Storage Post Self Storage recently completed interior and exterior renovations to a multi-story facility in New Rochelle, N.Y. The project included structural changes to the office and entrance areas, new paint and signage. The structure is nearly 100 years old and includes 720 units in 65,000 square feet.

The office was enlarged and redesigned to increase space for rental transactions and retailing packing supplies. New restrooms were installed on the main floor with updated fixtures and tiles. A large, glass front door was installed to replace a smaller entryway, and all units were converted to be climate-controlled.

Exterior improvements also include new lighting to illuminate the building's architectural features. The new signs posted throughout the location feature the companys green-and-yellow brand colors.

"This is a key Storage Post facility, especially with its positioning and location. With a taller building, we knew we had to make the paint color and signs pop, said Bill Marsh, vice president of real estate. Looking at the before pictures, we believe that the new color palette has dramatically changed the store."

The project is part of a comprehensive renovation strategy the company started last year to update facilities in its portfolio. Company officials said they expect increased consumer interest and occupancy growth as a result of the improvements.

Headquartered in Atlanta, Storage Post has more than 20 locations throughout Georgia, Louisiana, New Jersey and New York. The company is actively pursuing growth opportunities through the acquisition, redevelopment and management of existing self-storage properties. The company targets both single-property and portfolio transactions.

Universal Management Co. (UMC), a Smyrna, Ga.-based provider of third-party management services for the self-storage industry, has merged with fellow management company RES Management to form Universal Storage Group (USG). The joint venture will work closely with clients, partners, employees and vendors during the transition, according to an announcement.

UMC provides services including staff training, operational consulting and more to self-storage owners and operators. RES oversees self-storage facilities and office complexes in North and South Carolina, acting as a gateway between daily operation and facility owners. The company offers budget analysis, marketing, employee relations and cost controls among its services.

UMC President and co-owner M. Anne Ballard, aka The Hat Lady, will serve as president of training, marketing and developmental services for USG. UMC Marketing Director Stacie Maxwell is now vice president of marketing for USG, overseeing the companys branding and design. She will also manage marketing-program planning and implementation, including all offline and online marketing for the companys portfolio of self-storage facilities.

Well-known for their expertise in the fields of self-storage management and marketing, Ballard and Maxwell will co-present a three-hour Marketing Workshop at the Inside Self-Storage World Expo in Las Vegas, the industrys largest conference and tradeshow. They will be joined in their presentation by Christopher Baird, CEO of Automatit Inc. The workshop will take place on April 5. Complete show details can be found at www.insideselfstorageworldexpo.com.  

Eight storage units were heavily damaged last week when a roof collapsed under the weight of snow at a self-storage facility in Roy, Utah. Six of the units were completely destroyed. Failure to keep snow and ice cleared from the building likely contributed to the collapse, fire officials said.

"We think the roof collapsed due to a combination of the weight of the snow and the age of the building, said Jeff Comeau, deputy fire chief of the Roy Fire Department. Were not sure exactly how old it was, but it is an older type of construction."

No injuries were reported, although responding firefighters first thought someone may have been living inside one of the units and called in a heavy rescue team to conduct a search using cameras. No one was found.

After conducting interviews, investigators said they now do not believe anyone was inside any of the units when they collapsed. "We had reports that people have been in and out of there at different times of the year, so we had possible occupants, [but] no verified occupants," said Cody Draheim, assistant fire chief.

Tenant property stored in the units included vehicles and sports equipment. Four of the affected units were rented to members of one family. "It's a lot of stuff in there," said tenant Carol Wiggins, who rented two of the units and whose daughter rented two others. "I got a new camp trailer, my daughter's boat and an old Fiero that she was storing."

The facility primarily serves residents of nearby condominiums and apartments.

The Amsdell family of companies has acquired three self-storage properties in the Atlanta area. The facilities will be operated by Compass Self Storage LLC, giving the brand a foray into the Georgia market. The properties comprise more than 175,000 net rentable square feet and are located at:

• 1800 Sullivan Drive, Duluth, Ga.
• 2350 Atlanta Road, Smyrna, Ga.
• 3885 Frey Road, Kennesaw, Ga.

The acquisitions were made by separate affiliates of Amsdell Group LLC and Compass. No financial terms were disclosed. JL "Chip" Mack III of McWhirter Realty Partners LLC represented Amsdell in the transaction.

"We are proud to enter the Greater Atlanta market and service our new customers," said Todd Amsdell, president. "We will continue to seek additional quality self-storage properties in this market and other select areas of the country as part of our acquisition program in 2013."

Amsdells portfolio now consists of 32 self-storage properties. Fourteen were purchased last year.

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, Georgia, 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.

By Pamela Alton

Should a self-storage manager get a bonus? That depends on whom you ask. Of course, every manager is going to say "Yes," and most owners will say, "Only if the manager deserves it!

By definition, a bonus is something provided in addition to what is expected or strictly due, such as money or other equivalent given in addition to an employees usual compensation. A bonus is like respectit should be earned, not demanded or expected. A bonus is not part of a manager's wage. It is a reward for doing a good job, for achieving or exceeding a goal.

Not all bonus programs are alike, and there is no one-size-fits-all approach. There are a number of factors to consider when designing a program. This article addresses bonus types and considerations for each.

