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

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

Dainton Self Storage Owner Fights to Open Farm and Garden Center in Chudleigh, England

Article-Dainton Self Storage Owner Fights to Open Farm and Garden Center in Chudleigh, England

Paul Maddicott, owner of U.K.-based Dainton Self Storage, has scrapped plans to convert the former Rock Farm Nursery in Chudleigh, England, into an upscale farm shop and garden center. Despite a swell of support from community residents and Chudleigh officials, he’s abandoning the project due to lack of progress with planners with the Teignbridge District Council, according to the source.

The project was due to be patterned after the popular Darts Farm, a farm-to-store business concept that describes itself as a “lifestyle shopping experience.” The active farm features artisanal food, beverage tastings, groceries and other amenities, drawing more than 17,000 visitors per week, according to the company website. Maddicott’s development would have included a cafe and a woodland play park. It was expected to generate 25 full-time jobs and 75 part-time positions, the source reported.

After receiving support from town officials, Maddicott submitted a planning application to the district in January. Though a decision was supposed to be made on the project by May, discussions between the parties have stalled, despite Maddicott filing two formal complaints about the slow progress. The entrepreneur spent 18 months and £45,000 working on the project, he told the source.

Maddicott launched a Change.org petition indicating he was going to walk away from the project and asked the local community to sign as a show of support. Within 24 hours, nearly 400 signatures were collected, but still no progress was made between the developer and district planners, according to the source.

"We are left with no choice but to bow out gracefully," Maddicott said. "Having invested heavily into the planning process to this point, I have made the difficult decision to walk away. I do hope that an alternative and sympathetic use can be found for the site, which I believe represents a significant part of the gateway to Chudleigh."

When Maddicott first pursued the project, he was given a one-year option to acquire the property, but that deadline expired in June.

“We will let the planning application run to maturity,” said Shaun Duncan, operations director for Dainton Group Services, the parent company of Dainton Self Storage. “Having been told initially [we] would have the full support of the planning department, we have now been told that if it was recommended for approval, it would have so many conditions as to be unviable."

"The applicant is well aware that a number of such concerns have been raised, and we have asked for further information in the hope of addressing those concerns,” the district council told the source in a written statement. “Such information has not been forthcoming from the applicant. We have also been advised by Natural England that an appropriate ecological assessment of the site needs to be carried out. We are currently awaiting a response from our ecologists so that this element of the application can be tackled."

Founded by Maddicott in 2002 and based in Newton Abby, England, Dainton Self Storage operates 17 locations in England and Wales. The group also includes Dainton Portable Buildings and Dainton Removals.

Source:
DevonLive, Angry Community Rises Up to Save 'Upmarket Farm Shop' Plan at Derelict A38 Site

Self-Storage Management Firms ASM, Sentry Report 3Q 2019 Financial Results

Article-Self-Storage Management Firms ASM, Sentry Report 3Q 2019 Financial Results

Update 11/12/19 – Absolute Storage Management (ASM), a self-storage owner and property-management firm, has announced its operating results for the three months ended Sept. 30. The company increased same-store revenue by 4.8 percent compared to the same period last year. Same-store net operating income (NOI) increased by 4.5 percent, according to a press release.

ASM gained four management contracts of operating facilities during the quarter. The properties are A-1 Storage of Bentonville in Bentonville, Ark.; Storageguard Self Storage in Portland, Tenn.; West Knox Safe & Sound Storage in Knoxville, Tenn.; and USA Self Storage in Fort Lauderdale, Fla.

“ASM’s properties and team members had an outstanding third quarter even as competition increased in many of our markets. Our focus on the details including revenue management and marketing have propelled our growth. We look forward to finishing the year strong,” said CEO Scott Beatty.

The company also released highlights of operating results for the ninth months ended Sept. 30. Same-store revenue increased by 3.6 percent over the same period in 2018. Same-store NOI increased by 3.9 percent. AMS ended the time period with 89.2 percent square feet occupancy compared to 89.9 percent in the same period in 2018. The company also added 14 management contracts.

