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Sentry Self Storage Awarded Management Contract for United Stor All in Florida

Article-Sentry Self Storage Awarded Management Contract for United Stor All in Florida

Sentry Self Storage LLC, which provides management services to independent self-storage owners and investors, has been awarded the management contract for United Stor All at 12280 East Colonial Drive in Orlando, Fla. The self-storage facility consists of 661 units and 67,834 square feet.

Sentry Self Storage LLC, based in Coral Spring, Fla., provides a full spectrum of management and consulting services. Sentry has more than 40 properties under management in several states, and works with 18 ownership groups.

New Online Marketing Workshop Added to Inside Self-Storage World Expo in Las Vegas

Article-New Online Marketing Workshop Added to Inside Self-Storage World Expo in Las Vegas

A new workshop dedicated to the topic of online marketing has been added to the agenda for the Inside Self-Storage World Expo in Las Vegas, March 14-16, at the Paris Hotel & Casino. Taught by Eric Shanfelt, president of eMedia Strategist, the three-hour workshop will teach attendees how to get more customers from the search engines for freeall in easy-to-understand layman's termswhether or not they even have a facility website.

The seminar will take place Wednesday, March 16, 12:30-3:30 p.m. Shanfelt will cover:

  • An introduction to local search
  • How to create or claim a business listing in Google, Yahoo and Bing
  • What are data providers, why they are important, and how to update them
  • Other major Internet directories on which businesses should claim their listing
  • How to help a listing show higher in search results
  • Understanding and developing citations (references to a business)
  • The importance of customer reviews (and how to manage them)
  • How to convert visitors into customers
  • How to optimize a website to help a business rank better
  • Answers to specific questions and situations (as time allows)

Every attendee will receive a free copy of "The Local Search Handbook," an in-depth guide to local search optimization specifically written for business owners. Shanfelt will also present important local-search research data about the self-storage market from 10 metro areas around the country.

The ISS Expo will include four comprehensive education tracks, several peer-to-peer networking events, a Self-Storage Q&A, two days of exhibits and more. Attendees can take advantage of discount room rates through Feb. 15 by calling 1.800.HARRAHS and mentioning the expo name. Details about the industrys largest conference and tradeshow can be found at www.insidselfstorageworldexpo.com.

Cushman & Wakefield Releases 2010 Self-Storage Investor Survey

Article-Cushman & Wakefield Releases 2010 Self-Storage Investor Survey

Cushman & Wakefield has released the results of its 2010 Self-Storage Investor Survey in a report titled "Resilient Asset Class Gains Traction." The valuation and advisory publication expands on results found in reports such as the Korpacz Investor Survey, published earlier this year by PricewaterhouseCoopers LLP. The CW report includes market optimism, marketing time, absorption time and other elements that characterize current self-storage market conditions.

The results of the survey, completed this past summer by more than 50 respondents in investment, brokerage and other related industries, show increased optimism for the asset class and slightly lower cap and yield rates. Marketing times are declining and absorption times improving. The report includes a detailed chart and summary of the key findings. To access a PDF of the article, visit www.selfstorageeconomics.com/pdf/investor%20survey%202010.pdf.

Cushman & Wakefield Valuation & Advisory is a real estate valuation and consulting firm that works with corporations, institutional investors and lenders worldwide. The company has more than 595 valuation experts in 86 offices.

ISS Blog

Self-Storage Now Qualifies for Small Business Administration Loans

Article-Self-Storage Now Qualifies for Small Business Administration Loans

Finding money to buy or build self-storage has been a challenge in recent years, but the U.S. Small Business Administration (SBA) is providing hope to independent owners and investors. Due to recent changes in the SBAs loan guidelines for passive-income properties, self-storage now qualifies as an eligible business type. What does this mean for you?

Passive-income properties are those that rely on rental income and for which the owner controls entry and exit, for example, self-storage, mobile-home parks, office suites and shopping centers. Until recently, self-storage facilities were only eligible for SBA loan money if more than 50 percent of their revenue came from a source other than monthly renta practically impossible order in this industry unless you do mad amounts of ancillary business. The new guidelines open doors to anyone looking to refinance, acquire or build self-storage.

