As emergency damage assessments begin to tally in the wake of Hurricane Sandy, self-storage operators near homes and businesses affected by the storm are readying for an increase in unit rentals. The need to safely store valuables and possessions often rises with catastrophic events because of damage to building structures. In some instances, self-storage operators are offering storm victims free use of units and other assistance.

Demand for self-storage rises considerably as homeowners, contractors and local suppliers set about preparing for reconstruction, said analysts David Toti and Gaurav Mehta of Cantor Fitzgerald, a capital markets investment bank.

Among the operations likely to benefit are the self-storage real estate investment trusts (REITs), which have a large presence along the eastern seaboard. These include CubeSmart, Extra Space Storage Inc. and Sovran Self Storage Inc., which does business as Uncle Bobs Self Storage. Extra Space in particular has a large presence in affected areas, as much as one-third of its portfolio, according to Toti and Mehta.

The storage needs generated by hurricane cleanup can last from six to 18 months then recede, which can set the stage for declining occupancies and more competitive pricing, Toti and Mehta said.

Among the self-storage operators offering temporary relief is U-Haul International Inc. The company announced yesterday its centers across the Northeast are offering 30 days of free self-storage and use of moving pods to hurricane victims.

U-Haul understands that high winds, rain and coastal flooding have significantly impacted many of our neighbors and their families across the Northeast," said Dennis O'Connor, vice president of self-storage operations and marketing. "As communities continue to pull together and execute emergency plans, U-Haul also will continue providing assistance to people during these times of uncertainty and need."

U-Haul officials said many of its centers in affected areas remain open for business and are equipped with supplies, including boxes, tarps, propane and propane tanks, that may be helpful during the recovery. In addition, the companys Take a Box, Leave a Box program encourages anyone with any type of spare, reusable box to drop it off at the nearest U-Haul location to enable another family to reuse the box for free.

Also offering assistance is SpareFoot, an Austin, Texas-based self-storage aggregator. The company is offering a free month of storage to storm victims in Connecticut, Delaware, Maine, Maryland, Massachusetts, North Carolina, New Hampshire, New Jersey, New York, Pennsylvania, Vermont and Virginia. Those in need of a storage unit in the affected states can find one at SpareFoot.com. The company will reimburse customers first month of storage rent up to $100 while supplies last. Customers must move in their belongings by Nov. 5 and e-mail SpareFoot a copy of their storage lease or receipt to be eligible.

Last week Inside Self-Storage published a new online image gallery featuring the successful conversion of a 109-year-old Chicago building into a crown jewel of the Life Storage brand. Titled "A Remarkable Self-Storage Conversion: Life Storage Centers of River North, Chicago," the gallery demonstrates the transformation of the multi-story space and how the facility owner and builder circumvented development challenges. It can be viewed at www.insideselfstorage.com/galleries.

Life Storage River North opened in August. Situated on the corner of Ohio and Orleans streets, the new facility capitalizes on its downtown locale plus its proximity to the famous Ohio Street feeder ramp on the citys west side.

The image gallery was sponsored by Janus International Corp., a manufacturer of self-storage doors and hallway systems, which supplied and installed the doors and hallway systems for the Life Storage building conversion.

For more than 20 years, ISS has provided informational resources for the self-storage industry. Its educational offerings include a monthly magazine, annual conferences and tradeshows, an extensive website, an education institute, an online store, and Self-Storage Talk, the industrys largest online community.

U.K. self-storage operator Access Self Storage is conducting a holiday toy drive at all 56 of its locations throughout England. The Christmas Toy Appeal 2012 event will benefit The Childrens Society, which works with vulnerable and disadvantaged children across the United Kingdom. Special drop-off points have been set up at each facility where customers and local residents can deposit their toy donations.

Those wishing to participate are urged to donate new and unused games and toys, which will be sold through the charity to raise funds. More than 5,000 toys were collected last year.

"Last year was such a success as we had over 100 gifts donated, said Neil Hutchinson, manager of Access Self Storages St. Albans facility. "Hopefully we can do even better this year."

"Just £50 could help pay for a weeks supply of food for a destitute family of four, so thank you all for your generous help and support," said Matthew Reed, chief executive of The Childrens Society.