Founded in 2002, ASM operates 131 properties in 14 states. Headquartered in Memphis, Tenn., it has regional offices in Atlanta; Charlotte, N.C.; Jackson, Miss.; and Nashville, Tenn.


11/4/19 – Sentry Self Storage Management, an industry management and consulting firm, has released its third-quarter 2019 operating results, showing year-over-year improvement in revenue, net operating income (NOI) and occupancy. The company reported revenue growth of 4 percent and a 5 percent decrease in property expenses, which resulted in a 9 percent increase in NOI compared to the same period in 2018.

Occupancy at Sentry-operated self-storage properties was 89 percent as of Sept. 30, a year-over-year increase of 340 basis points, according to a press release.

The company expects to open a new property in Hollywood, Fla., during the fourth quarter, which will add 83,000 square feet to its portfolio. It has two expansion projects underway in Boca Raton and Tampa, Fla., with completion dates scheduled for next year.

Based in Coral Springs, Fla., and founded in 1997, Sentry owns or manages 23 properties comprising more than 1.7 million net rentable square feet. The company’s services include consulting, development, feasibility studies, acquisitions, renovations and facility management.

Sources:
PRWeb, Sentry Self Storage Management Reports Third Quarter 2019 Financial Results
PR Urgent, Absolute Storage Management Third Quarter Results

What to Do With Online Reviews: An Action Plan for Self-Storage Operators

Article-What to Do With Online Reviews: An Action Plan for Self-Storage Operators

All online reviews—positive and negative—impact the success of your self-storage business. To ensure you’re attracting and not repelling customers, and to maintain a high ranking in local search, you must be generating and responding to these posts. If your facility doesn’t have any online reviews or your average star rating dips below four, you may be scaring away new tenants and under-ranking in search results.

The Impact of Reviews

Having positive reviews really makes a difference for local businesses like self-storage. Native reviews on your Google My Business page help you attract new renters because they reflect consumer trust, which is a key ranking factor. Think of reviews as the new word-of-mouth marketing. They affect the overall user experience and click-through rate.

Reviews stand as one of the most important touchpoints along the buyer’s journey. According to a survey from marketing firm BrightLocal, 57 percent of consumers wouldn’t use a business with an overall rating lower than four stars. They read an average of 10 reviews before trusting a business and definitely consult reviews before making a purchase decision.

Reviews also have a big impact on your local search ranking. In fact, review signals, including quality, velocity and diversity, account for 6.5 percent of localized organic search-ranking factors, according to Moz, a software firm that specializes in search engine optimization (SEO). That percentage increases to 15.4 percent within Google’s “Local Pack,” a section of search results that shows local businesses.

Moz also cites the quality of native Google reviews as being the second most important factor when it comes to competitive difference-makers, even ranking ahead of the domain authority of your website. Reviews have jumped in importance when it comes to increasing visibility for results powered by Google’s Knowledge Graph, a system that understands facts about people, places and things and how they’re connected. Positive reviews also help your website’s SEO, including keyword and category association, content creation, and link generation.

How Many Reviews Do You Need?

You may be wondering how many reviews you need to achieve your desired ranking in local search. According to key findings from BrightLocal, top-ranking local businesses have an average of 39 Google reviews. Storage companies specifically have an average of 17. Seventy-four percent of local businesses and 74 percent of storage companies have at least one Google review.

In general, businesses appearing in the top three local positions have an average of 47 reviews. Companies in positions seven through 10 have an average of 38. Research shows a correlation between higher local rankings and the number of Google reviews a business has. The average star rating from all industries surveyed is 4.4, with the average for self-storage at 4.3.

At a minimum, you should have 10 Google reviews, but aim for 17 to 39. While the number of reviews you need to increase your search ranking varies, it’s best to consider review generation an ongoing part of your SEO and reputation-management strategy.

