U.S. District Judge Colleen McMahon's opinion in Herrington v. Verrilli (2001 U.S. Dist. LEXIS 10168) is more than a humorous telling of the travails of the Adams Organ, a huge church organ that spent more than five years in storage after being replaced by another instrument. This New York District Court opinion could have far-reaching and very favorable implications for self-storage operators in New York and across the nation.

After a short life in a New York City church, the Adams Organ came to rest in a storage building in Germantown, N.Y. The building owner agreed to rent street-level space to store the organ for $1,800 per year. No rental agreement was ever executed, but the arrangement was memorialized in a letter describing the terms of the rental. A key to the premises was also given to the plaintiff. Sometime during the first year of storage, the organ was moved by the building owner to a storage area below street grade and may have suffered water damage. Herrington brought suit against the building owner, alleging the organ was stored pursuant to a bailment agreement. The suit demanded the return of the organ in its original condition or money damages equal to its value.

Judge McMahon rejected the claim that a bailment was ever created. When the organ was originally delivered to the storage warehouse, the relationship was a rental of storage space and not a bailment. The court noted the letter stating the terms of storage described a lease of space rather than a bailment relationship. The plaintiff clearly shared control over the rented space with the building owner. There was no evidence that the building owner undertook any duty to monitor or care for the organ.

The judge then observed that a rental of premises could not be transformed into a bailment by later actions of the landlord, writing, "Tenancies and bailments are two separate and distinct legal relationships, and a contract cannot create both a tenancy and a bailment at the same time." Judge McMahon concluded the building owner may have breached the lease agreement, but he was not a bailee.

This finding is very important as the judge ruled landlords couldn't be changed into bailees by mere conduct. A landlord can breach a lease or be guilty of conversion of tenant property, but he does not become a bailee by such actions, even if those actions are wrongful.

Judge McMahon's ruling is just a U.S. District Court order interpreting New York property law, but her opinion gives important insights into the legal distinctions between the rental of a premises and the creation of a bailment. The legal relationship between storage operators and their customers is a recurring question. It is clear they are landlords when they rent a storage unit. Does this change when they exercise their lien rights? Do they become bailees when they deny delinquent tenants access to their storage space pursuant to state lien laws? What if property is stolen from a space that is overlocked?

Judge McMahon's ruling suggests the relationship is still landlord and tenant, and no bailment arises. If the storage operator acts in accordance with the state lien law, there is no conversion of goods and no breach of the rental agreement. And there is no greater duty of care for the goods while the storage operator has control over the storage space because of the tenant's breach of his obligation to pay rent. Judge McMahon's opinion could influence courts around the country. Self-storage operators involved in litigation with their customers should alert their attorneys to this opinion if the plaintiff's lawyer has made allegations that the self-storage operator is a bailee.

This article is based on another that appeared in the September/October 2001 issue of the Self Storage Legal Review.

D. Carlos Kaslow is an attorney in Berkeley, Calif., and is the founding partner of the Self Storage Legal Network and author of the Self Storage Legal Review, a bi-monthly newsletter covering self-storage legal issues. He is also general counsel for the national Self Storage Association. For more information, visit www.selfstorage.org.

A conversion of an existing building.

There is a common misconception among new self-storage investors that Europe is one big untapped market with great opportunities, common requirements and regulations. While it is true there is great potential and the sector is growing at a phenomonal rate, new developers should beware.

Before investing, developers will need an experienced guide to lead them through the potential mine field. Our company, Australia-based Steel Storage, was thrown into the deep end when it arrived in the United Kingdom to create a new self-storage base. In the past five years, however, we have managed to become one of Europe's "fitting-out" self-storage specialists.

Challenges

First, it is essential to appreciate the challenges involved in developing new facilities in Europe. Planning is necessary in regard to many issues. In our experience, we realized restrictions and regulations vary from country to country and district to district. For instance, Holland places greater emphasis on fire compartments, while France stresses smoke extraction and the United Kingdom focuses on means of escape in compartments.

Planning

A new 120,000-square-foot facility built on a reclaimed site in Reading, United Kingdom.

When it comes to planning criteria, keep in mind local town planners are under pressure and have several social issues to consider. For that reason, job creation is one of the biggest hurdles for self-storage operators to overcome. Similarly, there are regional preferences for different building materials. While Spain prefers masonry and concrete, the United Kingdom uses brick and heavyweight steelwork.

Location

In all markets, location is everything. Operators want to create a new facility with high visibility on a main road, providing easy access for consumers with potential commercial interaction. But finding the right space with planning approval is a supreme challenge, particularly in the United Kingdom, where there is resistance to any new development on the outskirts of major cities.

Redeveloping so-called "brownfields" or former factory sites is a possibility. The high cost of land can, however, restrict low-density development. We recently completed a new 120,000-square-foot facility in Reading, United Kingdom, west of London, on a site between two railroad lines. The "contaminated" land was inexpensive and the fact that it had been "filled" meant it was well-suited to the construction of the new lightweight structures.

In searching for suitable sites, self-storage operators will need to compete with retail warehouses, logistics companies, etc., to find the best property available with existing high-bay, portable buildings on established industrial estates. We have been involved in the conversion and refurbishment of older buildings, and found that mezzanine floors, lifts and storage units can be installed to maximize space utilization.

A conversion of an existing building.

We have completed projects in Belgium, France, Holland, Ireland, Italy, Spain and the United Kingdom for some of Europe's leading operators: Access Storage Solutions, Homebox, The Big Yellow Self Storage Co., City Box, Shurgard and Spaces. We now have 3 million square feet of successful storage space using specialized self-storage products and construction systems.

While there are still some significant differences between the mature United States market and the burgeoning European self-storage industry, things are certainly heating up in the European market.

Jonathan Perrins is the co-founding director of the London sales office of the Steel Storage Group, which designs, manufactures and ships self-storage partitioning systems and buildings to the United Kingdom, New Zealand, Portugal, France, Austria, Japan and European countries. He can be reached at at [email protected]. For Steel Storage Australia/New Zealand, contact Rodger Giles at [email protected]. For Steel Storage France, contact Marc Le Delliou at +33 6 08 51 46 24. International inquiries can be made to Brian Perry at [email protected]. For more information, visit www.steelstorage.co.uk.

People don't generally enjoy anticipating things that could go awry--in their businesses, their personal lives or otherwise; but nothing demonstrated with greater impact the importance of a disaster plan than recent, tragic events in this country. Although your occupancy rates may be high and you are enjoying the fruits of your labor, it's never a bad idea to consider whether you are ready to face an emergency or disaster if one should strike at your facility.

Emergencies or disasters can occur in many forms. Some examples include fire, flood, tornado, hurricane, landslide and earthquake. Disasters also include arson, environmental contamination by hazardous waste and/or criminal activity. When a disaster strikes is not the time to decide who does what and in which order. During a disaster, stress runs high. Emergency authorities are in and around your facility, and life and property are endangered. Clearly, this is not the time to decide whether you should be "breaking all the rules."

The time to create an action plan is when you and your employees are calm and thinking clearly, when everyone can understand their responsibilities and know their duties. This will help avoid terrible mistakes that can compound an already disastrous situation. There is no doubt that, during an emergency, you will be forced to operate differently. The on-site staff, management and ownership should all know their responsibilities and the new rules that apply during the crisis.