Mansfield Self & RV Storage is teaming up with Thames Valley Council for Community Action Inc. (TVCCA) to collect boots for charity. The self-storage facility at 533 Route 32 will serve as a drop-off for the Retired & Senior Volunteer Program (RSVP) Santa Anonymous Winter Boot Project 2012. 

To participate, donators are asked to mail their name, address and phone number to RSVP Santa Anonymous, 185 Broad St., Room 215, Killingly, CT, 06239, or fax the information to 860.779.5429. Donators should indicate the number of boot pairs theyll provide. Santa Anonymous will then send the donator a letter with the first name, gender, age and boot size of the assigned child or children. The donator can then drop off the boots at Mansfield Self & RV Storage during business hours, Monday through Friday, from 10 a.m. to 5 p.m., or on Saturday from 9 a.m. to 3 p.m.

We love to get involved and help the community in anyway we can, said Marisa Houser, manager of Mansfield Self & RV Storage. Self-storage tenants who donate to the charity will also receive $25 off their rent for one month.

Thames Valley Council for Community Action Inc. is a nonprofit organization offering numerous community programs including emergency housing, food and career training.

Opened in 2006, Mansfield Self & RV Storage has participated in several community efforts including offering free storage to fire victims and sponsoring Little League. In addition to climate-controlled storage units, the facility offers RV and boat storage, packing supplies and commercial storage.

 

By Jason Jay Allen and Carl E. Touhey

Over the past decade, the self-storage industry has undergone significant changes none of us could have predicted. Our business is constantly evolving, and keeping up can be a challenge. What may have worked for you in the past may not be successful today.

Even still, increasing your bottom line, which translates into a greater facility market value, can be very simple. The key is to not treat your self-storage property as if it were a triple-net leased property for which minimal management is involved. This is a management-intensive business, and you must keep a watchful eye on your asset. With a little attention and creativity, your bottom line can grow significantly over time using some of the simple tips below.

When evaluating a self-storage property, today's investors look at several things: location, local market, actual income and market expenses, all of which get them to a true net operating income (NOI). Buyers today are extremely conservative, and lending standards are still strict, which means a property must be bought right. If a potential seller is able to increase his income while decreasing some of his expenses prior to a sale, a higher price can be easily achieved.

Curb Appeal

All of us have seen TV shows on networks like TLC about curb appeal and how improving the look of ones home can translate into a higher sales price. Although these shows focus on residential real estate, we can easily translate these tips and apply them to our own storage properties.

For example, take the color of your buildings. Have you ever noticed the difference in color between a first-generation facility and a modern one? Brown on brown is just not attractive, especially when you look at the color schemes of newly built properties. Repainting your entire facility may not be in the budget, but how about just painting the trim another color like red or blue? This simple and cost-effective change will be noticed by current tenants and people driving by.

We arent saying this will immediately increase the value of your property, but over time, your facility may be more noticeable to drive-by traffic, which should translate into more walk-ins. Another great benefit to doing this is your current tenant base will see you making changes to the property, which can help justify your rent increases. Here are some other curb-appeal tips:

• If you have large trees in front of your property, trim them up from the ground so drive-by traffic can see you.
• If you have a chain-link fence with plastic or wooden slats, take them out so people can see your facility.
• Paint trim, awnings, flower pots, etc., a standout color like red, yellow or blue.
• Improve your signage and replace plastic inserts in monument signs.
• Buy an A-frame sign and advertise specials on the street to drive-by traffic.
• Reconfigure your office to allow room for a merchandise center and sell moving supplies.

Cutting Expenses

One of the easiest ways to increase your facility value without spending any money is to cut expenses, or trim the fat." You don't want to get rid of things that are necessary to your operation such as utilities or payroll, but by reviewing your profit-and-loss (P&L) statement each quarter, you may be surprised at what you see and what you can cut or adjust.

Today, one of the biggest elephants in the advertising room is print advertising. Cutting this expense can save you thousands, but how you reinvest these dollars is even more important. Take your website, for example. You have to ask yourself three questions when evaluating your Web presence:

• Can I be found on the first page of Google results by typing in self storage _____ (your city)," and where do I rank?
• Does my website look up-to-date, and how does it compare to my competitors' websites?
• How much am I spending on my website each month?

