Inside Self-Storage is part of the Informa Markets Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

StorageMaxx Runs Katrina-Aid Promotion

Article-StorageMaxx Runs Katrina-Aid Promotion

Between Sept. 26 and Oct. 2, Canadian self-storage operator StorageMaxx raised a donation of $3,250 for the Salvation Army and its efforts to assist victims of Hurricane Katrina. A special promotion collected a percentage of proceeds from all new-lease transactions and the sale of moving and packing supplies at the companys seven facilities. For more information, call 905.634.9979.

Security: The Protective Umbrella

Article-Security: The Protective Umbrella


The tools exist to provide solid security and add tremendous promotional power to your marketing program.

Meet Larry Lurker, Robbie Ripoff and Vicki Vandal. These characters pose a threat to your property and present liabilities for your company. They will do the very things that damage, not only your property, but also your company's good name. But take heart: With proper planning and preparation, you can protect yourself and put the perpetrators in their place--hopefully the county lockup.

Put yourself and your facility under the protective umbrella called "security." Maybe that conjures up pictures of armed guards, guard dogs and razor-wire fencing. Or, perhaps your imagination runs toward the cunning, clandestine, ultra-high-tech tools of the super spies in the movies and on television.

For the self-storage industry, the reality of the situation involves the use of proven tools that will strike a good balance between choosing and using appropriate products, and getting a good return on the investment. The tools exist to provide solid security and add tremendous promotional power to your marketing program.

Take Larry Lurker, for example. He's the kind of guy who hangs around trouble. Or maybe he carries it with him wherever he goes. If he's lounging around the boat dock, things disappear--a trolling motor one day, a depth finder the next. Larry knows the guy who can move the merchandise at the flea market.

Control Who Uses Your Property

To handle Larry, build a fence. A good layout of your facility with proper fencing cures the problems that come with most casual theft. Once you add automatic, computer-controlled gates, you have the convenience of complete access control without having to have personnel on hand to watch who's coming and going.

In the traditional self-storage and RV-storage configuration, a fortress-style construction stands as the strongest defense. Put solid buildings all the way around your perimeter. If the parcel does not lend itself to that type of construction, then start planning early for fencing, convenient gated access and egress, and the software package that allows you to control the access. These programs provide for full delinquency control and a completely accurate written report of the access and egress activity at your facility.

The better access-control systems tailored to the storage industry provide other customer-convenience features as well. Offer multiple units under a single billing account and code number. That's especially useful for a boater or RV owner who needs both outside storage for the vehicle and inside storage for other personal goods. Make available multiple code numbers for a single unit, so that family members or friends can share the space. Take advantage of something called "zoning," available in the software. Use additional control points for climate-controlled buildings or separate sections of the facility.

The new Price Storage in Azusa and Valencia Self Storage, both in California, present good examples of mixed-use storage for recreational vehicles, dry storage for boats and inside storage. Both are designed with perimeter buildings offering a natural barrier to the property. Ivan Cohen, owner of the Valencia facility, moved a plan through the permitting process that includes an attractive, separate, walled area for the RVs with its own gate and gate controls. Keypad zoning and time zoning make it convenient for both managers and tenants, according to Mike Beales, manager of the Azusa project. "We have to have some way to let the RVs in after hours. The people coming back from the lake at the end of the day simply can't get in during regular hours," he says.

Lock Out the No-Pays and Slow-Pays


A good layout of your facility with proper fencing cures the problems that come with most casual theft.

Dockside slips, open bays and locked storage units all are used by people who occasionally forget to keep the bills paid on time. Delinquent tenants can be locked out with a good access-control system. Moving information from your accounting operations to your access-control operations proves to be a simple matter. Fortunately for owners, with a high level of cooperation among the vendors that specialize in serving the needs of the storage industry, a software link allows each program to share information with the other. Management programs tell the access programs which tenant codes should be valid. If a tenant goes delinquent, they're automatically locked out after a user-defined grace period.

Having the security umbrella in place before the storm of complaints from tenants who've been ripped off or had their property vandalized makes good sense. Planning for security should be integrated at the architectural and engineering-design phase. Since that is not always practical, especially for older and existing facilities, good advice from experts helps. Doug West, president of Doug West and Associates based in Asheville, N.C., says, "As an owner, you need to expect a vendor to help you design the types of systems and all the components that will help security tools work for you." Good planning simplifies the process and helps save money, especially for the final installation.

Add Security for More Profit and Less Liability

Security for the self-storage industry has become more sophisticated and much more of a competitive tool. "We're seeing a lot of owners use individual unit door alarms, video surveillance and especially office security displays," comments Tim Calvin, owner of Calvin Access Control Systems in Columbus, Ohio. "It's not unusual to see owners who are building a $2 million to $4 million facility spend $80,000 to $120,000 to protect the property and be able to advertise that they have security."

Individual-unit door alarms nail Robbie Ripoff and his type. They pose as good tenants, but use their access privileges to cruise storage lots for loose items or force entry into neighboring units. A security contact tied to alarm software puts a stop to that. Any intrusion to an armed unit causes an alarm, which can be local or tied to a central monitoring station. Alarm and access-control software validates a tenant code entered at the entry point, such as a main gate or entry door. A good code disarms the unit's alarm. Any other attempt to open an armed unit will sound an alarm, usually a loud siren. Law-enforcement officers will tell you there are two things thieves do not like: noise and lights that call attention to their actions.

Who knows the motivation for Vickie Vandal? She may damage property and equipment by accident. She and others like her may be venting anger or just "having fun." No matter the reason, vandalism can be expensive for an unprepared owner.

Kirt Grant, a partner in Lake Powell Boat and RV Storage in Page, Ariz., related a phrase he heard at a seminar: "Deter crime if you can, but if you can't prevent it, you need to catch it." Grant has an open storage facility with controlled gates. As an added deterrent, and as a tool to keep an eye on activities, he added a complete video-surveillance system with cameras, camera-control devices and a professional time-lapse recorder.