This article suggests some things to include in your action plan. Not every suggestion is appropriate for every type of emergency or your particular number of employees. For those of you with on-site staff, management and even supervisory management, a disaster plan is critical to avoid chaos and mistakes, to save as much of the facility and your tenants' property as possible, and to comply with all regulations and requirements of your insurance policy.

• You should stress to your employees that the foremost concern in any emergency is to ensure all people on the premises are accounted for and safe. Each facility has to develop its own policy as to whether personnel will attempt to provide any first aid or care for injured parties. Even being a good samaritan can involve liability, and this will vary from state to state. Under no circumstances should an injured person be left unattended, even if you do not provide first aid.
• After accounting for all human life, you should attempt to preserve as much of your tenants' property and your facility as possible. The goal of property preservation must be balanced against the issue of endangering life, staying out of the way of emergency personnel and complying with whatever regulations are imposed by emergency personnel. Entering individual spaces at any time typically violates lease agreements that state that you will not enter anyone's space for any reason. It is, therefore, important to have a provision in your lease that states you will enter if it is necessary in an emergency situation.

For example, you are not going to enter a burning building to remove tenants' possessions; however, if there is a landslide or snow accumulation causing part of a building to collapse, and the authorities have determined it is safe to enter other parts of the building to remove property, you might be able to enter. Make certain managers or on-site personnel understand no human life should be risked--whether that of employees or tenants--simply to save property.

• On-site personnel should have a list of people to call in the event of an emergency, complete with phone numbers. In any emergency, you'll want to contact the appropriate authorities immediately: police, fire department, life squads and hazardous-materials teams. In most communities, this can be done by dialing 911. If not, make certain these phone numbers are posted in a central location in the office. This list might also include the facility's attorney, facility owners and managers, facility employees who may be able to assist with the emergency, and the facility's insurance agent.

I recommend against notifying the insurance company directly because your coverage may have been pooled or split among various insurance companies. In that situation, it is necessary for all companies involved to be put on notice of a claim within the times required by their policies. If you notify one insurance company and not other pooled companies, you may forfeit coverage. Let your insurance agent handle this for you. You should also require your agent to notify you of what insurance companies may provide coverage in this situation so if adjusters call and ask to speak to you, you will know which ones represent your interests and which ones represent the interests of tenants.

• Staff not on-site at the time of an emergency should be trained to report to the facility and know their jobs on arrival. You should have a list of responsibilities to be executed in order of importance--after the emergency has been discovered and the authorities have been notified.
• When emergency personnel arrive, someone from the on-site staff should provide them a gate-access printout for the day. This will help them determine whether there are any tenants or invitees at the facility who are not accounted for. They will want this information before they go to work on the disaster issues, such as firefighting, earth stabilization and hazardous-material cleanup. Also make certain the gate is open so emergency authorities can enter the premises. Have a staff member posted near the gate to guide the emergency personnel to the appropriate area.
• Make certain to move everything you can out of the way of emergency personnel before they arrive. If a building is collapsing next to RV and boat storage and it is safe to move the vehicles, tow them to another part of the property. Once the emergency personnel are in, close the gate. Unless it poses a violation under your state's statute, turn off the gate and suspend all access to the facility during the disaster.

You can post notice at the gate that due to an emergency, entry and exit can only occur by sign-in and sign-out procedures at the management office. Permission to enter will be determined on a case-by-case basis. The last thing you want is anyone other than actual tenants picking through the property pulled from the building. Further, you want to make certain you keep reporters and others seeking to survey the damage from coming onto the property.

• On-site staff should use stickers to mark all property with the unit number from which it was removed. If it becomes necessary to store property in a different storage unit, it will then be possible for it to be identified by individual owners. This is an odd step to be taking at the time of an emergency, but the extra time spent will help keep items organized and make the tenants feel better about the actions you have taken to safeguard their property.
• The manager must obtain an incident-report form from every person who was involved or in the facility at the time of the emergency. These forms should be ready on a clipboard to leave the office with the manager at the time of an emergency. The form should be dated and include the name, address and telephone number of the witness. Ask the witness to write in his own words what happened. Make certain the incident report is signed. Nothing is less useful when litigation begins than an undocumented recollection.
• After the incident reports are completed, they should be kept in a safe place for management, ownership, the company attorney and insurance adjusters to review. The manager should interview anyone who has filed an incident report to see if there are any additional recollections not listed. The manager should be careful to note the names of the people he spoke to and what he was told. These recollections should not be added to the incident reports, but included in the manager's report, which should be completed as soon after the incident as possible. It is amazing how many details and other important facts escape memory within 24 hours.
• All of this leads to a detail that is most often overlooked: safeguarding evidence. In every case of disaster I have been involved with, my clients have let the police take tenant records, incident reports, managers' statements, even video-surveillance tapes--all without keeping a copy. This can later hurt your position in litigation. In a recent fire case, my client turned the videotape of the surveillance cameras over to the police, who promptly lost the tape. This made it a much more difficult case for the client's insurance company to defend.

With the declining cost of technology, it is imperative to have a photocopier and a VCR with two decks in your office so a copy of evidence can be made and given to the police on demand. Once you turn your records over to the police, they are potentially lost forever. Your insurance company, attorney, management and ownership will need these records, so it is an absolute mistake to part with the originals.

• One employee should be charged with the duty of determining all available, unaffected space on the property so tenants who are affected can be moved. If space is not available at your facility, spaces in nearby facilities should be located and held for those tenants. This type of preparation along with communication with tenants will go a long way toward avoiding litigation and restoring tenants' confidence in your facility.
• Once the disaster is under control, one employee should be responsible for contacting all affected tenants. If they have not heard or seen about the disaster on the news, you will need to let them know their property was involved in the disaster, the condition of the property, where it is located, and whether, when and how they can get into the facility to inspect it. Also make sure you have a list of who is authorized to enter into the damaged premises. If possible, schedule tenant visits to the facility so you can accompany tenants to their property. Try to have staff available to help them move or remove property that can be salvaged.
• If appropriate, temporary fencing or other security measures should be ordered and placed around the damaged building(s) to ensure other tenants are not wandering around the area picking through leftover items. Once the damaged area is secure, reactivate all appropriate gate codes.
• Make certain employees know they should not under any circumstances speak to the media. Only one person from the company should be authorized to speak to the media, and that person should never admit fault or responsibility. No one should speak to any insurance adjuster or attorney without an owner's or manager's consent. Adjusters and attorneys representing tenants should only be granted access to employees, witnesses or records with the consent of your insurance company--and then only with your legal counsel present.
• In the days following a disaster, it is important to communicate with all tenants to explain, in limited terms, what happened. You should avoid making explanations about how the incident occurred unless it is obvious (i.e., a tornado). You should avoid making any representations about safeguards you have taken to prevent the incident from happening again. Do not admit responsibility, liability or remedial action. For instance, if an air conditioner on a climate-controlled building caught fire, you would not want to say you are now having all of your air conditioners serviced. This is a fine line to walk because communications with tenants will help preserve the relationship, but admissions against interest can be a problem.

