Using Promotions to Attract and Retain Tenants

Promotions are a great way to incentivize potential tenants to rent from you and not the facility down the road. In fact, around 80% of storage tenants rent their unit with a promotion or discount. However, selecting which promotions you want to invest in can be just as tricky as deciding when and how long to run them. With careful planning and a solid understanding of market fluctuations, your promotions can help you not only attract but also retain your tenants.

 

Most Common Promotions

Before we dive into the most opportune times to run promotions, let’s take a look at the most common promotions redeemed by storage customers:

• 39% - Free Month(s) of Storage
• 29% - Cash Discount
• 17% - Percentage Discount
• 15% - Other

While it might be tempting to run promotions based on commonality, doing so could actually have the opposite effect intended, resulting in missed opportunities for both revenue and occupancy. Strategically timing your promotions with seasonal trends is the best way to optimize on both your revenue and occupancy potential.

Seasonal Occupancy Trends

When it comes to scheduling promotions, having a “set it and forget it” mentality can be detrimental to your business. Just as rental rates fluctuate with supply and demand, so should your promotions.

 

On average, demand for storage is highest in May and remains high throughout the summer. As a result, this is when average unit prices are also the highest. Therefore, a promotion that discounts the rental rate of the unit can be an attractive offer to a prospective tenant in summer. But, keep in mind that tenants who rent over summer also tend to stay for shorter periods of time (3 months on average).

 

As demand drops from fall through winter, so do rental rates. However, on average, tenants who rent storage in the fall and winter months also tend to stay longer. Therefore, a shorter term promotion to get them in the door may be the best way to go.

 

Promotion Marketability

Don’t forget, your promotions need to be promoted too! This means making sure they are both easy to find and easy to understand. In addition to advertising your promotions on your own website, consider leveraging third party advertisers to optimize your visibility to prospective tenants. Likewise, ensure that your promotions are clear and inclusive of any terms or conditions.  

 

Article Contributions by: Brett Billick - Chief Marketing Officer at SpareFoot

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