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Self-Storage Businesses and Government Don't Mix

Article-Self-Storage Businesses and Government Don't Mix

By Matthew Van Horn

Over the past three years, how often have you heard about the government investing, bailing out, or getting involved in private business? It seems like a never-ending story. This is a trend which doesnt seem to be ending with the banking, insurance or auto industries.

According to a news report out of Boise, Idaho, the state recently purchased a self-storage facility in the area. This was a private business purchased as an investment, which will be owned and operated by the state. The article also stated the new state-owned self-storage facility will be tax exempt. Tax exempt is two words any private self-storage owner will never hear, but then again your private business doesnt get to be a ward of the state along with all of the benefits that come with this designation.

This discussion is not meant to start a political argument. This is not liberal vs. conservative, right vs. left, capitalist vs. socialist vs. fascism, or any other type of group infighting propagated throughout the media. Instead, we should be taking a common sense approach to why this is a horrible idea for the self-storage industry. Lets look at some reasons why this is dangerous.  

Tax-Free Self-Storage

For a country based on the spirit of competition, this is completely unfair to the independent self-storage owners in this area. Now that the facility is tax free, that nice property tax number, which we as private operators have to take into account on an annual basis, just disappears. Wouldnt it be nice to add that tax number back to your net operating income at the end of the year? What happens if this property has financial problems? What happens if it starts to struggle with increased competition? Does the state raise that tax rate to siphon off revenue from competing self-storage facilities?  

Politicians Are Not Self-Storage Experts

Some politicians have owned businesses in the past, and some have even been extremely successful, but government isnt business and vice versa. We need to have respect for the self-storage industry. Its an industry unto itself. There are laws, verbiage, marketing techniques and nuances that are not the same as stadium, office, school or parking-meter management. Experience is king and its hard to learn on the fly.

Lack of Accountability

What if the property conducts a lien sale incorrectly and becomes involved in litigation? Whos responsible? We dont know whos responsible, but we know who will paythe great citizens of Idaho. When a company or individual develops or acquires a self-storage facility theyre held accountable to the investors or the financial institution who provided them with the funds for that self-storage facility. Since these investors or financial institutions are also typically held accountable to shareholders or other interests, each self-storage project is put through the typical underwriting process.

Does any citizen in Idaho know what went into the due diligence of this project? Is the project run by committee? If a competing facility down the streets lowers or raises its rates, or decides to offer a new special, is the management of this facility quick enough to make the necessary market adjustments?   

Competition

Now that the state owns a self-storage facility in this area of Idaho, will they allow any other  self-storage facilities to be constructed? Will the city or the county allow someone to plan and develop another storage facility in the area? The city or county is now out of the business of collecting taxes and development fees and into the self-storage business. If you had the power to keep competitors out of your market; what would you do?   

Bail Out

If this self-storage facility has financial trouble or doesnt meet projections does the state government bail it out? Typically a distressed self-storage property is disposed of through the market. Do you see a politician taking responsibility for a property that loses money? Will they take responsibility for the two to four jobs that are lost because of this? No way. They will continue to either support a money-losing property or sell itwith the taxpayers taking the loss in both cases.  

Consumer Backlash

How many people did you hear on TV say they will never buy a GM or Chrysler vehicle as long as the government is involved? How many of your friends said the same thing? One customer at this state-owned self-storage facility commented that if he had known the self-storage property was owned by the state he wouldve never rented there and went with a private business. This is an intangible that should be considered.  

Innovation

Government has a poor track record when it comes to innovation. The next great storage idea mostly likely will come from somewhere else.

These are just a few reasons why this state-owned self-storage facility is a bad idea. Where will the government stop? Will you go around the corner and see the state-owned fast-food restaurant next to the state-owned gas station, which leads to the state-owned grocery store? I guess we can all work for the government I heard they have great pensions.

Matthew Van Horn is vice president of Cutting Edge Self-Storage Management, a full-service management company specializing in management, feasibility studies, consulting and joint ventures within the self-storage industry.

 

Strategic Storage Trust Expands With Third Self-Storage Property in Las Vegas Area

Article-Strategic Storage Trust Expands With Third Self-Storage Property in Las Vegas Area

Strategic Storage Trust Inc., a publicly registered, non-traded real estate investment trust targeting the self-storage market, acquired a self-storage facility at 3155 West Ann Road in North Las Vegas. The companys third acquisition in the area, the site will be rebranded under the SmartStop Self Storage trade name.

The property contains approximately 94,000 rentable square feet in roughly 700 units on 3.23 acres of land. Built in 2005, the two-story building includes an office and apartment for a resident manager. Amenities include surveillance cameras, individual locks, climate control and keypad entry.