The worst thing you can do is keep tenants completely in the dark, because they will feel you are not responsive and will begin looking elsewhere to rent. You can tell them about the condition of their property and what arrangements are being made to care for or preserve it without discussing the event that caused the disaster. This is the kind of training your employees need before a disaster takes place so they are not making mistakes in communicating with the tenants afterward.

With a solid plan in place, any disaster will be handled more smoothly and appropriately. While we all hope there is never a disaster on our property, a much bigger disaster can be created in not being prepared. A well-trained staff will carry the day and allow you to be back in business much quicker.

Jeffrey Greenberger practices with the law firm of Katz Greenberger & Norton LLP in Cincinnati, which primarily represents owners and operators of commercial real estate, including self-storage. Mr. Greenberger is licensed to practice in the states of Ohio and Kentucky, and is the legal counsel for the Ohio Self Storage Owners Society and the Kentucky Self Storage Association. He is a regular contributor to Inside Self-Storage magazine and the tradeshows it sponsors. For more information, Mr. Greenberger can be contacted at Katz Greenberger & Norton LLP, 105 E. Fourth St., Suite 400, Cincinnati, OH 45202, or by calling 513.721.5151.

As I write this column, I have just completed my eigth airplane trip since our national tragedy on Sept. 11. At the end of my flight from San Diego to Philadelphia, a flight attendant got on the public-address system and sang "God Bless America." The applause from the 50-plus passengers seemed to mirror the feelings of the entire country. We are blessed to live in the "Land of the Free and the Home of the Brave."

While participating in the Inside Self-Storage Expo in Nashville, Tenn., Sept. 20-22, I realized how difficult it was for everyone in attendance to return to our country's new definition of "normal." It was wonderful to see and talk to friends from across the nation and discuss the challenges we face as an industry as well as a country. Make no mistake--our industry will not be exempt from changes in our customers' (current and potential) focus of attention. Nor will we be exempt from the impact of the loss of millions of jobs.

I realize you will be reading this column weeks after it has been written and so much will have transpired. We all need to rethink how we run our businesses. New priorities have come into play, as many of our business and personal concerns from before September seem trivial from our new vantage point. No one is immune from this unspeakable tragedy. Not one of our co-workers or customers has been left untouched, and no one should be left to become an island of self-doubt and fear unto himself. I urge everyone to reach out, to take that extra moment to support one another.

Soldiers & Sailors Relief Act

There is a debate among lawyers about whether the provisions of the Soldiers & Sailors Relief Act (Authority, Title 50, Appendix, United States Code, Sections 501-593) apply to the self-storage industry. This law, initially enacted in 1918 and revised in 1940, provides some relief for persons on active military duty. The stated purpose of the Act is:

Sec. 510. Suspension of enforcement of civil liabilities: In order to provide for, strengthen, and expedite the national defense under the emergent conditions which are threatening the peace and security of the United States and to enable the United States the more successfully to fulfill the requirements of the national defense, provision is made to suspend enforcement of civil liabilities, in certain cases, of persons in the military service of the United States in order to enable such persons to devote their entire energy to the defense needs of the Nation, and to this end the following provisions are made for the temporary suspension of legal proceedings and transactions which may prejudice the civil rights of persons in such service during the period herein specified over which this Act (sections 501 to 593 of this Appendix) remains in force.

I have spoken with two lawyers from different parts of the country and received varying responses as to whether the provisions of this act supersede the provisions of the lien laws at the state level. I urge everyone to create and put into effect a "Home-Land Security Self-Storage Provision" for managers to follow.

In my mind, the terms of this provision should be very simple. It should state that, as self-storage owners, we will not attempt to sell at lien sale the contents of any unit currently occupied by a member of the armed forces that is or becomes delinquent. I would hope we will waive any and all late fees and be willing to work with those active military customers to assist them in any method possible with the storage of their belongings. I see no difference during this time of national emergency between service people who have been deployed overseas or those who are working here in the United States. It would be a small price to pay for our industry to step up to the plate and let our men and women in uniform know they can count on us to keep their possessions safe while they are sacrificing to keep America and the world safe. Please think about this idea in the conduct of your day-to-day business operations.

Security

You cannot watch a TV newscast, pick up a magazine or read a newspaper and not encounter the word "security." I sincerely believe this places a burden and opportunity on each of us as owners and managers. We need to make sure our customers and potential customers know the steps we have taken to make our stores and their belongings safe.

I know full well we have been cautioned for years by the legal community about the claims we make verbally and in our advertising about security. Now that times have changed, our customers should understand our video-surveillance policy, our strict enforcement regarding tailgating through the access gate, the limitation of access to only those individuals listed on occupancy agreements, and the need to get proper identification from everyone renting a unit. Many of you are doing this already, but I remind those who have these items slide in their operations that they need to pay attention to these issues. People are going to be examining every aspect of their lives in the months ahead and personal security will be very high on their lists. Let's make sure we are taking advantage of the investment we have all made in our security systems.

As the nation and the world look toward the upcoming holiday season, I pray the God of your prayers blesses you, your family, our country and the world in the days, weeks and months ahead.

Jim Chiswell is the president of Chiswell & Associates. Since 1990, his firm has provided feasibility studies, acquisition due diligence, expert testimony and customized manager training for the self-storage industry. In addition to contributing regularly to Inside Self-Storage, Mr. Chiswell is a frequent speaker at Inside Self-Storage Expos and various association meetings. He can be reached via www.selfstorageconsulting.com or at his company's new corporate offices at 6 Slice Road, Lake Monticello, VA 22963; phone 434.589.4446.

When an Amsterdam acquaintance identified a potential European site for Devon Self Storage in 1996, President/COO Kelly Gallacher and Chairman/CEO Ken Nitzberg were skeptical. They sent acquisition and construction executives to The Netherlands to investigate further and were surprised when positive reports were returned. In June 1997, Devon's first overseas facility was opened to the public of Amsterdam. Now, with three facilities operational in each of The Netherlands and France, and another two in Germany, Devon has realized great success with its European venture.

Inside Self-Storage recently spoke with Gallacher and Nitzberg, as well as Devon's senior vice president of operations for Europe, Greg Mackay, to learn more about the company's strategy, the challenges they've faced in providing self-storage to an unpenetrated market, and their insight into future expansion.

What challenges have language and communication barriers provided in working in Europe, and how have you bridged those potential gaps? Have you had difficulties communicating the concept of self-storage to the public?

Gallacher: The concept that you have to speak the local language is a bit of a myth. Does it help to know the language? Yes. It also demonstrates that you're trying, and the locals start to have the feeling that you're really there for the long haul, that you're trying to be part of them. It tends to soften any potential resistance.

Within the real estate community, most people know what you're talking about when you refer to self-storage. First of all, everybody speaks one language, and they all know it--and that's "green" or "money" or whatever you want to call it. When someone wants to buy something, it's amazing how they suddenly bring interpreters to the meeting.

The other thing is you need to be here. You cannot manage Europe from the United States. You have to be here for the day-to-day problems and all the different things that happen. And you must have incredibly competent counsel.

Something important for anyone who comes to Europe to learn is you cannot ask a general question and expect a detailed answer. You have to ask every possible question you can think of to get to the answers you need. Europeans are just not forthcoming with information to Americans. And I'm not sure they're forthcoming even with their own countrymen.

