An educational opening session examining self-storage pricing strategies has been added to the Inside Self-Storage World Expo in Las Vegas, the industrys largest conference and tradeshow. The Power of Systematic and Dynamic Self-Storage Pricing will kick off the conference on March 31 at 8 a.m., featuring speaker Warren Lieberman, president of Veritec Solutions, a pricing and revenue-management consultancy.

During the 50-minute presentation, Lieberman will disclose why traditional approaches to pricing typically result in less revenue and profit than more systematic and dynamic strategies. Hell also discuss why self-storage operators should take greater control over their starting rates, move-in promotions and existing tenant rates, including how to manage them effectively. Topics to be covered include:

• Why small changes in price often have a much greater impact on profit than revenue
• Other unexpected effects of pricing changes
• How data-driven pricing can enhance and improve intuition and experience
• Where conventional pricing wisdom in self-storage has been wrong
• What operators can do to improve pricing and earn greater profit

Lieberman is an internationally recognized revenue-management and pricing expert who began applying his techniques in self-storage 15 years ago. He has worked with several industry companies including ezStorage, Shurgard, StorageMart, StorageUSA and Uncle Bob's Self Storage.

The expos concurrent education program, March 31 and April 1, includes 10 tracks covering issues related to self-storage ownership, management, marketing, investment, finance, building, development, liability and more. Five add-on workshop options are also available.

The conference and tradeshow will take place at the Paris Hotel & Resort. Early-bird registration rates are available through Jan. 30.

Created for self-storage industry owners, managers, developers, investors and suppliers, the ISS Expo comprises four days of education, exhibits and networking opportunities. The event focuses on strategies for generating revenue, industry best practices, current trends, and new products and services. Details and online registration are available at www.insideselfstorageworldexpo.com.

Self-storage is regularly used by consumers who want to unclutter their homes and businesses that need extra space to store inventory, but a blogger for the Great Bend Tribune believes it may also be ideal for Doomsday Preppers, a subculture of people who are actively preparing for the end of the world.

Similar to those who lived during the height of the Cold War, modern-day preppers strive to be self-sufficient in the face of apocalyptic events triggered by terrorism, natural disasters and pandemics, according to the source. Disaster preparedness includes the need to store survival gear and supplies such as medicine, water, fuel, non-perishable food rations, seeds, farming equipment, tools, back-up generators, gas masks, communication devices and non-electric appliances.

For this reason, blogger Maya Savanovich believes self-storage could be an appealing option to this group. Self-storage facilities offer attractive amenities including climate control, user discretion, security features and construction designed to withstand harsh weather conditions, such as wind-rated doors. Portable-storage containers may also be attractive to preppers because of their portability and accessibility.

While preppers understandably want emergency supplies close at hand, some opt to store items in more than one location in case one site is compromised, which also makes self-storage an attractive option, according to Savanovich.

Storage units could be just the right answer for Doomsday Preppers, especially if they are looking for cost-effective ways to enhance their preparedness, Savanovich wrote. Whats more, you can terminate the rental agreement at any given time if you find a better plan or are forced to move to another location. But bear in mind that very few options will provide you with such flexibility.

Some preppers have formed community-support networks on Meetup and Facebook and have plans in place for bartering and homesteading with like-minded families in the event of disaster, Savanovich said. They even have an online community at doomsdayprepperforums.com. 

DBCI, a manufacturer of self-storage roll-up doors and other building components, has hired David VanGieson as its Northeast sales manager. In his new role, VanGieson will service key accounts and seek new business opportunities in 11 states, extending northward from Delaware to Maine.

VanGieson has nearly 30 years of experience in the door industry including 12 years related to self-storage. He is a native of Pennsylvania, where he currently resides and previously studied architecture and drafting technologies. He has traveled extensively in the United States and eastern Canada.