The threat has increased. Customers are more security conscious than ever. Whether it's our trio of bad guys, or you have your own cast of characters bent on doing you and your company harm, the tools to protect you are readily available. Start planning for your protective umbrella early. Use security tools for peace of mind. Show them off to your customers to make your facility even more impressive and appealing to prospects.

Steve Cooper is a member of the marketing team of Digitech International Inc., which has provided self-storageĀ security solutions for more than two decades. For information, call 800.523.9504; visit www.digitech-intl.com .Ā 

Building Boat and RV Storage

Article-Building Boat and RV Storage

As the economy recovers, the American public enjoys more disposable income, and many have taken to the road and water for recreation. At the same time, most communities have restrictions regarding the parking of boats and RVs in streets and driveways, providing an excellent opportunity for self-storage owners to meet the resulting need. Smart operators not only provide storage for these vehicles but a host of complementary services.

Before you can reap the rewards of boat and RV storage, youā€™ll need to decide the type of storage you will offer and the services youā€™ll provide. Following are considerations for a smooth ride on this ancillary adventure.

Construction

The economics of the local area are a significant factor in deciding the type of storage and services you offer. While boat and RV storage can be as primitive as outdoor parking spaces, structures for large vehicles come in three basic configurations.

The simplest is a canopy style with only a roof. The manger style has a roof and is enclosed on three sides, and can include individual partitions. The third is a completely enclosed individual unit. You might think itā€™s less expensive to build canopy or manger units, but that isnā€™t necessarily true. All three styles require deeper footings and additional structural strength to accommodate greater heights and widths as well as wind resistance.

Boat and RV storage units vary in height, width and depth. Keep in mind that in addition to the vehicle, the space will need to accommodate add-on fixtures, such as motorcycle racks, tow bars, air-conditioning units, collapsible tables and chairs, ladders, awnings, trailers, radio antennae, ski racks, and large toys such as jet skis. Some owners will rent a separate unit for peripherals, but others will wish to keep all their items in one space.

Typically, the minimum unit width is 12 feet, and the maximum depth is 45 to 50 feet. The most common unit size is 14 feet wide with mixed depths up to 40 feet and an eve height of about 16 feet. When determining the best size, consider the cost to build vs. potential income on a per-square-foot basis. For example, a 14-by-40 unit consumes 560 square feet of land. You could use that land for several traditional storage units, so determine which will be more profitable before you build.

When it comes to weighing costs, many operators forget to consider whether their storage canopies and mangers are considered ā€œbuildingsā€ by their local tax authority. This will have a significant impact on the tax assessment. Fire sprinklers, which increase construction costs and ongoing operational expenses, are another overlooked outlay. In some areas, even canopies of more than a certain size require sprinklers.

Obviously, construction itself is the greatest expense in adding boat and RV storage. The additional structural strength required by oversize units increases the cost of building components. The total price usually ends up slightly higher than that of traditional self-storage but significantly less than climate-controlled storage.

A traditional metal structure is made from cold-formed steel and built on a 5-by-10-foot grid with 4-inch, 16-gauge Cee studs, girts and Zee purlins. (Cees are vertical supports, Girts are horizontal supports, and Zees are the roof members.) To expand the building to greater heights or widths and maintain structural strength, the builder must use more Cees, girts and Zees, or stronger members (6- to 8-inch and 14-gauge). Additional strength can also be obtained by building with clear span or rigid-frame buildings, but these can be even more expensive.


click here to view chart

Adding height to a building also increases the need for greater wind resistance. In canopy units, the roof will catch the wind like a kite or parasail and must be appropriately anchored. The more walls the structure has, the less uplift there is against the roof. The actual ā€œmuscleā€ required depends on the height and width of the building and wind-load regulations for the area, which are typically determined by the structural engineer or metal-building provider.

On enclosed units, doors must also meet higher wind-load requirements. Roll-up doors larger than 14-by-14 feet become unwieldy, catching so much wind deflection they can jump their tracks. Any door larger than 100 square feet should have a chain hoist or other door-opening mechanism.

Other construction considerations are the drive aisles and turning radiuses necessary to accommodate large vehicles. ā€œPull-though accessā€ is often promoted in advertising for boat and RV storage because operators recognize the value of easy maneuverability. Backing into a unit in tight quarters is an invitation for disaster. Placing bollards throughout the parking areas can help prevent accidents. Drive aisles for open-air storage should be 50 to 60 feet wide for perpendicular spaces and at least 35 feet wide for spaces angled at 60 degrees.

Security

RVs and boats can cost anywhere from $500 to well over a million dollars. Whatever the cost, each one is someoneā€™s treasure, so security is paramount. The features you offer will depend largely on clientele. At a minimum, youā€™ll need perimeter fencing, which can consist of anything from chain link and razor wire to solid block walls.

As 24-hour access is often a requirement of this type of storage, camera surveillance and key-coded entry gates are common. Ingress and egress keypads should be positioned at 42 and 66 inches from the ground to accommodate the window heights of cars and RVs. Itā€™s wise to have a camera aimed at vehicle license plates as they enter and exit the facility. You can also use proximity card readers, adding limited-access zones for only those tenants with stored vehicles.

More sophisticated security measures can also be used, such as infrared beams with silent or audible security alarms. Table-top motion sensors can be rented for tenants to place in their vehicles.

Finally, good lighting is essential for security and safety. When planning your lighting, consult local codes. Many municipalities are adopting ā€œdark skyā€ ordinances, which prohibit lights from aiming into the sky. Itā€™s prudent to follow dark-sky standards even if theyā€™re not currently mandatory in your area. This will avoid costly renovations in the future.

Services

The ancillary products and services you offer in conjunction with boat/RV storage also depend on your customers. People like to stretch their vacation time to the max, so the more convenient it is to store at your facility, the more likely you are to earn and keep tenants.

The most desired services are utilities such as electricity and water. Water is usually offered for free, and electricity can be metered or offered for a flat fee. (A word of caution: When you offer these utilities, you make it very easy for tenants to become residents, so vigilance will be necessary.) Other popular add-ons for boat and RV storage include dump, wash and propane stations, and the sale of valued commodities such as ice, coffee, glass wipes, air-fresheners, etc. Some facilities offer vehicle prep and clean-up services.