These questions must be answered every month because your online marketing strategy should be constantly evolving. Although it may seem expensive upfront, having a competent and creative marketing team that specializes in this area will keep you on track. Your return on marketing dollars will be incredibly higher than using traditional methods, and your cost per move-in will be dramatically less. Stay on top of your online marketing and the phone will ring. This will not only translate to increased occupancy and revenue but a reduction in your advertising expenses.

Another item that can easily be reduced is merchant fees to credit card processors, which can be incredibly costly. One of the easiest ways to cut this expense is to "shop your account. All a competing merchant servicer needs is a copy of your P&L, which it will review. You'll typically get a one-page evaluation showing your true savings if you were to switch processors. This can easily add up to hundreds of dollars in savings each month and cost you nothing to do.

Here are some additional expense-cutting tips:

• Workers' compensation insurance: When was the last time you had your policy reviewed and evaluated by another insurance company?
• Facility hours: Some facilities are ghost towns on certain days like Sundays. Cut hours and offer tenants the ability to pay online, or install a kiosk so people can pay and rent units without the assistance of a manager.
• Yellow Pages: Cut, cut, cut, cut, cut.
• Property insurance: Have your policy reviewed by another insurance company.
• Electric bill: Replace all your exterior lighting with LED lights, and replace interior lighting with energy-efficient bulbs.
• Office equipment: Replace ink-jet printers with a high efficiently and cost-cutting laser printer. Get rid of postage meters and machines.
• Telephone: Switch your standard phone to a cost-saving VOIP phone.

Property Taxes

Many self-storage owners overpay on their property taxes. When a property sells, it will typically be re-assessed by the county and the new owner will pay the new tax, but you can save thousands each year by protesting your property value today.

The process is simple, but it can take considerable time to complete. Lets look at a quick example. A facility that was bought at a 6 percent cap rate with an NOI of $250,000 in 2007 would be assessed at $4,200,000, with an annual tax payment due in the amount of $46,000. Cap rates have gone up since 2007, and if we apply a market cap rate of say 8 percent, the new assessed value is now $3,125,000, with an annual tax payment of $34,000. This simple case would translate into more than $14,000 in savings.

Raising Rents and Discounting Vacant Space

Raising rents at your storage facility is probably the simplest and easiest way to increase your income and property value. Although you'll probably get some push-back from your onsite management team, since they're the ones who'll be dealing with a few upset customers, you'll be shocked at how many tenants dont move out and dont fight the rate increase. Whenever we raise rents, we always follow a strict set of guidelines:

• Only raise the rent of tenants who have been at the facility for at least a year.
• Execute a 5 percent to 7 percent increase, maybe higher on the more desirable units.
• Typically do not raise rents on tenants with multiple units.
• Raise rents on July 1 and Jan.1, as tenants are preoccupied with the 4^th of July and New Year's Eve holidays.
• If tenants complain and they are in a size with a lot of vacancy, we reverse the rent increase.

While raising rents, also consider cutting the board rates on units that arent renting. Depending on your market, certain sizes will always be in demand while others will struggle to lease up. To determine which sizes are consistently vacant, run an occupancy report and figure out what these units would bring in monthly if they were 100 percent rented. Since you know the unlikelihood of leasing these units, take that number and cut it in half.

Your goal now is to lease these vacant spaces for half the usual price. If you have 35 5-by-5s with a board rent of $75 per month, you now want to offer these units for $37.50. After all, it's better to make $37.50 per month than no dollars per month. You'll optimize your unit mix by adjusting less-desirable units to a rent that will attract renters.

Although these are just a few examples on how to increase your cash flow while decreasing expenses, the key is to think outside of the box. More important, understanding where every dollar comes from and where it's spent will give you a whole new outlook on running your property.

You'll see the changes that need to be made by paying close attention to your onsite operation while evaluating your income and expense numbers monthly. You can easily make positive changes that will not only put more money in your pocket but help increase your facility market value.

Jason Jay Allen and Carl Touhey are co-founders of Performance Self Storage Group. Launched in 2010, the firm specializes in self-storage management, marketing and training. Allen began his real estate career in 1997 performing feasibility studies and evaluations. Hes well-versed in self-storage investment, management, marketing and consulting. Touhey began his real estate career in 1986 and entered the self-storage industry in 1992. He has brokered more than $200 million in self-storage sales, and his family owns and operates eight facilities. For more information, visit www.performanceselfstoragegroup.com.

