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No Tricks, Just Educational Treats in the Inside Self-Storage Store

Article-No Tricks, Just Educational Treats in the Inside Self-Storage Store

Tony Jones***A guest installment by Tony Jones, Manager, Inside Self-Storage Store

If you have a sweet tooth like me, you wait until the last minute to buy the Halloween candy youre going to hand out to trick-or-treaters because if you dont, youll eat through all of your favorites before Oct. 31. Fact of the matter is, I typically buy only Halloween candy I like because if we happen to have a slow year giving away the stuff, I can reap the sweet rewards.

In an attempt to exhibit some sort of willpower, I used to deploy a candy-giving strategy of buying treats I wasnt particularly fond of. Of course, those attempts coincided with low turnout at the door. My old neighborhood went through a period where trick-or-treaters became scarce, but I also became suspicious that I got labeled as one of the lame houses on the block.

Im a Halloween guy, so this possibility really bothered me. When I was a kid, I always admired the houses that didnt hold back on the goodies. My friends and I used to switch costumes so we could hit the best houses multiple times. We also learned which houses to avoid, although we were always compelled to visit the old lady who would thump a penny or pencil eraser into your bag, just to see what nonsense she was giving away each year.

The point is, I learned my lesson and now only offer the good stuff. We approach our offerings in the Inside Self-Storage Store in much the same manner, striving to bring quality educational products and industry insight to facility owners, managers, developers and investors. The beauty of the ISS Store is you dont have to wait until the kids have stopped ringing the doorbell on Oct. 31 to indulge yourself. The store is always open, and theres a little something for every industry professional to enjoy.

Were currently taking DVD pre-orders for the ISS Digital Summit video content that was presented on Oct. 16 and 17. The live summit was an interactive, online workshop for self-storage owners, presented by industry expert Bob Copper. The DVDs are ideal for those who couldnt attend the live event and cover approximately five hours of material, broken into six sessionsthree from each day.

Day One focused on administering and evaluating your self-storage asset, while Day Two explored generating and managing facility income. Separate DVDs are available for each day, as well as a two-day package with all the content. Access to corresponding digital workbooks with related education materials are included with summit DVD purchases. We anticipate fulfilling pre-orders during the week of Nov. 4.

Another item that draws intense interest each year is the ISS Top-Operators List, which ranks the 100 largest self-storage operators by net rentable square feet. Although we continue to publish a free version of the listing on the primary ISS website, with links for each operators information and expansion plans, the ISS Store package is ideal for industry investors, developers, owners and suppliers who prefer to have all of the data we collect in a convenient, malleable Excel spreadsheet. As a free bonus this year, weve also included a two-page PDF report that provides an overview of the growth, decline and general movement among this year's final list participants.

The store also has a veritable cornucopia of manager-training materials from several industry experts, including a book/workbook combo on facility management from Copper; a DVD/workbook combo designed to assist managers maximize sales from Brad North; and 12 individual Web-based courses covering everything from preparing for a lien sale to facility maintenance.

Its our goal to provide the best materials possible to satisfy your self-storage sweet tooth. If youve got a hankering for a particular product on a specific topic and cannot find it in the store, please be sure to let us know what you would like to see offered by providing suggestions in the comments section below.

San Carlos Self Storage of Florida Raises $3.5K for PACE Center for Girls

Article-San Carlos Self Storage of Florida Raises $3.5K for PACE Center for Girls

San Carlos Self Storage in Fort Myers, Fla., recently helped raise $3,500 for PACE Center for Girls, a juvenile-delinquency intervention and prevention program for at-risk girls ages 12 to 18 in Lee County. The proceeds were raised through Love That Dress! (LTD), an annual dress-sale gala and fundraiser that benefits the nonprofit organization. The self-storage facility, an LTD sponsor, stored the dresses for free and hosted a post-gala sale event.