When deciding what ancillaries to offer, consider the initial cost and potential income vs. risk and expense. For example, if you offer vehicle-prep services that involve accessing a tenantā€™s boat or RV, you take on additional insurance and legal responsibilities.

Societyā€™s perceptions of boat and RV recreation have changed for the better. Concerns regarding homeland security as well as an improved economy have encouraged people to opt for family-based travel and entertainment. The nationā€™s parks and waterways invite outdoor recreation and sports. As Americans go about the business of enjoying life, the need for boat and RV storage will remain strong. This ancillary offering represents a voyage worth undertaking.

Donna May is president of Cross Metal Buildings, a member of The Parham Cos., which provides high-quality commercial, agricultural and self-storage buildings throughout the South and specializes in assisting first-time builders. May is the former president of Joshua Management Co. and a commercial real estate broker. She has been a partner in 11 startup storage projects totaling more than 703,500 square feet. For information, call 210.477.1260; e-mail [email protected]; visit www.crossmetalbuildings.com.

Security for Specialized Storage

Article-Security for Specialized Storage

The self-storage product continues to become more popular and specialized. Todays facility owners use boat/RV storage, wine storage, records storage and even vault storage to attract market share. In all cases, security is one of the most important components of site marketing and safety.

Most storage facilities have some security practices in common, but each site may differ in terms of the level of defense it requires. To determine your facilitys needs, analyze your market and decide what you want to accomplish with your security system. Start by asking the following questions. The answers will help determine what you need as well as extras it might be wise to include.

  • Who is my competition, and what security do they offer?
  • Am I in a high-crime area?
  • Will security be key a marketing point for my site?
  • Does the facilitys physical layout add to site security?

Basic Components

Site security is becoming more sophisticated and consumers have increasingly greater expectations, especially when it comes to valuables like wine, vehicles and records. At a minimum, youll need to incorporate proper lighting and physical barriers into your site. Lighting creates a safe environment, assists the manager with sufficient visibility, and makes video surveillance more effective. Physical security can include building layout, fencing and access control.

For drive-up and exterior units, such as those used for boat/RV storage, a high perimeter fence is a necessity. You can increase its effectiveness by placing razor wire around the top, but only if its legal in your areacheck with your local zoning department. For even tighter security, consider infrared perimeter beams that integrate with the alarm system.

Access control allows you to manage who enters and exits the facility at any time. Typically operated using keypads and individually assigned codes, an access system will allow you to lock out unauthorized or delinquent parties. It will also allow you to run reports and track who was on site and when. Using these records, you can quickly determine who was on the premises during the time of a theft or other crime.

Use coded entry to ensure tenants can only go into areas for which they have access. Keypads can be used to control exterior gates, hallways, doors and even individual units. Elevator restriction is another great application of access control. If you have a multilevel building with interior units, you can restrict tenants to certain floors, minimizing the snoop factor.

Unit Alarms

Access control allows you to keep unauthorized parties off the property, but how do protect units from inside theft, i.e., that committed by tenants? This is where individual unit alarms come into play. A wireless motion sensor inside a unit door can sound an alarm and alert the authorities. The sensor is only disarmed when the rightful tenant enters his access code at the facility entrance. There are wireless door alarms to fit units of all sizes, even large spaces used for boats, RVs and records.

Digital Video Surveillance

An excellent way to keep a facility secure is a digital surveillance system. Due to the popularity of this equipment, prices have dropped to a very affordable level. The amount of gear you need depends on your site layout as well as the types of storage you offer. Work with an experienced vendor who can suggest optimal camera locations based on your particular operation.

For RV/boat storage, your main focus is to track movement around the units. Be sure to cover all main traffic areas as well as long runs and driveways. At the entrance, have a camera focused to capture license-plate numbers. For storage of high-end items such as wine and furs, aim a camera at each designated area, ensuring visibility of every unit door.

Consider offering remote-viewing capability in conjunction with your video - surveillance system. For a premium, tenants can have a video camera aimed specifically at their units, and they can access the view of that camera anytime, anywhere through a web browser. Some facilities charge up to $5 per month for this option.

Office Security

Office security is a necessity for all storage facilities. Consider installing motion sensors, glass-break sensors and door sensors to the office or even the managers apartment. Some systems will actually talk instead of making a siren noise. You can even record your own verbal alert, which tricks the culprit into thinking theres someone watching him in real time on camera. What a great way to stop theft!

Software

To tie your entire security system together, you need software. There are many companies that offer software specifically for self-storage management. Many of the programs provide the tools necessary for specialized storage types, but only a few offer packages that completely integrate with a facilitys security hardware. Shop around for the package that will best suit the needs of your site.

Software can range from basic to sophisticated. For example, some programs include graphical interface and web access. Graphical programs provide a 2-D or 3-D representation of a facility, which can be displayed on monitors in the office. This works as an excellent marketing tool, promoting your security and vigilance to customers. A web-access system allows tenants to pay their bills online, creating convenience and value and streamlining business processes.

There are several security providers in the market today, so research each company and make sure its stable. Youll want your vendor around in the future should your system need maintenance, service or upgrades. Though security has not traditionally been used as a profit-maker, youll find it provides returns in lower insurance costs, minimized risk and increased site marketability, especially when it comes to specialized storage.

Owen Runnals is an account representative with QuikStor Security & Software, a California-based company specializing in access control, management software, digital video surveillance, kiosk and corporate products for the self-storage industry. For more information, call 800.321.1987; e-mail [email protected]; visit www.quikstor.com.

Serving Up Ancillaries

Article-Serving Up Ancillaries

It was a World Team Tennis match in Anaheim, Calif., about 1980. At 45, Rod Laver was playing one of the last matches of his career against Guillermo Vilas, a man half his age. Though Vilas expected to have an advantage because of his speed and Lavers years, Laver used ancillary moves to defeat his opponent, differentiate himself and become a standout in his profession. Self-storage operatorsregardless of the location or age of their facilitiesshould use the same tactic.

