The Inside Self-Storage "Best of Business" reader-choice poll, launched in 2011, solicits online votes from industry professionals who elect their favorite suppliers in more than 35 categories. Voting takes place via the ISS website in June, and winners are announced in early August. Winning companies are featured in the November issue of ISS magazine, and results are published online year-round for readers to access. Watch for next year's voting process, which will open in early June.

Best Architectural Services: ARE Associates
Best Builder: Mako Steel Inc.
Best Building Components: Trachte Building Systems
Best Call-Center Services: CubeSmart
Best Climate-Control Products: Quest/Therma-Stor
Best Commercial Insurance: MiniCo Insurance Agency LLC
Best Construction-Project Management: Kiwi II Construction
Best Customer Service: iBid4Storage.com
Best Development Consulting: Chiswell & Associates LLC
Best Elevators/Lifts: Ajay Equipment Corp.
Best Finance Company: The BSC Group
Best Green Product: Baja Construction Co.
Best Live-Auction Services: Legacy Auction Services
Best Lock: Chateau Products Inc.
Best Maintenance Products & Services: ABR (Accent Building Restoration)
Best Management Software: SiteLink
Best Manager Training: Haviland Storage Services
Best Marketing Services: Go Local Interactive
Best Online Directory: SpareFoot
Best Online-Auction Services: StorageTreasures.com
Best Operational Consulting: Professional Self Storage Management LLC
Best Payment Services: Select Merchant Solutions
Best Portable-Storage Unit: Universal Storage Containers
Best Real Estate Brokerage: Argus Self Storage Sales Network
Best Retail Product: Supply Side USA Inc.
Best Retrofitting/Refurbishing: Janus International
Best Roofing Company: Global Roofing Co.
Best Security System: Sentinel Systems Corp.
Best Self-Storage Door: Janus International
Best Signage: Quik# - Door Numbers
Best State Association: California Self Storage Association
Best Tech Support: Quikstor Security & Software
Best Technology Innovation: Yardi
Best Tenant Insurance: SBOA Tenant Insurance
Best Tenant-Protection Program: On The Move Insurance Agency
Best Third-Party Management: Extra Space Storage
Best Truck Rental/Leasing: On The Move Inc.
Most Innovative Product: BOS Container USA

With interest rates and capitalization rates at all-time lows, and potential suitor-purchasers lurking about, many self-storage owners find themselves pondering this question: Do I sell now? Some are discovering their assets are more valuable than they imagined or, in some cases, not as valuable as they might have been led to believe.

Whenever I speak at industry events, I ask the owners in the room if they would be willing to sell their properties. Most of the time, very few raise their hands. Then I ask, “What if so-and-so large operator came knocking on your door with a blank check?” Then more hands typically go up. When pressed, most owners would at least consider the idea of selling.

What I often find is even if an owner wants to sell, neither he nor his property is ready. The facility isn’t managed to maximum value. Owners often leave a good deal of potential value on the table simply because they don’t know any better. I conduct a lot of acquisition due-diligence audits and, in most cases, I leave feeling somewhat sorry for the seller because of the simple steps he could have taken to increase his asset value.

Even if you aren’t currently planning to sell your storage property, since we never really know what might happen, doesn’t it make sense to manage the property as if you were going to sell it tomorrow? Why not ensure its maximum value at all times? Don’t you want to continually increase profit? To that end, consider the following “best practices” to capitalize on the potential of your asset.

Income Statements

Prepare monthly income statements. Any potential purchaser (in the case of a sale) or bank (in the case of a refinance) is going to want copies of at least 12, if not 24, months of income statements. The value of your self-storage facility is going to be primarily determined by some factor of the net operating income. Your financial due diligence should also include monthly reconciled bank statements and monthly management-summary reports.

On a monthly basis, your income statements, bank statements and summary reports should more or less balance with each other. Any buyer or bank will seek to confirm the income as stated by the summary reports is the same as the money deposited into the bank and the revenue reported on the income statements.

Also regularly review your facility expenses. Make sure you’re seeking competitive prices on all of your utilities and vendors, and keep up with the latest technologies for reducing costs, such as LED lighting and less expensive Internet options. Recognize that every reduction in expenses is an increase in your facility value, while every waste of money is a reduction in value.

Unit Inventory

Keep your unit inventory accurate at all times. During due-diligence audits, I regularly find inventories that are inaccurate. In some instances, these imprecisions can harm facility value.