Mackay: One of the things I noticed when I arrived in Europe was there was absolutely no understanding or product awareness of self-storage at the consumer level. It didn't translate into any language. And most of the terms you would use to explain it actually only confused the matter.

The advantages of actually being here in Europe far outweigh the effort. Time differences can really foul up the works and, on top of that, whomever you employ wants to see what kind of commitment management is making to the operation. There's already a subtle sentiment that Americans are cocky, brash and think they know everything. You have to bridge that gap quickly, and your managers have to feel like you're in the battle together.

Nitzberg: When you're developing in Europe, a local facilitator is bottom-line critical. Without it, you're dead. It just doesn't work without one. You have to know the local customs, the local laws, the local rules--and the local unwritten laws, customs and rules. If you don't, you will be hurt, and your cost of doing business will rise substantially. You won't be successful unless you have a local presence, wherever you go.

What about securing building and zoning permits--how has that gone in your experience of the different European countries? How can developers make that process run more smoothly?

Gallacher: You have to ask the right questions, you have to get the right engineer, and you have to get a local architect who understands the codes and can explain it to officials to get the project through the system. In my opinion, they are actually more strict in Europe than in the United States, and that's because, since they are unfamiliar with self-storage, they have fears. Those fears are not unfounded, and they're not at all unlike the concerns faced in the United States.

Europeans have become innovative in things we as Americans have not thought of. We can learn from them. For example, in a self-storage facility I visited inVienna, Austria, their use of space was outstanding. They understand how to maximize potential revenue based on rentable area. If I was going to tell you where I think the biggest growth and knowledge is going to come from in Europe, it's going to be understanding the correct unit mix for each city and country.

Nitzberg: It's very similar to the United States in that every jurisdiction has its own style, and it depends on what city, what country and, often, what specific inspector you get. In general--and this is a very crude generality--European building-inspection offices have been fairly easy to work with if you are simply working on the inside of a building, if you're not changing the appearance or footprint. When you start building outside, life can become very complicated because there are no specific building codes that address self-storage. Each country is different, and reactions are based on their customs and habits. We need to be sensitive to these differences and handle them accordingly.

From where do you hire your managers? What are your requirements? What can you tell us about the process of hiring and firing in these countries?

Mackay: In a lot of countries, you hire people through temp agencies. To some degree, that's a primary source, and it's a lot different than it is in the United States. Temporary agencies are really the natural process in a number of industries for people to get employment. You can run ads in the paper, but the hitch is having someone understand what it is they're responding for.

There seems to be a group of people in their early 20s or 30s who are computer-literate, speak English, have a grasp on business in general--and they're a little more in tune to the global aspect of business. Many of them have been to the States. A lot of our managers have come from the hotel industry. There's a good application there because there's customer service involved, reservations involved, computers used for booking and billing, etc.

The whole personnel thing here is totally different in that people have contracts--they're either temporary or permanent. And the rights of the employee and the rights of the employer are very different. The employee is highly protected in Europe. The employer has virtually no rights. It's one of those things you have to be very much postured for. But there's also a different attitude on behalf of employees here. Many of them look at this as a career move, whereas in the States it's just a job.

Because it's such a new industry, it's difficult to train managers on everything they need to know. It's an ongoing process. I really stress using local people. We still use our systems, but put them in a local vernacular. We do joint training once a year where we bring all of our managers together, and that takes some coordination. Sales are conducted differently. In Holland, it's a point-of-sales transaction. When a customer comes in, he knows what he wants, he signs up and it's done. In Germany, they spend a great deal of time understanding the legalese of the contract, even though it's only for 30 days. And in France, they think about it, they ponder it. So everyone has a different purchasing tendency, and it can be very challenging in respect to finding what motivates the employees in different countries.

Nitzberg: Employee and labor issues are totally different in Europe. Terminating someone is more difficult and can be more expensive because of labor laws. For this reason, you have to be very careful when hiring.

Gallacher: One of the things in France you have to be aware of is they have unions for everything. There's not a union for self-storage right now; so your employees may request to be classified with a certain title for payroll purposes, and you think, "Sure, no problem." What you've just done--possibly--is allowed them to be part of a union, which could give them a whole host of rights you didn't bargain on.

What is the state of self-storage financing in Europe?

Gallacher: The self-storage industry is starting to be validated. Right now, it's very difficult to find long-term loans on self-storage because the European lenders do not like to loan on leases shorter than five years. In fact, we tried to educate everybody with a comparison between self-storage and hotels, because hotels wake up every morning with a zero percent occupancy--we at least wake up with a 30-day lease. But it is a well-known fact that a lot of the banks do not loan on hotels. The financing for self-storage is not readily available. You're going to have to have capital to get into the business. That is one of the most important factors.

What marketing techniques have worked best in markets largely unfamiliar with the product?

Nitzberg: We budgeted very heavily for advertising during the first two years--$10,000 a month. We normally budget about $3,000 a month in the United States, which is essentially the Yellow Pages ad plus a little extra. In Europe, we budgeted $10,000 and tried everything--newpapers, TV, radio, billboards, etc. But it was not aimed at differentiating ourselves from the competition, because there was none. It was more to educate the population as to what self-storage is, how you use it and that we exist.

At our last count, there were 17 facilities in The Netherlands. Our facility leased up OK--on budget, but slow. We were scared to death. But then it hit about 30 or 40 percent, and the line just went vertical. By the end of the first year, we had hit enough occupancy that we cut everything back, and now all we do is the Yellow Pages and the signage on the building.

Mackay: What we did was come up with a billboard that goes on all of our properties as well as in parts of the city that shows units open, with people standing in front of them. They're each accessing they're particular unit. If a building sits vacant for a while and then you come and put a new coat of paint and some signage on it, people don't know what's going on inside. We try to take the inside activity and express it on the outside in very simple form, so people can understand what it is we do. That has paid some significant dividends for us. Then what we have done is taken that same billboard and made it the primary focal point of our Yellow Pages ad. We've also transposed it on trams, buses and some Ford trucks we use.

We actually provide a moving service for customers coming to the property. We have one of our managers drive a truck to the customers' location. They have an hour to load it, we drive it back, and they have an hour to unload it. It's rather cheap advertising for us because it's driving all through town and then when it's parked, people see it. Wherever we go, we've got our name and identity piece out in front of the public.

Do you have any final insight on your experience, or on European self-storage development in general?

Mackay: Self-storage in Europe is an industry in its infancy, so there's not a lot of inertia working for it. People ask if we're concerned about competition, but actually, we welcome competition because it helps get the word out more quickly.

Gallacher: An interesting point is that what most people really want to know about developing self-storage in Europe is not how to do it, but how not to do it. That's what ends up being the biggest focus for everybody. Nobody wants to repeat someone else's mistakes.

Nitzberg: If you're going to develop in Europe, here is some basic advice: Make sure you have local presence of some kind; make sure you have a lot more time and money than you've ever budgeted, because it will take longer, cost more and go slower; finally, I've invested in a really good brand of sleeping pill, because I made nine trips to Europe last year, and it's a long flight.

Size Does Matter

The first consideration when building or rebuilding a sign is size. But this factor will always be in the hands of local zoning adjudicators, not facility owners. Owners should take advantage of the maximum dimensions available to them, says Pamela Alton, owner of Mini-Management Services, based in Santa Barbara, Calif. "Try to get the biggest sign you possibly can get," she says.