In a day and age when unit options, retail products and truck rentals are the norm for self-storage operations, facilities tend to all look the same to consumers. Its differentiation that sets a site above the competition, and amenities are the key. In an aggressive business landscape, you need to build your ancillary products and services and make the market aware of your offerings. This article discusses some items that can take your company to the next level.

Swings and Strokes

Ancillaries are add-ons that benefit customers. They can include simple things like fresh popcorn, a complimentary beverage, a place for the kids to play, a room for customers to conduct meetings, shipping/ receiving services, Internet access, and fax/photocopy services. All these add up to a comprehensive package that sets you apart from the facility down the street.

Every market is unique and will respond to different products. But here are some tactics to try:

  • Provide extra lighting, shelving and carpeting for individual units for a fee.
  • In addition to offering truck rental and a wide array of packing productscorrugated and plastic boxes, moving bundles, peanut pack, tapeconsider a package deal that includes a truck with all the necessary moving materials already inside.
  • Offer packing and shipping services including U.S. Postal Service, UPS, DHL, P.O. boxes, etc. A USPS store only requires about 100 square feet of space and can add 100 visits to your site per day from potential customers.
  • In more affluent markets, wine storage can be very profitable if a business plan and budget are successfully implemented.
  • Vault storage, a special high-security option, can also be profitable if the customer base has a need to store valuable collections such as art and antiques.

What Do You Win?

So what does the addition of ancillaries mean to a storage business? The exercise is only worthwhile if profit is realized and risk mitigated. You serve a product and, hopefully, the market volleys with more revenue. Lets take a look at potential returns:

  • Unit lighting, shelving and carpeting are profit centers yielding 100 percent on cost.
  • Boxes and related products also carry a 100 percent mark-up.
  • Good truck-rental contracts with operators like U-Haul, Budget and Penske provide storage partners a commission of 16 percent to 24 percent of gross revenue.
  • Packing and shipping services can yield $12,000 to $50,000 in annual profit. A USPS contract station can produce $25,000 to $200,000 per year. P.O. boxes add between $3,600 and $10,000 annually.
  • Annual revenue on 10,000 square feet of wine storage is approximately $50,000.

Take It to the Net

Ancillary products and services are essential to remaining viable and profitable in a competitive self-storage environment. Every operator should do what he can to make his facility newer, better and different from others. Gone are the days when you can sit idly by and watch rents and occupancy miraculously rise. Give some thought to what your market is asking of you. Take your business to the net and shoot a winner!

Gregory A. Call is the president and CEO of Irvine, Calif.-based Self StorageWorks, a management, consulting and development firm that provides feasibility studies, startup services, design, unit-mix planning, staff hiring and training, facility management, marketing plans and brokerage. For more information, call 800.779.6797; e-mail [email protected]; visit www.selfstorageworks.com.

Inside Self-Storage Magazine: Club Wet

Article-Inside Self-Storage Magazine: Club Wet

Vanette and Gary Christensen, owners of Club Wet Boat & RV Storage in Overton, Nev., have had ample time to mastermind their project. Due to water-pipe installation problems during early construction and eleventh-hour finance changes, the facilitys opening has been postponed more than two years.

Despite delays, 160 would-be tenants are faithfully waiting for spots, and no wonder: The Christensens plan to offer the slew of dream amenities they craved as customers. Of course, selecting a site just 13 miles from Lake Mead didnt hurt either. Vanette shares her insights and inspiration regarding the development process.

Describe your facility and the Lake Mead area.

Our community seasonally attracts flocks of snowbirds who need RV and boat services. The local marina is restricted because Lake Mead is a national park. It has only 50 dry-storage spaces, most of which are filled with trailers from boats in marina slips. Nothing is covered locally, so vacationers are eager for quality covered storage and services.

All of our units are enclosed, with oversized roll-up doors for individual security and access. Driveways are much wider than the norm for easy entry. Our buildings are designed to accommodate larger units: 12-by-30 up to 14-by-70 drive-thrus. Due to extreme summer weather, we opted to build with masonry block instead of metal for better insulation. This also provides more security than simple awning-type coverage, an attractive benefit for long-distance customers.

Whats your business philosophy?

As avid boaters and RVers, my husband and I wanted to fix all the things that bothered us as consumers. Because we offer services that make our customers experience as easy and convenient as possible, they can spend more valuable vacation time doing what they want to be doingenjoying themselves.

What amenities are on the menu?

Club Wet offers boat launch and retrieval, airport-shuttle pick-up and delivery, business services for tenants who fly their personal planes into the regional airport, and engine and cleaning services. Our on-site supply store will be like Camping World on a smaller scale, with fishing supplies, boat-related items, towels, sunglasses, hats, and RV products such as repair parts, shower curtains, tools, etc.

Being the lady in the family, I was especially determined we would offer clean restrooms and showers. Also, a lot of people travel with their dogs, so we plan on having a pet-walk area. Im surprised more facilities dont offer ityou can put in a 5-foot-wide strip with a box in it and a little grass. People really appreciate simple things like that.

How did you decide which services to include?

We sat down at Lake Mead as customers ourselves and talked to fellow boaters and campers. We also looked at the competition, and there really werent any services or recreation-based retail outlets for 70 miles. If someone needed engine servicing or RV and boat supplies, where were they going to go? Regardless of location, facility owners should identify their areas needs and incorporate them into a customer-service plan.

Tell us more about launch and retrieval.

Tenants can call ahead, and well have their boat in the water, ready to go, when they arrive. Well also pick it up and transport it back to storage at a prescribed time. I know a facilitys insurance goes up for this kind of service, but you would be amazed at how many people want it, especially families. It allows them to drive directly to the lake and start having fun.

How can you be sure tenants will buy the service?

W e asked them. People were complaining about how far they were driving and towing, and most were asking for launch and retrieval. We live in a society that is service-based, and whatever makes it more convenient for the consumer makes your facility that much more appealing.

How did you develop your marketing plan?

We identified our target audience by looking at license plates at local RV parks and marinas. That told us how far people would be willing to drive to use us. Top target areas turned out to be Salt Lake City, and Orange and Riverside counties in California. Only two of my customers are local, so Yellow Pages advertising wouldnt be a sound investment. The biggest thing we decided to do was advertise on billboards, in and out of the lake area. People who are towing past our signs have just spent an average of five hours getting here and often would rather not tow back.