Unless you’re adding or deleting units, your rentable square footage shouldn’t change. An undulating square-footage number indicates managers are moving units into and out of inventory, and you need to understand and be able to explain why this is happening. During one audit, I found a 10,000-square-foot discrepancy. The manager had incorrectly completed a large number of unit conversions and no one had noticed.

Make sure there’s an explanation for all “unrentable” units and a plan for removing them from the unrentable list. Every rented unit should have a tenant lock and every vacant unit should have a company lock. Also keep your number of company-use units to a minimum.

Lease Files

Keep your lease files precise at all times. One of the most aggravating issues for a potential buyer is rental leases that are inaccurate, disorganized, out-of-date and just plain missing. Every rented unit must have a signed lease, and the leases need to be filed by unit number, not alphabetically, for ease of auditing.

Every lease should list only one person as the tenant—no rentals to husbands and wives, boyfriends and girlfriends, moms and sons. Tenants with multiple units must have a signed lease for every unit. Even complimentary units must have signed leases, including manager units, owner units and charity units.

Rate Variances

Keep up with your rate variance. Owners and managers often don’t monitor this number, and many don’t understand why it’s important. The rate variance indicates the amount of rental income the facility can’t collect due to tenants who are paying some rate less than the current street rate. A negative rate variance of only $1,000 can represent a loss in facility value of more than $150,000.

Regularly review this number and implement revenue-management strategies to reduce it. Frequently check the rent roll to look for tenants who aren’t paying the current street rates, and make sure you know why. Was there a recent street-rate increase, or do you offer “friends and family” discounts?

Finally, review all discounts and waived fees for compliance and appropriateness. These reductions in rental income can negatively affect facility value. They can even indicate potential theft. Implement policies and procedures to disallow such discrepancies.

Site Condition

Lastly, take a look at your site. When contemplating a sale or a refinance, or when you simply want to maintain maximum value at all times, it’s important to regularly review the physical state of your property.

Fix the dents and the dings. Nothing says “We don’t care!” more clearly and loudly to your customers than neglecting property damage. Make sure signs and flags are new and fresh, not torn or hand-made. Make sure unit numbers are in place and accurate. Check the state of the drive aisles. Look for roof leaks.

Since none of us ever really know what might happen, the best strategy is to manage your self-storage facility every day at maximum revenue, profit and value. I mean, who knows…

Bob Copper is the owner of Self Storage 101, a consulting firm specializing in self-storage. Bob and his team have worked with hundreds of owners, operators and managers to maximize asset value, conducting countless due-diligence audits and helping owners position their facilities to sell. To reach him, call 866.269.1311; e-mail [email protected]; visit www.selfstorage101.com.

The U-Haul Cos. of East and South Central Dallas are offering 30 days of free self-storage or U-Box container usage to people who’ve been affected by the tornadoes in the Dallas-Fort Worth, Texas, region. Families who need more information can contact the U-Haul store nearest them or visit the company’s website, according to a press release. Participating facilities include the U-Haul Co. of East Dallas in Garland, Texas; and the U-Haul Co. of South Central Dallas in Grand Prairie, Texas.

"The tornadoes that recently ran through Texas have devastated the communities we serve," said Jeff Singleton, area district vice president. "I hope these efforts will provide assistance to residents who need help. U-Haul has been a part of these neighborhoods for many years, and we'd like to reach out and help these families with free storage. We will continue to help our friends and neighbors during their time of need.”

Through the U-Box program, tornado victims can pick up a custom-designed trailer and take a storage container with them. Alternatively, U-Haul can store the container in its secure warehouse, or pick up and deliver it to another location.

Tornado victims can also take advantage of the U-Haul Take a Box, Leave a Box program, which enables customers to use recycled boxes at no charge. Instead of discarding reusable boxes and bins, U-Haul encourages local residents to drop them off at the nearest U-Haul location, allowing other people to use them.

U-Haul stores also offer supplies to help residents with storm recovery, such as boxes, tarps, propane and propane tanks, according to the release.

Established in 1945, U-Haul International Inc. has more than 40 million square feet of storage space at more than 1,200 owned and managed facilities throughout North America.

Pegasus Group, a real estate investment and management company that owns and operates 48 self-storage facilities in 11 states under the Central Self-Storage brand, has acquired Castle & Cook Self-Storage in Mililani, Hawaii, in Central Oahu for $14.5 million. The property on Lehiwa Drive was owned by Castle & Cooke Hawaii, a group of subsidiaries under real estate development and investment firm Castle & Cooke Inc.

