If you think employee theft doesn’t happen, think again. Though most staff want to do the best job possible and embezzlement is the furthest thing from their mind, stealing still occurs daily at self-storage facilities nationwide. As an owner or supervisor, it’s imperative that you establish an effective strategy to prevent and identify these incidents.

One of the best deterrents against theft is to ensure employees feel they’re a valuable part of the organization. If you feel ownership in the company you work for, you’re less tempted to steal. But too often, managers feel underpaid or underappreciated. They’re left alone for days, weeks or months on end with minimal supervision. Sometimes there’s temptation to take what they feel they’re owed, particularly if they know there aren’t checks and balances in place.

Red Flags

There are several indicators that theft may be occurring within your self-storage operation. It’s critical that you have ways to monitor and address each. Following is a list of some of the major areas to watch, though I need to stress there are others.

Ghost units. This is when a manager rents a unit to a customer offline and pockets the monthly rental income. One simple solution is to conduct regular walk-throughs and ensure unit locks reconcile with what’s in your management software. Finding a unit that’s marked as unrentable in the system but has a customer lock is a dead giveaway. Also, look for gate codes being used that aren’t assigned to a unit.

Deleted payments. Here’s an example of how this works: A customer makes an in-person payment and gets a receipt. The manager voids the payment, issues a credit for the rent to indicate the account is paid, and then pockets the money. One way to control this is to not allow managers to void payments.

Petty cash. Too often, the box doesn’t get counted. Some managers “borrow” lunch money and then pay it back after payday. Though the employee may see this as harmless, it creates a bad trend that may lead to bigger issues. The solution is a daily reconciling of petty cash. Another is to switch to a prepaid credit or debit card for incidental purchases.

Daily deposits. Make sure your manager takes deposits to the bank daily. One recommendation is to have him scan and email the deposit slip and receipt to you by 2 p.m. to ensure deposits are being made in a timely manner.

Merchandise. Make sure the inventory count is correct in your software. One way to protect against theft is to allow managers to add received merchandise into the system but not to reduce the numbers. Perform a physical inventory count quarterly. This will prevent managers from selling boxes, locks, etc., and pocketing the cash.

Auctioned units. Use an auction company to ensure the total sale amount for each auctioned unit is posted to your management software. This helps remove employee temptation to pocket any proceeds.

Manual receipt books. Each store should have a standard receipt book containing three-part, numbered pages. A simple rule is to mandate that the third page of the receipt is always in the book. If you’re missing a numbered receipt, there’s an issue. This is a really simple process as long as you have a policy for it.

Time theft. This another area that can have a dramatic effect on your self-storage operation. Make sure managers are in the office and actually doing work instead of having a sign on the door and the lights off. Monitoring timesheets and remotely checking camera systems can help eliminate this.

Site Audits

A past employer of mine used to say, “People respect what you inspect!” Another saying to keep in mind is, “Don’t let the fox guard the hen house.” If your self-storage managers know you’re keeping a close watch on certain areas of the business and understand what’s important to you, these things are likely to become important to them as well. Every self-storage operation should have an audit process to ensure the asset is protected. This not only deters theft, it ensures staff are following corporate policies and procedures.

Do you have adequate programs and processes in place to protect against wayward employee behavior? You need an operations manual and employee handbook that outline daily, weekly and monthly manager responsibilities and tasks, and leave no grey areas. Make your expectations crystal clear as well the actions that will occur if they aren’t met.

Audits help ensure all duties are being performed—and correctly. How often you complete your inspections and what you examine are critical to maintaining peak operating performance. How often do you visit each site? Monthly, quarterly, yearly or never? One effective strategy is to show up unannounced rather than schedule visits. For example, have you ever shown up early to see what time staff actually arrive? I never tell my managers where I’ll be or when. Site visits are always unexpected.

A lot of the issues you uncover during a site audit will be related to training and learning issues, not criminal behavior; but occasionally, you may discover an egregious act. This is why you need a system to ensure corrective action or discipline as necessary. If you don’t have an employee write-up system in place, implement one. If you see something wrong, document it and have the responsible team member sign it. Place a copy in his human-resources file. Even if the disciplinary action is a verbal discussion, send an email to create a record.

I learned a long time ago to document everything. That way, if there’s an issue with employee habits or behavior, you have a paper trail. You’ll also be prepared if or when you need to take additional or more serious action.

No owner likes to think his employees will steal, but it happens! Protect yourself. Have clear policies and procedures, and enforce an accountability system for your managers. Making sure everyone is aware of the consequences for bad behavior is a good way to prevent it from occurring.