How did you calculate pricing?

We evaluated prevailing prices at similar facilities around the Las Vegas/Boulder City/ Lake Mead area. Our storage prices are competitive with the market. Engine-servicing prices are based on those found in the Las Vegas area. Launch and retrieval charges are based on a set round-trip charge based on per foot of boat length; the fee is added to the tenants monthly bill along with other services, such as boat or RV cleaning, supply-store purchases, etc.

How difficult was it to secure financial backing?

Initially, it was extremely difficult for us to find funding because banks traditionally use a formula for storage projects based on mini-storage statistics; the equation uses proposed square footage vs. number of people residing in the area. Although we had highly positive appraisals and feasibility studies, the fact that this is a small, rural town worked against us. We had to show lenders that our customer base is the entire Southwest. If you are storing an RV or boat, especially with rising fuel costs, you want to store close to where you use it. Our current lender understood this concept and has worked diligently, even with rising building costs, to swiftly move our project forward.

Since we are primarily a service-based business that also has storage, weve successfully progressed through the Small Business Administration criteria. The SBA doesnt usually fund storage, but were creating 15 service jobs in a rural area.

Do you have any advice for landlocked marina owners looking to expand their businesses?

Look for property in town and expand to a separate facility. Definitely offer the launch and retrieval service. People jump at it. You want customers to store with you instead of someone up the road, so figure out what you can offer that the competition doesnt. Most things are pretty simple. For example, if Im charging the same price for service as a mechanic in Las Vegas, why would a tenant not use me to save time and mileage? Common sense and great customer servicetheyre dying arts.

When do you expect to open?

We hope to begin construction this year and open for our tenants in the first part of 2006. Now were in the midst of final financing paperwork and, once again, completing the arduous process of forward planning required in Clark County, Nev.

For more information, call 866.CLUB.WET; e-mail [email protected]; visit www.clubwetstorage.com.

Slide Gates

Article-Slide Gates

Your security gate is your first line of defense against break-ins. Its also the first security device your customers encounter, and one of the most used mechanisms on your property. So the gate has to work, plain and simple, 24/7/365.

If your site has 300 units, your gate will open an average of 50 times on a slow day. Thats 18,200 times a year. And over the expected seven-year lifespan of your gate operator, it will open an impressive 127,400 times. A quick look at your access log for any given month will show you just how reliable your gate really is.

But if Ive learned anything in my years of working in self-storage, its that if a gate is going to break, it will do so at 5:05 p.m. on a Friday before a long weekend. Ive also learned that if a few simple guidelines are followed on a regular basis, 80 percent of the problems owners experience with their gates and gate operators can be foreseen or avoided entirely.

Safety First

Before I go any further, let me emphasize that safety must come first. Before doing any inspection or work on a gate or gate operator, turn off the power. Then check to make sure the power is off. If there are any other employees on site, let them know you have turned off the power and not to turn it back on until you say so. It may sound silly, but I know of one manager who wishes he had notified his wife in this regard. Its funny now, but it wasnt so funny then.

Gate Inspection

All slide gates have two things in common: a set of rollers and a drive mechanism. If your gate is like most, the drive mechanism is a chain attached to the gate that runs through the operator. The drive mechanism is where most gate problems can be avoided.

For smooth operation, the chain must be kept tight and lubricated. Be careful not to over-tighten it, but dont allow more than 1 inch of drop. This will cause undue pressure on the gears and chain, causing them to wear out. Use a spray lubricant, which can be purchased at any motorcycle or industrial supply store, and lube the chain monthly. This is an easy maintenance item that can be done in less than five minutes.

Check rollers monthly for wear and replace them as soon as deterioration starts to show, as the problem will only get worse over time. You wont save money by ignoring the issue. If a roller shows wear on the outside, it has the same corrosion inside.

If your gate uses V-track rollers, you can check for wear by looking at the rollers edge. There should be a flat spot on either side of the groove. If there is no flat spot, you need to replace your roller. This same rule applies to pipe-type rollers, which have a half-moon cut on the edge with a small flat spot on either side. Also check for cracks, chips or other noticeable erosion.

In addition to wear, check rollers for play along the axel. (To do so, you need to have the weight of the gate off the roller, so it may be wise to let a professional handle this task.) The rollers should be tight on the axel and mounting brackets. If they can be tilted from side to side or up and down, theres damage to the bearings, brackets or axels, and repairs or replacement are necessary. Repairs should only be done by a qualified service technician, as mistakes in this area will cause other problems.

Two good indicators that something is wrong with your gate or gate operator are strange noises or metal shavings on and around the gate, operator and track. These may also appear as gray dust. In both cases, you need to investigate for problems.

Gate Operators

The most overlooked aspects of a gate operator are the drive belt and drive gears. In areas with little moisture, drive belts will crack and start slipping. In humid areas, the belts can rot, which also causes them to slip. Check the belts just as you would on your vehicle. Some operators are designed to allow the belt to slip in the event the gate strikes an object. This is why I dont recommend the use of belt dressings. If the operator is working properly, the belt should not slip.

Check the gears over which the chain runs. If they have sharp points, the sides are undercut, or they seem loose on the axels, they need to be replaced or serviced. Worn gears will wear out the chain. If a gear is not tight on the axel, it can cause the chain to come off or bind. Either situation can mean an expensive fix.

Some gate operators use a plastic roller instead of an idler or guide sprockets. The roller will show wear from the chain, but this is normal. By checking the rollers regularly, you can tell when they need to be replaced.

Safety Devices

By code, all gate operators must have safety devices, which are either primary or secondary. A primary device is what users (your tenants) will encounter first, while a secondary is used as a backup. All safety devices should be checked often; if not daily, then weekly.

Safety loops are the most common safety devices. They are either embedded into the driveway or cut into the drive. To check the safety loops, open the gate and wait for it to start closing. As it closes, slowly drive a vehicle toward it, taking care not to hit it. If the loops are working properly, the gate should stop and reverse to the open position. You should have a safety loop on the inside and outside of the gate, so test both. If your loops have been cut into the drive, youll need to reseal them annually.

