This article is an excerpt from our guide 5 Revenue Management Strategies for Independent Operators. Download the guide to get the other tactics and start increasing your revenue.
Revenue management in self storage isn’t just about filling units. It’s about making sure every square foot is generating the maximum return for your business.
Without a revenue management strategy in place, even properties with 90% occupancy can underperform at a net operating income (NOI) level.
One of the most effective — and often misunderstood — levers you can pull is Existing Customer Rate Increases (ECRI).
If your occupancy is stabilized and you’re not raising rents for current tenants, you’re leaving money on the table. But it’s not as simple as pushing prices up across the board.
Done wrong, self storage ECRI can damage your occupancy, erode customer trust, and ultimately cost you more in lost revenue than you gain. Done right, this tactic is a steady, predictable way to grow (NOI) and strengthen your facility’s long-term performance.
In this article, we’ll walk through
>why independent operators should approach ECRI differently than the REITs,
>the risks of mismanaging your program
>the three principles we use at White Label Storage to implement ECRI successfully across more than 200 facilities nationwide.
Let’s start with the basics: acquiring new customers costs more than keeping the ones you already have. When you maintain the same rates for years on end, tenants may stay, but your returns stagnate.
Over time, inflation and rising operating costs eat away at margins.
As the name suggests, ECRI is a framework for steadily increasing rents on existing customers. It’s a core part of revenue management because it improves your income from each customer without providing new services.
ECRI works because the psychology of tenants changes once they’ve been in place for an extended period of time. People enter a loss aversion mindset, where they will accept new pricing to keep what they have, i.e., the storage unit they’ve come to rely on.
A well-designed ECRI program makes sure you’re not underpricing your units while still protecting occupancy. Even if some customers leave after an increase, the additional revenue from those who stay almost always offsets the churn. The key is finding the right balance.
Our CEO Peter Smyth breaks down how to launch your first ECRI program:
The major self storage REITs are known for aggressive rate-increase strategies. They’ll advertise units at artificially low move-in rates to capture demand, then raise rents sharply just a few months later.
For these institutional operators, the math works. Even if a significant number of tenants leave, REITs can absorb the loss because they operate at enormous scale. They target markets with plentiful demand, and spend a small fortune on advertising to ensure a constant stream of new customers.
Independent operators don’t have that luxury. If you’re running a facility in a secondary or tertiary market, an aggressive REIT-style approach can backfire badly:
For independents, the goal isn’t to maximize short-term revenue at all costs. It’s to steadily grow NOI while protecting occupancy and keeping customer satisfaction high.
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Here’s the truth: you can’t run an ECRI program without some churn. And that’s okay — to a point. What matters is that the revenue you gain from increases outweighs what you lose from customers leaving.
At White Label Storage, we’ve tested ECRI strategies across a diverse portfolio of facilities, urban and rural, stabilized and lease-up, large and small. What we’ve learned is that patience and moderation win.
Here are three simple rules that we use as best practices for increasing tenant rates:
Customers who are newer to your facility are still price-sensitive. Raise their rent too soon, and they’ll move out quickly. But tenants who have been with you for 9+ months are less likely to churn. They’ve settled in, and the hassle of moving is often greater than the added cost.
It may sound obvious, but pushing too hard is a fast way to lose tenants. Even if market rates justify a bigger jump, cap increases at 50% or less. The majority of your tenants will absorb that change without uprooting their belongings, and your long-term revenue (and customer satisfaction) will be stronger as a result.
ECRI isn’t just a math problem; it’s a customer service moment. Some tenants will push back. Train your staff to negotiate, offer middle-ground solutions, or provide short-term discounts.
You need to control churn, so if move-outs start to spiral, start prioritizing keeping customers, if even at a slightly reduced increase.
Effective ECRI programs aren’t about avoiding churn — they’re about managing it. By applying increases strategically, you’ll see some turnover, but the added revenue from tenants who stay almost always outpaces the loss.
And in many cases, churn can actually be a good thing. 100% occupancy isn’t actually ideal.
When long-term tenants move out, it opens inventory you can rent at higher street rates. That turnover gives you a chance to reset pricing, often bringing in even more revenue than before.
Of course, no two markets are the same. Tenants in a suburban facility may respond very differently to an increase than tenants in a dense urban environment. The three rules we use are a starting point, not a one-size-fits-all formula.
The key is to monitor performance. Track occupancy trends, churn rates, and revenue growth before and after each increase. Over time, you’ll find the sweet spot for your facility.
ECRI is one of the most reliable ways to increase revenue at your self storage facility. But for independent operators, success depends on restraint and strategy. Avoid the aggressive tactics used by REITs, focus on patience and moderation, and treat rate increases as part of your long-term customer relationship.
At White Label Storage, following these three principles (waiting 9 months, capping increases at 50%, and staying flexible with tenants) has consistently produced positive results across hundreds of facilities. The outcome? Higher NOI, stronger occupancy, and healthier customer relationships.
Ready to make your self storage property more profitable? Request a free demo and learn how our third party management services can unlock new revenue for your facility.