Jim Mooney Jr. is vice president of operations for Freedom Storage Management. He leverages his 20 years of storage experience to improve the performance of the company’s portfolio of Pennsylvania properties. He was formerly a vice president for Devon Self Storage, where he held various positions. He serves on the Pennsylvania Self Storage Association Board of Directors and has been a speaker at numerous industry events. For more information, call 717.767.2735; email [email protected].

The world may feel like it’s upside down, but running your self-storage operation or pursuing a new project doesn’t have to follow suit. One of the best ways to stay current on industry trends and pursue ventures with confidence is to lean on the guidance provided in the annual Inside Self-Storage Guidebooks.

Created for facility owners, managers, investors and developers, the 2021 publications cover all aspects of the business, top to bottom. They also come in softcover or digital formats, individually or in a discount package. They are:

• Building/Investing Guidebook: Designed to help those interested in self-storage investing as well as those who want to establish or expand an operation, this 90-page book addresses finance, real estate, development, design and construction.
• Facility-Operation Guidebook: Designed for managers and owners, this 220-page book addresses key aspects to site operation, providing insight to revenue, sales, legal issues, marketing, maintenance, liability, technology, security and much more.

Visit the ISS Store for a full breakdown of Guidebook contents. Get up to speed on all the latest industry trends and success strategies today!

Your self-storage unit doors are used by customers regularly, so they’re an important part of the tenant experience. The perceived safety, security and value of the entire facility rests heavily on how those doors look and function. If people get the impression that you don’t care about your own property, how can they believe you’ll care about protecting theirs? Chances are, they won't feel good about storing their valuables with you.

Knowing this, you need to make your doors a priority. Following is a guide for cleaning and maintaining them. I’ll also talk about when it’s time to replace them. The goal is to ensure customers have a good experience renting with you so they stick around for the long haul and refer others your way.

Cleanliness

Dirty, grimy unit doors can detract from your property’s curb appeal. In addition, if you don't properly care for your doors, the paint will eventually suffer, which will only lead to a decrease in property value.

Even newer doors need regular cleaning. Steel can pick up dust, dirt and road salt over time. Washing won’t only improve your facility appearance, it’ll protect the paint. Even if your doors aren't oxidized or faded yet, grime will still make your property look shabby. Consider these best practices:

• Whenever possible, wash your doors in the shade or on a cloudy day to avoid water spots.
• Use a small amount of mild, free-rinsing dish soap, like Dawn or Joy. These are gentle on your paint and rinse easily. Don’t use vinegar, which is acidic and can etch your aluminum hasps and bottom bars. Similarly, don’t use silicone-based products like Pledge, or oily products like WD-40, as they attract dirt and dust.
• Use plain water. Never apply your soap solution to a dry surface, as it can cause steaking.
• Wash by hand using a soft-bristled brush or microfiber towels like the ones you’d use on your car. Before you start, make sure there are no rocks or other debris trapped in the brush.
• Rinse your doors completely with the soft spray of a hose, or just let the water run down the door). Don’t use a pressure washer or hard spray, as this can force water into the units and damage your paint.

Safety

If you don’t regularly maintain your roll-up doors, the effects of aging plus daily wear and tear will take their toll. While it’s important that your doors look good, safety is even more critical. If doors are running off track or difficult to open and close, they pose a risk to tenants and staff. Putting off maintenance or replacement isn’t worth someone getting hurt.

Aside from the ethical reasons to provide safe doors for tenants, there are legal ramifications to consider. If a malfunctioning door injures one of your customers or staff, you could be sued.

So, take regular stock of your doors, making sure they’re in proper working order. Maintenance does require time and energy, and it can even require unit access, so you have to plan ahead. It’s wise to include a line item in your annual budget to cover the time and materials you’ll need. Estimate the amount of staff time required, and notify tenants in advance of the project.

Maintenance

Now, let’s down to the nitty-gritty of door maintenance. If your roll-up doors didn’t include pre-greased springs at the time of purchase, you need to perform an annual checkup to ensure functionality and ease of use. Make sure the track alignment is correct and see if the springs need to be greased. (If you purchased a door in which the springs come pre-greased inside the barrel assembly, you can skip this step.)

In general, white lithium grease is an appropriate product to apply to springs. It ensures the door works smoothly, preventing any locking up or malfunctions. Important note: Never disassemble the springs themselves!

