If youve never used a call center to help your self-storage property rent space, then you may have some misconceptions about what a call center can be. If you have used or are currently using a call center, whether in-house or outsourced, you probably still have some false impressions of the service. Ill attempt to cover the most common misunderstandings from my unique perspective as a call-center operator. I may be a bit biased, but I'll do my best to provide a realistic overview.

Misconception 1: Call Center Turnover Is High

Some self-storage operators think call-center agents are a band of free-spirited, counter-culture anarchists who float from job to job. While its true that call-center work can be very convenient for students or part-timers who work other jobs, its also true that these positions sometimes occur early in a persons career, making it seem like theres more turnover at these centers than one might like.

The fact is most call-center employees are long-term professional agents who specialize in sales or customer service. They make a career of this type of work and have long tenures when they find a good environment that suits their skill set.

Many call centers also have a set of performance standards and adherence policies that make it unlikely that underperformers will stay. This can also contribute to a turnover rate. Most call centers have a core group of long-term, experienced agents supplemented by students and part-timers. This mix is ideal for managing seasonal call-volume variations and the fluctuations of client-account requirements. So, really, call-center turnover is not high.

Misconception 2: Call Centers Make a Lot of Money

This is a very big misconception. The competitive nature of bidding on contracts and the tight access to capital for non-real estate-related businesses, coupled with the high costs of labor and technology, means margins are slim in the call-center world. A typical call center may not experience any more than a 20 percent margin.

For storage operators who are often generating bottom-line profit when a store is 50 percent occupied, a 20 percent margin must look like a lot of trouble for not much return. Theres a misconception that technology makes call centers more efficient and cheaper to run. In fact, the opposite is true. Its costly to buy and very costly to maintain. Most call centers have several different platforms that must work together nicely. Its very expensive to make all this integration look easy and make everything work to a satisfactory level.

When you get your invoice from your call-center provider, know that it needs to be about 20 percent larger for you to feel the least bit envious about the net operating income.

Misconception 3: Call-Center Agents Dont Know Anything About My Locale

One positive affect of technology is the ability for call-center agents to feel local even when they're not. Using website information, mapping and photo technologies, an agent can have almost as much information about a location as someone whos standing right in front of the storage facility. A lack of local knowledge is no more than a minor disadvantage. Before an efficient Internet, this may have been an issue. Now, an agents location poses no real difficulties and is almost never a deal-killer with a customer.

Some people think all call-center agents are in the India or the Philippines. Thats not the case. Even if it were true, training and technology advances have erased much of the cross-border difficulties one might have experienced several years ago. I regularly speak with outstanding call-center agents who are off-shore.

Misconception 4: Call-Center Agents Dont Care About My Store

This is a strange misconception because agents salaries are paid by you, and you only pay the call center when your phone calls are handled well. The truth is call-center agents often care more about your stores and your customers than you do.

Its not unusual for us to track down a manager or owner to help an after-hours caller because he ran into a problem. Often, the manager or owner doesn't want to be bothered, but we track him down anyway because a customer is upset or in need. Give us a little credit on this one. We know who butters our bread.

Misconception 5: Call Centers Are Only Good for New Rentals

Wrong. Yes, call centers are great for capturing rentals, but theyre also great for giving your current customers a good experience and helping you manage tenant interactions. Dont just look at the rental activity when evaluating the return on your call-center investment.

Misconception 6: Call Center Agents Cant Sell as Well as My In-Store Staff

Maybe, maybe not. How much time do you spend training, coaching, monitoring, evaluating, re-training, motivating and correcting your staff on sales prowess? Call centers spend a lot of time on these activities because they're core to the success of the operation and to the retention of staff and clients.

Misconception 7: Call Centers Cant Use My Software

Most call centers are capable of a certain level of integration depending on the software version youre using. Most also have easy work-arounds in case you use a software thats not in an integration package, so no worries here.

If youre considering how a call center fits into your program or if youre trying to develop a closer relationship with the one youre currently using, these seven misconceptions need not cloud your thinking. As our world becomes smaller and more interconnected, youll eventually need someone for your prospects and customers to talk to at all hours of the day, any time they call.

In spite of the rise of the Internet and the wave of mobile-device use, people still like to talk to real people about their issues and questions. How you deal with this reality is up to you. Dont let these myths stop you from considering the call-center alternative.

Tron Jordheim is the chief marketing officer of StorageMart and director of PhoneSmart. He has consulted for many self-storage companies and spoken at industry events in Canada, Mexico, Spain, the United Kingdom and the United States. Prior to joining StorageMart, he managed one of Culligans top U.S. bottled-water franchises. For more information, visit www.phone-smart.net .

Update 1/17/14 In addition to the seven facilities the company acquired in the Minneapolis market, Pegasus Group recently purchased a facility in Portland, Ore. Located in the Pearl District, the property comprises 68,646 net rentable square feet, including 6,100 square feet of ground-level business storage space with retail storefronts. The facility, rebranded Central Self-Storage Portland, has 823 climate-controlled units.