"Get the biggest sign you can get approved and can afford," agrees Jim Chiswell, owner of Lake Monticello, Va.-based Chiswell and Associates Ltd. Getting approval is a detail that should be looked at during the building phase of the facility and incorporated into the construction budget, he says. "I would spend the maximum possible in the construction budget to get a great sign. It will help to get prospective customers to the site. Remember, the sign is also part of your marketing budget."

Content and Style

Once the largest possible size has been approved by zoning, the next hurdle is style. There are two main styles of outdoor signage: monument and pole. Most owners agree a tall, pole sign is the best way to get noticed. Unfortunately, zoning restrictions regularly deny pole signs these days. "You don't have much of a choice," admits Steve Ross, president of Cutting Edge Management and Consulting of Salt Lake City. "A pole sign is always better because you're up higher, but if you're in a residential area, they won't let you have pole signs. You've got to put in monument signs. Zoning is going to tell you what you can and can't have."

So most owners will be working with a sign on or close to the ground. What else can be done to draw attention to the site?

"'Storage' should be the biggest word on your sign," says Alton. "Storage should be the biggest possible thing--the No. 1 thing--on your sign, because that's what you do." The only possible exception, says Chiswell, is using "self-storage." Ross adds owners can go a step further by including a phone number on the sign. He also recommends "storage" be the largest word, followed by phone number, then facility name. "Quite honestly, if somebody in the neighborhood needs storage, he doesn't care if it's ABC Storage, Stor-It-Here or Stor-It-There," says Ross. "He just wants to know it's storage. The phone number is the next biggest item, so he can call you. Then you can explain your name."

Rather than displaying a facility name, what about a recognizable, unique logo? Logos, it turns out, are entirely optional--in fact, unnecessary. "When you have a logo that is so big it overpowers the name of your facility or what it is you do, you're making a major mistake," says Alton. The business is selling storage, not designs, she says. Owners may be so proud of their clever logos that undue attention is paid to them in the sign design. Only a few nationwide companies such as Public Storage or Shurgard will benefit from logo recognition. Small operators--those with three or fewer locations--are better served by emphasizing the nature of the business. "If you plan to be multisite, then maybe you want to go after having a recognizable logo," says Alton. "Otherwise, the logo should probably the smallest thing on there."

Likewise, says Alton, of the owner's name. "Don't let ego get in the way of making money," she advises. "Don't concentrate so much on your last name." Johnson's Storage won't make any impression, she says, unless Johnson also happens to own most of the town. Chiswell addresses the issue further, saying, "Calling your facility Courtney's Self Storage to celebrate the birth of your granddaughter does nothing to help you market the project."

Alton is also largely against using four or more A's in the name of the facility. Statistically, she says, clients call at least four places before deciding on a self-storage business. Being first in the phone book doesn't significantly increase sales, and can make the outdoor sign look amateur. Alton does advocate using the street name in the business title if possible. Chiswell recommends using a well-known landmark or other community focal point, such as "Tower Storage" if the site is near a water tower.

Names won't matter, though, if no one notices the sign among the myriad others vying for drivers' attention. Signs are best served by one color. "Try to get it in red," Alton says. "Red will draw the eye. Teal, or blue, or green or yellow will just blend in with the natural surroundings."

Scrolls, Attention-Getters and Sneaky Signs

There are other ways to get people to notice a site in addition to big, red letters. "I like reader boards because it allows you to constantly keep attention on your sign," says Chiswell. "Think of your drive to work this morning. Do you honestly remember any of the signs you passed? If you are constantly adding funny sayings or community promotional notices to your signs, people will remember to look at your new message as they drive by."

Ross is a fan of electronic or LED "scrolling" reader boards--the type that resemble stock market tickers. "Get a reader board up there," Ross advises. "The best thing are the scroll boards, which have the time and temperature and allow you to scroll different things. Those are great." Don't bother, though, unless someone can change the messages every single week. As for manual reader boards--the type similar to those used by gas stations to display prices--they're better than nothing, but many zoning laws are beginning to disallow them, Ross says. Scroll boards are often easier to get past zoning regulations.

Reader boards keep prospects' attention--especially when messages are changed regularly.

The list of possible devices to lure patrons to the facility isn't yet finished. Flags, balloons and blimps are all common attention-getters. But beware: The zoning boards will nab owners there, too. In addition to the restrictions on the facility sign, expect restrictions on flying any type of attention-getter, although most areas are willing to give owners at least a few days to fly them for grand openings and the like. Ross points out he has never been denied at least three days worth of "flying rights." Although some owners believe "It is easier to beg forgiveness than ask permission" and fly attention-getters any time they want, don't think the authorities aren't keeping an eye out. Ross knows this well. He flew colored flags at a new site in Florida, and within six hours, the police arrived and told him the flags had to come down. "If you're going to fly them, you must get approval," Ross says.

One fitting way around pole and attention-getter restrictions is to fly an American flag atop the tallest pole allowed. Flying the flag is virtually untouchable by law. Ross recommends using multicolored windsocks as well, as most communities do not have zoning restrictions on their use. "If they won't let you fly attention flags, fly windsocks. There are some beautifully colored windsocks out there. And there is not a zoning law I am aware of that says you cannot fly them."

Think outside the box when it comes to working with and around zoning restrictions. Can words be painted on the side of the building? Can the interior windows be used to house posters or banners? There is usually room for the traditional "the truck's in my parking lot" approach. "I know a guy who painted an old truck florescent purple," says Ross. "It was a vehicle--it was not signage--and it was parked on his asphalt. So there's always stuff you can do." For very little money, magnetic car signs can also be used to spread the word around town. The company truck then becomes a mobile billboard.

Take a look at the sides and rear of your buildings. Are they canvases waiting to oblige? "If they'll allow you to paint the whole side of the building, go for it," Alton says. She has seen self-storage signs five stories high painted on the sides buildings. Opportunities like that should be looked for and exploited.

Sign and Facility Maintenance

"Wouldn't it be great to know the illuminated sign you spent so much money on last year now reads 'ELF STOR' because the lights in some of the letters had burned out?" asks Chiswell. It's amusing, perhaps, but another aspect of signage operators can't afford to dismiss is maintenance. "If you have an electronic sign, you should consider a service contract from the installing company," Chiswell recommends. "Are the lights on, is the pole clean of any rust and freshly painted, have you trimmed the trees so people can actually see the sign? The key comes down to having someone with the responsibility and the authority to keep the signs up to your standards."

Other chores include replacing the bulbs in the sign at least once year, regardless of whether they are burned out. "If you don't replace them all, you start to get places where it dims out," Ross says. "It just looks real tacky." Owners may need to take a drive past their facilities at night to be sure the sign looks as good as it can. If the sign includes a reader board that is changed manually, Ross recommends buying a new set of letters and numbers every couple of years. "They do get that yellow tint to them," he says. Previous owners who neglected such details may be the reason reader boards are now out of many zoning boards' good graces. Keep the site clean, neat and attractive, and the neighborhood will be grateful.