"This is a newer building in a market that we see as having long-term potential as the economy recovers because of its historic strong population growth, a favorable climate for business, and a greater average regional income than the rest of the country," said H. Michael Schwartz, chairman and CEO. "We have made a commitment to Las Vegas, with this being our third self-storage acquisition in the area, and we plan on continued expansion.

Since the companys inception more than two years ago, the Strategic Storage Trust portfolio has expanded to include 39 self-storage properties in 15 states. The sites comprise approximately 27,500 self-storage units and 3.4 million rentable square feet of storage space. The companys sponsor is Strategic Capital Holdings, which manages a growing portfolio of more than 6.6 million square feet of commercial properties, including 5 million square feet of self-storage.

Cats Found in PA Self-Storage Unit, Owner Charged With Animal Cruelty

Article-Cats Found in PA Self-Storage Unit, Owner Charged With Animal Cruelty

Police charged a man with animal cruelty after discovering two cats locked in a self-storage unit in New Sewickley Township, Pa.

Customers at Freedom Road Self Storage heard cat cries coming from inside the unit. When police searched the unit they found two cats in a crate without food. Police later arrested Paul Pistone, 24.

The facilitys entry-gate records show Pistone was at the facility Oct. 19, then not again until Oct. 23 or 24, after police had removed the cats. Pistone told police he had recently moved to the area and had no where to keep the cats.

The storage facility prohibits animals on the property. The cats were turned over to New Sewickley animal control and will be relocated to a new home, police said.

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Self-Storage Now Eligible for SBA Loans

Article-Self-Storage Now Eligible for SBA Loans

The U.S. Small Business Administration (SBA) recently changed its loan guidelines allowing self-storage businesses as an eligible business type.

The SBA changed its ruling for all passive income properties, those which rely on rental income and the owner controls both entry and exit. The passive income guidelines affected self-storage, mobile-home parks, office suites, shopping centers and similar businesses. Previously, self-storage facilities were only eligible if more than 50 percent of the business revenue came from sources other than monthly rent.

The new eligibility limits coincides with higher SBA 7a loan and eligibility limits, higher 504 and eligibility limits and extension of the SBA fee waiver. There has also been a change in maximum SBA eligibility, enabling owners of multiple self-storage sites to refinance or purchase additional facilities. The maximum eligibility is now $5 million for regular loans and $5.5 million for green or energy-efficient loans. Longer term loans will also be available, up to 25 years if collateralized by a commercial building. The new SBA loans also have lower equity and down payment requirements.

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Hampshire Self Storage Hosts Blood Drive

Article-Hampshire Self Storage Hosts Blood Drive

Hampshire Self Storage, a self-storage operator with 11 locations in New Jersey and New York, is teaming up with Morristown Memorial and Overlook Hospitals to host a blood drive Nov. 4.

The self-storage operator will offer 15 percent off one month's rent of self-storage to existing and new customers when they donate plasma during the event, held at Hampshires Montville, N.J., facility. The blood drive will be from noon to 4 p.m. at 5 Changebridge Road. Call 973.263.8900 for more details.

San Diego Self Storage Participates in Street Fair, Supports Toys For Tots

Article-San Diego Self Storage Participates in Street Fair, Supports Toys For Tots

San Diego Self Storage will participate in the Encinitas Street Fair Nov. 21 in the Encinitas Historical district. The festival, from 9 a.m. to 4 p.m., will feature more than 450 vendor booths showcasing various arts, crafts, gifts, food and entertainment. Live music will be playing at two venues: The Lumberyard Courtyard Stage, located at the Lumberyard Center, and the Community Stage, close to F Street.

This year, San Diego Self Storage is hosting a booth that will include a drawing for a gift basket with gift certificates from local establishments. To be eligible for the drawing, participants must donate a new, unwrapped toy for the Marines Toys For Tots Foundations holiday toy drive.

 Were reaching out to the business community to donate items for the basket so that well have a wide variety of gifts and certificates to include, said Renee Moya, facility manager. Each year, San Diego Self Storage participates in the Toys For Tots campaign and we thought this would be a wonderful community event to be involved in and to collect toys for needy children at the same time. We anticipate a large turnout at the street fair, so we hope to collect many toys. Bikes and items for teenagers are particularly needed this year, but all new, unwrapped toys of any size are welcome.

Founded in 1972, San Diego Self Storage is one of the largest self-storage providers in San Diego County, with a network of 19 local facilities and additional sites in Los Angeles and Orange County. The company is locally owned and operated.

Westy Self Storage of Stamford Coordinates New Four for Four Charity-Donation Drive

Article-Westy Self Storage of Stamford Coordinates New Four for Four Charity-Donation Drive

Westy Self Storage of 80 Brownhouse Road in Stamford, Conn., is the designated drop-off location for a new Four for Four charity-donation drive that benefits local not-for-profit organizations: Dress for Success of Mid-Fairfield County, Friends Book Shop at the Ferguson Library, Laurel House, and Operation Santa. The drive starts today and will continue through Dec. 1.

