U-Haul Offers Free Self-Storage to Washington Flood Victims

Feb 11, 2010

The U-Haul Co. of Southern Washington is offering 30 days of free self-storage to residents in the area whose homes have been affected by the flooding in the Green River Zone. The free storage is being offered at:

U-Haul Center of Auburn, Wash.
U-Haul Center of North Auburn, Wash.
U-Haul Center Spanaway in Tacoma, Wash.
U-Haul Center Parkland in Tacoma Wash.

"We want to make sure everyone knows this offer is still available for residents in our community," stated Kim Merow, president. "I hope this effort will provide assistance to families that may truly need a helping hand. We will continue to help our friends and neighbors in this time of need."

In addition, people needing boxes can take advantage of the U-Haul Take a Box, Leave a Box Program. The program enables customers to return their reusable boxes to U-Haul sites where others can use at no cost. U-Haul encourages anyone with reusable boxes to drop them off at the nearest U-Haul location.

There are more than 1,091 U-Haul self-storage facilities across the United States and Canada.

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Lenders Discuss Self-Storage at Banking Convention

Feb 10, 2010

Mortgage bankers and lenders attending the Mortgage Bankers Association CREF Convention and Expo in Las Vegas said they were cautiously optimistic about the self-storage industry.

More than 1,800 mortgage bankers and lenders attended the expo Feb. 1-4. Most of the conference focused on financing for multi-family dwellings, but lenders also discussed other commercial real estate, including self-storage.

Commercial real estate values are 31 percent lower than they were at their peak in 2007—and may continue to drop another four percent, economists predicted. They also predicted delinquencies would continue to rise, and there will be little new construction this year.

The CREF Convention and Expo is the largest commercial real estate finance industry convention in the United States, and is attended by mortgage bankers, real estate investment officers of life insurance companies, commercial banks, savings banks, credit corporations and other lenders.

Source: Extra Space Storage, Mortgage Bankers Express Optimism About Self-Storage Industry

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N.J. Self-Storage Developer Requests Reduced Cash Holdover

Feb 10, 2010

A self-storage developer who was approved to build a new project in Upper Freehold, N.J., has asked to forgo paying the usual 10 percent of performance bond in cash. In October, the planning board gave Yong Sim the green light for to build nine self-storage buildings and an office building on his 23-acre property. Last week he sent a letter to the township asking to not holdover $100,000 in cash for the project.

The cost of the project has been estimated at $961,484 and the performance-bond amount at $1,153,781. Sim would like the township to reduce the cash payment to 2 percent, or approximately $23,000, and increase the bond amount. He said the nearby town of North Hanover permitted him to bond for the entirety of a similar facility he built there.

Upper Freehold Township adopted the ordinance requiring 10 percent of a performance bond in cash years ago. Sim may be the first to ask for a reduction in the cash portion of the payment, though the township recently returned $460,000 in cash to a developer for a project that took several years to build.

Mayor Stan Moslowski Jr. said granting Sim’s request is not a good precedent for the township.

Sim has lived in the area since 1974.

Source: Millstone Examiner, Storage facility developer asks to pay less cash up front

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SD Storage of San Diego Holds Raffle for iPod Shuffles

Feb 10, 2010

SD Storage of San Diego is holding a raffle for three iPod Shuffles. Anyone who rents a self-storage unit with the company between Feb. 1 and March 31 will be automatically entered to win. Names will be drawn for each of three county areas ―Central, North and South San Diego―and winners will be announced in early April. The drawing will also be filmed and posted to the SDStorage YouTube channel.

No purchase is necessary to enter. Interested parties can fill out an entry form at one of the company’s nine locations. Contestants must be 18 years of age or older and reside in San Diego County. Employees of SD Storage and any members of an employee’s household or family are excluded from participation. There is a limit of one entry and prize per household.

All winners must agree to have a picture taken with their new iPod and, by doing so, grant SD Storage rights to post the photo on its website and in any related marketing material. All winners’ personal information will be kept confidential.

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ISS Blog

Create an SST Forum Poll, Learn About Your Industry Mates

Feb 10, 2010

When you're working in your facilities and offices, clearing out a vacated unit or preparing for an auction, you probably wonder once in a while about the people across the country and world who are doing exactly what you're doing at that time.

What are their environments like? Are they part of large franchises, or do they operate one-person shops? What kind of discounts do they offer? Where do they advertise? Or, maybe you wonder if they're having the same problems with their supervisors or employees that you're having. It's natural to ask these questions.

Fortunately, the Self-Storage Talk audience consists of these same questions, and one easy and fast way to gather information about them is to post a poll in the Polls forum. Posting a poll, as long as it's engaging, will return some useful data.

For example, recently user MusicCity Gal wanted to gauge the amount of experience SST users have, so she asked, “How many years have you been in the self-storage business?” The results have been revealing: The most popular demographic is those who have been in the business for two to five years. Five to 10 years is the second-most popular response.

Users can also post a forum quickly and don't need to explain much in the thread-starting post. To create a poll, go to the Polls forum, click on the “New Thread” button, and scroll down to the “Additional Options” box at the bottom of the page. Check the box next to “Yes, post a poll with this thread.” Adjust the number to reflect the number of poll options you want to be available.

Remember to title your thread as you would with any other thread, and type at least a short sentence in the text box—it can be as easy as “What do you think about this?” After you click “Submit New Thread,” another poll screen will pop up with on-screen instructions, which are fairly self-explanatory.

