By Jenny Bortman and Melanie Wichelman
The self-storage industry is booming, and owning a facility can be profitable as well as rewarding. Still, rewards don’t come without some risk. As a self-storage owner, you’re responsible for protecting yourself and your investment so you can stay on the path to success. Being knowledgeable and aware of the risks and liabilities associated with operating a storage business can help you stay one step ahead and avoid trouble.
Prevention and preparation are the keys to reducing liability. Follow these guidelines to minimize your risk.
Site Security
Keep your facility safe and don’t invite crime to visit your site. Remember, it’s not just your property at risk but customers’ goods as well.
At a minimum, your property should make use of basic security measures, such as perimeter fencing and access control. A secure, automatic gate system ensures only customers can enter. Keypads with unique customer codes, swipe cards or remote-control access systems are the best ways to keep out intruders. There are a variety of systems available, so do your research to find what works best for your business.
Even if your facility doesn’t offer 24-hour access, it’s important that it be well-lit. A dark lot is tempting for theft or general loitering. It also leaves you vulnerable to vandalism. If your facility is open late at night, good lighting will also help customers feel safe and allow them to navigate safely within the gates.
With today’s technological advances, there are many types of cameras and surveillance systems available. Some even connect with mobile devices so you can monitor your property while offsite. Just do your homework before you buy, as there’s great disparity among the quality of these systems.
There are also various alarm systems and monitoring services on the market. Fire and burglary alarms can be the first indication something is wrong and can even be programmed to contact the authorities when warranted. These systems and services can be expensive but worth the cost. If you’re adding an alarm system in stages, consider installing it in the office first.
Vigilance and Upkeep
The onsite manager has many tasks to perform every day, many of which can help protect a facility against accidents, property damage or other legal trouble. The following suggestions may sound simple, but it’s astonishing the number of claims that could easily be prevented through diligent maintenance every year.
Employees should walk the property at least once a day to inspect all the units and locks and ensure nothing is out of place. By doing daily inspections, they’ll be able spot something peculiar or dangerous and quickly act on it. They should note anything that needs repair or further inspection from a professional.
Don’t let your maintenance fall behind. General upkeep should be handled on a daily basis. Some items will require more attention and possibly come with a price tag. Regardless of the issue, big or small, it should be dealt with in a timely manner and well-documented.
Keep the grounds dry and clear of debris to avoid slips and falls. If maintenance is being performed anywhere on the property, notify your tenants. This can include something as simple as waxing the floors to bigger projects such as a roof replacement. Put out signs and keep people away from any dangerous areas.
Paperwork
One of the most important things you can do to minimize risk is to have a well-written rental agreement. Your lease should be clear and spell out all fees, due dates and other pertinent information. Make updates to the form as necessary. Ensure all leases are signed and dated, and offer a printed or digital copy to every tenant. This is a contract between you and your customer, so it should outline both your responsibilities. Keep all copies in a safe and secure location.
Another way to protect your business is to carry the right insurance. If something goes wrong, are your limits adequate? Do you have the right coverages? While it’s always good to review “what if” scenarios during your policy renewal, don’t wait. For the most part, you can make changes to your insurance policies at any time. When you alter your property, such as adding a sprinkler or new security system, alert your insurance agent, as it could require changes to your policy or even lead to a discount.
Owner Involvement
Finally, stay connected and involved in your business. If you’re not at the property every day, make sure employees keep you in the loop and report to you often. Keep track of your records and have set procedures for you and your staff. If you live in a different state, check on the property in person from time to time. Stay smart and don’t ever assume anything.
While much of this advice may seem like common sense, it’s better to be prepared than to leave your business susceptible. These tips will help you avoid many unnecessary risks you face as a self-storage owner.
Jenny Bortman is vice president and Melanie Wichelman is an account executive with Universal Insurance Programs, which has created and provided specialized insurance coverages to the self-storage industry for more than 20 years. For more information, call 800.844.2101; visit www.universalinsuranceltd.com.