Uncle Bobs Self Storage is the title sponsor of a new season-series event between the Allen Americans and Fort Worth Brahmas of the Central Hockey League. The Uncle Bobs Metroplex Rivalry is designed to create a little extra sizzle in the growing rivalry between the two minor-league hockey clubs, whose arenas are less than 50 miles apart.

The two teams will play each other 17 times during the 2012-13 regular season, which comprises more than 25 percent of each teams schedule. The teams squared off twice last weekend to kick off the series, with each team earning a victory.

The teams will vie for the Uncle Bob's Metroplex Rivalry trophy, which is currently being developed and will be introduced later this season. A logo was also created to celebrate the series.

The Metroplex is the area in North Texas that comprises the surrounding communities of Dallas and Fort Worth. The Americans play in Allen, while the Brahmas skate in North Richland Hills.

"It's only fitting that the series between the Americans and Brahmas becomes official with a title moniker and name, and we are very excited that Uncle Bob's is now a part of it," said Matt Canavan, team president of the Americans. "All of the games between our two hockey clubs are battles, and the fans really get into it.

"Uncle Bob's partnership will infuse another valuable component to a series that fans have already identified as a classic rivalry. We welcome their support and are poised for some exciting and entertaining tilts during the 2012-13 season," added Scott Plourde, Brahmas vice president of sales.

The series event will also feature special prize giveaways at both teams arenas during select games.

Uncle Bobs is the facility brand name of Sovran Self Storage Inc., which operates more than 440 facilities in 25 states, with a large presence in Texas.

By Craig Barrett

Pay-per-click (PPC) is expensive and getting more costly by the day. So I find it surprising that many self-storage facility owners still aren't taking advantage of remarketing in their AdWords accounts. If you're not using remarketing, its time to add it into the mix. It's as close to a sure thing as you are likely to get in the world of advertising.

What Is Remarketing?

Remarketing is simply the Google AdWords term for retargeting. In fact, you've probably seen this remarketed advertising already. Have you ever noticed that after looking at an item on Amazon, ads for it and similar products appear on every site you visit thereafter? Its like being haunted by marketing ghosts! What youre seeing is retargeting, and it exists because very few purchases ever happen in the predictable, linear fashion we would like.

Consider it from your customers perspective. He might be looking at your website and thinking about a storage unit, but then gets distracted by a knock at the door. Or maybe he decides to wait until he's completely packed before making a reservation. This is very frustrating for us as marketers because we spent a great deal of money on PPC, SEO efforts and other advertising to get that customer to our website in the first place.

That was a highly qualified customer, one who will probably end up renting storage because he nearly made a reservation. The worst-case scenario is you spent the PPC money, but Big Brand Storages familiar sign on the highway ends up getting the rental after you did all of the education.

But all is not lost! If we can find that visitor and get an ad in front of him later, on whatever website he happens to visit, then we might be able to save that rental. Thats the magic of retargeting: You get ad placements on other websites, limited to the view of a customer who already visited your website. This is the most targeted form of display advertising.

How Does It Work?

Remarketing is actually pretty simple, and thanks to Google AdWords, its no longer limited to companies with massive marketing budgets. Heres how it works: When a visitor hits your website, a piece of code that you built into your website sends data to Google. This lets Google know this particular visitor was on your site. Then, later on, when Google sees this same visitor on another site where it controls ad space, it can select your ad and display it to that user. Pretty slick, huh?

In fact, depending on how sophisticated you want to get, you can actually make the advertising even more targeted. Remember how Amazon showed you the specific product you were looking at earlier? You can do the same thing if you have more than one facility. You can show the customer an ad just for the location he was viewing.

So, Whats the Catch?

There are two points to consider before taking the time to launch a remarketing campaign. The more people visiting your website, the greater return rate and volume. In most cases, I contend it's only worth your while if you have at least 1,000 website visitors per month. First, check your Google Analytics to see if you hit this number (you are running Analytics, right?). Second, you'll have to make some easy changes to the code on your website. If you dont manage your own site, get your webmaster to handle this.

Making It Go

Okay, so you have at least 1,000 visitors per month to your companys website, and your Web developer is not whining about a basic code change. This is great news, because you are already 70 percent done.