Best Practices for Responding to Reviews

Before you start answering reviews, it’s important to develop a reputation-management strategy so all team members know how and when to respond. Decide who’ll be responsible. If you have more than one facility, determine if each location should manage its own reviews or a corporate office should handle it. Then follow these pointers.

Find your voice. Work with your team to create a tone and response style that fits your overall brand, image and location. Keep your posts personal and human. Own up to your mistakes, but don’t go overboard. You want to be able to respond without being too transparent or apologetic. Stay consistent to make the process efficient and your brand strong.

Respond to negative reviews appropriately. Knowing how to respond to bad reviews can be tricky, but it’s essential. First, apologize and thank the reviewer for his feedback. Be specific and professional. You may want to continue the conversation offline if the person is especially agitated. Regardless of the issue, keep your response short and to the point.

Don’t ignore positive reviews. Include guidelines for responding to positive reviews in your reputation-management strategy. Thank reviewers for their feedback and invite them to do business with you again. Don’t use generic, scripted responses. Refer to their review and highlight specific details that stood out. Responding to positive reviews reinforces the good experience. Potential renters reading reviews and responses get a feel for the customer service they can expect at your property.

Analyze engagement. Reputation management does more than maximize the revenue impact of online reviews. This valuable tool can also be used to highlight areas that need improvement and provide insight to how to increase your social media engagement. Reputation and social goals should align with your overall sales and revenue goals with clear definition and purpose.

Reviews can’t be ignored if you want to attract new renters, increase engagement and encourage return business. In the past, renters asked friends for self-storage recommendations. Positive word-of-mouth brought in new renters. In the digital age, reviews are the new word-of-mouth. They also factor heavily in your local search ranking. By developing a review-management strategy, your self-storage business can attract and retain new business.

Celena Canode is a marketing campaign manager at G5, a provider of digital marketing solutions to the self-storage industry. It’s a predictive marketing software-as-a-service company that uses artificial intelligence and other emerging technologies to help marketers amplify their impact. Through its Intelligent Marketing Cloud, G5 delivers performance and scalability through predictive analytics, hyper-personalized customer experiences and continuous spend optimization. For more information, call 800.554.1965; visit www.getg5.com.

Self-Storage Talk Thread: Breaking the News to Tenants About Rent Increases

Article-Self-Storage Talk Thread: Breaking the News to Tenants About Rent Increases

If you’re a smart self-storage operator, you’re regularly raising the rent on your existing tenants; but you don’t have to increase everyone’s rate across the board. You can go by anniversary date, raise rents in a block based on unit size or devise some other method. The trick is notification. It’s critical but can be challenging, especially if yours is a large property.

In this thread on Self-Storage Talk, the industry’s largest online community, a member debates notification methods. Which are the most efficient and cost-effective? How do you handle rent-increase alerts? See what others suggest and share your strategies.

 

Lakeside Self Storage, Halminen Family Donate $2M to Ontario's Bowmanville Hospital Expansion

Article-Lakeside Self Storage, Halminen Family Donate $2M to Ontario's Bowmanville Hospital Expansion

The Halminen Family Foundation, which operates Lakeside Self Storage and Halminen Homes in Bowmanville, Ontario, Canada, has given $2,000,001 to the Bowmanville Hospital Foundation (BHF) to support the redevelopment and expansion of Lakeridge Health Bowmanville in Clarington, Ontario. The donation, the largest personal gift BHF has received, was announced on Oct. 25 at the 33rd Annual Fundraising Gala at the Ajax Convention Centre, where Halminen Homes was the venue sponsor, according to a source.

“We are proud to support the Bowmanville Hospital Foundation and its vital redevelopment project,” said Hannu Halminen, president of Halminen Homes. “Our community continues to grow, and the need for local and accessible healthcare is important, now more than ever. The Halminen Family Foundation & Lakeside Self Storage is fortunate to play a part in the delivery of excellent health care now and for decades to come.”