You might also need to check the door tension. If necessary, you can adjust both the left and right springs simultaneously. This allows the same tension on both sides of the door curtain, which ensures that when a customer opens his unit, the door will roll up and down evenly. To determine the appropriate tension, follow this test:

• While the door is in the closed position, slide the latch open.
• With minimal effort, begin to roll the door up. It should stop around your knees. It shouldn’t fall back down or go up much farther.
• Continue to open the door, with slightly more effort, until it’s completely rolled up. The door should stay in that open position and not drift downward.

A roll-up door tensioning ratchet
 

When to Replace

Even the most meticulously maintained doors will eventually need replacement. When you notice chalking (a white oxidation that occurs as doors age) or fading, or the door is no longer functioning as it should, it’s time for a new one! While you might be tempted to paint or apply a restorative coating, this only adds to the problem, as it creates additional weight on the door, which could make it unsafe.

When doors age, it isn’t just the façade that takes a hit. The mechanics of the door slowly break down as well. Additional paint decreases functionality, leading to rough operation and potentially causing load-balance issues and spring failure.

Door replacement, before and after, at Public Storage in Ventura, Calif.

Broken springs are an issue most facility operators face at one point or another. When a spring is broken, it’ll be very difficult to open the door. If someone opens it forcibly, the entire curtain will simply “balloon” back into the unit instead of rolling around the axle assembly. This is definitely a situation in which the door will need to be replaced. However, before jumping straight to replacement, make sure that lack of spring tension isn’t the culprit.

Aside from the obvious aesthetic and improved functional appeal, there are considerable monetary benefits to a door-replacement project. By installing doors that are easy to operate, you can increase rental rates, qualify for insurance discounts, and take advantage of tax benefits such as cost segregation.

Always look out for broken springs, chalking or fading, and the inability to maintain appropriate tension. If there’s too much tension, the door will rocket into open position; if there’s too little, it could fall and hit someone. Unfortunately, this is a too common occurrence. Regular maintenance is key to ensure well-functioning, safe doors for your customers and staff.

Richard Lillie is vice president of the R3 Division at Janus International, a supplier of doors, hallways and technology to the self-storage industry. He’s been a member of the Janus team since 2008, helping self-storage owners with new construction and renovation projects. The company named him “Salesman of the Year” in 2009, 2014, 2018 and 2019. He’s also been a member of the board of directors for the North Carolina Self Storage Association since 2012. For more information, call 866.562.2580.

Storage Asset Management (SAM), a property-management and consulting firm for the self-storage industry, was named among the top 100 “Best Places to Work in PA” for 2020 and closed out the year by making more than $15,000 in charitable donations, according to a press release.

In an annual survey conducted by the “Central Penn Business Journal” and “Lehigh Valley Business,” SAM ranked No. 18 out of 27 businesses in the “Large Employer” category designated for companies with at least 250 employees. The annual poll is designed to identify and recognize Pennsylvania’s “best” employers and provide organizations with employee feedback, according to the initiative’s website. In 2020, it also ranked 43 small companies with 15 to 99 employees and 30 mid-sized businesses with 100 to 249 employees.

“We are thrilled and humbled to be named a ‘best places to work’ company in PA,” said SAM CEO Alyssa Quill.

SAM’s end-of-year giving initiatives included a corporate partnership in November and December with the Salvation Army. Self-storage facilities managed by the firm served as monetary-donation points for the charity’s “Rescue Christmas” program, which assists community members with holiday gifts, meals and monetary needs. SAM properties collected more than $8,400 for the nonprofit, the release stated.

In October, SAM properties donated more than $3,500 to the Susan G. Komen foundation, which specializes in breast-cancer advocacy, education, health services, research and social support programs in the United States. Through a matching program, it donated a total of $7,051 to the nonprofit, with which it has worked for six years.

“The fourth quarter really showed the implementation of SAM’s core values,” Quill said. “We are proud at our company’s and employees’ commitment to charitable organizations and being positive impacts in the communities in which we operate.”

Founded in 2010 and based in York, Pa., SAM oversees 279 storage facilities under 68 brands in 31 states. Its managed portfolio comprises more than 17 million square feet.

A man was arrested last week in connection with several break-ins at a Lamar, Mo., self-storage facility after a police officer discovered him inside one of the units. Lamar Police Department Cpl. Toby Luce was patrolling Lamar Mini-Storage on Jan. 7 when he noticed a unit door and lock had been tampered with since his previous inspection that morning, according to the source.

Upon further notice, Luce found several units had been breached at 1705 Walnut St. He then came upon Joseph DeLeon, 43, inside one of the spaces.

DeLeon has been charged with second-degree burglary, second-degree property damage and possession of burglar tools. A court date hasn’t been set.

Source:
KY3, Man Arrested for breaking Into a Storage Building in Lamar, Mo.