Pegasus acquired the property under PG Cactus Mililani I LLC, according to the source. The asset is the company’s second location in Hawaii.

Castle & Cooke is privately owned by Los Angeles billionaire David Murdock. The firm’s commercial-property subsidiaries in Hawaii include the Dole Cannery and Dole Plantation retail centers, Mililani Tech Park and an aviation operation in Honolulu. Murdock, 92, is also chairman and CEO of Dole Food Co.

Based in Walnut Creek, Calif., and founded in 1988, Pegasus specializes in self-storage investments. Its portfolio is primarily comprised of facilities operated and managed under the Central Self-Storage brand name.

Update 12/30/15 – The Lock Up Self Storage will be able to move forward with its plan to develop a new facility in Milford, Conn., when revised zoning regulations take effect on Jan. 8, according to a source. Among the zoning changes approved by the planning and zoning board this month is the allowance of self-storage in a Corridor Design District, which matches the designation of the Bridgeport Avenue site.

The property is along U.S. Route 1, which serves as the major access point into Milford Center. The revised zoning regulation requires self-storage to be within 200 feet from an entrance or exit to a limited access highway. Access to the Lock Up facility will be almost directly across from the Exit 34 ramps to Interstate 95, the source reported.

In addition to being the site of the former Liberty Rock Motel, the property was also once home to the Liberty Rock, which may have played a role during the American Revolution. According to folklore, militiamen hid behind the rock to fire upon British troops as they landed in Milford. The rock was relocated to the other side of Bridgeport Avenue several years ago, according to the source.

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12/18/15 – The Lock Up Self Storage, which operates more than 30 facilities in eight states, intends to develop a three-story self-storage facility on a site that once housed the Liberty Rock Motel in Milford, Conn. The 85,000-square-foot facility will be built on 1.25 acres and offer about 63,000 rentable storage space in 669 units, according to the source.

The planning and zoning commission approved several applications for the project on Dec. 15, including the site plan and changes to zoning. Liberty Rock Enterprises LLC currently owns the two adjacent motel properties at 417-421 Bridgeport Ave., but the Lock Up is under contract to acquire the land, pending planning-and-zoning approval.

The commission agreed to change the zoning for the parcel at 417 Bridgeport Ave. to unify both properties under District 2 zoning and enable the self-storage development. Commission chair Benjamin Gettinger was the lone dissenting vote on the motion, which passed 7-1, the source reported.

Liberty Rock Enterprises tore down the motel after purchasing the property in 2009. The site has been vacant for seven years. Attorney John W. Knuff, representing The Lock Up, told commissioners the property had remained vacant despite previous attempts to market the site for development. Part of the problem, Knuff argued, was having two zoning designations on what was viewed as a single development site. Five different zones are within close proximity to the site, he said. Board vice chair Edward Mead supported the self-storage proposal, noting he believed it would improve what had become an eyesore.

The facility will be designed to resemble an office building featuring a brick facade, glass and landscaping, Knuff said. Four or five mature trees will be removed and replaced with other trees and shrubs, according to Rob Baltramaitis, project engineer. The building will include an interior unloading area for vehicles, according to the source.

Some residents objected to the project, voicing concerns about lighting and increased traffic. Lighting at the facility will be designed to minimize shine from the property, and no lights are planned along Concord Street, Baltramaitis told commissioners.

The facility will also have video surveillance, and the office will overlook the unloading area to provide additional security, according to Bob Soudan Jr., president of The Lock Up.

“We build, own and operate for our own accounts,” Larry Smith, vice president of development for The Lock Up, told the source. “Seventy-five percent of our customers are female. They feel very safe and secure in the type of facility we operate.”

The Lock Up Self Storage is the operating brand of family-owned Lock Up Development Group, an affiliate of BRB Development LLC, which has offered self-storage services since 1976. The company currently operates self-storage facilities in Connecticut, Florida, Hawaii, Illinois, Massachusetts, Minnesota, New Jersey and New York. It owns and manages more than 1.6 million square feet of storage space.

The U-Haul Co. of Illinois is offering 30 days of free self-storage or U-Box container usage to people who’ve been affected by the severe storms and flooding in Central and South Illinois. Families who need more information can contact the U-Haul store nearest them or visit the company’s website, according to a press release.

Participating Illinois facilities include U-Haul Moving and Storage at Main Street in Bloomington, U-Haul Moving and Storage of Carbondale in Carbondale, U-Haul Moving and Storage at University Avenue in Champaign, U-Haul Moving and Storage of Soy City in Decatur, U-Haul Moving and Storage at Allen Road in Peoria, and U-Haul Moving and Storage at Stevenson Drive in Springfield.