As part of the annual LTD gala, participants can choose from thousands of new and gently worn dresses and accessories. The event also features a silent auction, cocktails, hors doeuvres and a private selection of artisan confections. The sale at San Carlos Self Storage featured dresses that were not sold during the main event. In addition to storage, the facility provided space for dress pricing and tagging.

We are very happy with the turnout from our first post-LTD storage-unit sale. We surpassed our initial goal of raising $3,000 for PACE by this event, said Kendra Sutton, chair of the LTD event. Those [who] were unable to attend the main event had the opportunity to support PACE while getting fabulous clothing for 50 percent off.

Gowns not sold through the storage unit were donated by PACE to Hope Chest, a retail center benefitting Hope HealthCare Services, an organization that provides specialized care, including hospice, for people with life-changing illnesses. Additional unsold clothing was given to Goodwill. Through its partnership with Goodwill, PACE receives vouchers for girls in its programs. When Goodwill receives clothing donations in the name of PACE, girls from the center can redeem the vouchers for clothing or other needed items.

The girls at PACE often come to the center with very little clothing or belongings, Sutton said. These vouchers allow them to purchase things they need for themselves or their families, which takes away some of the burden, especially during the holidays.

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Self-Storage Software Provider SMD to Host SiteLink User Conference in Texas, Oct. 30

Article-Self-Storage Software Provider SMD to Host SiteLink User Conference in Texas, Oct. 30

SMD Software Inc., provider of SiteLink property-management software for self-storage and portable-storage operations, will host a User Conference on Oct. 30 to bring together facility managers, owners and accountants with technology partners and SMD team members. The event will be held from 8:30 a.m. to 2 p.m. at the Homewood Suites by Hilton in The Woodlands, Texas, the day after the conclusion of the Texas Self Storage Association (TSSA) Conference and Tradeshow.

During the event, attendees will be able to try out SiteLinks integration with Web-based Blue Moon software and participate in networking opportunities. Two concurrent education tracks, one designed for facility managers and the other for self-storage owners, offer sessions designed to boost hands-on skill sets and operational strategies using the software. A joint session bringing together SMD staff, facility operators and technology partners to discuss SiteLink uses will conclude the event. Seating is limited.

Each time I attend the User Conferences, I am amazed by how much I have learned and applied in my operation, said John Manes, chief operations officer for The Jenkins Organization Inc., a Houston-based operator that owns or manages 53 self-storage properties throughout Louisiana, Oklahoma and Texas. Networking opportunities with attendees and technology partners are unsurpassed. I highly recommend SiteLink User Conferences to managers and owners alike.

More information about the event can be found at SiteLink.com, and registration can be completed online. Established in 1996, SMD Software has more than 7,000 product installations worldwide.

The TSSA conference will be held Oct. 27-29 at the Waterway Marriott Hotel and Convention Center, also in The Woodlands. Established in 1986, the TSSA is a nonprofit trade association dedicated to enhancing the quality of self-storage in Texas. It provides industry education, research and discussion.

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Move It Management Buys Allsize Storage in Bryan, TX

Article-Move It Management Buys Allsize Storage in Bryan, TX

Move It Management LLC, a Dallas-based self-storage management company, has purchased Allsize Storage in Bryan, Texas, for an undisclosed amount. The 61,825-square-foot, 501-unit facility was built in 2005 and was 65 percent physically occupied at the time of sale.

Move It Management and the seller, a limited partnership based in The Woodlands, Texas, were represented in the transaction by Bill Bellomy, Michael Johnson and John Owens of Bellomy & Co., formerly The Southern Storage Group. Bellomy & Co. is a commercial real estate investment services firm headquartered in Austin, Texas.

Founded by Tracy Taylor, who is also president of Watson & Taylor Management Inc., Move It Management owns and operates more than 30 self-storage properties across Texas as well as the southeast states and Boston. In June, it acquired Atascocita Self Storage in Humble, Texas, and Bay Area Mini Storage in Corpus Christi, Texas. It also provides services to self-storage owners including facility management, revenue management, personnel selection and training, facility construction and design, financing, and marketing.