Some gates use a photo beam as a secondary safety device. The beam should work the same as the safety loops. When testing, simply place your hand in front of the beam as the gate closes. Again, the gate should stop and reverse.

Sensitivity or mechanical reversing devices are set at the factory and dont usually require any adjustments. They reverse the gate in the event it strikes an object, so make sure your gate operator has them (almost all products manufactured after 2000 do). To check these devices, the gate must be stopped by an object while opening or closing. Only qualified professionals should perform this test or make adjustments.

Safety edgesrubber boots attached to the end of the gate, gate post and other areas of entrapmentare easy to install and make a great secondary device. They consist of three parts: the rubber boot, a transmitter attached to the rubber boot, and a receiver wired to the gate operator. They can be checked by simply striking the rubber boot with your hand as its moving, which should make the gate stop or reverse. If the safety edge doesnt work, check the battery inside the transmitter. If it still doesnt work, you'l need to have it serviced.

An Ounce of Prevention

When a gate or operator needs repair, theres often more than one item in need of fixing. Generally, one central problem will cause others. For example, if the gears are worn, then the chain gets worn, which causes the gate to jerk, which puts strain on the motor and gear box, which causes the drive belt to get hot and crack, and on and on.

You dont have to be a gate expert to foresee and prevent problems. If youre not sure, ask your installer or service tech to show you common items of upkeep. Gates and operators are not overly complicated, and almost anyone can handle simple maintenance and inspections. Refer to your owners manual for items unique to your products. If you cant find your manual, find a copy online or request one from your vendor.

As a rule, all safety devices should be checked at least weekly, and adjustments, lubrications and inspections performed monthly. Keep a log of all repairs and maintenance. This will allow you to see patterns as they develop and learn to identify and prevent problems. The log will also help your service company determine what issues need to be resolved and what has already been done. This will speed repairs and save you money.

Chester A. Gilliam works for Centennial, Colo.-based Wizard Works Security Systems Inc. and has been involved with self-storage security systems for the past 19 years. For more information, call 303.798.5337; e-mail [email protected].

The State of Storage in France

Article-The State of Storage in France

After 15 years of expansion, the French market is still in its infancy. There are 118 storage facilities serving the country’s population of 62 million. Compare these figures with those of the United Kingdom, which has about the same population and more than 400 facilities. Though the potential seems huge, France has already encountered temporary oversupply in markets like Lyon, its second-largest city.

Growth is steady but undeniably slow. Every day, we see evidence of mounting public awareness; yet studies show that where facilities are open, only 5 percent of the population knows what self-storage is. The classic Catch-22 applies in France: We need more facilities to promote self-storage, but more facilities can mean oversupply and slow rent-up.

The years 2000 to 2002 saw strong expansion mainly fuelled by U.K./U.S. companies. But growth slowed in 2003 and 2004 after most of the largest corporations stopped development. Some are only adjusting their expansion plans, but others are paying a steep price for common mistakes: choosing the wrong location; copying the U.S. self-storage model too closely; developing a business plan based on U.S. ratios and figures; opening or buying facilities just to fulfill promises made to investors; opening facilities to grab fees from investors; or all of the above.

Lots of entrepreneurs are interested in developing self-storage in France, but for every dozen projects on the drawing board, only one comes to fruition. Most new entrants have difficulty finding sites, insurance and, most of all, financing. Obviously, the financial institutions need to accept the industry.

The lack of access to capital has contributed to a situation in which the majority of established facilities are in the hands of large, publicly traded companies. This is just the opposite of the United States, where independents own most of the sites. As self-storage gains wider acceptance from financial communities, the trend should shift. This year, for the first time in the short history of France self-storage, French companies have opened more new facilities than U.K./U.S. ones.

Today, the United Kingdom is still five years ahead of France in self-storage development. When you look at how the U.K. market evolved, you can be reasonably optimistic about the future of the French market. This year, three positive presentations of self-storage have appeared on TV news in prime time. This is a clear sign that the concept is gaining momentum.

There are 31 self-storage companies in France. However, 64 percent of the market is controlled by only three corporations: Homebox, Shurgard and Une Piéce en Plus. The market is also geographically concentrated, with 54 percent of facilities in the Paris area.

Introducing the Old Players

Access. Current-day Access, wholly owned by Security Capital Realty, was formed in 1998 when it merged with Acorn, Abacus and Abri- Stock. Because its 17 facilities came from four different companies, site quality and design vary. When GE Capital acquired Security Capital Realty in 2001, Access France was in a wait-and-see mode. In April 2005, Une Piéce en Plus bought all its French facilities for an undisclosed amount.

Devon Self Storage. Devon’s three facilities are in Lyon, Marseille and Toulouse. The company’s expansion has ceased, and its sites are managed by Archon, a subsidiary of Goldman Sachs.

Homebox. Homebox has 15 facilities throughout France’s largest cities. Its owners, the Rousselet family, essentially financed the company’s growth with equity. Homebox hasn’t opened any new facilities in the past two years and doesn’t plan to expand in the future. The company is going through some heavy change. It hopes to reduce its operating costs and reach a breakeven point this year.

Shurgard. Shurgard boasts 36 facilities in France, making it the largest operator in the country. It develops well-located, expensive sites. Though it had early plans to build 20 sites annually, the trend has been about five. This is due to difficulties in finding ideal locations and getting building authorization. Shurgard spends an average of 200,000 in marketing when it opens a new facility, improving awareness of self-storage and benefiting the industry as a whole. Due to high construction costs, a large staff, and fees paid to Shurgard Europe, its breakeven point is the highest in the industry.

Une Piéce en Plus. Une Piéce en Plus (UPP) was created by private property developers who focus their expansion in Paris. Now the second-largest operator in France, UPP owns 20 facilities in the Paris area, three in Lyon and one in Nice. It also manages seven leasehold facilities, plus the 17 Access stores.

