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Self-Storage Owner to Run for County Assessor in West Virginia

Article-Self-Storage Owner to Run for County Assessor in West Virginia

Alvin Bowyer, owner and president/treasurer of AB Mini Storage Inc. in Milton, W.V., has announced his candidacy for Cabell County Assessor. Bowyer is also a full-time realtor for Century 21 Homes and Land of Barboursville.

Bowyer also worked as the director of finance for the Big Sandy Superstore Arena in Huntington for 16 years. During this time, he was responsible for tracking and reporting the arena's and individual events' operating budgets. He reported to the city of Huntington and private management companies employed by the city to operate the facility. He also supervised the arena's human relations and ticket office.

The primary election in West Virginia is May 8, and the general election is Nov. 6.

AB Mini Storage is directly next to Interstate 64, about 16 miles from Huntington.

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Proposed Bill May Force Idaho State to Sell Boise Self-Storage Facility

Article-Proposed Bill May Force Idaho State to Sell Boise Self-Storage Facility

A proposed bill in the Idaho House of Representatives would force the state's land board to sell the Affordable Self Storage self-storage facility it purchased with controversy in 2010. If the bill is passed, the state will also need to divest itself of all other businesses funded by the state's endowment trust, selling them to private-sector buyers.

Rep. John Vander Woude of Nampa introduced the bill on Feb. 7. It requires the land board to sell or lease all improvements on endowment-owned ground and sell all business operations. The House Resources Committee will review the bill first.

The state purchased the 400-unit self-storage facility in suburban Boise in August 2010 for $2.7 million.

The state's entrance into the self-storage market has drawn criticism from industry representatives, including the national Self Storage Association (SSA) and the Idaho Self Storage Association (IDSSA). With the support of the associations, numerous self-storage professionals have railed against the state-owned enterprise and encouraged a unified effort to force a sale.

The argument supporting a state-owned facility relies on the Idaho Constitution, which requires the land board to pursue the highest returns from endowment properties to benefit schools. George Beacon, director of the Idaho Department of Lands, has also argued that profitable state-owned enterprises help keep taxes down while still funding education.

According to the source, Affordable Self Storage is one of the state's best-performing businesses.

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ISS Blog

APP-lying Yourself in Self-Storage: Mobile Technology Changes the Way We Do Business

Article-APP-lying Yourself in Self-Storage: Mobile Technology Changes the Way We Do Business

Like most other industries, self-storage is being impacted by the conflagration of technology. For many facility operators, business processes have changed as a result. No doubt your day-to-day work practices have been at least partly altered by things like mobile devices, software, kiosks, RFID and the Internet. How are you keeping informed of new developments, and how readily are you and your customer base embracing the revolution?

I'm married to a "techie," so like it or not, I'm regularly exposed to technology news. Even with this infiltration of information, however, it's not always easy or me to make sense of it. Some tools are intuitive and user-friendly (think iPad) while others seem to make life more complicated.

As a self-storage operator, you may be feeling similarly daunted when it comes to keeping up the technology pace. So I'd like to share with you a few development highlights from recent weeks, as well as some resources that will help keep you in the know.

  • Centreforce Technology of Australia, which provides self-storage management software, has developed an iOS mobile application that runs on Apple platforms. The app will allow users to access common functions of AccessEzy, a self-storage access-control and security product, including opening and closing gates, viewing the event log, running reports and checking alarms.
     
  • StorageClicks.com, which provides online-marketing and website-design services, launched its new Mobile Site Platform, which helps self-storage operators create mobile websites. The platform is compatible with Apple iOS, Google Android and Blackberry Mobile OS, plus many other mobile devices.
     
  • Storage Network Advantage LLC and SMD Software Inc. have partnered to develop the SNA Collections Manager, a tool to help self-storage operators reduce bad debt and increase cash flow. The tool combines hardware and software technology to send phone and SMS text messages to past-due tenants. It can integrate with various Web-based management programs.
     
  • SmartStop Self Storage, the retail brand for Strategic Storage Trust Inc., has launched a new smartphone application called the SmartTracker Inventory List App. The app will help customers organize and track the contents of their storage units and use the company's Web-based account-management tools.

These are just a few examples of the tools that have been rolled out to the self-storage industry in recent months. If you'd like to read more, check out the news releases and articles on the "Technology" topics page of InsideSelfStorage.com. In particular, I encourage you to read the recent article by Matthew Van Horn, "How Technology Is Changing Customer Service in Self-Storage: Product Quality, Communication and Information." A regular writer for ISS, Matt talks about the evolution of our industry resulting from tech use.