Self-Storage Legal Threat of 2014: Lack of Clarity in Facility Advertising and Rental Agreements

Article-Self-Storage Legal Threat of 2014: Lack of Clarity in Facility Advertising and Rental Agreements

This is the time of year when I'm generally asked to write an article on my perspectives for the upcoming months, to reveal the top self-storage legal threats on the horizon, if you will. This year I want to tell you about an alarming trend I've been seeing relating to the lack of accuracy and clarity in facility messaging and rental agreements. Let me give you an example.

I've recently seen an enormous number of claims against self-storage facilities for damage to customers' property, specifically in non-temperature-controlled units. (Many of you refer to these units as "climate-controlled." Please stop!) These claims are for damage to electronics and paper-based items arising from fluctuations in temperature or humidity. The tenant alleges the damage would not have occurred had the unit been temperature-controlled, and he believed the unit he rented to have this feature.

The facts of these claims often show:

  • The facility operator gave the tenant rent quotes for both types of units, and the occupant opted for the lower-priced, non-temperature-controlled option.
  • The unit was about 100 degrees when it was shown to him.
  • There was no equipment for controlling temperature inside the unit.

Regardless, the tenant says something along the lines of, "The website, Yellow Pages ad, etc., advertises temperature/climate control. It does not say that only part of the facility is temperature-controlled. I thought every unit was a temperature-controlled unit. I put things in the unit that I thought would be safe because of temperature control. Now they are ruined, and I want money." This goes back to the concept of reliance. The tenant relied on the existence of temperature control because the signage, etc., indicated the facility offered this feature.

Clarity in the Rental Agreement

How these claims will be resolved is subject to speculation, but the moral of the story relates to the clarity of your rental documents. Many self-storage operators spend a lot of time, energy and money marketing the benefits of their facilities. I have absolutely no problem with this. But when it comes down to brass tacksnamely, the rental agreementyou need to make sure that if the tenant is not receiving some of the features available at the facility, you clearly define this in the contract.

Fixing this might be as easy as including a check box in the rental agreement indicating the unit is or is not temperature-controlleda yes/no sort of thing, just to be safe. While the allegations made by tenants seem ridiculous on their face, some of their claims are gaining traction and may result in insurance payouts or settlement. Though I haven't yet seen a lawsuit that has resulted in a judgment on these cases, one is probably not too far behind.

Beyond the simple yes/no questions, consider a rental-agreement provision that explains what you mean by temperature or climate control, that not all units offer the feature and, most important, what exactly you provide when the unit is climate- or temperature-controlled. Your rental agreement needs to define the term. Do you provide heat, air conditioning, swamp cooling or ventilation fans? Is it a combination of these? Do you maintain a specific range of temperature? Do you guarantee a range of humidity, or are you just trying to control humidity through air conditioning and heating?

All of these things must be disclaimed in your rental agreement. The point is the provision (or non-provision) of these services must be clear to the tenant. It is one thing to say you provide these services in general. It is another thing to say to the tenant, "You are or are not in a unit where this service is provided."

Other Areas of Risk

The same can be said for so many services in self-storage. For example, what do you say to disclose the availability of security systems at your facility and its ability to stop crime via features such as access gates, alarm systems, lighting, surveillance cameras, etc.? Do all of your units have the benefit of features or just some? If not all, perhaps it's worthwhile to disclaim security systems; your advertising might lead a consumer to believe every unit is alarmed, for example.

Another risky area that has risen to the forefront is some operators' willingness to bill tenants with a snail-mail invoice. Several wrongful-sale claims have been brought forth using the defense that the tenant never received a paper bill; therefore, the debt was not paid and the tenant's property was sold. If you don't mail a bill to everyone but you are willing to mail to some, you better build some disclaimer language in your rental agreement to clarify.