Having a large, brightly-lit sign with scrolling reader board means little if the property itself is ill-kept. Ross explains outdoor maintenance is an ongoing process. According to Chiswell, landscaping chores should be done once a week. "Landscaping is just as important as signage in my marketing book," Chiswell says. "Owners should think about the outside appearance of their facility just like they do a Yellow Pages ad. With 50 percent of our customers being female, it is very important that the image is inviting. If you make landscaping part of your overall marketing budget, you will view these expenses in a different light."

The Bottom Line

At last, the sign is designed and ready to be built. It's time to whip out the calculator and see what the damage is going to be. "The sign I had redone, I had bids from $300 to $3,000," says Alton. Price will depend on a range of factors: whether the sign will be lit internally or externally, pole vs. monument, adding a reader board and so on. But most people are at the end of construction when they begin thinking about signs, says Alton, and now is the time they start scrimping. Cutting back on the sign budget is not encouraged. The most attractive sign that is as big as zoning will allow is the sign that will get noticed and bring in business.

As with any major purchase, comparison shop before settling on a builder. "Get as many bids as you can," Alton says. Furthermore, give the potential builders something to work with. Alton suggests owners have an idea of what the sign should look like then let the bidders have at it. "I would not rely on someone else to design. You should have some idea. Draw out a simple sketch of 'things I want to put on my sign,' and send it to six or seven different sign companies." Prices will range from low to high based on materials, size and whether an existing sign is being converted or built new.

For such an important part of the facility's marketing campaign, any investment will be worth the extra bells and whistles. "Most owners still look at signs as too expensive," Ross says. "The thing about a sign is, once you buy it, you own it. You can do a scroll sign for about $20,000 to $30,000. For the life of a property, that's pretty cheap."

Indoors

Potential renters may be turned off by poor landscaping or ill-kept signs, indicating cleanliness and attractiveness are important aspects of a successful facility. It should be no surprise that interior signs of a facility should likewise be kept clean and attractive.

"Do not use handwritten signs," Ross says. Get signs professionally made or purchase them prefabricated from self-storage business catalogs. Make sure the signs are, in fact, visible. Are all the signs visible from places where they should be? All facilities should have "No Smoking," hours-of-operation and lighted "EXIT" signs posted.

Interior signs should be brightly colored. The material used is not terribly important, so long as it is attractive. Painting directly on walls is fine, provided it is a neat, professional job. Make certain all interior signs are not faded, chipped or peeling.

Each unit should be numbered. Chiswell recommends using numeric designations only, rather than similar designations like 801-A and 801-C. Solely numbering the units reduces the chance of billing errors, such as when a check arrives for "Unit 801."

Alton recommends posting rules and regulations inside each unit. "I have copies of our rules and regulations, and items illegal to store, inside every unit," she says. "It's just copied on white paper. That way, if it gets ripped off, it's easy to put back on."

Don't forget to post directions to units, or basic directional signage indoors. "Directional signs showing the direction of different numbered units says to the new customer that you want to help them," says Chiswell.

For interior signage, the rule of thumb is attractiveness. "You just spent $750,000 to build a Class A project," Chiswell reminds owners. "You don't want to walk into the office and see various notices and signs hanging on the wall with tape or thumbtacks."

American Flags & Poles
276 Front St.
Marietta, OH 45750
800.262.3524; 740.373.4262
Contact: Sylvi Caporale
Products/Services: U.S. flags, flagpoles, custom flags and state flags.

American Inflatables
947 Newhall St.
Costa Mesa, CA 92627
888.904.9949; 949.515.1776
Contact: Gregg Mulholland
E-mail: [email protected]
www.americaninflatables.com
Products/Services: Manufactures helium blimps and balloons, cold-air inflatables and dancing inflatables.

Bannerland
1270 Sunshine Way
Anaheim, CA 92806
800.654.0294
Contact: Terry Melancon
E-mail: [email protected]
www.bannerland.com
Products/Services: Banners, flags, banner frames, door numbers and state flags.

DH Designs Inc.
1220 Blue Spruce Drive, Unit 1
Fort Collins, CO 80524
800.822.4452; 970.490.1451
E-mail: [email protected]
Products/Services: Manufactures and designs electric, neon, channel-letter, cabinet, post and panel, and graphic signs; architectural signage, commercial signage, pole signs, directory signage and custom signs.

D'Ziner Sign Co.
5910 W. Sunset Blvd.
Los Angeles, CA 90028-6505
877.EXPOSE.ME (877.397.6736)
www.dzinersign.com
Products/Services: Designs and fabricates signs and banners using state-of- the-art equipment, the latest graphic programs and the highest-quality material available.

Fay & Sons Signs
1510 I-70 Complex Court
Columbia, MO 65201
877.333.7633
Contact: Jim Flower
E-mail: [email protected]
Products/Services: Commercial signs, vinyl numbers, storage signs and office interior designs.

Flag & Banner Co.
P.O. Box 6406
Metairie, LA 70009-6406
800.774.3524; 504.834.2204
Contact: Robert Goodman
E-mail: [email protected]
Products/Services: Signs, door numbers, custom and stock flags, banners, flagpoles and flagpole accessories.

Global Signs and Awnings
7445 Hwy. 99 N.
Roseburg, OR
888.422.8690
www.globalsigns.com
Products/Services: Manufactures signs and awnings throughout the United States. Helps determine what the customer needs, based on analysis of the particular type of business, location, competition and visibility studies.

Mandex Motion Displays
5401 Sunvalley Court
Agoura Hills, CA 91301
800.473.5623
www.ledsignage.com
Products/Services: Programmable LED signage sales, rentals and leasing. Reader boards, motion-message centers and electronic-message signs.

Pacesetter
1020 Cedar Ave., Suite 2M
St. Charles, IL 60174-2282
800.588.3209; 630.377.8811
www.electronicsign.net
Products/Services: Electronic message centers, signs and displays, from small, single signs to large, complex systems.

PSD Sign Company
888.828.5116
www.psdweb.com
Products/Services: Wholesalers of LED displays, electronic message centers, gas-plasma displays, neon signs, neon lighting, scrolling LED signs, fiber-optic signs, menu boards, tradeshow displays, clocks, timers and counters.

Romisco Sign Systems
214 Tacoma St .
Sierra Vista, AZ 85635
520.458.6638
E-Mail: [email protected]
www.romiscosigns.com
Products/Services: Sign planning, design, engineering, fabrication, installation, maintenance, service and leasing.

Sign Systems N.W.
18931 59th Ave. N.E.
Arlington, WA 98223
800.803.3000
Contact: Jerry Kincade
E-mail: [email protected]
www.doornumbers.com
Products/Services: Door numbers, signs and banners.

Sign Tech International
1501 W. 5th St.
Austin, TX 78703
800.327.1104
www.signtechinternational.net
Products/Services: Efficient, dedicated professionals committed to meeting signage needs.

Signtronix Inc.
1445 W. Sepulveda Blvd .
Torrance, CA 90509-2901
800.729.4853
E-mail: [email protected]
www.signtronix.com
Products/Services: Exterior signage.
Produces one sign every 10 minutes of the day, for a total of more than 500,000 signs since its establishment in 1963.

Time-O-Matic
1015 Maple St.
Danville, IL 61832
800.637.2645
E-mail: [email protected]
www.timeomatic.com
Products/Services: Designs and manufactures electronic message-center signs and time/temperature displays.