Bonus Options

Bonuses can be based on a number of criteria:

• Number of lease signings
• Facility occupancy levels or income
• Collections success or low delinquency levels
• Meeting or exceeding budget projections
• Renting units at full price (no discounts or concessions)
• Property improvement
• Sales of ancillary products and services
• Outstanding performance during a mystery call or shop

Bonuses can also be paid in different ways, such as annually, quarterly or monthly. Besides money, they can be given in the form of vacations or trips, gift cards, or other luxuries such as flat-screen TVs or video cameras. There's no black and white when it comes to a bonus program. Like the facilities they run, managers differ from location to location, and what motivates one does not necessarily motivate another.

Per-Lease Bonus

Some owners like to use a per-lease bonus, mostly because it's easy to calculate. The manager rents X amount of units, the per-rental bonus is paid at X dollars, which equals so much per month. Does it motivate the manager? Probably not.

Isnt renting units what a manager is already getting paid to do? Why reward him for something that's already part of his job? If you're opening a new facility, then maybe a per-lease bonus could be part of an overall bonus package. With a new facility, you have hundreds of units to rent. But at some point, there will be fewer units to rent, and the rental bonus should dry up.

Per-lease bonuses usually dont cost the owner anything extra since most facilities charge the tenant an "administrative fee" of $5 to $15 at move-in. He can give a portion of that fee to the manager as a monthly bonus. However, admin fees should be considered part of facility income just like late fees and the sale of retail product. If you do decide to make the per-lease bonus part of your program, it should be based on renting units at full priceno discounts or free-month giveaways.

Facility-Income Bonus

Your facility's annual operating budget should outline monthly projections for income and expenses. Your manager should participate in the creation of this budget, since he knows the market and current rental rates as well as what rate increases should take effect in the year ahead. This way he also knows each month's income goal and can work to achieve it. A bonus based on facility-income goals serves as incentive to do so.

An income-based bonus can be paid monthly, quarterly or annually. It can be based on a percentage of the income over last year's monthly figures, for example 5 percent to 20 percent of the overage from last year, or it can be a fixed dollar amount. Just remember that if the manager is not part of the budget process and the goals are not realistic and obtainable, then all you'll do is the demotivate your manager. 

Ancillary-Sales Bonus

Some owners give the manager a percentage of retail-merchandise sales. A fairly standard percentage would be 10 percent to 20 percent. But again, isn't part of the manager's job to sell these items?

I've seen some managers sit back and not even offer to sell a lock when a new tenant moves in. If they do, they don't even think to ask if the customer also needs boxes, tape or packing materials. They have an attitude like, "Hey, I don't get paid extra to sell that stuff, so why do it?"

A good manager, on the other hand, will do everything he can to rent a unit at full price and sell the customer a lock and other merchandise, regardless of whether he's receiving a bonus to do so. He does it because he takes pride in his job, not because he's receiving a bonus. Having said that, if an owner does offer the manager a percentage of merchandise sales, the manager may sell more, as he's sharing in the profit.

Some owners offer managers a commission on the sale of "property protection," or tenant insurance. The bonus is based on how many tenants sign up for the protection program and can vary based on the program being offered.

Some owners offer managers a commission on truck rentals at the facility. I've seen an average of 10 percent to 20 percent for this bonus. Some managers really hustle truck rental, making almost as much in these commissions as they do in their wage!

That said, I'm not a big supporter of offering truck rental at self-storage facilities. I know, I know ... It can bring in customers and extra income. However, depending on how busy your facility is, truck rental can take up a lot of manager time and effort. It can sometimes be a full-time job. If you have a busy site, hire someone to run the truck-rental business and let the self-storage manager do what he was hired to do: rent units.

Mystery-Shopping Bonus

A lot of self-storage companies use mystery-shopping services to shop their managers on a monthly basis and see how well they handle customer calls and walk-ins. Are they selling the facility's services and spaces? If your manager does well on a phone shop, perhaps you reward him with a bonus. This can be $50, $100, a gift card, tickets to a baseball game or movie theater, etc. The possibilities are unlimited in this type of bonus.

Non-Monetary Bonus

To repeat: What motivates one manager may not motivate the next. It's the owners job to explore which bonus program or combination of programs will motivate each of his employees. You know what they say about money: It's always the right color and it usually fits! However, a manager would sometimes prefer his bonus in the form of gifts or company perks.

Non-monetary bonuses can come in many forms. It might be a gift like a surround-sound audio system or all-expense-paid vacation. It might be some time off to visit the kids or lay on a warm sunny beach in the middle winter. It might be medical coverage, or upgrades to the manager's apartment. All of these things are alternative ways to say "thank you" for a job well done.

There's no right or wrong in designing your bonus programs. Just remember that a bonus should be a reward, not a given. It should be neither expected nor demanded by the employee. It should make him stretch his abilities but also be reasonable and obtainable.

A bonus should be something the owner is happy to give and the manager is happy to receive. A combination of programs is best because a manager might achieve some goals but not others. For example, he might score high on his phone shop but fail to meet the facility's monthly income goal.

Just keep in mind that if a bonus program is so complicated that you need a degree in finance to decipher it, or it is unachievable, then you'll do nothing more than demotivate your manager. This could cause ill will, and that's when your manager might go looking for another job.

Pamela Alton is the owner of Mini-Management Services, a company that has been placing self-storage managers all over the United States since 1991. She can be reached at 321.890.2245 or www.mini-management.com .