We also interviewed Matt as part of our new "Sounds of Storage" podcast series, which draws insight from industry experts on high-demand topics. In recent weeks, we've spoken to several presenters of the upcoming Inside Self-Storage World Expo in Las Vegas, including Matt and his colleague Jim Ross, both vice presidents of operations for Cutting Edge Self Storage Management. They spoke to Self-Storage Talk Community Manager John Carlisle about cloud computing, data security, facility websites and more. You can listen to the podcast here.

Van Horn and Ross will also be speaking about technology at the ISS Expo, during a seminar titled "10 Things You Should Be Doing Now in Regard to Self-Storage Technology and Software." They'll talk about how technology can help you streamline your self-storage operation and increase efficiency and profit. Topics to be covered include hardware, software, websites, mobile devices and more.

So ... If you have questions about industry technology, the latest advances, how to use them, and what they can do for you, investigate one of the resources outlined above. If you represent a company that provides a tech tool not mentioned here, feel free to share about your offering in the blog comments (no ad copy, please). If you're a facility operator, I'd love to know which technology you're using as part of your business. What's your view on tech tools? What's really working for you, helping you save time and money?

New Braunfels Storage Opens in Texas

Article-New Braunfels Storage Opens in Texas

New Braunfels Storage recently opened in New Braunfels, Texas. The 77,000-square-foot facility has 534 self-storage units and is located on the frontage road of Interstate 35. The multi-story facility features traditional and climate-control storage.

New Braunfels Storage***Its the first of several projects being developed by Daughtry-Boerne Investments. All of the companys projects will be constructed by SBS Construction. The Texas-based company has been building in Texas for more than 20 years. SBS construction has designed and constructed millions of square feet of self-storage.

The facility will be managed by Professional Management Inc., whose staff has more than 35 years of experiencing managing self-storage facilities in Texas and six other states.

New York Eminent-Domain Agency Takes Tuck-It-Away Self Storage to Court

Article-New York Eminent-Domain Agency Takes Tuck-It-Away Self Storage to Court

The New York City land-use conflict involving a successful eminent-domain claim on Tuck-It-Away Self Storage in Manhattan goes on, as self-storage owner Nicholas Sprayregen and the land developer have not been able to agree on a sales price. As a result, the Empire State Development Corp. (ESDC), which is developing a campus expansion for Columbia University, filed a condemnation petition with the New York County Supreme Court to force a sale and give final possession of the property to ESDC.

A spokesperson from ESDC told the source he expects the court to make a judgment on the petition in late February or early March. He also said the ESDC will continue to negotiate out of court with Sprayregen and two other business-owners, Gurnam Singh and Parminder Kaur, who own gas stations that are part of the eminent-domain claim.

In June 2010, the New York Court of Appeals in Albany overturned a lower court's ruling that forbade the state from taking possession of the property belonging to Sprayregen, Singh and Kaur. Despite an appeal from the three business-owners, the U.S. Supreme Court declined to hear the case in December 2010, effectively giving the land to the ESDC and Columbia. The parties have since been negotiating a sales price. The legal proceedings began in 2008, when the ESDC deemed the land owned by Sprayregen, Singh and Kaur to be "blighted," and the three owners filed individual lawsuits to keep their properties.

Eminent domain allows government to seize private property for development that benefits the public good and entitles the property owners to market-rate compensation.

Sprayregen owns three other Tuck-It-Away locations in the vicinity. According to the source, a notice posted on the door of a Tuck-it-Away storage facility on Jan. 31 said the ESDC will file an acquisition map, marking the property that the ESDC seeks to acquire, by Feb. 27. The notice also explained that after the map is filed, the acquisition of the properties will be complete. Additionally, a Tuck-it-Away employee leaving a storage facility on 131st Street told the source he believed the building in question would be demolished soon.

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Convenience, Additional Space Drive Self-Storage Industry Growth in China

Article-Convenience, Additional Space Drive Self-Storage Industry Growth in China

The self-storage industry in China continues to flourish as residents and business owners realize the benefits and convenience of storing their personal and commercial goods.

While Chinese residents are renting storage to free up space in their homes, entrepreneurs are taking advantage of climate-controlled units to store precious items such as cosmetics, paintings and brand-name bags.

"Unlike a huge warehouse, we don't control the content of the storage, but we don't accept dangerous objects such as firecrackers," Chen Yu told the source. Yu is the executive customer manager of Youyou Space, a 3,000-square-meter, 24-hour self-storage facility in Shanghai's Wujiaochang area of the Yangpu district.

Xie Fang, who stores high-end cosmetics at Youyou, is not only a fan of the facilitys climate-control units, but also appreciates that her belongings are available to her at any hour of the day. The 24-hour video surveillance also ensures her belongings are safe. At Youyou, self-storage unit sizes range from 0.7 to 20 cubic meters, with the cost varying from several hundred yuan to more than 1,000 yuan ($158.76) per month.