The coastline of southern California has provided many opportunities for developers over the past century. In San Diego County, the five-year-old economic recovery has brought tens of thousands of new jobs into the area and has resulted in an unprecedented need for housing. Older communities had slowly consumed almost all of the developable land along the coast from Mexico up to Camp Pendleton, the sprawling Marine base that separates a more urban Orange County from its southern neighbor, San Diego County. The current expansion accelerated the need to grow inland to the east, and has been responsible for the rapid development of many new master-planned communities such as Eastlake.

Eastlake, the brainchild of the Boswell Co., is directly to the east of Chula Vista, a sleeping giant found between the dynamic economy of Tijuana, Mexico, and the resurgent San Diego downtown core. Like so many master-planned communities that have sprung to life throughout southern California over the past 30 years, it was conceived to be a full-service town, not just a bedroom community. Eastlake's expansion, however, had been put on hold throughout the first half of the 1990s due to the area's worst recession since the Great Depression.

The combination of location, population growth and overall regional economic expansion spurred the interest of a development team consisting of Robert Halliday, John Lopuch, Paul Peterson, Terry Aston and Tony Carr. Formed in the mid-'90s, the management team sought to capture upcoming opportunities for self-storage development in San Diego County. With 20-plus self-storage projects in that area already under their belts, they turned their attention to Eastlake, with the goal of creating a state-of-the-art facility that would provide the community and region with the ultimate storage experience.

Previous developments had shown their efforts could easily result in a combined waste of time and money. They also knew it was going to be extremely difficult to convince the Boswell Co., Eastlake community leaders, and the Chula Vista planning department and city council that a new self-storage facility was needed and suitable for the prime location they desired and needed for success. What they didn't know was they were going to draw on every scintilla of experience in self-storage development to ensure their proposed project became a reality.

Once the decision was made to pursue the Eastlake acquisition, an aggressive campaign was put in motion to uncover all available sites with the right mix of traffic count, future growth, freeway proximity and barrier to entry that served them well in previous developments. This task was made easier when they discovered the Boswell Co. agreed to deed restrictions 15 years earlier as part of a negotiation with the original self-storage developer within the master-planned community. This effectively prohibited the development of any additional self-storage facilities. Strict zoning laws and an exceedingly unfriendly attitude from the company and city officials eliminated any opportunities that might have existed in other communities.

There was, however, an opportunity nobody had foreseen. At the time the Eastlake community plan was created, a site for a regional shopping center, hospital and adjacent medical complex had been segregated from the remainder of the planned community, leaving them unaffected by zoning restrictions. After years of economic chaos and the resulting false starts, the owners of the medical building site decided not to wait on the development of the hospital and mall, and elected to put this parcel on the market. It was immediately brought to the attention of the developers and serious negotiations began.

Once the parcel was under contract, the hard part of the work commenced. Due to the layer of bureaucracy and entrenched desire on part of local civic and community leaders to block a self-storage use, the development process time took substantially longer than it should have. About two years passed from the inception of this project to groundbreaking in February.

Many hurdles were overcome, but even with the zoning issues out of the way, the Boswell Co. was not left without significant controls that could threaten the economic viability of the development. Serious discussions between the developer and Boswell officials led to a greater understanding by both parties. The design goal was to be sensitive to the architectural guidelines of the industrial and commercial sector the site bordered, and also to the economic requirements the developer needed to guarantee long-term success for itself and the community it served.

The was approved with three major provisions. First, the parking requirement was effectively tripled from what would normally be required by county standards for self-storage use. Secondly, the site had to be designed to look like a conventional industrial building with no roll-up doors visible from the street. Lastly, to reduce density, a requirement was made for oversized driveways and greater setbacks.

With the cooperation from Chula Vista, these three provisions were folded into the project in a way that enhanced the overall use of the site. For example, the front- and side-yard setbacks were incorporated in an eye-pleasing fashion, providing a very attractive greenbelt to serve as a gateway into the growing business park. The oversized driveways became a distinct business plus when competing for commercial and industrial users as well as providing additional RV parking for local residents. The hidden doors were offset by high-profile design concepts that used architectural elements and glazing, setting the building apart from others in the region. Lighting prominently displays the name of the facility and clearly denotes the purpose it serves.

The layout of the facility consists of four sequential masonry and steel structures. Encinitas, Calif.-based Mako Steel worked closely with the developer and architect to maximize aesthetics within the construction budget. Mako's experience with high-profile projects facilitated a smooth construction phase that finished ahead of schedule.

Because the footprint of the project had been reduced, the interior buildings were designed with a ramping system to provide 100 percent ground-floor loading, ensuring the site had sufficient density to support the high land cost and future growth. The site plan is designed to integrate the construction of future phases with minimum disruption to the existing tenants and operation of the facility.

The management team has obtained all approvals and funding necessary to achieve the final build-out of the 150,000-square-foot facility. It is anticipated this will occur over the next four years. Regardless of timing, the difficulty and complexity inherent in the design and development process has ensured future competitors may find it easier and more desirable to locate elsewhere.

Winter weather can present severe exposures to your self-storage operation and the systems necessary to keep your facility running. Freezing temperatures, blustery winds, ice, sleet and snow can all cause extensive damage to your buildings and property, especially if you are not prepared for them. Wet and icy conditions can also increase your liability risk by presenting greater potential for your tenants to slip or fall.

To give you some idea of just how damaging cold temperatures and heavy snow can be, consider the blizzard of 1993, which was the fifth most-costly insured catastrophe in the history of the United States and caused an estimated $1.75 billion in damage. Much of the damage attributed to this storm was from frozen pipes, roof collapse (due to the weight of snow) and interior water seepage (due to blocked roof drains). This damage could have been reduced or eliminated had business owners been properly prepared. Unfortunately, the late date of the storm (mid-March) and its unusually wide geographic coverage found many unsuspecting business owners either unprepared or uninsured, and major losses were suffered.

When considering the risk winter weather poses to your self-storage facility, keep in mind significant property damage may not necessarily occur only in those states that experience the harshest winters. Regions in which cold weather is the exception may suffer even greater losses. For example, an Arctic cold wave hit the deep South in December 1996, plunging temperatures toward record lows. At that time, below-freezing conditions extended from the citrus country in Florida, all along the Mexican border, and far into Texas, causing major losses. Of course, Northern locations are most likely to be hard-hit on a regular basis. That same year, Minnesota and Iowa experienced record blizzard conditions, with wind chills reaching 55 degrees below zero; and many residents of the Dakotas were stranded after two days of heavy snowstorms left drifts at rooftop levels.

Don't wait until disaster strikes--now is the time to take preventive action to minimize your risk exposures and reduce your damage claims. The following checklist can help you get started on a safe, loss-free winter.

Winter Weather Precaution Checklist for Storage Facility Owners

Buildings

• Maintain indoor temperatures above 40 degrees in heated areas to pre-vent pipe freeze-ups.
• Ensure doors and windows are weather-tight and secure any unnecessary openings.
• Inspect remote areas for possible freezing and keep portable heaters on hand.

Roofs and Gutters

• With the help of a structural engineer, assess your roof's capacity for excessive snow loads and keep levels within safe bounds.
• Monitor snow levels in roof areas susceptible to large drifts and clear excess accumulation immediately.