The company’s ownership has been erratic. First, it was taken over by Mentmore Abbey, a U.K. self-storage operator, which was subsequently purchased by Safestore, another U.K. company, in a cash deal worth 209 million. Safestore was then bought by Bridgepoint, a private-equity firm, in August 2004. The new owner had development plans for UPP that triggered the deal with Access and the construction of two new facilities in Paris this year.

New Entrants

Annexx SAS. Annexx was created two years ago by three Toulouse entrepreneurs with heavy experience in real estate and construction. The team planned to develop self-storage in the southwest of France. They own three facilities in Toulouse, and have bought three lots with full authorization to construct third-generation facilities in the coming year.

BoxAvenue. BoxAvenue, which builds only conversions, has three Paris sites. The company was joined by a large French investor three years ago, which allowed it to expand to nine sites across France.

Time to Grow

France has a huge potential market for self-storage. Even if it only grows to one-third the size of the U.S. market, another 2,400 facilities could be built in the next 15 years. The business will not blossom quickly, as it will take time for the level of product awareness to build.

In the meantime, storage companies will have to adapt their cost structure to survive and expand. Urbanism is a challenge in France, and prime locations are scarce. But one day, those who leaped into the marketplace will reap rich profits, while those who hesitated will be stuck with third-rate sites.

Philippe Peyrot is president of Annexx SAS, a self-storage company based in South France, and founder of Self-Stockage.info, an online magazine focusing on self-storage in Europe. For more information, visit www.annexx.com.

The Marriage of Records Storage and Software

Article-The Marriage of Records Storage and Software

Here is a must read for anyone planning to purchase software for records-storage management. Finding the right solution requires a substantial investment of time and money. However, once you hit upon that accurate, flexible, secure, easy-to-use tool for accessing records and data, it makes for a more productive work style and a more profitable business.

Therefore, leave nothing to guesswork. Do your homework and shop around. The software you purchase should deliver results, cut costs and be supported by superior service. Its important to filter through the marketing hype and understand the various feature sets. W ith a multitude of options from which to choose, how to you decide on the best provider for the long term? Just as in marriage, you and your partner will have to work together as one. So ask these 10 key questions before you say I do.

1. On what platform is the solution built?

Once upon a time, records storage was simple. But that was before the explosion of technology. With all software, change is inevitable. You cant expect to use yesterdays tools to meet the challenges of today and be in business tomorrow. Your software must be flexible.

You need a solution that will stand the test of time, adapt and allow you to grow, one built with industry-standard platforms and languages, such as Microsoft SQL Server and the new .NET technology. Its your insurance against obsolescence. If a software package uses outdated or inappropriate technology, move on to another candidate.

2. Is technical support included?

Some software companies offer optional support while others build it into your contract. Support is like insuranceit should never be optional. Ensure that support fees are included, so you know exactly what youre paying for every year and what services youre entitled to under your agreement.

Ideally, support should include 24-hour assistance, trained technicians, help with installation and ongoing advice. It should also include an up-to-date website with resources such as technical and other updates, tutorials, manuals, data sheets, user meetings/forums, online training, newsletters and responsive account managers. These services help streamline your implementation, upgrade processes and increase the likelihood of your success, with the added benefit of a higher return on investment.

3. What support services are available, and how do they work?

Technology is ever-changing and complex, so ongoing support is just as crucial as the initial purchase. You wont become an expert in the software overnight, so you need to know theres help when you need it. If it isnt available, you risk losing productivity and datawhich translates to lost profit. The best software in the world is worthless if it isnt backed with experienced, round-the-clock support.

Before getting hitched to any software company, determine the kind of service it offers by asking pointed questions:

  • Where is your office located? Is on-site assistance possible?
  • What hours is technical support available? If there are off hours, what is the standard response time and method?
  • What methods can I use to reach the support teamphone, e-mail, live chat, etc.?
  • Who answers when I have a question, a software expert or a salesperson?
  • W ill your staff understand my questions? Are they familiar with the ins and outs of a records-storage operation?
  • What if I have an emergency?
  • What about a warranty and scheduled upgrades?

Getting answers to these questions will give you peace of mind, especially in the event of an urgent situation. Its not a bad idea to contact the support staff several times during the learning process to test service levels for yourself.

Is the software scalable?

Software that is adjustable in design can grow with your business at minimal cost to you. It changes to meet your business needs without becoming outdated or obsolete. Scalability is particularly important for small businesses, because they tend to be dynamic. With record centers averaging more than 10 percent growth per year, this is not a point to be overlooked.

Watch out for software whose various editions are built on different platforms. You need to grow your operation without worrying about new databases, new hardware, data conversion, customization and retraining. In short, any upgrading should be seamlessyou shouldnt have to replace your software as you expand. Remember this motto: Buy your last system first.

Will I be notified about updates and other issues?

Your software needs regular updates. Some providers wait to be contacted by a customer with a problem before notifying him of an available update. Others are more proactive, keeping customers informed of changes and improvements. If your provider has a mailing list for these items, make sure youre on it. You need to know when each release is due, as well as when you can expect to see the detailed notes to support it.

Did you know all software has bugs? Unfortunately, its true. Expect regular release notes from your partner to help you fix as many issues as possible. The more customers using a product, the more likely bugs will be found and rectified. With software, there really is safety in numbers.

How often is the product updated, and what kinds of changes can I expect?

A progressive software company is always enhancing its product. Most new features are derived from customer requests. By asking your supplier about the kinds of improvements its implementing, you can better plan for your business.

First, you can notify your customers about changes in advance, minimizing hassles. Second, your records-storage reps can include the new features in their sales presentations to potential customers. Finally, these items will give you an indication of the direction the software company is going. Are the changes relatively minor, or is there a clear strategic path that will help you save or make money?

Does the software help to automate my business?

This may seem like a strange question. All software automates your business, right? Wrong! Although packages may contain similar features, their operation can be fundamentally different. These days, the disparity is most painfully obvious in the area of mobile computing.

Early hand-held devices, known as data capture devices, simply collected a list of scanned barcodes. Today, advanced software can turn your hand-held into an extension of your primary software, with intelligence built right in. Live lookups and automatic updates save time previously wasted re-entering data. Automation means you do it once and right the first time, with no risk of lost revenue.