Yu told the source self-storage rentals tend to pick up in the winter and spring as residents prepare for the Chinese New Year. During this time, Yu's facility has about 30 percent to 40 percent of his 1,000 units rented. The occupancy rate is 10 percent to 20 percent during the low season. Many tenants are either white-collar or foreigners, Yu said.

Easy Storage, a self-storage company established in 2011 in Shanghai, rents spaces for about 200 yuan ($31.75) per cubic meter. The most popular unit is the 2-cubic meter, Lei Yongsheng, a member of Easy Storage's promotional staff, told the source. Easy Storage established four stores within six months of the first facility opening and recently added space for wine storage.

According to the Easy Storage website, there are no conditions for development of self-storage in China, except for the cities of Shanghai, Beijing and Shenzhen.

Louis Hill, a representative of Drivers Jonas Deloitte, a chartered surveyor that assists the U.K. Self Storage Association in preparing its annual report, told the source hes excited about the industrys growth in China. "There's likely to be a great future for self-storage storage in China because it gives great lifestyle, flexibility and convenience," Hill said.

ISS Blog

10 Things to Consider When Raising Self-Storage Rent

Article-10 Things to Consider When Raising Self-Storage Rent

By James Webb

In response to a recent thread on Self-Storage Talk about the logistics of raising self-storage rent, SST member James Webb posted these 10 tips.

No. 1: The longer tenants stay with you, the more sensitive they become to rent increases. When the tenancy is new, they believe they need the storage space. The longer they store, the more they tend to reevaluate their need and, eventually, they realize theyve paid more than the property is worth in rent. Raise everyone, every year, regardless of when they move in and their current rent rate, either above or below standard.

No. 2: Though many customers will complain about rent increases, few actually move out. This is due to the tenants perceived "move-out" cost. In other words, they must rent a truck, hire help, take time off or use their precious weekend time, etc. The average cost to move out is about $150. Therefore, one can raise a tenant to 20 percent above current market rates before it makes real economic sense to leave one facility for another. Of course, there are exceptions to this, but its a general rule and has proven to be true for me. If customers do not complain, you didnt raise the rent enough.

No. 3: Customers do not move out as a result of a rent increase. They move out because they no longer really need the space or have been planning to move out for months, and the rent increase has caused them to execute their decision based on their recent reevaluation about their need for the storage space. The longer tenants are with you, the more likely theyre to move out through this process. Dont worry about rent increase move-outs. Ive never seen a mass exodus as a result of rent increases. Most apprehension about this is unwarranted.

No. 4: Tenants in large units tolerate rent increases better than tenants in smaller spaces. Tenants in small units will tolerate larger percentage increases in rents than large-space tenants. For example, if your 10-by-30 units rent for $250 per month, a 5 percent increase is $12.50. If your 5-by-10 units are only $60 per month, the same percentage would be a $3 increase.

The reality is that you could raise the 5-by-10 tenant 10 percent or $6 and still be met with little resistance. If you don't believe this, think about the fact that tenants will routinely pay you a late fee of $10 every month, yet will complain about a rent increase. One could almost raise the rent by $10 and let them be late every month. In small unit increases, look at the dollar amount, not the percentage as a guide.

No. 5: Occupancy has no effect on your ability to raise rents. Do your tenants know what your occupancy is at any given time? Would they care? Ive raised rents at facilities during leaseup and at facilities where the occupancy was down. My competitors believe that if your occupancy is down you should not raise rents. Ive found every facility Ive managed has had about the same turnover rate, 1.2 turns per year, regardless of occupancy.

If you wait for the economy to turn around, you may be waiting 5 to 10 years to boost your income. You should raise rents every year to keep up with inflation and maximize income at your property.

No. 6: Upstairs and indoor tenants will tolerate rent increases better than downstairs and drive-up tenants. This is due to the hassle of moving into upstairs and indoor units. Raise rents on these units at a higher rate than downstairs or drive-up tenants.

No. 7: Tenants who are chronically late will tolerate rent increases better than ones that pay on time or who are automatically charge via a credit card. Delinquent tenants are always "a day late and a dollar short. Delinquent tenants pay much higher rents through fees than any normal renter would ever tolerate! Raise chronically delinquent tenants at a higher rate than good paying customers.

No. 8: If you make any noticeable improvement at the facilitynew asphalt, paint unit doors, a new gate system, cameras, etc.you should always initiate a small rent increase. When tenants see what theyre getting for the money, theyre less resistant to rent increases. As a matter of fact, they expect it. Do a modest rent increase when you make obvious improvements.

