OpenTech Alliance Inc., a Phoenix-based provider of self-serve kiosks, call-center services and other technology solutions for the self-storage industry, announced that its INSOMNIAC line of automated products collected more than $24 million in self-storage rental fees last year in the United States and Canada.

In all, INSOMNIAC kiosks and online solutions last year completed more than 30,000 new unit rentals, collected more than 221,000 payments and sold more than 11,000 locks. Of new move-ins, 47.9 percent were conducted outside of normal facility office hours. Similarly, 52.2 percent of payments were received during off hours, company officials said.

Kiosks also performed well during 11 major holidays tracked by the company, renting 884 units and collecting more than $645,000 in rental fees.

OpenTech has published self-storage kiosk-performance data in an annual report each year since 2008. The current whitepaper is available at opentechalliance.com.

In addition to its INSOMNIAC kiosks, the company provides a full range of self-storage rental solutions including the INSOMNIAC Live! Call Center, INSOMNIAC Online Web and mobile applications, LiveAgent! software products, and the INSOMNIAC ILock System, all available through the company's Self-Storage Cloud.

A real estate developer has proposed converting a former factory into a self-storage facility with interior units in Torrington, Conn. The project would require a zoning change, which the planning and zoning commission will discuss on Wednesday.

Current zoning does not allow for interior units in the industrial zone where the former Altek factory is located. That type of self-storage facility is only allowed in the citys downtown area.

The bank-owned property at 245 E. Elm St. is currently for sale for $150,000.

Richard Calkins, commission chairman, has previously expressed reservations about altering zoning in industrial areas because of concerns that too many buildings could be converted to storage. The commission could permit a special-use exception that would enable city officials to have some control over which industrial-zone buildings could be converted.

Late2Lien LLC has released a new system that automates the late through lien-sale process for self-storage operators. Late2Lien automates the process of properly completing and sending late and lien notices to self-storage tenants and provides verifiable service and tracking of each step throughout the process. The tool is available at a per-use-cost to any operator.

There is more to compliance than simply mailing a default notice when your occupant is late, said Jeffrey Greenberger, owner of Late2Lien and a partner in the law firm of Katz, Greenberger & Norton LLP in Cincinnati. Every states default notice must contain accurate information and particular time calculations, and must be delivered to the occupant and others in compliance with the statute. Late2Lien performs all of these critical functions with little involvement from the operator or staff.

Late2Lien automatically monitors tenant lists for delinquencies while it generates, tracks and provides the accountable history of the required notices according to each statute timeline and parameters. The system also checks for military status, handles all returned mail processing, provides required mailings to all contacts and/or lien holders, and automates advertising in compliant publications. All the information is securely stored and accessible 24/7 through the Late2Lien cloud-based portal.

Late2Lien integrates with popular self-storage software programs including SiteLink Web Edition, created by SMD Software Inc.

Late2Liens automated feature can reduce the amount of units going to the lien process at a lower cost, said Markus Hecker, chief operating officer for SMD. The direct integration between SiteLink and Late2Lien eliminates transcription errors and improves accuracy on critical tenant notifications.

Late2Lien will participate in the SiteLink User Conference in Las Vegas on April 2. It will also exhibit on April 3 and 4 at the Inside Self-Storage World Expo in Las Vegas, where the company can be found in booth #210. Greenberger will present two seminars as part of the expo's education program as well as a four-hour Legal Learning Live workshop. The expo will take place at the Paris Hotel & Resort. Show details can be found at www.insideselfstorageworldexpo.com.

Based in Cincinnati, Late2Lien provides a turnkey solution for automating the self-storage late through lien-sale process. The Late2Lien engine is powered by the requirements, timelines and processes outlined in each state statute.

SMD provides SiteLink property-management software for self-storage and portable-storage operations. Established in 1996, the company has more than 6,500 installations worldwide.

Steve Hryszko has joined Amsdell Cos. and Compass Self Storage LLC, a member of the Amsdell family of companies, as director of acquisitions. Hryszko previously worked with the Amsdell management team as vice president of acquisitions for U-Store-It, where he was directly responsible for all self-storage acquisitions and dispositions for the firm. 