Police arrested a 13-year-old girl on Friday in connection with a Sept. 17 fire that destroyed a self-storage building in Groesbeck, Texas. Crews responded to 200 E. Jacinto St. at 5:35 p.m., according to the source.

Police launched an investigation and determined the blaze had been purposely set. Information from the department’s tip line led to the teenager. Detectives John Blanco and Autumn Cox met with the girl, and she admitted to starting the fire.

The teen has been charged with arson. She’s in the custody of the Limestone County Juvenile Probation Department for placement in a juvenile-detention facility. Her name wasn’t released because of her age.

Sources:
KWTX, Teenage Girl Arrested After Fire Destroys Area Self-Storage Facility
Facebook, Groesbeck Police Department

Protection plans aren’t unique to the self-storage industry. In fact, they’re offered by many product and service suppliers, and consumers recognize their value. Think about the last time you bought something electronic on Amazon, for example. You likely were offered a protection plan to cover you in the event something goes wrong with the item.

A tenant-protection plan is simple to implement and offers many benefits to both self-storage operators and their customers. In fact, in today’s competitive business climate, failing to offer your renters a safeguard for their belongings puts you at a real disadvantage.

But don’t confuse a tenant-protection plan with tenant insurance. They’re different products. Generally, self-storage operators use their rental agreement to repudiate all liability for tenants’ stored property. With a protection plan, you actually offer the customer a warranty on his property, with favorable terms and conditions, for just a few dollars in additional rent per month. This warranty is offered via an addendum to the lease and insured by a contractual-liability policy that covers all the exposure. In today’s market, you can purchase a program insured by an A-rated company with a $0 deductible.

Competitive Advantages

There are many advantages to offering a tenant-protection plan in self-storage. There are no state license requirements. It provides broad and generous terms to your customers. Plus, the revenue collected counts as additional rental income, which increases your facility value. Here are some others:

Simple implementation. The beauty of protection plans is their efficiency. For example, a self-storage operator with more than 100 locations and 40,000 outstanding protection plans can be insured by one policy. The protection plan is offered via a lease addendum, which the tenant signs while renting the unit. There’s no insurance policy to be sent out by a carrier or a requirement coverage that must be canceled for delinquent tenants.

Easy to sell and administer. Some self-storage managers find it contradictory to sell tenant insurance after they’ve just told a prospect how clean and secure the facility is. It can be awkward to pivot and say, “By the way, you really need insurance.” In contrast, many find a protection plan easy sell. It’s simple for a manager to state that the standard lease agreement doesn’t offer protection for stored belongings; however, for $X more per month, the tenant will be guaranteed reimbursement for up to X amount if a loss does occur.

High profit margin. It’s inexpensive to offer a protection plan. A facility operator can achieve a profit margin of up to 90 percent, depending on the monthly pricing—which he decides.

Operator control. Each self-storage operator sets his own protection-plan limits and pricing. Some operators even drive sales through value pricing. For example, offering a $2,000 protection plan for $4.99 per month will increase participation while generating the same amount of money a facility could earn through a third-party tenant-insurance policy.

Flexibility. Another strength of a tenant-protection plan is it’s applicable to other storage types, not just self-storage. For example, it can be extended to your boat/RV-storage and wine-storage customers. Some operators target car collectors and enthusiasts, letting them know protection is available for that labor of love they value so much.

Marketing advantage. Not only is a protection plan a value-add service for tenants, you can leverage it in your strategic marketing. For instance, some operators choose to offer a special discount on moving supplies for all protection-plan customers. Others may extend gate hours and provide a free lock for tenants who enroll at move-in.

Protect Your Premium

Prior to offering a tenant-protection program, it’s essential to thoroughly inspect your self-storage facility. As the premium for policies that insure protection plans are based on history of actual loss, there are actions you can take to avoid future losses while preserving a low premium and high profit margin. For example, make sure your facility roof is well-maintained and watertight, and that the weather stripping on all unit doors is in good condition. Ensure your surveillance cameras are working, fencing is secure and pest-control measures are up to date.

Choosing a Program

Once you’re ready to choose a program, find an agent with experience in helping self-storage operators successfully launch protection plans. Make sure the provider you choose offers training, setup assistance and quality marketing materials.

Look closely at the policy terms and conditions to determine which plan is right for you. Do you want a zero-deductible policy for which the carrier handles all claims, or a deductible policy with claims handled in-house?

Finally, make sure the plan is backed by a reputable carrier. A lot of self-storage tenant programs are insured through captives. This is perfectly acceptable as long as the provider has a strong carrier supporting the program.

