First-month free promotions are everywhere in the self storage industry. From nation-wide storage companies to independent operators, facilities rely on this promotion strategy to fill units fast.
And for good reason—the words “first month free” catch attention, drive clicks, and get new customers in the door. In the short term, it works.
But is it really worth it in the long run? That’s where things get complicated.
While first-month free (FMF) promos can be a powerful customer acquisition tool, they come with hidden costs that can chip away at your bottom line and create new problems to solve.
In this article, we’ll break down the downsides of FMF offers, when they make sense, and how to use them more strategically.
The most immediate issue with FMF promos is that they often attract tenants who are highly price-sensitive. These renters are more motivated by the discount than by finding a long-term storage solution. As a result, they’re much more likely to move out after that first free month — or hop from one FMF deal to the next facility down the road.
This type of customer behavior creates high churn and lowers the lifetime value (LTV) of your tenants. You can easily fall into a cycle of spending time and resources onboarding renters who don't stick around long enough to generate meaningful revenue.
In some cases, first-month free customers don’t just vacate—they leave a mess behind.
We’ve seen tenants take advantage of a free month to dump their unwanted belongings into a unit and never return. After their month is up, they stop paying, ignore your calls, and the unit becomes delinquent.
Now you’re stuck with abandoned property, and you have to go through the auction process to legally clear it out.
Why does this happen? Because it’s cheaper for someone than renting a dumpster or team of movers to clear out all the junk from their residence. That kind of moving expense could cost $1,000 or more, so people take advantage of FMF promos and leave their discarded belongings at a facility.
These cases don’t happen every day, but when they do, they can erase the value of dozens of paying renters.
When every self storage business in your market offers the same FMF deal, customers will expect a discount just to consider your facility.
Plus, if there are REITs in your area, competing on price alone isn’t a game independent operators can win. Rushing to see who can offer the cheapest promo creates a race to the bottom. Since REITs are backed by the massive resources of their umbrella company, they can operate at a loss for a while as long as they’re acquiring customers.
Instead of competing on price, smart operators differentiate with better customer service, cleaner properties, smarter technology, or more convenient features like contactless move-ins.
First-month free offers can be a tool in your toolbox, but it shouldn’t be the only reason people choose your facility.
Customers who utilize FMF offers may not pay anything in the first month, but owners and operators still have operational expenses to consider. For every new tenant, you still have to:
These are real costs that add up over time — especially if you’re cycling through high volumes of short-term tenants.
Yes, but with conditions.
FMF promos can be a very effective part of your self storage marketing when used strategically. They’re great for:
The key is to use them selectively, not as the default promotion for your property year-round.
Here are some best practices for maximizing the value of FMF promotions:
If you have a surplus of large units or historically slow winter months, run a short-term FMF promo to boost occupancy. Don’t offer it across the board.
Want to filter out deal-hoppers? Require a minimum stay of 2 or 3 months to qualify for the free month. This ensures the customer has some commitment, and you have a shot at recouping the cost.
Scarcity is an effective marketing tactic because it creates urgency and drives action. Position FMF deals as seasonal, limited-time promotions instead of standard practice. This protects your brand and keeps the offer feeling special.
Monitor the lifetime value (LTV), churn rate, and auction rate of promo renters vs. non-promo renters. Use that data to determine whether the promo is driving profitable growth or just creating churn.
First-month free promotions can drive results, but they’re not without risk. Overuse can lead to high churn, increased auctions, lower revenue, and a loss of pricing power in your market.
The answer isn’t to eliminate FMF offers entirely — it’s to use them strategically and back them up with smart policies, tracking, and intentional marketing.
At White Label Storage, we help operators implement smarter promotions that attract high-quality renters, reduce churn, and grow NOI. Schedule a free demo with our team to learn how we can work with your facility.
