Self-storage investing isn’t just about occupancy or square footage—it’s about revenue strategy. At Dahn Corporation, we know that long-term performance depends on how well you balance market rates, tenant retention, and vacancy. Done right, revenue management becomes a powerful tool for unlocking sustained returns.
Revenue Management 101: The Three Levers That Matter Most
Successful self-storage investments are powered by a constant balancing act across three core areas:
1. Advertised Rental Rates: Real-Time Market Signals
Advertised rates are the prices listed publicly on a facility’s website or third-party platforms. They represent your frontline pricing strategy—what new tenants see first. But they’re far from static.
We adjust advertised rates frequently, using dynamic pricing models that reflect local market trends, seasonal demand, and occupancy goals. Much like hotels or airlines, self-storage pricing benefits from agility—raising rates when demand is strong, and staying competitive when needed.
2. Existing Tenant Rates: The Hidden Revenue Driver
Many operators miss the mark by failing to optimize current tenant rates. While introductory discounts help attract new renters, long-term profitability comes from regular, well-managed rent increases.
We follow a systematic approach to raising rates—typically annually or biannually—ensuring tenant pricing stays aligned with the broader market while accounting for inflation. When done with clear communication and timing, these adjustments help protect income without triggering high move-out rates.
3. Vacancy Rate: Not Always What It Seems
Vacancy is a lagging indicator—but an important one. Low vacancy generally signals strong demand and may support rent increases. But 100% occupancy isn’t necessarily optimal.
Our goal is typically 90–95% occupancy, which provides room to raise rates without over-relying on discounting. Being “full” might feel safe, but it could mean you’re undervaluing your units. True optimization lies in knowing when to trade a few empty units for stronger overall revenue.
Seasonality: Timing Matters in Self-Storage
Self-storage demand follows a predictable seasonal curve. The spring and summer months (March–August) see peak activity driven by:
- College student transitions
- Residential buying and selling
- Apartment turnover
- Military and job relocations
During this window, we raise advertised rates, limit concessions, and act more aggressively on rate increases. When the market softens in the fall and winter, we shift strategies—introducing short-term incentives or temporarily pausing rent increases to protect occupancy and cash flow.
How to Balance Rates and Vacancy Throughout the Year
There’s no one-size-fits-all strategy—it’s about adjusting to market conditions with discipline and data. Here’s how we approach each season:
In peak season, we:
- Raise advertised rates to match demand
- Increase rates for existing tenants more confidently
- Accept minor vacancies in exchange for stronger pricing
In off-season, we:
- Focus on tenant retention over aggressive rate increases
- Use limited-time promotions to fill gaps without diluting long-term value
- Monitor turnover risk more closely, knowing that replacing tenants is harder when demand dips
The key is being proactive, not reactive. At Dahn, we monitor metrics like occupancy by unit type, average rent per square foot, rent roll performance, and churn rates on a monthly basis. These insights drive our revenue decisions and help us stay ahead of market shifts.
Revenue Strategy Is the Real Engine
Self-storage is often viewed as simple—but optimizing performance over time takes discipline, data, and experience. With the right revenue strategy, operators can unlock meaningful returns, even in unpredictable markets.
Want to learn more about how Dahn Corporation approaches revenue optimization in self-storage? Schedule a call to talk or explore our investment opportunities online.