You may offer other services to some, if not all, of your tenants, and they also need to be clarified in the agreement. Think in terms of 24-hour gate access, permission to store a vehicle, auto-pay and e-mail notifications. Temperature/climate control has simply come to the forefront because of the rather hard-to-believe claims that are now being made; however, it forces us to examine these other issues more closely.

In 2014, re-examine your rental agreement, especially in light of what you say in your advertising or marketing materials. Whether it's on the Web, your facility signage or anywhere else, make sure that if you offer a service or feature, you make the details are ridiculously clear in the agreement, especially if it isn't offered to everyone or there's an additional charge. You need to be able to defend yourself against those who expect to get something for nothing.

This column is for the purpose of providing general legal insight into the Self-Storage field and should not be substituted for the advice of your own attorney.

Jeffrey J. Greenberger is a partner with the law firm Katz, Greenberger, & Norton LLP in Cincinnati and is licensed to practice in the states of Ohio and Kentucky. Mr. Greenbergers practice focuses primarily on representing the owners and operators of commercial real estate, including self-storage owners and operators. His website, www.selfstoragelegal.com , contains legal opinions and insights as well as an article archive. You can send your questions, comments or suggestions for future topics to [email protected] .

Consortium of Self-Storage Owners to Launch New Online Facility Directory

Article-Consortium of Self-Storage Owners to Launch New Online Facility Directory

A consortium of more than 20 private self-storage owners has joined forces to launch an online directory listing more than 2,000 storage locations. Called Find Local Storage (FLS), the website was started as a way for facility owners to generate leads and obtain rentals directly without paying royalties to third-party aggregators, officials said in a press release. The site is designed to improve marketing efforts for operators, and the consortium is hopeful the website will help reduce costs for participants over time as the platform evolves.

Scheduled to launch on Nov. 15, findlocalstorage.com is owned and controlled by self-storage owners and will be open to additional owner-operator participants, officials said. The site will be managed by Go Local Interactive LLC (GLI), an online marketing agency that currently drives leads to more than 700 self-storage locations through its custom marketing programs. FLS will provide leads from organic, paid-media partnerships and pay for lead sources, officials said.

We are proud to announce a great service for the members of the self-storage industry, said John Jordan, CEO of GLI and a founding partner of FLS. Find Local Storage will enhance lead volume at the participating facilities and allow the storage owners to control their own destiny.

In addition to the more than 2,000 facilities represented in the consortium, FLS will market itself in partnership with the Storage Business Owners Alliance, a buying group for the U.S. self-storage industry. Participating facilities using management software from Centershift Inc. and SMD Software Inc. will also be able to integrate with the website. Our partnership with FLS offers exciting revenue-generating and tracking options for our users, said Markus Hecker, chief operations officer of SMD. We look forward to continuing this innovation in the future.

We are thrilled to be partnering with FLS in this important initiative for the self-storage industry, added David Cramer, chief operations officer for SecurCare Self Storage, a privately owned company that operates more than 140 storage facilities in 11 states. Owners clearly desire to regain control over their marketing and lead-acquisition efforts, and FLS will put control back in their hands.

Public Storage CEO to Speak at REITWorld 2013 Conference

Article-Public Storage CEO to Speak at REITWorld 2013 Conference

Ronald Havner, chairman and CEO of Public Storage Inc., a self-storage real estate investment trust (REIT), will moderate a panel discussion on the future of REITs as part of the REITWorld 2013 convention in San Francisco, Nov. 13-15.

Havner will lead a panel that also features Richard Campo, chairman and CEO of Camden Property Trust; Mike Kirby, chairman and director of research at Green Street Advisors Inc.; Robert Steers, co-chairman and co-CEO of Cohen & Steers Capital Management; and Martin "Hap" Stein Jr., chairman and CEO of Regency Centers Corp. The two-hour lunch session is titled 20 Years Later: What's Ahead for REITs, and will begin at noon on Nov. 13.

REITWorld 2013 will be held at the San Francisco Marriott Marquis hotel. The event is an annual convention hosted by the National Association of Real Estate Investment Trusts. The tradeshow attracts investors, commercial real estate executives and service providers for private meetings, general sessions and networking events.