"The recent heavy rains and severe flooding in Central, southern and other surrounding neighboring communities throughout Illinois have caused a great deal of damage," said Aaron Freeman, president of the U-Haul Co. of Illinois. "U-Haul has been a part of these neighborhoods for many years, and we'd like to reach out and help these families with free storage. We will continue to help our friends and neighbors during their time of need.”

Through the U-Box program, storm victims can pick up a custom-designed trailer and take a storage container with them. Alternatively, U-Haul can store the container in its secure warehouse, or pick up and deliver it to another location.

Storm victims can also take advantage of the U-Haul Take a Box, Leave a Box program, which enables customers to use recycled boxes at no charge. Instead of discarding reusable boxes and bins, U-Haul encourages local residents to drop them off at the nearest U-Haul location, allowing other people to use them.

U-Haul stores also offer supplies to help residents with storm recovery, such as boxes, tarps, propane and propane tanks, according to the release.

Established in 1945, U-Haul International Inc. has more than 40 million square feet of storage space at more than 1,200 owned and managed facilities throughout North America.

A man was shot on Monday during an altercation at a Public Storage facility in Lawrenceville, Ga. According to the Gwinnett County Police Department, a 95-year-old woman was at the self-storage facility with her son and daughter when an unknown man parked nearby and began pacing and staring at them, the source reported.

During an ensuing “verbal altercation,” the older woman tried to calm the situation but was allegedly shoved by the stranger, police said. At that point, the woman’s son, described as being in his 60s, retrieved a gun and told the man not to assault his mother. When the man came toward the son, he fired one shot that struck the stranger in the upper torso, according to police.

The son told investigators he acted in self-defense. The man who was shot is in serious condition, according to the source. The 95-year-old woman wasn’t injured.

Police indicated they didn’t plan to charge the son but are reviewing video-camera footage of the incident.

Public Storage Inc. lists three self-storage facilities in Lawrenceville on its website. Based in Glendale, Calif., the real estate investment trust has interests in 2,266 self-storage facilities in 38 states, with approximately 147 million net rentable square feet. Operating under the Shurgard brand name, the company also has 217 facilities in seven European countries, with approximately 11 million net rentable square feet.

Real estate developer Central Bergen Properties reached a settlement last month with Wells Fargo in a foreclosure case involving a Safe and Secure Self Storage LLC facility in Garfield, N.J. Central Bergen owed $15 million on a $25 million mortgage from 2003, which matured in 2014. Terms of the settlement weren’t disclosed in court papers, according to the source. Due to the settlement, a U.S. district judge in Trenton, N.J., agreed to dismiss the foreclosure case filed against Central Bergen and its general partner Anthony V. Pugliese, who founded Safe and Secure.

Following the foreclosure dismissal, a judge in the U.S. District Bankruptcy Court in Newark, N.J., dismissed a related Chapter 11 case filed by Pugliese, the source reported. The self-storage facility at 141 Lanza Ave. is on a property Central Bergen purchased in 1983, which included a 1.1 million-square-foot warehouse. The 2003 mortgage was secured through property leases and rental agreements, including one from Safe and Secure, which rented space from Central Bergen, the source reported.

After Wells Fargo filed its foreclosure action, a court-appointed receiver in that case filed suit against Safe and Secure, arguing the self-storage operator owed $9.5 million in back rent that should have been applied to paying off the mortgage, according to the source.

The Wells Fargo settlement was announced shortly after Pugliese began serving a six-month jail sentence in Palm Beach County, Fla. The jail term stems from a separate case in which Pugliese pleaded no contest in August to fraud charges accusing him of using fake companies and phony billings to steal $1 million from former business partner Frederick DeLuca in another business venture, the source reported. As part of his plea agreement, Pugliese agreed to pay DeLuca $1.2 million in restitution.

Pugliese became well known in the self-storage industry in 2009 when he launched Safe and Secure Automated Self Storage Systems, a 72,000-square-foot automated facility in Coconut Creek, Fla. The facility used computers and robotics to assist customers, and advertised other features such as 24-hour access, full power backup, and high-tech security monitoring and surveillance. It was reportedly the first self-storage facility worldwide to use the Automated Self Storage Systems technology. Following a foreclosure judgment on the property, it went up for public auction in 2011.

Safe and Secure lists current self-storage locations in Belleville and Garfield, N.J., on its website.