The seven Minneapolis facilities have been renamed Central Self-Storage Bloomington, Central Self-Storage Edina, Central Self-Storage Hutchinson, Central Self-Storage Lakeville Dodd, Central Self-Storage Lakeville Premier, Central Self-Storage Minneapolis and Central Self-Storage New Hope. The portfolio totals 442,239 net rentable square feet, including 30,004 square feet of commercial space and 71,496 square feet for future expansion. Property features include climate controlled and RV/boat storage.

---

Self-storage management company Pegasus Group has entered the Minnesota market, buying seven storage facilities from Hopkins, Minn.-based Jacobs Management Corp. The company paid $41.5 million for the propertiessix in the Twin Cities and one in Hutchinsonaccording to "Finance & Commerce." The deal closed last week.

Jacobs reportedly kept one facility that operates as Minneapolis Storage Centers, at 2845 Harriet Ave. S. It spent 17 years assembling the portfolio, an official said.

Based in Walnut Creek, Calif., and founded in 1988, Pegasus Group is a real estate investment and management company specializing in self-storage investments. The company owns and operates approximately 60 properties throughout the United States through individual ownership structures. Its current portfolio primarily includes facilities that are operated and managed under the Central Self-Storage brand name.

Self-storage directory Storage.com has launched a new lineup of online-marketing products designed to help storage facilities become more visible on the Web and increase occupancy. The products include three listing-services packages: Plus, Pro and Premier.

With the Plus service, facility owners pay no fees to claim or place their listing on Storage.com, and there are no setup or cancellation fees. In addition, they will have access to the Storage.com members section, which includes industry data, educational resources and marketing data to help with day-to-day facility operation.

The Pro membership adds online-rental capabilities to the storage listing. With a $99 flat fee per verified rental, facility owners pay only when a new tenant moves into a storage unit. The Pro package has no recurring monthly rental fees, minimum contract terms, setup fees or cancellation fees.

The Premier product, with a monthly fee of $49.99 per month, uses an advanced search algorithm to offer facility owners greater visibility with higher placement in search results.

Based in Omaha, Neb., Storage.com is a n online directory and marketing tool that delivers exclusive reservations and provides a complete search engine optimization package.

Developer Douglas Murrell has received planning-commission approval for the construction of a self-storage facility in Effingham, Ill. The project will require a special-use permit and was approved with the stipulation that a 6-foot barrier fence be erected along the sides of the facility to serve as a buffer from residential property to the south and east.

Commissioner Jeff Bloemker said the citys growth has led to small commercial buildings being developed near residential areas. We are trying to be sensitive to the neighbors, while not inhibiting the use of the property, he said.

The planning commission agreed to Murrells idea to build the storage facility toward the back of the property as a way to restrict vehicles from driving behind it. The orientation will also enable the rear of the facility to serve as a residential barrier.

Murrell is in the process of purchasing the property at 2306 Hoffman Dr. from the Roman Catholic Diocese of Springfield, Ill. In addition to residents, the self-storage facility will be near a car dealership.

The Storage Group (TSG), an Internet-marketing company serving the self-storage industry, hired Steve Lucas as its director of sales. Charged with leading the TSG sales team and implementing long-term, scalable internal systems, Lucas has more than 35 years of experience developing and directing multiple start-up companies. Hes also served in managerial roles for several national and international companies including Burger King, Pillsbury, TGI Fridays and  Steak and Ale.

Most recently, Lucas developed a mobile-application development company, and built a national sales team along with training and sales systems. The company received four national awards, including the Presidents Award from the City-County Communications Association for an application built for the business-development center for town officials in Erie, Colo. Lucas transitioned operational control of that company to another member of his team and the business is still flourishing today, company officials said in a press release.

Lucas also has a passion for serving his community and trade organizations. He spent several years in leadership roles within the Florida Swimming Pool Association (FSPA), serving as its president and state tradeshow chair and on its national and state executive committee. FSPA named him Person of the Year twice. Lucas also received the Best in Show Technical Award for his companys work on the Bengal tiger exhibit at the Palm Beach Zoo. Other related projects include work at the Biltmore Hotel, San Juan Marriott Resort & Stellaris Casino in Puerto Rico, Trump Tower and Viceroy Hotels and Resorts.

Lucas currently serves his local community as a member of the board of directors for the chamber of commerce in Fort Collins, Colo., and as chair of the organizations Red Carpet Ambassador and Local Legislative Affairs Committee.

"We are excited and very fortunate to bring on a leader of Steves caliber at such an opportune time, said Larry Hanks, principal and director of business development.

TSG provides online tools and marketing solutions to the self-storage industry. The company's customized services include mobile websites, website development, content management, search engine optimization, pay-per-click marketing and transparent reporting/analysis.