You'll find that posting polls is a quick and easy way to use the forum. On the other hand, if you're not interested in making new polls but wouldn't mind checking out the ones others are posting, visit the forum and vote. Any registered member can do it, and it takes only a couple of mouse clicks.

Polls are just one more way the self-storage industry's leading online forum is becoming increasingly interactive and useful, so jump in, create polls and cast votes. What better way to satisfy you and your industry mates' curiosity?

Specialized Insurance Coverages for Self-Storage: Understanding Industry-Specific Policies

Feb 10, 2010

Insurance is often an overlooked investment. But during the lifetime of your self-storage business, it’s likely you will experience property damage, a liability claim or another type of loss that may create a significant financial impact to your bottom line if you’re not adequately insured. In this article, you’ll find highlights of coverages you should pay special attention to when choosing an insurance program.

Your self-storage operation involves technical, legal and financial aspects not typically found in other businesses. Some of the exposures you face are unique to the industry, and you should seek customized coverage for your distinctive needs. Insurance specialists can provide you with programs and industry knowledge to assist you in tackling special facility requirements.

Standard policies may provide coverage for your building, business-personal property and business liability. A self-storage policy typically offers those basic coverages plus protection against hazards that only surface in our industry. Following is an explanation of two of these vital coverages.

Customers’ Goods Legal Liability

During the course of your business, you act as a landlord, but you do not take possession of tenants’ property. You’re not responsible for those items, as you’re simply renting space. However, situations may arise in which you might be considered negligent, creating a potential legal liability. For example, a tenant’s goods might appear to be damaged from intrusive water. If you haven’t properly maintained your roof, you might be considered negligent and become liable for damages.

Customers’ goods legal liability would be the appropriate coverage for this kind of claim. Defense costs may also be included, even if the claim is found to be groundless, false or fraudulent. This coverage might also provide for damage done to customers’ goods stored in the open. This coverage isn’t available with most standard business owner’s policies, but is available through a self-storage insurance program.

Sale and Disposal Legal Liability

Almost every self-storage owner will face the unenviable task of evicting a tenant for failure to pay rent, reclaiming the storage space and removing or disposing of the tenant’s property. Sale and disposal legal liability provides protection against conversion—the act of wrongly taking, selling, using or destroying the goods of another party.

Most states have specific statutes that govern the sale and disposal of tenant property, commonly called lien laws. It’s vitally important to be aware of these statutes and state-specific procedures. If there’s an error in any step of the process, the self-storage operator becomes vulnerable to lawsuits claiming loss or damage to stored property. Due to the incredible diversity of goods stored and the wide range of property values, the penalty for conversion can be extremely high.

A basic risk-management technique is to carry adequate limits of sale and disposal legal liability, which would transfer exposure from you to an insurance company that specializes in these types of claims. Additionally, the coverage normally provides legal defense, even when the suit is found groundless or fraudulent.

Practical Protection Measures

Because it’s likely that you or your staff may be directly involved in the sale and disposal process, it’s imperative that you’re all familiar with the applicable lien laws. Consult with an attorney about preparing a thorough written procedure outlining the exact steps for disposing of a delinquent tenant’s property. Make sure your rental agreement contains verbiage regarding state statutes as well.

All of this can be accomplished with a regularly scheduled visit with your attorney. State statutes do change, so consider scheduling a review to confirm that all applicable statutes and procedures are accessible to staff and up to date.

To avoid errors, always double check names and addresses. Don’t take changes to information pertaining to the rental agreement, such as misspellings, no matter how obvious, unless accompanied by a signed change request. Also, document in photographs and writing every step of the inventory and auction process. In a lawsuit, you’ll be required to prove that the disposal of a tenant’s goods conformed to the state statute.

If there’s ever any question about whether you should sell or dispose of property, don’t do it. Many owners prefer to let tenants retrieve their property at no charge rather than experience the potential liability of an auction.

Finally, no matter what precautions you may take to avoid litigation associated with the sale and disposal of a delinquent tenant’s goods, errors may occur. Ensure that you work with an experienced insurance agency to create a specialized program to allow you to reduce the potential for financial loss to your business.

This coverage is industry-specific and generally cannot be added to the typical business owners’ policy. When weighed against the often substantial cost of legal fees and other expenses, the comparative cost is quite reasonable for the peace of mind and protection you’ll receive.

If you’re new to the industry, consider contacting your state self-storage association for insurance information and referrals. The national association is a great resource if your state doesn’t have its own organization. Also, refer to industry trade magazines; they will more than likely have information regarding insurance programs.

Randy Tipton is the owner of Universal Insurance Facilities Ltd., which has provided specialized insurance coverage to the self-storage industry for more than 12 years. Universal has clients in 49 states, with a commitment to providing A-plus-rated service; fast, fair claims handling at an affordable premium; and agents trained specifically in self-storage. For more information, call 800.844.2101; e-mail [email protected]; visit www.uistorage.com.

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Parham Presents Free Webinar on the Self-Storage Pro Forma

Feb 09, 2010

On March 10, self-storage industry veteran Mike Parham, founder and president of The Parham Group of companies, will present a free, live webinar titled "Understanding a Self-Storage Pro Forma." Designed for self-storage facility owners, the online seminar will address the intricate details that comprise a pro forma, a critical step in the financial process. Parham will cover an overall pro forma analysis, anticipated development variables, normal operating expenses, how to determine development costs, and future fair-market-value determination.

The Parham Group comprises Noah’s Ark Development, Maverick Investments, NDS Construction, Cross Metal Buildings and Joshua Management.

The webinar will take place at 1 p.m. ET. Online registration is required and can be completed at Ministoragemessenger.com.

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