Has anyone actually renegotiated a monthly rate mid-contract when demand spiked, and what happened to the relationship
I have 18 monthly contracts on a 34-space lot adjacent to a medical office corridor in Scottsdale, not the STR property, a separate surface lot I picked up in 2022. Rates were set at $95/month when I locked those contracts. The two urgent care clinics that anchor the block both expanded in late 2023, staff headcount went up, and I started turning away monthly inquiries every few weeks.
I floated a renewal notice in January with new rates at $140, which is still $20 below what the daily transient math supports if you annualize it. Eleven of eighteen renewed without a word. Four pushed back, said they'd find street parking, and two of those came back within three weeks. The two who left actually left, and I filled both spots within ten days at $140.
What I did not expect was the hostility from two of the eleven who accepted. One office manager emailed me to say she felt "blindsided" even though the contract had a 60-day renewal notice clause she'd signed. The relationship is functional but visibly colder. That matters more than I thought it would because she controls whether her clinic recommends my lot to new hires.
So the revenue moved the direction I wanted. I went from $20,520 annually on those 18 spaces to something closer to $28,000 with the full complement filled. But I am now wondering whether I should have phased the increase over two renewals instead of doing it in one jump, and whether the goodwill cost shows up somewhere I have not measured yet.