Metro Storage LLC, which operates more than 90 Metro Self Storage facilities in 11 states, and its wholly owned subsidiary, Metro Storage International LLC (MSI), have opened a new facility in São Paulo, Brazil, the first in the MSI portfolio. Branded as MetroFit, the property is the first of seven the company intends to open in São Paulo by the end of the year.

The newly constructed, three-story facility is in the Vila Leopoldina district, directly on the Marginal Highway, with more than 700,000 cars passing per day, according to a Metro press release. Designed to meet the needs of growing São Paulo consumerism, the 75,000-square-foot, 500-unit building features the bold MetroFit brand and offers features including an indoor drive-thru, state-of-the-art video surveillance and wine storage.

Were excited about this first step in our international expansion, said Blair Nagel, CEO of Metro Storage. Brazil provides some exceptional opportunities for growth in self-storage.

The facility is the first of two being developed under a private fund MetroFit raised last year to attract and deploy capital across the Brazilian self-storage sector. Construction began in June.

It was a complex and coordinated effort to bring everything together, said Jay Harron, president of MSI. The MetroFit team in Brazil worked closely with their U.S. counterparts at Metro Storage to make it happen.

The MetroFit team had a very busy fourth quarter to get the store operational, according to a company press release. We wanted to deliver an exceptional store in an exceptional location with outstanding architecture and functionality, said Hans Scholl, president of MetroFit. I am happy to say that our team delivered on all of these items.

The next MetroFit store is under construction and scheduled to open this summer. MSI, which is dedicated to self-storage development in emerging markets outside the United States, is actively pursuing a pipeline of additional projects.

Metro Storage LLC is a privately owned, fully integrated real estate operating company specializing in the development, acquisition and management of self-storage facilities nationwide. Headquartered in Lake Forest, Ill., the company ranked No. 11 on the 2013 Inside Self-Storage Top-Operators List.

Legislation has been introduced in Missouri and New York that, if passed, would change the administering of the lien-law process for self-storage operators in those states. The proposal in Missouri would expand notification options and enable value limitations on stored items, while the New York measure is designed to expand protections for tenants.

In Missouri, House Bill 1225 is supported by the Missouri Self Storage Owners Association (MSSOA) and the national Self Storage Association (SSA). It is similar to recent legislation passed in other states, in part due to lobbying efforts by the SSA and its affiliates. The bill would enable self-storage operators to use e-mail when notifying defaulted tenants of impending lien procedures, place public advertisements of a lien auction in media other than a local newspaper, and use online-auction websites to conduct a lien sale.

E-mail/verified mail is much more likely to be received by a past-due customer than Certified or First-Class Mail. Many of our customers are storing because they are moving, and as such, their mailing address is possibly in flux. But e-mail is completely portable, MSSOA Chairman Jim Whitesides wrote in a letter to association members. Electronic messages are more likely to be received and read, and therefore, better serve the purpose of notifying customers of their account status.

The measure would also enable operators to place limitations in rental agreements on the value of stored goods. In the case of a lien sale, the value limit designated on the rental agreement would be considered the maximum value of the stored property and the maximum liability of the operator for any claim for loss or damage to the items, according to the bills language.

The bill would also lengthen the period of default from 30 to 45 days. In addition, new language addresses motor vehicles, including boats and RVs, and would enable operators to have vehicles towed after delinquency exceeds 60 days.

In New York, Sen. Tony Avella introduced Senate Bill 6201 on Jan. 8 with the intent to provide greater protection to the occupants of self-service storage facilities by strengthening the notice requirement in relation to the lien sale, according to a press release issued by state senators office. The bill would update the lien-enforcement section of the current law to require that two lien notifications (instead of one) be sent to the tenant as well as to an alternative person designated on the rental agreement.

The bill would also allow tenants at least 30 days after receiving the second notification to satisfy the lien. Currently, operators can move forward with a lien sale 10 days after the tenant receives a single notice.

Given the increased demand for storage auctions through reality shows such as Storage Wars, it has become even more important to ensure that storage unit occupants are given sufficient notice to recover their personal property before it is auctioned off, Avella said. In order to prevent premature and wrongful sale of property, this legislation strengthens the notice requirement in relation to the owners enforcement rights and gives greater protections to consumers.

The measure is opposed by the New York Self Storage Association (NYSSA) and the SSA, which called the alternative-person requirement a puzzling development. It isnt clear what potential legal ramifications the requirement could have on rental agreements, unit access or privacy laws. Both associations are working in opposition to the bill.

It is the associations position that the additional requirements as proposed in the bill are unnecessary and would constitute an undue burden on self-storage business owners in New York, said Matthew D. Powers, president of the NYSSA. We are advocating on behalf of the industry in New York by meeting with and educating legislators in Albany to increase their understanding of what the self-storage business is all about and to clear any misconceptions about the lien-law and auction-sale process and how it is utilized by the industry.