The hospital’s last major expansion was 28 years ago. The redevelopment is expected to double the size of Lakeridge and expand its programs and services including surgical, critical care, diagnostic imaging, in-patient and emergency. A fundraising goal hasn’t been determined, but the BHF has been reaching out to major donors with requests through its “We Care, We Can” campaign.

“We are incredibly thankful to have such a generous organization within our community,” said campaign chair Kirk Kemp. “Halminen Homes has been a loyal supporter of the Foundation’s annual fundraising gala for many years, and established themselves with diverse connections, community partnerships and generous support for many local charities. The Foundation is very grateful for their commitment to elevate health care for the people of Clarington and across Durham Region.”

Opened Oct. 4, Lakeside Self Storage offers 419 units in various sizes as well as 24-hour access, online billpay, and moving and packing supplies.

Founded more than 45 years ago, Halminen Homes has built houses in Cobourg, Durham Region, Lindsey, Kingston and Peterborough, Ontario. Its community partnerships and generosity have supported other local charities and organizations in the region, a source reported.

Sources:
Bowmanville Hospital Foundation, Halminen Family Foundation Makes $2-Million-And-1-Dollar Pledge
Durham Region, Halminen family Gives $2 Million Plus $1 to Bowmanville Hospital Expansion
Lakeside Self Storage, Website

Keepsafe Storage Centres of Scotland Opens Dunfermline Facility to Keep Up With Demand

Article-Keepsafe Storage Centres of Scotland Opens Dunfermline Facility to Keep Up With Demand

Scottish self-storage operator Keepsafe Storage Centres has opened a new location in the Pitreavie Business Park in Dunfermline, Scotland, to keep up with population growth and rising demand for storage. The facility off Queensferry Road was built on a former parking site for large trucks. It includes virtual office mailboxes and storage units ranging from nine to 160 square feet, according to a press release.

The facility accepts package deliveries on behalf of customers, offers free use of a rental truck at move-in and can arrange moving services. The property features security lighting and 24-hour, monitored closed-circuit television.

"There's anecdotal evidence that Dunfermline is one of the fastest growing economies in the U.K. due to improved transport links and accessibility to major business hubs, including Edinburgh,” said Jordan Black, general manager. “With an increasing demand for storage solutions in the area, we saw this as the perfect opportunity to expand our operations and open our fourth site in Scotland."

Founded in Perth, Scotland, in 1978, Keepsafe operates two self-storage facilities in Dundee, Scotland, and one each in Dunfermline and Perth. It’s a third-generation, family-run business.

Self-Storage Facility Renovation and the Customer Experience

Article-Self-Storage Facility Renovation and the Customer Experience

As the fable tells us, with a little love and care, even the ugly duckling can become a beautiful swan. As self-storage facility operators, we need to think the same way about our properties. We may not think our facility’s flaws are a big deal, but customers do. And with more supply entering the market, we need to offer a product that’s comparable to, if not better than, new competition.

We’ve been bombarded with ads for new whizbang gadgets and technologies that have come out in the self-storage industry in recent years, and it can be difficult to choose the ones that’ll best enhance your facility and operation. First, you must determine the type of product and customer experience (CX) you want to offer. If you’re a hands-off operator, don’t go crazy adding amenities and upgrades. New systems and features tend to require maintenance and even training. It’s better not to offer them than to do so haphazardly. If you’re more hands-on, or you have the support of a third-party management company or full-time maintenance staff, perhaps fancy modernizations are right for you. Choose the option that suits your operational style and goals.

Once you’ve decided on the type of self-storage you want to offer, how do you determine which upgrades to include in your capital-improvements budget? My company likes to keep operations as simple as possible while still providing a great CX. Below are some things we consider when renovating newly acquired properties. Some might sound minimal, but we’ve found that these simple improvements lead to increased facility revenue and valuation.