DBCI designs and manufactures commercial-grade, steel roll-up doors as well as frames and panels, wall systems, interior-hallway systems, mezzanine systems, portable-storage units, and wine lockers. Headquartered in Douglasville, Ga., the company also operates production facilities in Chandler, Ariz., and Houston.

A bill requiring self-storage operators in Massachusetts to keep an active registry of tenant information subject to inspection by police and other authorities has been introduced to the state legislature by Sen. James Timilty. Senate Bill 158 is opposed by the Massachusetts Self Storage Association (MASSA) and national Self Storage Association (SSA). Representatives from both organizations were expected to testify today during a hearing in Boston.

If passed as written, the bill would require Massachusetts self-storage operators to maintain a log of names and last-known addresses for every tenant in their facilities, along with their unit numbers and rental duration. The information would be open to inspection without the need for a search warrant, the SSA said in its weekly e-mail newsletter.

Violators of the requirement would be subject to fines up to $500 and 90 days in jail.

The introduction of the bill comes while the legislature is still reviewing Senate Bill 183, a measure that would update the states self-storage lien-law procedures to allow tenant e-mail notifications, using websites to attract auction bidders, liability limitations and other provisions. The bill was referred favorably last November by the Committee on Economic Development and Emerging Technologies and is currently with the Committee on Senate Ethics and Rules.

The tenant registry bill is currently being reviewed by the Committee on Consumer Protection and Professional Licensure. A hearing was scheduled for today at 1 p.m. ET.

Formed in 1998, MASSA is a nonprofit organization of facility owners and operators designed to strengthen the self-storage industry in Massachusetts. It aims to promote professional standards and quality, and present a unified voice on issues affecting the industry in the commonwealth and its communities.

For the seller of a self-storage facility, it's all about getting top dollar for the property. For the buyer, it's about purchasing a facility that looks great and operates well.

When it comes time for you to sell, you need to consider several areas, including the physical plant, financial operation, due-diligence preparation and general sale preparation. Here are some simple tips for getting a storage property ready to put on the market.

Physical Plant

First, lets talk about curb appeal. Whats the first impression a buyer has when he sees your self-storage facility? Is his first thought, This is a nice property. I would like to own this one! Or does he not give it a second glance? Here are some guidelines to boost your property's allure:

• All of your landscaping and grass should be trimmed, neat and clean.
• Cut or remove oversized plants. Add fresh annuals to your flower beds.
• Your signage should be clean, up-to-date and well-lit.
• The office should be freshly painted, clean, well-lit and free of clutter!
• The retail sales inventory must be fresh, clean and dusted.
• Clean and deodorize the office bathroom.
• All light fixtures must be working, in the office and around the property.
• Remove all garbage from the roofs, and fix downspouts and gutters.
• Fix all bollards and dings in building panels.
• Fix any asphalt or concrete driveways and add fresh seal coat.
• Pick up all trash, especially around fences.
• Aisle ways and hallways should be clean.
• All maintenance issues should be completed including broken door springs, bad hasps, fence damage, gate, etc.

These items reflect pride of ownership, and buyers will pay more for a property that doesnt require substantial capital expenditures. Its a good idea to bring in a friend or someone who doesnt frequent the property and ask him to critique the condition and cleanliness of the site. Your visitor may see things you overlook every day. Managers from other stores as well as your real estate broker are also great people to ask to review the condition of the property.

Financial Operation

Now lets discuss the financial portion of the transaction. At least one year prior to putting the property on the market, make sure all the income from the property is recorded on the profit-and-loss statements (P&Ls) so a buyer can verify the amount collected and back it up with deposit statements from your bank. On the expense side, its helpful to record only expenses that are directly related to the facility. If there are expenses that could be allocated to other businesses or personal accounts, clearly mark them as such. Also clearly delineate any expenses that are capital vs. operating for tax purposes.

Buyers and their bankers will base their offering price on the trailing 12 months of income and expenses ( known as the trailing 12 or T12.) Most financial software, such as QuickBooks, can run this report in a matter of minutes. If you have a manual system, youll need to have this prepared each month your property is on the market.