If I have a problem, how quickly can I recover my data?

If youre in the records-storage business, youre part of your customers disaster-recovery plan. So make sure you can recover from your own catastrophes! The software you use should incorporate the latest database developments, such as up-to-date data recovery.

Older software backs up once a day when all users are off the system (usually in the middle of the night). If you experience a failure, you can restore your system, but you lose any data entered since the backup was made, which can be significant. You need a database that recovers all data right up to the point of the problem. Theres a reason Microsoft introduced SQL Server, and this is just one of them. Data recovery is an essential part of any records-storage software.

Does the software offer advanced features?

Advanced features should be available for all software packages, not only deluxe editions. Features to watch for include controllable web access, automatic monitoring, wireless capabilities, signature capture, receipt printing, job scheduling, etc. When you purchase your software, make sure you get all of it.

What do I want the technology to do for me?

Now youre ready to ask yourself what you want the software to accomplish. What do you want the package to handle? Invoicing? Scheduling? Monitoring and reporting? Remote access? Wireless capabilities? Portable computing? There are countless tasks involved in records management, and each has a software feature designed to handle it. The key is to define your goals and find a solution that covers all your desired functions.

As in most industries, things change quickly in the records-storage business. Your software and supplier need to be flexible. When it comes to new technology or business expansion, your partner should grow with you. If you get satisfactory answers to the above questions, youre ready to take the relationship to the next level: software demonstrations, and a walk down profit aisle.

Ian Thomas is the vice president of business development for ONeil Software Inc., which has more than 25 years of experience in providing records-storage software solutions. More than 850 companies in almost 60 countries use its RS-SQL product. ForĀ  more information, call 949.458.1234; visit www.oneilsoft.com.

Update on Eminent Domain

Article-Update on Eminent Domain

The right of Americans to own property is no longer assured, thanks to a recent ruling by the U.S. Supreme Court. In the name of economic development, the government can seize land from a private owner and give it to someone else who will personally profit. On June 23, the Supreme Court ruled that a Connecticut city could use eminent domain to seize homes and turn them over to a private developer.

Eminent domain is the government's power to confiscate private property against the wishes of the owner, who is paid according to a government assessment of the lands value. "This power is exercised not only by elected officials, but by those who have no incentive to listen to the voice of the voters, such as redevelopment agencies, utility companies and even private developers," says Robert Thomas, the managing attorney for the Pacific Legal Foundation's Hawaii Center in Honolulu. "The ability to protect your property from forced sale to the highest bidder under government cover is an issue that everyoneregardless of means or political persuasioncan and should get behind."

In Kelo v. City of New London, Connecticut officials used eminent domain to seize several homes in a working-class neighborhood for the development of a fashionable hotel, health club and marina to support the pharmaceutical company, Pfizer. The state purchased a portion of the residences from willing participants, but several owners refused to sell. Thats when the state exercised its power. The homeowners brought a state-court action claiming inter alia, that the taking of their properties would violate the "public use" restriction.

But the Connecticut Supreme Court, then the U.S. Supreme Court, upheld the citys right of seizure. In her stinging dissent of the court's ruling, Justice Sandra Day O'Connor said, "The specter of condemnation hangs over all property. Nothing is to prevent the state from replacing any Motel 6 with a Ritz- Carlton, any home with a shopping mall, or any farm with a factory."

Storage Owners Stay Alert

"The decision of the U.S. Supreme Court should be of great concern to self-storage operators, owners and investors," says Jeffrey Greenberger of the law firm Katz, Greenberger & Norton LLP in Cincinnati. "We have now seen several cases, including the Supreme Court case, of a government entity taking private land for what the local regime deems to be an improvement or upgrade, but not just for blight removal or public improvement."

Unfortunately, these days, the issue of improvement is not about whether the existing property is dilapidated and should be razed, but if the property can represent better tax revenue for the city, township or county, Greenberger says. For example, a self-storage facility might be in excellent condition and be a good neighbor but generate very little sales tax and, with only a few employees, little wage tax. A city can replace that facility with a shiny new shopping center or office building that creates more jobs and generates more tax. The Supreme Court decision confirms this as acceptable grounds for using eminent domain.

Storage operators must therefore remain vigilant in their involvement with local government, Greenberger says. Its more important than ever to keep close ties with officials and consistently monitor city economic and zoning plans to make sure one's facility is not in a target zone.

Still Some Safety

At least its not easy for a city to take property by eminent domain, Greenberger says. These matters, if contested, are often litigated for many years at great expense to the self-storage operator and the entity trying to take the property. The Supreme Court decision does not give the government carte blanche to take anything it wants, whenever it wants.

"The taking cannot be a vendetta," says Greenberger. The court in the Connecticut case found the city had a "carefully formulated" economic-development plan leading to appreciable benefits to the community. There is still a system of checks and balances in place. "Unfortunately, the balances, given the Supreme Court's recent decision, are not as absolute to a landowner as they used to be."

"The words of Justice O'Connor are all too true, and every citizen should be alarmed about the wrong turn the Supreme Court has suddenly taken," says Chris McGrath, president of the New York Self Storage Association. Landowners will find little comfort in turning to state legislators for relief either, he adds. "Many states already have legislative provisions in place that recognize the development or redevelopment of economically blighted areas as a public purpose and public use.

McGrath advises self-storage associations to join others in the real estate industry who are petitioning state lawmakers for stricter definitions of these so-called public purposes and uses. "If we don't take this path and exercise our political will, well only have ourselves to blame when the government comes knocking on self-storage doors to condemn these properties for the economic benefit of others," he says.

McGrath already sees this happening in New York City, where Columbia University is effecting the condemnation of several self-storage propertiesincluding some of the city s first facilitiesfor the benefit of a private educational institution. "The Kelo case only gives aid and encouragement to real estate developers throughout the country to covet their neighbor's lands," he warns.

"As with every Supreme Court decision, this one is still open to interpretation, which can stretch it in either direction," Greenberger says. "If a self-storage operator even begins to sense that a city or township is looking at his property as a new development, it is vital he get the best possible legal counsel involved immediately."