Choosing Facility Upgrades

According to a report from market-research company Forrester, customer loyalty is driven by three key factors: ease, effectiveness and emotion. Any good CX addresses these components.

At a minimum, for users to be satisfied with your offering, it must be easy to use and get the job done. However, if you want loyalty, you can’t stop there. Any new competitor with shiny bells and whistles and lease-up incentives can easily steal away your business. Loyalty is built through a positive experience, and for that, you need an emotional connection. Let’s see how these factors might affect the upgrades you choose for your self-storage site.

Ease. Is it easy for customers to do business with you? Can they book units online? Is there a self-service kiosk or call center available after-hours? Can tenants use their smartphone to access your facility and their unit? If you answered “no” to any of these questions, your facility could improve. It’s time to engage any number of service providers and get with the program! There are many technology solutions available on the market, so you can find one to fit your budget.

Effectiveness. Is your business effective? Are tenants’ good safe, dry and accessible? Does the gate work? Do doors open and close smoothly? Can renters get help when they need it? If not, it’s time to make changes. Some issues can be remedied through policy updates, while others may require an equipment upgrade.

Emotion. To drive an emotional response and make customers loyal to your facility, you need to get at the core of the human experience. It requires diligent staff training and a great work environment. Think of a company, restaurant or store you absolutely love and would gladly pay a bit more to patronize. Why are you devoted to it? Does the staff remember your name and maybe even your birthday? They’re probably always smiling and even look up from their phones or computers when you walk through the door. Perhaps they even address you politely as “sir” or “ma’am.” Crazy, I know!

Communication

When making any changes to your self-storage site, there’s bound to be some inconvenience for customers. It’s vital to communicate any upcoming disruptions to your operation. Use multiple methods: phone calls, texts, letters, e-mails, newsletters, social media posts … Heck, try a St. Bernard with a message in the whiskey barrel if it works! Consider the following:

  • To truly get your message across, you’ll need to communicate it five to seven times.
  • Communication is an art. Don’t rush it. Make every word count.
  • Never use jargon, acronyms or language that can be misinterpreted. Speak plainly.
  • Think about employing automated systems for text and voice messages.

Do whatever you must to keep customers informed. If the renovation will be lengthy, offer to move tenants who’ll be greatly affected to a different area of the property, or provide a small discount during the disruption.

You really don’t need fancy gadgets to turn your ugly duckling into a beautiful swan. Understanding the three drivers of customer loyalty and implementing small changes around them will create a more positive CX than any technology or new paint job.

Scott Lewis is the co-founder and chief executive officer of Spartan Investment Group LLC (SIG), where he’s responsible for developing business strategies and overseeing all operations and business activities. Scott has led several successful real estate projects ranging from single-family flips to ground-up self-storage developments. He’s also a major in the U.S. Army Reserves and a veteran of Operation Iraqi Freedom. SIG has completed $9 million in development projects, with $70 million underway. For more information, call 866.375.4438; e-mail [email protected]; visit www.spartan-investors.com.

ISS Blog

Don’t Take It Personally: What Self-Storage Operators Can Learn From Negative Feedback

Article-Don’t Take It Personally: What Self-Storage Operators Can Learn From Negative Feedback

No one likes to be criticized. Whether you’re five for 55, receiving negative feedback is almost always a blow to your self-esteem. Even when the criticism is warranted, you likely feel raked over the coals. Totally normal, by the way.

Still, it can be hard to let it go and move forward. You might be angry, frustrated or sad. Maybe you even feel like a total loser! But there is life after a putdown. You can even learn a few things from the experience.