Most recently, Hryszko was the senior vice president of acquisitions for Flagship Investment Group LLC, a private real estate investment company focused on self-storage and other ventures. Before joining Flagship, Hryszko was the national director of the National Self Storage Advisory Group at C.B. Richard Ellis. Throughout this career, Hryszko has led more than 1.5 billion dollars of self-storage acquisitions and dispositions.

We are so pleased to have Steve rejoin our team. His experience and expertise with self-storage acquisitions will add strength to our team as we continue to aggressively grow the company through acquisitions throughout the United States, said Todd Amsdell, president.

Headquartered in Cleveland, the Amsdell Cos. draws its roots from the family-owned construction company founded in 1928. The company, which owns and operates self-storage properties in Florida, Kentucky, Michigan, Mississippi, New Jersey, Ohio, Pennsylvania and Tennessee, has since been active in several billions of dollars worth of real estate ventures with a primary focus in self-storage.

The board of directors for Extra Space Storage Inc., a self-storage real estate investment trust, has declared a quarterly dividend of $0.25 per share on the common stock of the company for the first quarter 2013. The dividend is payable on March 29 to stockholders of record at the close of business on March 15.

Extra Space also released its quarterly earnings for the fourth quarter of 2012 on Feb. 21. A conference call took place on Feb. 22 during which CEO Spencer Kirk, along with Scott Stubbs, executive vice president and chief financial officer, and Karl Haas, executive vice president and chief operations officer, reviewed fourth-quarter performance. The conference call playback, available through March 22, will be accessible at 888.286.8010 in the United States or 617.801.6888 internationally. The conference ID is 90834799. A replay of call is also available on the investor-relations page of ExtraSpace.com.

Headquartered in Salt Lake City, Extra Space owns or operates 910 self-storage properties in 34 states; Washington, D.C.; and Puerto Rico. The companys properties comprise approximately 610,000 units and 67 million square feet of rentable space.

Storage Express has acquired Palm Storage in Richmond, Ind. The 200-unit, 24,000-square-foot facility, just north of downtown, is the company's second in the city. Storage Express plans to upgrade the property with improved lighting, security and access-control features, an automated, 24-hour rental center, and other amenities common to its portfolio.

Mickey Hurley, a broker with the Marcus & Millichap Real Estate Investment Services National Self Storage Group, represented Storage Express and the seller in the transaction.

Based in Bloomington, Ind., Storage Express owns and operates more than 75 self-storage properties across Illinois, Indiana, Kentucky, Ohio and Tennessee. The company has opened three facilities in Indiana over the past year and has others under construction. It is actively pursuing growth opportunities through acquisitions and real estate opportunities.

A zoning change should help Planet Self Storage in its bid to build a new facility in the Staples Plaza in Yorktown, N.Y. The zoning board unanimously approved allowing storage in the retail center, finalizing initial approvals and code changes it made in December 2012.

Yorktown had previously limited self-storage in commercial shopping centers only to facilities that were attached to an additional commercial use rather than a standalone building. Facility operation is prohibited between 11 p.m. and 7 a.m.

Were adding some pertinent requirements for self-storage centers that exist in another part of the code, said John Tegeder, planning director. Board members discussed the need to simplify the towns complicated code structure in its entirety, but accommodated the Planet Self Storage proposal to get the project moving.

I think theres an application now for this use in the Staples Plaza, and the bottom line is that Id like to move it along, said Michael Grace, Yorktowns supervisor. I think its nice to see that people are looking to re-invest in the town and re-invest in their properties, and I think we ought to be as accommodating as we can, and well get it perfect at a later date.

Planet Self Storage currently operates 20 facilities in Connecticut, Massachusetts, New Jersey, New York and Pennsylvania.

Two rival self-storage facility managers in Bainbridge Island, Wash., have created a friendly competition to bring in food donations for a local charity. Curt Bonderant, manager of Reliable Storage, and Janice Danielson, manager of Bainbridge Self Storage, are attempting to outdo one another in a food drive to benefit Helpline House, which provides a number of community services.

Danielson decided to up the ante on her facilitys annual food drive by challenging Bonderant to beat her donation number. The facilities will collect food donations through March 9. The self-storage manager who collects the least number of items will be required to add two extra bags of groceries and wash the competitors car. 