Log into your Google AdWords account and find the Audiences tab. (Note: This tab keeps moving as Google updates the application, but its currently under the Shared Library tab on the left-hand sidebar.) Click Audiences to land on a new screen, where you can click the New Audience button. From there, click Remarketing List, and then Define a list of site visitors." (Yes, I know, Google doesnt make this as easy as it could be. Dont get mad at me; just be happy that your competitors are too lazy to stick with this.)

From there, select New Tag and give it a name like Entire Website, if you plan to put one tag on your whole site, which I recommend. Save that, and you should see a screen with some code. Just give this to your Web developer, or if you are your Web developer, place the code before the </body> tag for each page on your site. If you dont know what this means, your Web guy does.

Whew ... Still with me? I know it's a pain the first time.

So now that you've tagged your site, all thats left is to create the campaign that will use this data. This is different than your other AdWords campaigns, as those are based on keywords. This is based on a tag of audiences, which you earlier defined as all of the people who visit your site. Once the new code is placed on your site, log in to AdWords and create a new campaign. Select a Display Network campaign, and you will have the option to choose Remarketing. From there, just follow the prompts to complete setup.

Optimizing for the Best Results

Given that the campaign is already targeting people who visited your site, you can rest assured your audience is highly qualified. Optimization will focus on writing good ad copy or creating new banner ads. The core goal is to remind people about the benefits of your location, the benefits of making a reservation, and how you differ from your competitors.

If you lock this down, you can expect a couple of extra bookings each month with very little maintenance on your part. Remarketing can take a little bit of effort to set up, but given that its usually one of the lowest cost-per-acquisition forms of marketing, I feel it is well worth the effort to configure.

Craig Barrett, director of search marketing for SpareFoot.com, has created pay-per-click marketing campaigns for a variety of companies, from big companies that spend millions of dollars  a month to smaller ones with minimal budgets. Craig also has a fundamentally sound grasp of most digital-marketing activities. Follow him on Twitter: @craigabarrett.

California self-storage provider A-1 Self Storage is supporting several charities through sponsorships and monetary donations.

The company is a sponsor of the American Diabetes Associations (ADA) 2012 Step Out Diabetes Walk this Sunday in San Diego. The three-mile walk is the ADAs primary national fundraising effort, raising more than $150 million. In 2011, more than 150,000 people participated in 130 walk events across the nation, raising $20 million.

A-1 also sponsored the 2012 Butterfly Ball on Oct. 20, a fundraising event hosted by Fresh Start Surgical Gifts of San Diego. The organization raises money to assist with reconstructive surgery and related healthcare services for disadvantaged infants, children and teens with physical deformities caused by abuse, accidents, birth defects or disease.

An organization that can literally provide a child a fresh start in life is one worth investing in, said Brian Caster, A-1 president and CEO.

On Oct. 13, the company sponsored Once Upon a Time ROMP 2012, a gala benefiting the Ronald McDonald House Charities of San Diego. The organization provides a home away from home for families with children being treated at local hospitals for serious, often life-threatening, conditions. This years third-annual ROMP event set a goal of raising $350,000.

We are enthused to know that our gift makes possible 4,000 meals to self-sacrificing parents who are living life at their childs bedside, Caster said. It is our honor to help them in this simple way.

A-1 Self Storage also recently made monetary donations to the National Ataxia Foundations (NAF) 2012 Walk n Roll event in San Diego and in support of the Milestone House in Oceanside, Calif.

Ataxia is a brain disease that causes a lack of muscle coordination, physical unsteadiness, speech impairment and difficulty swallowing. NAF is a membership-supported nonprofit organization dedicated to improving the lives of those inflicted with the disease through its support, education and research.

Milestone House is a nonprofit organization that supports at-risk teenage girls 13-17 through residential treatment programs, including educational support, teaching independent living skills, leisure activities, counseling and therapy. Many of the children it supports are victims of abandonment, abuse, molestation and neglect.

A-1 Self Storage has 17 locations in the San Diego County area and more than 40 locations statewide. Its the self-storage division of the Caster Cos., a third-generation, family-owned company headquartered in Southern California since 1959. Caster Cos. develops and manages A-1 Self Storage, A-1 Car Storage and other commercial properties in California. Its portfolio includes more than 4 million square feet of real estate.