First, whenever you’re receiving criticism of any kind—from a coworker, your boss or a customer—remember to keep your cool. You might be seething inside, but you should have an approachable exterior. So, don’t cross your arms, fidget or look away. A few head nods are appropriate. Often, the person throwing negative vibes your way isn’t really upset with you. Perhaps it’s a customer screaming at you after receiving a late notice, or your boss is having a bad day and his retort seemed a bit snippy. The reality is, you have no idea what’s going on with the other person. Sometimes you just become the target of someone’s anger. Don’t pour gasoline on the fire. What I’m saying is, sometimes you just need to take the hit. It might not be fair but going on the defense will only make things worse. Plus, there might be something important to this critique and you’re just not seeing it in that moment.

This leads to my next point: Take the time to really listen to what the person is saying. When someone is offering criticism, we often focus on the negative words and terms and miss the message. We hear “always,” “you never” and “why can’t you” and lose the overall context of what’s being said, even if the criticism is more destructive than constructive. Still, try to open yourself to what’s behind this analysis and how can you take what’s being said and use it to improve yourself. If it’s not clear, ask for an example. Perhaps you had a reason for doing a certain task the way you did, and it wasn’t obvious to the other person. Or maybe you’ve been doing it wrong and didn’t know it.

In a thread on Self-Storage Talk about negative feedback, member Meauxhala admits being on the receiving end of harsh words is often difficult, but she realizes that “while the overall criticism maybe harsh, rude or incredibly offensive, it still holds a grain of truth. I try to uncover and learn from this, as there is always room for improvement.”

Fellow member AmyLou concurs. “If it's coming from the bosses, I understand it is for my benefit and I don't take it in a negative way—and its never presented in a negative tone or approach.”

It’s also important to take responsibility when warranted. Was there a miscommunication on your part? Did you make an error? Own up to it, then determine what course of action is needed. If it’s some time to resolve a problem, tell the other person. If you don’t understand what changes need to be made, ask for clarification. Oftentimes we don’t even know there’s a problem until it’s brought to our attention.

Constructive criticism can lead to improved skills, better time management and even strengthen your work relationships. It can be difficult to not become emotional and take negative feedback personally—or dwell on it forever. It’s human nature to do so. It takes a flip in attitude and mindset to take those upsetting words and turn them to your advantage. Even when the criticism isn’t communicated in the best way, you can usually still find something in it that can benefit you. So, here’s the challenge. The next time someone directs criticism your way, take a beat, listen with an open mind and then determine how you can turn it in your favor.

Self-Storage Lien Laws: An Overview to Help Facility Operators Keep Pace

Article-Self-Storage Lien Laws: An Overview to Help Facility Operators Keep Pace

The self-storage associations have been very busy in the state legislature in recent years making sure our industry lien laws are as good as they can be. There have been many successes, and much has changed. For this reason, it’s critical to check your state law periodically, and definitely double-check it before you conduct a lien sale. To help you keep pace, I’ve highlighted some important reminders and trends below.

Why Lien Laws Matter

To industry professionals, issues of self-storage operation, management and law are, hopefully, second nature. But many of your customers simply don’t “get it.” They don't understand there are laws that allow storage operators to take a tenant’s personal property and sell it to the highest bidder when rent becomes delinquent. That ignorance may result in your tenant hiring a lawyer, who also doesn't get it; and the next thing you know, you’re in court.

So, let's remember why these laws matter. Self-storage liens are an extraordinary mechanism by which a company, without the permission of a judge or court, can literally take a person's property, sell it to a bidder and use the money to pay the past-due rent. It's amazing! But it must be followed correctly, without exception. State legislatures have given us this tool, but with the strict warning—do it properly or else!

This is a long-winded way to say watch out, be careful and make sure you do it right. Those trinkets and old clothes might mean little to you, but they’re everything to the person who placed them in that unit. They also may become everything to you if you sell them without following the law.

E-mail Notices

One of the greatest recent innovations in the self-storage industry is the ability to send lien notification via e-mail. For years, nearly every state required that these notices be sent via Certified Mail Return Receipt Requested. You had to retain a file where you kept the letter and the green card when it came back from the post office to prove you did everything right. E-mail is much easier to track and prove and is significantly cheaper.