Theres more good news, including higher loan and eligibility limits for the SBA 7a and 504 programs. You can now use SBA financing to acquire or refinance multiple self-storage properties since eligibility is not determined by the number of loans but by the total amount of eligibility used. Maximum loan eligibility is $5 million for regular loans and $5.5 million for green or energy-efficient loans.

In addition, there are longer loan terms available, up to 25 years, and SBA loans have lower equity and down-payment requirementsas low as 10 percent to 20 percent for self-storage. SBA financing can also be used to make property improvements, a real benefit for older properties looking to compete with newer facilities in their markets. Add to that the beginning of a two-year window that will allow SBA 504 program to be used for refinancing, an extension of the SBA fee waiver, and a temporary 90 percent SBA guarantee. Its an all-around heartening offer for our business.

Why the change? The Small Business Jobs and Credit Act, passed in September, responsible for extending the fee waiver and keeping the loan-guarantee limits higher than the historical standard. The SBA estimates that the funds provided by the bill will leverage $14 billion in small-business lending. But the fee waiver could run out by the end of the year, so act quickly if youre enticed. If approved, your loan could take as little as 30 to 60 days to close, according to SBA.

There is a small side effect of the act, however, that could mean regulatory headache for all self-storage operators, even those who dont touch SBA money. The act requires that any business receiving income from a rental property must file an IRS Form 1099 for any purchase it makes above $600. For example, if you hire a paving company to fix your parking lot, and the bill is more than $600, you must receive and file a 1099 for that purchase.

Not only does this create a compliance issue for storage operators, it creates a paper trail for tax commissioners that could ultimately cost you more money in sales tax. Why? If a 1099 does not clearly demonstrate state sales tax was paid on a taxable product or servicefor example, if the vendor simply included the sales tax in the total price, which is very commonyou could be held liable for payment of that tax, even if it was technically paid as part of the original cost. Watch the ISS website on Nov. 19 for a detailed article on this topic, written by legal expert Jeffrey Greenberger.

In the meantime, consider the opportunities presented now by the SBA. For more information, you can attend a seminar titled Using SBA Financing for Self-Storage, presented by Georgia Ragsdale during the Inside Self-Storage World Expo in Las Vegas, March 14-16. Ragsdale, CEO of Best American Financial Services LLC, will discuss how to get financing from the SBA, what loans are offered, who qualifies, what to expect when submitting your application, and the differences between SBA and other commercial loans.

The upcoming year could be a banner one for small independent business such as self-storage. Take advantage of the possibilities to grow your enterprise.

Self-Storage Operators Discuss Customer Confidentiality Best Practices

Article-Self-Storage Operators Discuss Customer Confidentiality Best Practices

Part of the ethics of running a self-storage facility is keeping your word to customers about protecting the security of their items and their privacy. However, the methods by which each facility protects customer information are not uniform. These discrepancies have sparked a worthwhile conversation on Self-Storage Talk, the official online forum of Inside Self-Storage.

A self-storage owner recently started a discussion thread about the privacy measures he instructs his managers to take. "I have always told my managers to not give out any information to anyone about a renter or what a renter is storing unless that person's signature is also signed on the rental contract," he shares. But he also asks a good question about spouses:

"What if the wife comes in to set up the space and is the only one who signs the contract? Will you give account information to the husband if he calls or comes in? If he doesnt have his code when he comes in, will you let him in?"

Most respondents take an absolute stance on the matter: No security code, no entry. However, one facility manager does allow anyone to make a payment on an account, as long as the payee knows the account number.

Another manager allows renters to designate one other person with access to the unit (usually a spouse or other close family member), but this designation occurs at the time of signing the lease. For any changes to be made, the original lessee must sign a reauthorization form. Posters are continually referring to this as the "authorized for access" option.