No. 9: Tenants who receive specials are always more sensitive to increases than tenants who pay full price. Hey, they chose you because of price, so of course theyve been trained to focus on it. Tenants who move in on specials must be "ratcheted up. In other words, you must increase them in several increments to reach full price.

No. 10: Raising rents is wrought with fear. Fear is simply False Evidence Appearing Real. I used to fear I would have droves of tenants moving out if I raised rents any time! I now realize that tenants complain about everything. Some tenants would complain if you lowered their rents. Some would move out simply because you reminded them theyre storing junk they should throw out. After all these years, Ive never had a mass move out. Just a little complaining and a lot more money.

James Webb is a facility manager in Stockton, Calif. Hes been in the industry for 14 years. Hes a Self-Storage Talk member, and was recently featured as a Star of Self-Storage Talk.

Public Storage to Reveal 4Q 2011 Earnings Via Conference Call

Article-Public Storage to Reveal 4Q 2011 Earnings Via Conference Call

Public Storage, a self-storage real estate investment trust, will release its fourth-quarter 2011 earnings on Feb. 23. The results will be discussed during a live conference call on Feb. 24, 1 p.m. EST. The call can be accessed using the following information:
                              
Live Conference Call

  • Domestic dial-in number: 866.406.5408
  • International dial-in number: 973.582.2770
  • Conference ID number: 45750119

Conference Call Replay

  • Domestic dial-in number: 800.585.8367
  • International dial-in number: 404.537.3406
  • Conference ID number: 45750119

To access a live audio webcast, participants can visit the Company Info link at PublicStorage.com (click through to Investor Relations, then Upcoming Events). The replay will be available through March 2 through Company Info/Investor Relations/Webcasts.

Based in Glendale, Calif., Public Storage has interests in 2,056 self-storage facilities in 38 U.S. states with approximately 131 million net rentable square feet. Operating under the Shurgard brand name, the company also has 189 facilities in seven European countries with approximately 10 million net rentable square feet.

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Medical Marijuana at Washington State Self-Storage Facility Concerns Residents

Article-Medical Marijuana at Washington State Self-Storage Facility Concerns Residents

A-1 Heated Storage in Sedro-Woolley, Wash., has found itself at the center of a medical-marijuana debate. Neighbors are expressing concern that the facility, which is allowing tenants to store and grow dozens of legal pot plants in 26 units with access to water and artificial light, is creating traffic and safety problems in the neighborhood. The neighbors fear an overall increased number of cars and impaired drivers resulting from a proposed facility expansion.

Facility owner Tom Swett recently received a permit to add 14 more pot-friendly units. He told the source self-storage facilities are safe places for legal marijuana users to access their plants because storing plants at home or in a garden attracts thieves and attention from police. At a self-storage facility, security is generally tighter, and legal restrictions can be followed.

Swett added marijuana-storing customers don't sell the substance, need to get approval from a doctor and must abide by all state laws to rent and keep a unit.

A-1 Heated Storage is at 1230 Warner St., on the east side of Sedro-Woolley. The town is home to about 10,000 people, and lies 70 miles north of Seattle and 50 miles south of the Canadian border.

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ISS Expo in Las Vegas Answers Self-Storage Operators Legal Questions

Article-ISS Expo in Las Vegas Answers Self-Storage Operators Legal Questions

With TV reality shows shining a spotlight on the self-storage industrys lien-sale practices, facility operators are keenly aware of their legal risks and responsibilities. Concerns over wrongful-sale lawsuits has led self-storage owners and managers to seek the legal information they need to operate their business to the letter of the law.

Several education sessions of the Inside Self-Storage World Expo in Las Vegas, March 14-16, will highlight self-storage legal risks and show operators how to avoid them. The Legal Learning Live workshop on March 15 will cover lien sales and a range of other legal topics. During the four-hour session, attorney Jeffrey Greenberger will provide a detailed overview of the lien-sale process, including steps to take in the event of a lawsuit. The seminar will include a workbook and a series of sample forms attendees can reference in their self-storage operation.

The ISS Expo will also include seminars on:  

  • Structuring a self-storage business for legal protection and risk-prevention
  • Managing self-storage auctions
  • Revising rental agreements
  • Dealing with tenant bankruptcy

In addition, attendees can participate in an open-forum Legal Q&A, where they can ask Greenberger specific questions. The interactive, one-hour discussion will cover as many topics as time allows.

The ISS Expo at the Paris Hotel & Resort will feature 36 seminars, four workshops, two days of product and service exhibits, and peer-to-peer networking events. Show details are available at www.insideselfstorageworldexpo.com.

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