In addition to serving Westy will provide storage for the donations and supply final delivery via Westy truck to the respective organizations.

Dress for Success promotes the economic independence of disadvantaged women by providing professional attire, a network of support, and the career development tools to help them thrive in work and life. Collection items include womens professional attire in excellent condition.

Ferguson Library Friends Book Shop sells quality used books at reasonable prices to provide financial support for the mission of the Friends of Ferguson Library. Items for collection include books, music and movies in good, saleable condition.

Laurel Houses mission is to provide resources and opportunities for people with mental illness to lead rewarding, self-sustaining lives in their community. Collection items include gently worn mens and womens clothing.

Operation Santa collects and distributes Thanksgiving dinner, winter coats and toys to underprivileged families of Benjamin Franklin School. Items for this collection include non-perishable food items.

We are very proud to continue our Four for Four Donation Drive, said Tim Mincin, district director of Westy Self Storage Stamford. We are grateful for the contributions of so many of our neighbors in helping us serve the community.

Westy is open for drop off seven days a week. Hours are 8 a.m. to 6 p.m. on weekdays, 9 a.m. to 6 p.m. on Saturdays, and 11 a.m. to 4 p.m. on Sundays.

Opened in 1990, Westy Self Storage has six facilities in Connecticut, seven in New York, and three in New Jersey.

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Top 10 Customer-Service Mistakes and How to Avoid Them

Article-Top 10 Customer-Service Mistakes and How to Avoid Them

By Barry Himmel

Many of the most common customer-service mistakes can be corrected or avoided with employee guidance, supervisor patience and a commitment to putting the customer first. Building a culture of legendary service requires the support of management, as well as the implementation of skills and standards surrounding the customer experience.

Review these 10 common customer-service mistakes and the ways you and your employees can avoid making them. Eliminating these mistakes will create an important competitive advantage and help you define your self-storage facility as the one with the highest customer-service standards.

1. Making a Poor First Impression

It doesnt take long for a customer to get an impression of your business. In fact, it usually happens within the first 30 seconds. The greeting you offer on the phone or when someone enters your facility often sets the tone for the transaction.

The customer absorbs a lot in these first 30 seconds. If the transaction is over the phone, then how quickly the phone is answered and the quality and sincerity of the greeting is very important for making a great first impression. The phone should be answered within three rings, and the greeting should be upbeat and professional.

When a customer enters your facility, you need to consider the visual experience as well. Is your site neat and clean? Does staff deliver the right impression in their appearance and body language? Look at your facility through the eyes of your customer What do you see? Remember, you only have one opportunity to make a legendary first impression.

2. Asking the Wrong Questions

You are the professional, and it is up to you to ask the right questions to accurately assess a customers needs. By taking control of the interaction and asking the right questions from the beginning, you can better tailor your solution to the customers requirements.

When you ask the right questions, the customer gains more confidence in your abilities and starts to trust you with his business. Dont make assumptions, as they arent always right!

3. Failing to Build a Relationship With the Customer

Customers are more likely to do business where they feel most comfortable. This comfort comes from confidence and relationships.

The easiest way to begin developing a relationship is to ask and use the customers name. The reason I keep using the same dry cleaner is he has taken the time to remember and use my name. It makes me feel welcome, like I am a valued customer. It does make a difference.

Once you get the customers name, you can start building that relationship. Building the relationship is the fun part of being in business. It will result in greater customer loyalty and more referrals.

Many employees struggle with getting the customers name, especially over the phone, but the majority of people will volunteer their name when asked. If youre hesitant, try saying, I can certainly help you with that. May I please get your name? It works every time!

4. Failure to Present Value in Your Products or Services

Customers who are shopping will typically inquire about availability and price. They want to base their decision on those components. One common customer-service mistake is providing the customer only thatavailability and price. They know nothing else about your facility and why its the best.

If a customer is just shopping, make certain he knows youre the right choice. Leave him with more than price; leave them with a great impression of your company and specific reasons why he should do business with you. Your price will have more meaning when delivered with value.

5. Failure to Ask for the Sale

An inside sales staff has many responsibilities, but one of the most important tasks is to capture the sale. In many instances, this is accomplished by simply asking.

It seems simple enough. However, research conducted through extensive mystery phone shopping shows the opposite to be true. Most frontline employees are order-takers. They will provide lots of information but neglect to ask for the business.

Employees must see themselves as sales people and asking for a commitment from the caller is an important part of their job. Role-play with others to master this important skill.