Subsequently, a different forum member posted that authorized-for-access options on contracts are going by the wayside in the industry, mostly because they increase a facility's liability without providing any benefit. Most people will not prohibit themselves from renting simply because the contract doesn't allow for multiple people to access the unit.

Want to jump in on this discussion or one of the many others? Visit www.selfstoragetalk.com and log in, or create an account if you don't have one. Registration is free and takes only a few minutes.

SpareFoot's Feghali Presents Webinar and Seminar About Online Marketing for Self-Storage

Article-SpareFoot's Feghali Presents Webinar and Seminar About Online Marketing for Self-Storage

Mario Feghali, co-founder and chief operating officer of SpareFoot.com, will present a free webinar for self-storage professionals on Dec. 1 titled Measuring the Effectiveness of Your Online Marketing. The online seminar will focus on using analytics to track performance as well as tools that help measure the effectiveness of marketing efforts. Feghali will address:

  • Determining positive or negative return on investment
  • Free tools to measure website performance
  • Identifying the factors that drive results
  • The importance of tracking move-ins
  • Tracking phone calls, including source of business data

The webinar will take place at 2 p.m. EST. To attend, participants must complete the free registration process at Ministoragemessenger.com/webinar.

SpareFoot.com is a free self-storage locator site operating nationwide. Feghali has grown the SpareFoot network to more than 100 websites with more than 80,000 monthly visitors. He uses his extensive background in psychology, statistics and analytics to help thousands of self-storage facilities generate more tenants online, and writes frequently about free tools that help facility owners track their results and increase traffic to their own websites.

Feghali will speak at the upcoming Inside Self-Storage World Expo in Las Vegas, March 14-16, on Free Ways to Get Self-Storage Tenants Online. Hell teach attendees to set up local business listings on various search engines (Google, Yahoo and others), use popular online classifieds such as craigslist and Kijiji, and get listed on local business directories. The ISS Expo comprises three full days of education, exhibits and networking opportunities. Show details can be found at www.insideselfstorageworldexpo.com.

Hannay Investment Properties Expands Market to Include Self-Storage

Article-Hannay Investment Properties Expands Market to Include Self-Storage

Phoenix-based Hannay Investment Properties, a property-management firm, has experienced substantial business growth in 2010, including adding six self-storage facilities to its management portfolio. Hannay is now expanding into other markets in the West and Southwest, and growing its staff, adding 24 employees this year.

Hannay provides property-management services for more than 3 million square feet of commercial property including retail centers, office buildings, multi-family and RV parks.  This year, the company added self-storage property management, brokerage and redevelopment. 

A significant portion of Hannays growth can be attributed to the increase of court-appointed receiverships its been awarded, in part because of its wide range of commercial real estate and banking experience.  In the current economic downturn, lenders are frequently asking the courts to appoint an independent receiver to take over the operation of a property when the borrower defaults on the loan.  Because Hannay provides property-management services, the courts look favorably on the company for receivership appointments since it can provide both services.

In the past year, the company has been appointed receiver for more than 50 commercial properties representing more than $275 million in loan balances. With its expansion into California and Nevada, the company anticipates receivership business will continue to grow and be an even larger portion of its portfolio of services.

We are doing work for virtually every large lender or special servicer in the country from Wells Fargo and Bank of America to CW Capital Asset Management and Midland Loan Services, said Craig Hannay, company president. With new growth in California and Nevada, were very optimistic about 2011.

STORE Self Storage and Wine Storage Hosts Chamber Meeting, Kicks Off Toy Drive

Article-STORE Self Storage and Wine Storage Hosts Chamber Meeting, Kicks Off Toy Drive

STORE Self Storage and Wine Storage in Palm Beach Gardens, Fla., hosted the Chamber of the Palm Beaches after-hours event Nov. 3. There were more than 60 people from the business community in attendance. Chamber members enjoyed glasses of wine as the management team gave tours of the facilitys wine room and lockers. From left to right: Franz June, Daron Walker, Elliott Carrigan, Cindy June, Madelyn Still and Gunny Dave Shumaker.