Helpline House provides food to about 250 families each week. While food donations have been low, the need has grown, Marilyn Gremse, food-bank manager, told the source. We continue to be surprised at the demand for services at the food bank, it continues to go up.

In January, Helpline House fed 1,231 households, its largest number of recipients to date. In addition to providing food to local families, Helpline House also offers a clothing bank, counseling and emergency housing.

Donations can be made during office hours at Reliable Storage, 9551 New Brooklyn Road; Bainbridge Self Storage, 9300 Sportsman Club Road; or the Helpline House, 282 Knechtel Way N.E., Monday through Friday, from 9:30 a.m. to 4:30 p.m.

The following is part of an exciting 2013 content series titled "What Would You Do?" ISS asked managers and owners how they would react in difficult situations that can arise at any facility. We then asked experts to advise on their recommended course of action. To see all articles and slideshows in the series, enter code WWYD13 in the search box at insideselfstorage.com. The complete sequence will roll out over several weeks and be available in full by March 10, 2013.

Keeping a self-storage facility in tip-top shape can be hard work even when everything runs smoothly, which certainly isn't all the time. In our industry, surprises regularly pop up at a facility. In addition to standard maintenance tasks like tidying the office and cleaning vacated units, operators are faced with roof leaks, malfunctioning gates, jammed doors and a slew of who-knows-what's-next.

Up keeping facility curb appeal sometimes means handling simple tasks and other times more complex projects. Do you know the best approach to common maintenance problems? Is what you would do the same as what you should do?

Inside Self-Storage reached out to facility operators to learn how they deal with specific maintenance issues. They were asked, "What would you do if ..."

• You found a roof leak?
• Your office needed a pick-me-up but there was very little money in the budget?
• Your doors started to malfunction?

The answers were provided by members of Self-Storage Talk (SST), the industry's largest online community. We then asked industry experts James Fawcett, president of Accent Building Restoration (ABR), and Amy Fuhlman, director of marketing for Janus International, to learn what operators should do.

What would you do if you found a roof leak?

Roof leaks are common at older facilities, but can even happen at a newer one. When I notice one or it is reported, I get out the extension ladder and up on the roof I go, says Ralph Driscoll (FHARumRunner), an SST member and manager of West End Self Storage in Richmond, Va. Driscoll says he can usually handle the leak himself by patching, sealing, and retightening or replacing fasteners in the suspected leaking area. Then he keeps an eye on the spot after the next storm to ensure the repair holds.

What SHOULD you do?

Fawcett: If youre comfortable doing this work yourself or have a maintenance person, the first step is to attempt to trace the leak to the possible source. Try to rule out leaking pipes or condensation if this applies. Remember that roof leaks will often travel a long distance from the source. They may pool in an area and drip down, or run along pipes, wires and other structural elements and appear some distance from the source. 

Roof leaks do not necessarily mean theres a hole somewhere, but could instead be a failure of a seal. For example, a common source of failure are leaks at a section of roof flashing that might be along a gutter, vent or other area where the roof covering is penetrated or joined to a different structural element or material.

You may be able to patch minor leaks yourself, but if you can't trace the source, theres structural damage or major water intrusion, which might cause mold or structural failure. If electrical wiring is involved or other potentially hazardous conditions exist, its safer for you and your customers if you call a professional.

What would you do if your office needed a pick-me-up but there was very little money in the budget?

A facilitys office can be viewed as warm and inviting to customers or drive them away. A drab, poorly lit or messy office tells customers you dont really care much about appearance. This will lead them to believe you wont care much about their stuff, either. Conversely, a bright, clean and appealing office shows customers you take pride in your facility.

Fortunately, it doesnt cost major bucks to create an attractive office. A few plants, a fresh coat of paint or even some new window treatments can do the trick. Gina Six Kudo (Gina6K), an SST moderator and general manager of Cochrane Road Self Storage in Morgan Hill, Calif., suggests buying fresh flowers to brighten up an office, and then keeping up on all maintenance and cleaning tasks on a regular basis.

What SHOULD you do?

