It is a common belief that the higher your occupation rate, the better (unless you are bargain shopping :banana: )
97% occupied means more money in your pocket than 90% occupied, right?
Not necessarily.
The numbers below are based on self - storage. The column on the left shows a "base price" that will yield the average occupancy rate for our area. The column on the right shows a 10% increase in rent - and a lower occupancy rate. Look what happens to the bottom line.
97% occupied means more money in your pocket than 90% occupied, right?
Not necessarily.
The numbers below are based on self - storage. The column on the left shows a "base price" that will yield the average occupancy rate for our area. The column on the right shows a 10% increase in rent - and a lower occupancy rate. Look what happens to the bottom line.
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