A tenant-protection plan is an efficient way to offer tenants peace of mind and protect their belongings while capturing additional revenue for your business. With income counted as additional rent, a successful program can add exponential value to your portfolio. Be one step ahead of your competition. Review the programs available in your market to enhance your overall customer experience.

Joseph Torrisi is self-storage specialist with Insurance Office of America (IOA), an insurance agency that provides self-storage insurance for property and casualty, and tenant protection. Based in Longwood, Fla., IOA operates more than 60 offices, in London and across the United States. To reach Joe, call 800.243.6899, ext. 10429; email [email protected].

Nashville, Tenn.-based singer-songwriter Lilly Hiatt chose a self-storage unit as the set for the newly released music video of her latest song, “P-Town.” The track is from the March 2020 album “Walking Proof,” her second on the New West Records label. The identity of the storage facility is unknown.

Directed by Hiatt’s sister, Georgia Rae Hiatt, the video explores a series of events that occurred in Lilly’s life in Portland, Ore., in the aftermath of a breakup. It begins with her opening a lime-green roll-up door to a unit scattered with boxes and furniture. The vocalist and guitar-player sifts through her mementos and decorates her “stage” with metallic streamers and floral pinwheels before getting down to business.

Born in Los Angeles and raised in Nashville, 36-year-old Lilly has played music since she was 12, focusing in the country, folk and rock genres. She released her first album, “Let Down,” in 2012. Her father is singer-songwriter John Hiatt, who contributed to “Walking Proof” along with Amanda Shires and Aaron Lee Tasjan.

It isn’t uncommon for musicians to flock to self-storage facilities. Operators like STORExpress, with locations in Ohio and Pennsylvania, specialize in renting to bands and other artists.

This also isn’t the first time self-storage has been featured in a music video. In 2018, Limerick Self Storage of Limerick, Ireland, created a video in tribute to Dolores O’Riordan, the local-born lead singer of Irish band The Cranberries, who died the previous January. Filmed at the storage facility and viewable on the company’s Facebook page, the video included appearances by approximately 60 local musicians.

Source:
Rolling Stone, Lilly Hiatt Makes a Storage Unit a Stage in New Video for ‘P-Town’

SmartStop Self Storage REIT Inc., which operates 149 properties in 19 U.S. states and Toronto, has expanded its leadership team by promoting Bliss Edwards to executive vice president for Canada and hiring David Corak as vice president of corporate finance. Both executives will begin in their new roles immediately, according to a press release.

Edwards joined SmartStop as managing director of Canada in 2019. She’s overseen all areas of property acquisition and development, quadrupling the net rentable square feet in the company’s Canadian pipeline. She’s also been a key contributor to the company’s growing joint venture with SmartCentres in Toronto, the release stated.

Edwards previously spent four years with Dymon Storage as senior director of development and 10 years in land-use planning approvals with public and private organizations. She holds a bachelor’s degree in environmental studies in planning from the University of Waterloo.

“Bliss has been instrumental to our growth across the Greater Toronto area and has played an active role in all aspects of our business in the region, from sourcing new opportunities to negotiating deals,” said H. Michael Schwartz, executive chairman. “It is truly a pleasure to promote Bliss, and we are looking forward to continuing to benefit from her deep understanding of the self-storage industry and Canadian markets, as we continue to expand the SmartStop brand across Canada.”

In his role, Corak will focus on investor relations and guide corporate finance initiatives. Corak was most recently senior vice president of corporate finance for Jernigan Capital Inc., a publicly traded real estate investment trust (REIT) that was recently acquired by NexPoint Advisors L.P. He has six years of “sell-side research” experience at Stifel Financial Corp. and FBR Capital Markets/B Riley Securities, where he covered the self-storage sector. He also has three years of corporate and investment-banking experience with PNC Financial Services Group Inc. Corak is a graduate of Georgetown University.

“David joins us with a depth of sell-side and public-company experience, which will help SmartStop refine its existing investor relations and corporate finance infrastructure,” said Michael McClure, CEO. “We're excited to have David join the company and contribute to expanding the SmartStop Self Storage brand across the U.S. and Canada.”

SmartStop is a self-managed REIT. Through its indirect subsidiary SmartStop REIT Advisors LLC, it sponsors other self-storage programs, including Strategic Storage Trust IV Inc., a public non-traded REIT. It has approximately $1.7 billion of real estate assets under management.

Sources:
PR Newswire, Bliss Edwards Promoted to Executive Vice President as SmartStop Self Storage Continues to Expand Its Canadian Presence
PR Newswire, David Corak Hired as Vice President of Corporate Finance at SmartStop Self Storage