Price Increases

Rising storage unit rents can be a burden for anyone, including military tenants. Here are some strategies to help manage these price increases effectively:

Avoid Peak Season

When you sign a lease agreement can impact the increasing rent you might have to deal with. For example, rent usually goes up during summer. The same unit would cost less if one signs the contract in winter.

Check for Military Discounts

Select storage companies, like Public Storage, offer military discounts and flexible terms to active duty service members. This is a storage company’s prerogative, meaning the law doesn’t mandate preferential rates or terms to active duty members. Select companies extend military discounts to the military tenant’s spouse.

Compare Suppliers

If you’re looking for a new storage unit for personal property, it would not be wise to choose the first self-storage facility you find. You should look for different suppliers in your city or area. Check out their payment structures and services and determine the best deal. Some companies might offer premium features for the same price as other units.

Negotiate Lease Terms

You should think twice before signing a rental agreement right off the bat. If you can do so, you should negotiate for more feasible lease terms. This option is usually possible for those open to long-term commitment.

How the SCRA Protects Military Tenants Against Rent Increase

Fortunately, the Servicemembers Civil Relief Act (SCRA) provides military tenants some leeway to manage their storage unit expenses. The storage company can’t evict an active-duty military member even if the tenant fails to pay rent on time. The eviction can only commence once the company gets a court order. Even if the military tenant can’t make storage unit rent due to increases, they can’t be kicked out so easily.

Moreover, the company can’t enforce a lien while that person is on active duty. This particular SCRA protection applies during one’s active duty service and 90 days after leaving the military.

While SCRA violations won’t warrant jail time for offenders, the fees can be steep. The SCRA permits penalties of up to $55,000 for the first offense and $110,000 for future violations. That’s why confirming if a person is covered by the SCRA is vital for storage companies.

However, the storage company can request the military tenant sign an SCRA waiver, which certifies that they forfeit their SCRA rights. Service members aren’t required to sign this waiver, but if the tenant did sign one, they forfeit their SCRA rights.

Conclusion

Several factors can influence how much and often storage facilities can increase tenant rent. For military tenants, maximizing their benefits, including SCRA rights, can play a huge role in managing storage unit rent. That’s why confirming one’s SCRA eligibility is a must. SCRACVS can help you prove that you’re eligible for SCRA protections. Click here to sign up at SCRAVS and verify the active duty status.

FAQs

How much is storage in the USA?

The cost depends on various factors, including location, unit size, season, and available amenities. The average rental fee of a storage unit in the US ranges from $55 to $288 a month.

What is the maximum rent increase allowed for storage units?

It would depend on the state where the storage unit is located. In general, the maximum percentage a self-storage company can increase is 10%.

Are storage units more expensive for short-term or long-term rentals?

Short-term rentals typically cost more per day, while extended stays benefit from notably substantial discounts. The longer you rent a unit, the higher the discount the company offers tenants.

How often do storage units increase rent?

A storage company often adjusts its rent annually. However, some companies mandate price hikes every six to nine months.