You should be raising rents on every tenant every year. Carefully review your management reports, specifically the rent roll, to determine the rent variance, which is the difference between your standard rental rate per unit and the actual rent being paid by a customer. Dont let customers get a bargain rate any longer. Try to increase those tenants to the standard rent. Do this at least a year prior to selling. If you do it right before you go to market, buyers will not give you the dollars you deserve since the new income is not part of your trailing 12.

Its also important to reduce your delinquencies. Your manager needs to be diligent about making collection calls. Try to maintain the delinquency rate below 5 percent, move on the lien process right away, and dont accept partial payments. In a typical sale, the seller will not receive any credit for delinquent rent that is past due more than 31 days. Remember a buyer would rather have an empty unit ready to rent than one with a delinquent tenant who may never pay.

Due-Diligence Preparation

When an offer is presented, a due-diligence document list will be part of the sales agreement. As a seller, you want to have those documents ready and waiting to be delivered to the buyer so the transaction can occur in the shortest possible time. Here are the documents you should have prepared at the time of sale:

• Any surveys, drawings, plans/specifications, engineering and/or architectural studies, grading plans, topographical maps, or similar data
• List of all licenses, permits, certificates of occupancy
• All environmental reports, tests and/or studies
• Any standard form leases, subleases or other agreements affecting the property
• Tax returns for the most recent three years
• List of personal property owned or leased by seller used in connection with the property
• Onsite computer monthly occupancy summary reports for the past 12 months
• Current rent roll listing tenants, rates and deposits
• A list of accounts more than 30 days past due with aging history on each
• Unit-mix report listing occupancy and current rates
• Operating account monthly bank statements for past 12 months
• Monthly P&L statements for past two years
• Current insurance policies and claim histories
• Utility bills for previous 12 months
• All contracts and agreements related to the property
• A copy of the title search from the last transfer of the property

General Preparations

Another chore is to clean out and organize any company units and eliminate any personal units if you can. Remove any personal items from the office so what the buyer sees is what he gets at settlement. Typically, items used in the daily operation of the business are included in the sale.

All buyers are going to want to see the property survey. Its always helpful to be able to identify the property corners. Have your surveyor mark them or find the markers and put some fresh paint or ribbon on them to a make them visible

Obtaining approvals to expand will really improve the value of any additional land you may have on the property. If you enjoy a high occupancy rate but do not have the time, money or energy to add more units, at least obtain the municipal approvals to expand. Buyers will only pay for extra land if its approved and occupancy is above 80 percent.

If you own a unique property that includes your home, rental homes, a side business or office space and you prefer to retain that portion of the real estate, have subdivisions in place. Likewise, if you require an easement over the property youre selling, get it approved. Completing this ahead of time will make the sale process cleaner and simpler.

The sale process is potentially a lot of work for a seller. You may need to spend some money, and youll definitely expend some time in preparation. Your real estate broker goes through this process every single day and can be the best source of information and advice. Use him to your advantage.

The goal is to get the most money for your property in the least amount of time. Following the above tips will go a long way toward making that a reality. Remember, having your self-storage property in good physical and financial condition at the time of sale could mean hundreds of thousands of additional dollars in your pocket at the end of the day.

John Gilliland is president and CEO of Investment Real Estate LLC in York, Pa. The company specializes in sale of self-storage facilities in the northeast and mid-Atlantic states. To reach him, e-mail [email protected]; visit www.irellc.com.

Despite challenges to development in some areas, the Canadian self-storage market continues to expand. To provide information to industry investors, builders and operators, Inside Self-Storage (ISS) has released Trends in Canadian Self-Storage, a special report examining issues related to real estate, facility operation and marketing.