Between 2013 and 2018, numerous states updated their lien laws to allow e-mail notices. Today, the only states that don’t allow them are Alabama, Alaska, Idaho, Iowa, Mississippi, Montana, New Hampshire, New York, North Dakota, Ohio, South Dakota, Vermont, West Virginia and Wyoming. Iowa enacted a new law that allows for e-mail notification unless you receive a message stating the e-mail can’t be delivered. Then you must send some type of verified mail. Other states in the list have laws being pushed through legislation now, so check often.

Practice tip: Think like a jury when sending out lien notices. If you send an e-mail and it bounces as undeliverable, consider sending a letter in the mail anyway. If you end up in litigation, a jury might not be kind if they see you sent an e-mail that bounced and didn't bother to spend a couple of bucks on a verified letter. Also, consider adding a “read receipt” to your e-mails so you can prove the tenant read the message. Some states require this anyway.

Newspaper Publications/Ads

This is truly one of the weirdest parts of self-storage lien laws. The reality is anyone still paying for hard-copy newspaper delivery can probably afford to pay their storage fees. Further, no one other than auction bidders are reading the publications where most of these ads are placed. The idea that the general public will scour ads in general-circulation newspapers to see if their storage unit has been put up for auction is ludicrous.

In most instances, the law states you must provide a “general description of the property” contained in the unit. What does this mean? Some ads I’ve seen say, “XYZ Storage will be auctioning off personal property items from various self-storage units that may contain...” They then list every category of property possible. This is followed by a list of the units, one after the other.

This is risky. In Texas, there are no cases yet that have determined what constitutes a “general description of the property”; but one day someone will challenge whether a tiny description is good enough for every unit. In your attempt to cut corners on advertisement costs, be sure you include enough of a description that an average person will think it’s “general.”

Practice tip: Open the unit and look inside. If you see boxes, furniture, household items, books, holiday decorations and electronics, consider saying that in the advertisement. For example, rather than writing “hlsd gds/furn” consider saying “boxes, furniture, household items, decorations, electronics.” I know it costs more, but it’s definitely better.

Contractual Value Limitation

I recently represented a plaintiff against a self-storage company, which gave me great industry perspective. One of the chief issues in the case was the contractual value limitation. There were numerous arguments as to why it didn’t apply.

First, though the contract purported to limit the value of the items stored, it made no mention of limiting liability for the loss of those items. Second, the company offered tenant insurance in values higher than the value limitation stated in the contract, which made little sense to the jury. Third and most important, we argued that if the plaintiff violated the provision, so what? What’s the harm to the self-storage company? If there’s no harm, it isn’t a material breach of the agreement and, therefore, has no effect on her recovery.

Some states don’t allow limitation of value in any event. In Texas, for example, it’s allowed but likely has little effect on violations of the Deceptive Trade Practices Act in that state. Illinois has a similar consumer-protection act that might also be unaffected by such a clause. But in these states and others that allow it, you need to have an attorney in this arena look at the language and determine whether it’s enforceable, material and helpful to your defense.

Practice tip: Make sure your limitation-of-value language includes a sentence that states the tenant is also agreeing to limit his liability for any claim for any reason to the same limitation of value. Never offer insurance at a value higher than the limitation amount. That’s an inconsistent practice that should be avoided. Remember, you must convince a jury and a judge who may not “get it” that your contract and its provisions make sense and should be enforced.

Online Auctions

As of 2018, the following states allowed online auctions: California, Colorado, Delaware, Florida, Georgia, Hawaii, Illinois, Indiana, Iowa, Kentucky, Louisiana, Minnesota, Missouri, Montana, Nebraska, New Jersey, New Mexico, North Carolina, Oklahoma, Oregon, Pennsylvania, Texas, Washington and Wisconsin. Many have strict guidelines regarding these sales. They all must pass the “commercially reasonable” test, which varies from state to state. For example, in Iowa, that means at least three independent bidders must attend or view the sale in person or online at the time and place advertised.