The event also kicked off the facilitys holiday toy drive to benefit the U.S. Marine Corps Reserve Toys For Tots organization. In lieu of admission to the event, attendees brought a new toy for donation and were given raffle tickets for each toy donated. STORE Self Storage and Wine Storage is a collection site for Toys For Tots and will also store all the toys collected until theyre distributed to the children in the Palm Beach Gardens area.

U-Store-It Trust Releases Third-Quarter 2010 Operating Results

Article-U-Store-It Trust Releases Third-Quarter 2010 Operating Results

Self-storage real estate investment trust U-Store-It Trust released operating results for the three and nine months ending Sept. 30. Highlights include:

  • Funds from operations was $13.1 million, compared to $14.4 million for the third quarter of 2009. FFO per share was $0.13 per share for the third quarter of 2010, compared to $0.18 per share for the same quarter of last year.
  • Same-store revenue increased 1.4 percent from the third quarter of 2009.
  • Same-store property operating expenses increased 2.9 percent due to advertising costs when compared to the third quarter of 2009.
  • Same-store net operating income increased 0.5 percent from the third quarter of 2009.
  • Same-store realized annual rent per occupied square foot decreased to $10.98 or 1.1 percent compared to the third quarter of 2009.
  • At Sept. 30, ending physical occupancy increased 170 basis points to 77.4 percent compared to 75.7 percent during the same period in 2009. 

The company acquired three storage facilities during the quarter for the quarter for an aggregate investment of $33.4 million, and sold one property for $3.1 million. U-Store-It Trust managed 122 properties totaling 8.1 million square feet.  The company had six properties under management as of Sept. 30, 2009. Roughly $1 million in management-fee revenue was generated during the quarter.

Despite operating in what continues to be a challenging economic environment, our revenue growth reflects our resilient portfolio and sector, as well as our ability to capture more than our share of the self-storage consumer demand," said CEO Dean Jernigan.

Based in Wayne, Pa., U-Store-It owns or manages 492 facilities across the United States and operates the U-Store-It Network, which consists of approximately 684 additional self-storage facilities.

 

 

 

 

ISS Blog

Three Tips to Make Self-Storage Talk Even More Useful

Article-Three Tips to Make Self-Storage Talk Even More Useful

Self-Storage Talk, the official online forum of Inside Self-Storage, is a wonderful tool that's no longer a secret among industry professionals. More than 3,600 members use the forum, and more are joining every day. What few people realize, though, is that there are several shortcuts, tips and tricks that can make using the forum easier, more fun and more productive.

Shortcut to SST from Your Desktop

Wouldn't it be great if you could click straight to the forum instead of having to open your browser and click on a bookmark or type in the URL? In fact, you can set-up a one-click shortcut to SST right from your desktop. Forum member and facility owner John Roser volunteered to explain the process (for Windows users) on this thread.

Basically, the process consists of copying and pasting the Self-Storage Talk URL to your desktop and right-clicking to set up a command for your browser to open the page automatically. It will take you a minute or two to set up initially, and then you'll be able to save time every time you log on to the forum.

Posting Photos, Images and Attachments

Not long ago, I blogged about the multiple ways to upload and share photos on the forum. If you haven't read up on this yet, make sure to check out this explanatory thread. The directions in Step One (how to upload directly from your computer) can also apply to documents other than images, such as PDFs, spreadsheets or other resources you might want to share with the community. Remember, there is an official Self-Storage Talk Photo Thread that's hot at the moment, so chip in and post to it if you can.

New Posts

Most of the forum veterans live by the "new posts" feature, which automatically displays for you the threads that have been updated since your last visitwhen you're logged in, of course. New Posts is useful because it doesn't limit itself to one area of the forumfor example, Day-to-Day Managementbut shows every new post from every area. You can access it easily by clicking on the New Posts link in the navigation bar at the top of any page.

If you're already an SST member, then this all probably makes sense. But If you're confused and are a late-arriver to the SST party, don't worry: You're still invited to join us. You can start posting as soon as you register. It's free to join and takes only a few minutes.

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