Based in Glendale, Calif., Public Storage has interests in 2,081 self-storage facilities in 38 states with approximately 133 million net rentable square feet. Operating under the Shurgard brand name, the company also has 188 facilities in seven European countries, with approximately 10 million net rentable square feet.

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REIT W. P. Carey Acquires Parkway Self Storage & Carwash in Palm Coast, FL, for $5.7M

Article-REIT W. P. Carey Acquires Parkway Self Storage & Carwash in Palm Coast, FL, for $5.7M

Real estate investment trust (REIT) W. P. Carey Inc. acquired Parkway Self Storage & Carwash in Palm Coast, Fla., for $5.7 million from Orlando, Fla.-based Storage US LLC, which purchased the facility in 2006 for $8.4 million. The facility at 4860 Palm Coast Parkway N.W. will be renamed Extra Space Storage and managed by Extra Space Storage Inc., a publicly traded REIT. The acquisition was made possible through a fund managed by W. P. Carey, said Guy Lawrence, a company spokesman.

The property includes nine self-storage buildings, an office, managers apartment, an automated carwash and a self-service carwash on 6 acres just west of Belle Terre Parkway. The structures were built in 2001-02.

New York-based W. P. Carey is an investment-management company that oversees a global investment portfolio of approximately $15.4 billion. It provides companies worldwide with long-term sale leaseback and build-to-suit financing, and engages in other types of real estate-related investment.

Headquartered in Salt Lake City, Extra Space owns or operates 974 self-storage properties in 35 states; Washington, D.C.; and Puerto Rico. The companys properties comprise approximately 649,000 units and 71 million square feet of rentable space.

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Online Self-Storage Directory OMGStorage.com Participates in Miami Race for the Cure Event

Article-Online Self-Storage Directory OMGStorage.com Participates in Miami Race for the Cure Event

Employees of OMGStorage.com, an online self-storage directory and booking website, are participating in a Susan G. Komen Race for the Cure event on Oct.  26 at Bayfront Park in downtown Miami. A majority of funds raised from the Miami/Ft. Lauderdale event, which marks its 18 anniversary this year, will stay in the local community to support research for breast health, diagnostics, screening, treatment services, and education for the uninsured and underinsured, according to an OMGStorage.com press release.

By participating in this event, OMGStorage.com is doing what it can to help bring awareness of this disease and the importance of early detection, said CEO Victor Dante. Although, we have been blessed that our wives, mothers, girlfriends and daughters have not been affected by this terrible disease, we all know someone who has and we walk for them.

Owned by OMG Storage Development, OMGStorage.com is a lead-generating search engine designed to offer a comparison-shopping experience for self-storage consumers in the United States, Puerto Rico and Canada. The site displays storage rates and specials in real time and allows users to book a storage unit or vehicle-storage space online.

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Devon Self Storage Buys 10 CubeSmart Facilities in Memphis, TN, for $31.3M

Article-Devon Self Storage Buys 10 CubeSmart Facilities in Memphis, TN, for $31.3M

Affiliate companies of California-based Devon Self Storage Holdings LLC recently purchased 10 facilities in Memphis, Tenn., from real estate investment trust CubeSmart for $31.3 million. The properties comprise more than 678,800 square feet and were purchased through nine separate warranty-deed transactions.

The facilities are:

Devon Self Storage Buys 10 CubeSmart Facilities***

CubeSmart owns or manages more than 500 self-storage facilities across the United States and operates the CubeSmart Network, which consists of more than 700 additional self-storage facilities.

Prior to the acquisitions, Devon Self Storage owned or managed 32 facilities nationwide. The company ranked No. 45 on the Inside Self-Storage 2013 Top-Operators List, an annual ranking of the industrys 100 largest operators based on net rentable square feet. Devons entire portfolio comprises more than 2.35 million square feet in 12 states.

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