Online auctions are catching on, and there are seemingly no cases yet to interpret whether such sales were conducted correctly or in a commercially reasonable manner. Therefore, use caution. If you have an online auction and only one bidder participates, you may want to consider whether the risk of that sale makes sense.

Further, be careful about your photographs. I recently defended a storage company because a bidder claimed the representation in the online auction images was fraudulent. He said the items looked better in the photos than in real life. The court found in our favor, but we did have a trial.

Practice tip: Make sure your photographs are good and reasonable representations of what’s in the unit. The auction company should document the sale and how many bidders were present. It should also be willing to provide a witness at trial if you ever need one so you can prove the sale was handled according to your state's laws. Don't cut corners on this!

Juries/Courts/Arbitration

I could write for hours on the laws surrounding whether you should have juries, judges only or arbitration clauses. Here are just a few things consider on this issue.

Demographics of judges changes frequently. In Texas, for example, Houston has 22 district court judges for civil matters only. In 1998, they were all Republican and elected. In 2018, they were Democrat and elected. In 2020, the straight-ticket option has been taken from Texas ballots and 11 of the judges will be up for re-election. Who knows how this will affect the courthouse, if at all?

The point is, there’s a trend in some self-storage lease agreements to have a waiver of jury trial and/or an arbitration clause. I would be careful about these with the following in mind:

  • Is the county/parish in which you’re located a place where the judges heavily favor individuals over companies?
  • Are the juries in your area more prone to award large verdicts to individuals?
  • Is your company big enough that you could be sued for a class-action related to some issue?

These are the things you should discuss with your attorney. You don't want to have a waiver of jury trials in a county where the juries are better than the judges. You don't want to have an arbitration clause, which makes the case more expensive in many cases, if the courts or juries are fair. With an arbitration, you lose your right of appeal. The point is, don't write Constitutional rights out of your agreement until you’ve fully vetted whether it’s a good idea in your area.

When it comes to lien sales, remember to be diligent about checking your state statutes. There are a great deal of changes going on throughout the country, so don't miss them.

Murphy Klasing is a partner with Weycer, Kaplan, Pulaski & Zuber P.C. He has a wide range of appellate, arbitration and trial experience, successfully handling numerous litigation matters. With more than a decade of experience in the self-storage industry, he serves as counsel for Public Storage Inc. in Oklahoma and Texas, and has defended matters involving allegations of breach of contract, code violations, employment issues, fraud, negligence, personal injury, premises liability and theft. To reach him, call 713.961.9045; e-mail [email protected]; visit www.wkpz.com.

Men Arrested in Rash of Andalusia, AL, Self-Storage Unit Burglaries

Article-Men Arrested in Rash of Andalusia, AL, Self-Storage Unit Burglaries

Police have arrested two men suspected in connection with a rash of burglaries at self-storage facilities in Andalusia, Ala. Eric Glenn Padgett, 46, of Andalusia, and Jeffery Oliver Pate, 47, of Opp, Ala., have been charged with two counts of burglary III, one count of theft of property I and one count of theft of property II. They’re being held at Covington County Jail. Bail hasn’t been set, according to the source.

“We caught Mr. Padgett first on Sept. 11,” said Andalusia Police Department Captain Jamey Wismer. “That led us to information on Pate. It took us a little while to find him, but thanks to the hard work of an Andalusia patrolman, we were able to find Mr. Page in Opp; and with the help of the Opp Police Department and the Covington County Sheriff’s Office, we made an arrest there.”

Page was taken into custody on Nov. 1 after police discovered information about him on Facebook. Padgett had outstanding charges, including failure to appear in a possession case, Wismer said.

Source:
Alabama News, Two Men Arrested in Rash of Andalusia Storage Unit Burglaries