Fawcett: Paint is the least expensive pick me up  possible. A new wall color or fresh coat of paint is a quick change that gives instant results. Creating an accent-colored wall in the office or adding striping are other options. Creating some new attractive graphic elements or adding pictures where appropriate can also liven up a dull space.

Another idea thats often overlooked is making changes to the lighting. New fixtures can improve the physical appearance of a space, help make the light brighter or diffuse, and can affect the direction of the light. In addition, adjusting the placement of fixtures, adding small accent lights, choosing bulbs with different color temperatures, lumens or special characteristics (i.e., reflectorized vs. LED or fluorescent bulbs)  can help impart a whole different feel to an office space.
Old cabinets and counters can be refreshed with an overlay of new laminate and hardware for a fraction of the cost of replacement.

Do a walk-through trying to see the property as a potential or current customer would. It might even help to have a third party do the same walk-through, as we tend to overlook things if we see them every day. A  shabby appearance in one key area not only sends the obvious message but may send a hidden message about the general quality of your facility and service that may encourage more complaints.

What would you do if your doors started to malfunction?

As unit doors age, theres bound to be some that dont work as well as they used to. Jerry Hughes (SMSSId), an SST senior member and owner and manager of Save Most Self Storage in

Caldwell, Idaho, has come across this problem a time or two. Hes learned to adjust the doors spring tension to keep them operating smoothly. He has also readjusted the tensions in some doors that had not been installed correctly. That was a little tough because of the duel springs. I probably should get a couple springs just to have on hand," he says.

What SHOULD you do?

Fuhlman: Todays roll-up doors are virtually maintenance-free, but occasionally youll find that an adjustment needs to be made so they open and close with ease. First, if youre using an electric operator, be sure its disengaged so you can test the door manually. Next, test the spring tension. Raise and lower the door to test the balance. If the door is easy to close but hard to open, youll need to add spring tension. If the door is hard to close but easy to open, youll need to remove spring tension.

This can be easily adjusted by your self-storage manager. It simply takes a winding bar or screwdriver being inserted into the tensioner on the barrel bracket. Rotate the device clockwise to add tension or counterclockwise to remove it. If tensioning the door does not solve your issues, contact your manufacturer for a visit from a trained door technician.

To read more great content in the ISS "What Would You Do?" business-challenges series, type code WWYD13 in the search box at insideselfstorage.com.

By Bill Alter

Youve received dozens of inquiries over the years from brokers and so-called buyers wanting to list or buy your self-storage property. Youve read other articles like this one, so you know capitalization (cap) rates are down, real estate investment trusts (REITs) are buying, and financing is available for qualified buyers. After weighing the positive reasons for selling now against the challenges and risks, youve decided nows the time. Now what?

The first thing to do is decide whether youre going to sell your property yourself or enlist the help of a broker. All the recommendations and suggestions made here assume youre hiring a broker. If youre going to sell your property on your own, you should transfer all the responsibilities Ive assigned to the broker in this article to yourself.

If you do decide to use a broker to represent you, select the right one. By the "right" broker I mean somebody who knows the self-storage business and your local market in particular. This will be a professional with a track record of helping other owners market and successfully sell their facilities. There are a lot of risks in this market. Dont let your choice of broker become one of them.

Set a Realistic Price

First, you and your broker have to establish realistic expectations of what the property will ultimately sell for and set an appropriate asking price to increase the likelihood you achieve that goal. By setting the asking price too high, you run the risk of not selling at all, thus missing the opportunity to achieve optimum value. When setting the asking price too low, you run the risk of leaving money on the table.

Most important, you must understand current market conditions and know if values are trending up or down. With this knowledge, be prepared to set a price thats ahead of the trend, whichever direction its going.

Address Maintenance Needs

The right broker will advise you as to which, if any, deferred maintenance issues should be dealt with before putting the property on the market. Unless your facility is new, the buyer should not expect it to be in like-new condition. Therefore, it may not be necessary to spend very much money improving the propertys physical condition prior to sale.

Take time to replace burned-out light bulbs, fix minor damage to doors and metal-building corners, replace faded or missing unit numbers, and generally clean up the appearance of the property. Apply a seal coat if the asphalt is showing signs of deterioration. If some aspect of your property might enhance the marketability of units or the amount of rent that can be charged, then that condition should have been addressed long ago. It would probably not be cost-effective to address these issues now.