The report examines the real estate market in the western provinces, analyzing supply and demand, rental and occupancy rates, acquisitions, and new construction. In addition, Canadian self-storage operators discuss their operational and marketing challenges and victories. Covered topics include:

• Key performance and development trends in British Columbia, Alberta and Saskatchewan
• Operational challenges and successes experienced by Canadian operators, as well as insider advice
• Why the Internet is a critical driver of storage rentals in Canada

The publication is available for free download at www.insideselfstorage.com/reports.aspx.

For more than 20 years, ISS has provided informational resources for the self-storage industry. Its educational offerings include ISS magazine, the annual Inside Self-Storage World Expo in Las Vegas, an extensive website, the Self-Storage Training Institute, the ISS Store, and Self-Storage Talk, the industrys largest online community.

New York self-storage operator Manhattan Mini Storage announced Ben Raffalli, 21, as the winner of its Extreme Apartment Makeover sweepstakes. Raffalli, who lives with two roommates in a cluttered apartment in Chelsea, N.Y., will receive free monthly apartment cleanings and complimentary use of a personal closet storage unit for one year.

Manhattan Mini launched the sweepstakes last September, which was open to anyone with a Facebook account. Users entered the contest simply by liking the companys Facebook page. The monthly apartment cleanings will be provided through a local service called Hipstermaid.

The storage unit is a 4-by-4-foot space that holds 15 to 20 medium-sized boxes, according to Manhattan Minis website. Units come with a hanging bar, making them good for seasonal items including clothing. Customers also use them to store small collectibles, books, CDs and personal papers, according to the company.

With three people in their early 20s, it does get a little bit messy, especially between two boys. We drive our other roommate a little crazy, said Raffalli, who is a student and aspiring actor studying musical theater. Also, we have a lot of furniture that the previous tenants had left that we dont necessarily want, so combined with all the stuff I have, this will really help us clear up some space in there. Im very, very excited to have won this!

Manhattan Mini is currently running another social media campaign on Twitter in which someone will win the use of a personal-closet unit for two months. To enter, users must tweet how the storage company can unclutter their lives and include Manhattan Minis Twitter handle (@ManhattanMini) in the message. Company officials will select their favorite tweet as the winner.

Manhattan Mini Storage has 17 locations throughout Manhattan. It is owned by Edison Properties, a family-owned business which also operates Edison ParkFast, a network of 40 garages and lots throughout Baltimore, New York City and Northeast New Jersey. Edison's properties include workspace offices, executive offices and pre-built suites, The Hippodrome office building, and The Ludlow, a luxury residential high-rise on the Lower East Side.

San Diego Self Storage (SDSS) and charity partner Rubio's Mexican restaurant collected a record 16,463 toys and $1,126 in cash donations during the companys 15th annual drive to benefit the U.S. Marine Corps Reserve Toys for Tots. The drive exceeded the 2012 and 2011 donations, which were 16,232 and 10,726 toys respectively.

Donations were accepted at all 18 SDSS facilities from Oct. 24 to Dec. 19. Coupons for a free taco at any Rubio's San Diego location were given to the first 50 donors who dropped off a toy at each storage site. In addition, SDSS held a drawing at each facility for a $100 credit toward a self-storage rental for a new or existing tenant. Rubio's also donated a family four-pack of complimentary meal cards.

We were fortunate to have Rubios as a SDSS Toys for Tots campaign partner this year, and were very grateful for its support, which contributed to the success of our results, said SDSS Managing Partner J. Terry Aston. Their participation enhanced the collection effort. We found a mutual partner in our toy drive to supplement the efforts of the U.S. Marine Corps Reserve. SDSS is dedicated to helping military families and found Rubios to be equally excited to help us in supporting military personnel who have served our country.
The 2012 Toys for Tots campaign delivered 136,976 toys to children in the San Diego county area. In operation for about 64 years, the program distributes new toys to children all over the country during the holidays.

Founded in 1972, SSDS has a network of 18 self-storage facilities in San Diego County and additional facilities in Los Angeles and Orange counties. The company is locally owned and operated.