Heating Systems

• Examine the entire heating system on a weekly basis during cold weather and immediately repair any deficiencies.
• Ensure heating equipment is capable of maintaining building temperatures above freezing at the coldest point within the building.
• To winterize boilers, completely drain idle equipment, elevate low points and dead ends, and check all service lines for freezing. Install heat tracing around control-line transmitter boxes and piping that carries water glass.

Water Lines

• Regularly clear snow away from sprinkler-control valves, vents and other vital equipment.
• Leave outside water faucets open to drain.
• Install snap-on insulation on pipes subject to extreme wind chill.

Fire-Protection Equipment

• Establish a regular maintenance program to ensure snow and ice are cleared away from hydrants, sprinkler-control valves, smoke and heat vents, and other essential equipment, so all equipment is accessible during emergencies.
• Lubricate all sprinkler-control valves and locks to prevent freezing.
• Label location of outside sprinkler-control valves and hydrants for easy visibility.

If you do have a loss, take steps to control the damage. Move property out of harm's way and protect it from the elements. Contact your insurance agent or broker as soon as possible. No matter how large or small your self-storage facility may be, securing adequate coverage is essential for protecting your business and your peace of mind.

David Wilhite works for Universal Insurance Facilities Ltd., which offers a complete package of coverages specifically designed to meet the needs of the self-storage industry. For more information on Universal's coverages, or to get a quick, no-obligation quote, call 800.844.2101; fax 480.970.6240; e-mail [email protected]; visit www.vpico.com/universal.

The Self Storage Association and attorneys D. Carlos Kaslow, Joseph D. Joiner and Scott Zucker are embarking on their third year of providing one of the most valuable resources to self-storage professionals, the Self Storage Legal Network (SSLN). The SSLN is a hotline service available only to SSA members. It is one of the best sources available for obtaining industry-related legal advice.

The three attorneys, whose combined experience in the self-storage industry exceeds 50 years, jointly operate the network. Kaslow and Joiner wrote the SSA's authoritative book on drafting self-storage agreements, Rental Agreement Handbook, and Zucker is the author of Legal Topics in Self Storage. The three understand the self-storage business and believe there is a better way to provide owners and managers with quick, affordable access to the specialized legal information they need.

Annual subscription rates for the SSLN begin at $500 for operators with up to two facilities. For an operator with three to five locations or operating in more than one state, the annual subscription is $750. An operator with 10 facilities pays $1,000 a year plus $75 for each facility over 10.

When an SSLN member subscriber--or one of his authorized employees--has a question concerning self-storage operations, he simply calls or faxes his question into the network. The SSLN is staffed 8 a.m. to 5 p.m. Monday through Friday and will provide a response to inquiries by the next business day. The network will thoroughly discuss all issues, and there is no limit on the number of calls or questions an operator can present.

How many times have you had a question about lien laws, rental agreements or partial payments? Almost every decision an operator makes regarding these self-storage issues will have legal repercussions if the improper course is followed. With the SSLN, owners and managers have an affordable legal service to which they can address questions before making any important decision. For more information or to take advantage of the service, please call the SSA at 703.921.9123.

Those of you familiar with the movie 2001: A Space Odyssey will remember HAL 9000, the computer that was an interesting combination of trusted servant and omnipotent master. Although portrayed as ludicrously futuristic, the day of the HAL-9000 computer is rapidly approaching. New technologies will allow you to work with your computer as if it were a trusted employee.

I don't mean to imply your next computer will be as mobile or intelligent as Data, the android from "Star Trek: The Next Generation." I mean your computer will understand your spoken words and visual cues. Its responses will be a combination of synthesized voice and visual presentation. The end result will appear human-like, even if the underlying program is artificially intelligent.

Humanizing your computer means giving it an interactive personality. The most common will be that of an efficient business assistant with a sprinkle of helpful mentor. Some users will want to add more personal traits--such as cheerfulness, playfulness and spunk--to lend to a more interesting workday.

This is not a new concept. Several years ago, Microsoft launched--and quickly shelved--Bob, which was a social interface to Windows. Microsoft tried the concept again with the Window's Office Assistant, the default of which is an interactive paper-clip symbol. You either like this feature and readily interact with it, or you hate it and have it banished forever.

Agents, Bots and Chatter Bots

Similar helpers, known as Agents or Bots, appear on the Internet. A popular example is the one that appears at www.askjeeves.com. This site can process any question phrased as you would ask it of a friend. The site responds with a list of questions it knows how to answer and, usually, will satisfy your query. The site scores high on accuracy but lacks personality. Other types of Bots include general or specific search Bots, knowledge-management Bots, news Bots, shopping Bots, telephony Bots and others.

A popular type of Bot is the Chatter Bot. Early Chatter Bots, like the famous Eliza program, were simulated psychiatrists that typed back your words along with random phrases. The result ranged from profound to nonsense. It was personality without accuracy. If the Chatter Bot concept is placed in a purely reactive role, it achieves accuracy by relying on pre-programmed responses.

The most common form of the modern reactive Chatter Bot is voice generation. You can hear an early use of this technology by calling the phone company's dial-in time number. This technology rapidly advanced from the need of blind individuals to "hear" books. Today, voice generation is a common feature in household appliances and gadgets.

When a Chatter Bot is mated to control an application or machinery, it becomes a social interface. Cellular telephones and voicemail have been early adopters of social interfaces. These devices use voice recognition to provide a natural and fluent experience. However, cultural and age differences create a wide variance in how words are pronounced. Thus, current telephone voice technologies restrict themselves to only recognize a few words to prevent recognition confusion.

Consumers can purchase advanced voice recognition for their computer. These systems train themselves to your voice and can recognize a large array of words--about 5,000. Even with all this software muscle, today's voice-recognition software is little more than a smart dictation system.

Emotional Interface

Soon you will experience voice recognition and generation integrated into a new social interface called an emotional interface. By interpreting the fluctuations and volume of your voice, programs will be able to automatically detect when you are thriving or struggling with a topic. The software can then provide assistance customized toward your learning style and speed.

These emotional systems might incorporate a small electronic camera so they can also read your facial expressions. This would help the computer software detect when your interest is fading or you look lost so the program can adjust accordingly. Current face-recognition software is limited to identity verification. Soon, new versions will utilize animated human-looking images, called Avatars, to represent the computer's personality as well as those of your online coworkers.

What About Self-Storage?

In the future, prospective customers will be able to describe their storage needs to an automated receptionist. They will aim their home computer's videocamera at items to be stored and receive an exact quote on the unit size that matches their needs, as well as recommended packing materials. Existing customers will be able to process payments and purchase additional services from home. These features are already in development. If you choose suppliers wisely, it will be your site that offers 24-hour customer service with no added labor costs.

Although the concept of these technologies may be a bit unsettling, time has a way of shifting our comfort level to adapt to greater technological advances. Just think about our current acceptance of videocameras within shopping malls and ATMs, and self-serve checkout lines at the grocery store. Some of these new technologies are a long way from the mainstream. But the combination of animation, natural-language processing, and voice recognition and synthesis will eventually enter your business life, resulting in user interfaces more natural than anything we have today.

Doug Carner is the vice president of marketing for QuikStor Security & Software, a Sherman Oaks, Calif.-based company specializing in security, software and management for the self-storage industry. For more information, call 800.321.1987; e-mail [email protected]; visit www.quikstor.com.