In other words, property value is mostly a function of current income not what the income could be if you repainted all the doors, installed new landscaping or remodeled the office. Spending a lot now on issues like these will probably not translate into a substantially higher sales price because it takes time for these kinds of capital expenditures to show up as increased revenue. The most cost-effective way to achieve optimal value for your property is simply to be sure its clean. The most you should have to do is a sealcoat on the asphalt.

The bottom line is your propertys income is achieved either because of or in spite of its appearance. There are many buyers who look specifically for properties that can be improved. They believe by purchasing such a property they have a better chance of growing the income than they would if they purchased a newer property in perfect condition.

Inform the Onsite Manager

Sellers are divided on the subject of whether to inform their onsite manager that the property is for sale. Those who choose not to inform management are either afraid the manager will begin looking for other employment or simply dont want to unnecessarily upset them.

You cant expect to keep your manager in the dark for very long when countless buyers, brokers, lenders, appraisers, insurance representatives and engineers visiting the property pretend to be interested in renting units and never actually do so. The fact is your manager will figure it out sooner or later and its best it comes from you. By doing so at the beginning of the marketing process, you can also enlist your managers help in accomplishing a sale by making sure the property is presented in its best possible light.

You can assure your manager that the great majority of buyers will want to keep him, and if hes not retained, youll provide a severance package that will allow him time to secure new employment. Its much better to have your manager on your sales team than to keep him in the dark and run the risk that he could actually harm a potential sale.

You should, however, instruct your manager to direct any and all prospective buyers questions concerning financial aspects of the property to you or your broker. You should also tell him to be completely honest when answering questions concerning the physical aspects of the property.

Prepare for Due Diligence

Negotiating contracts can be time-consuming and expensive. Therefore, you should be prepared to respond to any offer you receive with a contract youre familiar with and prepared in advance by your attorney or broker. That contract should allow for minor changes to be made to fit the particular counteroffer youre making to the buyer, and you should request that the buyer use that contract if negotiations are to continue.

Your (or any) contract will include a list of items to be delivered to the buyer for review during the contingency period. Those items should be gathered and prepared in advance for delivery to the buyer quickly to minimize the length of time required for due diligence. The following items are typically included:

• Last two years and year-to-date income and expense statements
• Most recent real estate tax bill and notice of valuation
• Current rent roll
• Most recent ALTA Survey and Phase I environmental report
• Building plans, if available
• Service agreements and contracts including Yellow Pages, insurance, computer service and any other agreements with outside companies
• Preliminary title report
• Copy of loan documents for the existing financing

If you dont have the most recent ALTA survey and Phase 1 environmental report, you should complete them before marketing begins. This comes with an understanding with each respective engineer that the  reports will be updated for the benefit of the buyer for a nominal charge.

Arrange Financing

Know whether your sale will require the buyer to assume your existing financing or secure a new loan. You may want to require your buyer to demonstrate his ability to actually obtain the financing needed to close the deal. You can accept a lower offer if its all cash or if the buyer can prove his ability to get a loan.

You or your broker should contact a number of prospective lenders so youre prepared to provide whatever documentation a lender may require to process the buyers loan application as quickly as possible. The probability of a smooth and timely closing will be improved if you can provide your buyer with specific lenders names and phone numbers.

If theres an exiting loan that can or must be assumed, you should know what it takes to accomplish that and be prepared to share that information with the buyer. The process of assuming a securitized loan is very difficult these days. Find out whats involved and make sure your buyer knows, too. If theres an existing loan that will have to be paid off, know what it will cost to do that, if anything, and be prepared to deal with that as well.

Although there may have never been a better time to sell a self-storage property, its still important to plan your work and work your plan.

Bill Alter has been a self-storage specialist with Rein & Grossoehme Commercial Real Estate in Arizona since 1986. Along with business partner Denise Nunez, Alter has been responsible for the sale of more than 100 storage facilities, totaling more than 6 million square feet and $225 million. He can be reached at 602.315.0771; e-mail [email protected].