6. Neglecting Customers When Youre Busy

This is a very common frustration for customer-service professionals. They get busy and cant provide legendary service to everyone. Some may even use this as an excuse.

Everyone gets busy, so be prepared to manage the situation when it happens. There are a number of effective strategies to avoid compromising your service standards when youre hectic:

Maintain control of the situation. Dont take your frustrations out on your customers.

Offer to call them back. Customers will appreciate that you will call them back when you are in a better position to service their needs. Let the customer know when he can expect a return call, and better yet, exceed that expectation!

Ask for help. Find a fellow employee and let him know you need assistance.

7. Failing to Listen to Customers

We are good at talking, but not quite as good at listening. This is especially true when interacting with customers over the phone. There are distractions all over your facility, with lots of things going on at the same time. Of course, there is always the computer and cell phone that may prevent you from focusing on the customer.

Customers should have your undivided attention. When you do a good job listening, you minimize the potential for mistakes. A good listening technique is to repeat back or paraphrase what the customer is requesting. This way your customer knows you are listening, and you will get his request correct.

8. Failure to Show Sincere Appreciation

We talked about the importance of a great first impression. Now lets focus on making a lasting impression. Approximately 50 percent of the time, employees hang up with the customer without saying thank you. Often the close sounds like, OK, give us a call back when you decide.

There are many ways you can deliver a sincere thank you that will make certain the customer knows you appreciate his business or the opportunity to earn it. Dont miss out on the chance to leave that great lasting impression.

9. Being Too Focused on Operations

Its easy to become focused on the operational aspect of the job. Employees too often rely on policies and procedures instead of focusing on how to truly help the customer and provide a great service impression. Research shows that employees will discuss things such as hours, access policies, deposits and restrictions before even knowing what the customer needs.

Im not suggesting you avoid the operational aspect of the relationship, but employees should focus on building a legendary relationship with the customer by first. Once you have a good relationship and a commitment, the operations related to the sale become more relevant.

10. Failure to Follow Up

We miss a great opportunity to build relationships and close business when we fail to follow up with current or prospective customers. The follow-up sends the right message. It shows you are interested in the business and want to begin or continue to work with the customer.

Following up is an easy task to accomplish. The customer will appreciate and remember that you took the time to check back with him. Its also helpful to let the customer know youll be following up with him in the near future, and be specific about when and how you will do that.

The above are 10 common mistakes that are very easy to fix. Once you do, youre well on your way to setting the customer-service standard in your market and securing more self-storage rentals.

Barry Himmel is a senior vice president for Signature Worldwide, a Dublin, Ohio-based consulting company offering sales and customer-service training, marketing, and mystery-shopping services for self-storage facilities. For more information, call 800.398.0518, or visit www.signatureworldwide.com .

Thieves Steal 40 Guns From Canadian Self-Storage Facility

Article-Thieves Steal 40 Guns From Canadian Self-Storage Facility

Forty guns were stolen from a self-storage unit in Port Perry, Ontario, Canada, last week.

Ten long guns and 30 handguns, ranging from .22 calibers to .357 Magnums, and ammunition were stolen from Blanchards Self Storage sometimes between 7:30 p.m. Oct. 26 and 6 p.m. Oct. 27, according to Durham police. The theft was discovered by the facility manager.

Thieves broke into 28 storage units, each locked with a padlock. Its unclear if the thieves knew the guns were stored at the facility or simply came across them during the burglary. The guns were stored in two separate units. The long guns belonged to a local hunter, and were stored in a locked gun cabinet. The handguns, owned by a gun collector, were not property stored and the owner has been charged with improperly storing the weapons, according to police.

Anyone with information can contact Crime Stoppers at 800.222.8477.

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Canadian Self-Storage Facility for Homeless a Finalist for $25,000 Grant From Pepsi Refresh Project

Article-Canadian Self-Storage Facility for Homeless a Finalist for $25,000 Grant From Pepsi Refresh Project

A self-storage facility that provides storage for the homeless in Vancouver, Canada, is one of several finalists in the running for a $25,000 grant from the Pepsi Refresh Project. The grant is awarded to individuals, businesses and companies who implement positive impacts on their community. The storage program is one of more than 270 submitted projects in the Food and Shelter category. Voting, which ended Oct. 31, is limited to Canadian residents 13 and older.

In October 2009, First United Church received one year of funding from a city grant to cover the costs of storage. In addition to storage, First United provides shelter for 250 people every day, meals, advocacy, showers and access to supportive networks.

If selected as a winner, the grant money will be used to employ seven people, and cover the expenses for cleaning supplies, equipment and pest control.

Providing storage enables the homeless a safe place to keep their belongings and more freedom to live their lives, said Rev. Ric Matthews of First United Church. The storage is available on a short-term basis. Without additional funding, the church will not be able to continue the storage program.

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