Members of the U.S. Marine Corps with Sandra Flores (center), advertising manager for San Diego Self Storage.

By John Scheibe

I was looking through the September 2013 issue of "Inside Self-Storage" magazine when an ad caught my eye: an announcement for the first Latin American self-storage tradeshow, Nov. 4-5, in São Paul, Brazil. Sponsored by the Brazilian Self Storage Group, the show promises to be a groundbreaking event, bringing together professionals of the nascent local industry for the first time.

The ad took me back to the mid-1970s. I was 18, living just south of San Francisco and unsure what I wanted to study in college. I decided to return to Brazil, where I'd been spent my boyhood, the son of American parents. I thought I'd stay there six months, enough time to refamiliarize myself with the country in which I'd been raised. I ended up staying six years. When I returned to the United States in the early 1980s, the self-storage industry had taken firm root. It would be several more decades before the industry would blossom in Brazil.

Vast Opportunity

Brazil has the world's sixth largest economy in terms of nominal gross national product. Eight out of every 10 Brazilians live in cities, and the middle class grew by an estimated 50 million people from 1999 to 2009.

Brazil has 115 cities with a population of 225,000 or more. It's largest city, São Paulo, has more than 20 million people in its metropolitan area. With the great majority of Brazilians living in cities, storage space is often at a premium. Brazilian consumers are hungry for the latest gadgets and quickly buying them, as well as appliances, refrigerators, dishwashers and more.

Brazil has roughly 200 million people and less than 100 self-storage facilities nationwide, so there's vast industry opportunity. A recent feasibility study found that self-storage business has the capacity to generate more than $1 billion annually in the country. GuardeAqui Self Storage, which started its operation in São Paulo, recently announced plans to open 50 facilities across Brazil by 2017.

Exploring Self-Storage

I became acquainted with self-storage through a good friend Ive known for many years. Hes worked in the industry for most of his life, beginning with some of the first facilities built in the Los Angeles area. He later developed some of the first facilities in England.

My wife and I visited several Brazilian facilities this year. All of them appear to be doing very well. The most established was on the south end of Belo Horizonte, a city with more than 5 million people in its metro area. A facility representative told us he's been in business for more than 10 years and has an occupancy rate of 87 percent. He said theres plenty of unmet demand for self-storage in the area.

We were also told that one of the initial obstacles was getting consumers used to the idea of a do-it-yourself business like self-storage. Middle- and upper-class Brazilians have historically depended on servants to do a lot of their manual work. But all of this is quickly changing as they adapt to life in the 21st century.

Moving Forward

My wife and I are in the process of choosing a location to open our very own self-storage facility. Were considering a warehouse that has the capacity for expansion, as well likely convert it in phases. There are many warehouses in Belo Horizonte and other cities. We hope to have the first phase completed within two years.

Were also looking at partnering with Brazilian and U.S. investors to raise some of the capital for the project. Brazil has taken some positive steps recently to encourage foreign investment, including eliminating a tax on overseas investors.

Working in Brazil can be a challenge for foreigners who know little or no Portuguese. It also helps to understand a lot of the cultural nuances as well as how business is conducted there. In this sense, I feel very blessed to have grown up in the country and have a close network of friends there.

The challenges to doing business in Brazil are easily surmountable, even for those who are new to the country. For starters, Brazilians are known for their warmth and willingness to help. Brazil also has numerous firms including legal and real estate companies that are very knowledgeable in assisting foreign investors. Policy-makers know that creating a business-friendly environment is key to Brazils future prosperity and economic growth. As an example, theres no capital-gains tax for Brazilian investors.

Our recent visit to Brazil only served to reinforce our belief that the self-storage industry has a very good future, one with almost unlimited opportunities.

John Scheibe is founder and general manager of Go Self Storage Brazil LLC, a development company focused on establishing and operating self-storage facilities in Brazil. For more information, call 805.338.2315; e-mail [email protected]; visit www.goselfstoragebrazil.com .