Rapid Self Storage in Tulare, Calif., is nearing completion on an extensive renovation project after being purchased in late 2012 by brothers Eric and Mike Fishback. Since the project began last February, the Fishbacks have painted the facility exterior, installed a taller wrought-iron fence, put in video cameras and lighting, added key-code access, improved traffic flow, and remodeled the managers office.

The owners also built new interior unit walls for added security and cleared bushes to open the facilitys appearance. They still have plans to improve landscaping, replace a rear fence and install roll-up doors on units.

It was the most rundown place we had seen, Mike Fishback said. We had to do a lot of improvements.

We were able to keep all customers during the construction, added Eric Fishback. It was one of the biggest challenges we had.

The Fishbacks also own Mid Valley Storage in Visalia, Calif.

By David Wolf

Hiring a marketing-services agency for your self-storage business is an important decision that involves evaluating a lot of criteria to ensure you hire the right partner. There are many questions about the best path to take when it comes to the assessment process. This overview separates the fiction from the facts.

Fiction No. 1

You should only work with an agency that has self-storage industry experience.

This is not necessarily true. Finding a marketing agency with expertise in the self-storage industry and an understanding of the drivers that impact tenant acquisition is certainly beneficial, but its not a deal-breaker.

Fiction No. 2

Case studies and client references are not crucial when selecting an agency.

This is incorrect. Case studies should be a key criteria of the agency-selection process. Evaluating samples of work is also very helpful. Ask for examples that are relevant to the engagement and scope of services you seek. Lastly, ask for client references so you can discuss their experiences working with the agency youre considering.

Fiction No. 3

The ownership of creative and digital assets is not a major concern.

Its important to define who maintains ownership and the rights of creative and digital assets in your relationship. For example, some marketing agencies offer a template-hosted solution, whereby it skins a website using your brand and creative assets on its Web-operating platform. This is a cost-effective solution that provides a proven site layout and positive user experience. However, if you terminate the relationship, you may be left without a website.

I strongly advise that you maintain control of all digital assets as well as website and marketing materials in any relationship you enter. It ensures you can terminate the relationship without any business interruption and protects you if something adverse happens to the agency.

Fiction No. 4

The best way to hire an agency is through a lengthy request for proposal (RFP).

The best way to evaluate a marketing-services agency is to have it do a project. If youre asking for a specific deliverable that takes a lot of time to produce, compensate the agency for its time and resources. You may also want to consider hiring a consultant to help you write your RFP, particularly one who has experience in evaluating agencies.

Fact No. 1

Capabilities evaluation of an agency is really important.

You want to make sure the agency youre evaluating is capable of delivering the marketing services you require. For example, what services make up the company's core revenue stream? Can the agency provide relevant case studies?

Fact No. 2

Account service and the resources dedicated to your account is important.

Its very important that you evaluate the depth of the agencys account-service team and the amount of interaction and implementation theyll provide. Its also essential to define which party will be responsible for certain tasks in the engagement, especially if youll be doing some of the implementation internally. Establishing these guidelines at the onset of the relationship will ensure faster implementation and delineate the roles and responsibilities of each party.

Fact No. 3

Its difficult to determine what to pay an agency.

It can be tricky to establish the value an agency can bring. One approach is to do a cost-benefit analysis whereby you evaluate the cost of your time or the cost to hire an experienced in-house expert vs. hiring an agency. In addition, youll need to consider the cost of regularly investing in education on the latest marketing trends, especially in digital advertising.

Fact No. 4

A customizable, online solution is important.

If you use an agency with a template solution, you may be limited in what you can do with your website content. Specifically, youll want a content-management system that allows you to access your website and make changes to layout, copy and functionality as well as implement onsite search engine optimization campaigns.

To ensure a good user experience, make sure the website is responsive. This means it will render and conform to any device (desktop, mobile, tablet) a prospective tenant is using. It should also offer seamless navigation and the ability to make unit reservations.

While this list in no way covers all the misconceptions and realities about hiring a marketing-services agency, it touches on the most important aspects. Much like hiring any outside contractor, you need too first determine your needs, get referrals and look for companies in which you identify. Finding the right partner can help you take your self-storage marketing to a whole new level.

Dave Wolf has been the managing partner of Linkmedia 360 since 2004. Hes responsible for a number of innovative strategies that have enabled the companys clients to use online, mobile and social media to maximize the impact of their lead-generation campaigns. For more information, call 877.843.1091; e-mail [email protected] ; visit www.linkmedia360.com .

After a successful 2013, most self-storage operators are continuing to bask in their own glory and, in general, industry properties continue to improve. Its now time for owners to look into the crystal ball and position themselves for success in 2014. Many indicators suggest that after exhibiting an incredible pace of recovery since 2009, the self-storage real estate sector will likely slow or flatten this year.

The year-over-year performance of the industry real estate investment trusts (REITs) started to slow as much as 200 basis points from 2012 to 2013. This, along with the decline in stock prices in NovemberCubeSmart at -11.22 percent, Extra Space Storage Inc. at -8.85 percent, Public Storage Inc. at -8.55 percent and Sovran Self-Storage Inc. at -12.75 percenthas left the REITs with a more than 10 percent correction in pricing.

With the unemployment rate at 7 percent, the Federal Reserves bond-buying program is in a position to start tapering. The potential impact on interest rates and a modest outlook on economic growth should keep a lid on self-storage performance.

Property Appreciation Slowing

Self-storage owners continue to sell primarily because of life events, with few making the decision due to a desire to capitalize on the current strong transaction market and historically high prices. The Commercial Property Price Index produced by Green Street Advisors showed commercial property prices increasing by 1 percent last November. However, the company noted that all commercial property appreciation has slowed to a near standstill over the past few months.

As you can see in the accompanying chart, we have surpassed the property-valuation peak of 2007. That would lead us to believe we're headed for a more moderate property-valuation period over the next 12 months.

Source: Green Street Advisors Inc.

While we continue to see very robust transaction volume for all self-storage properties, its possible transaction volume may pause in early to mid-2014, as the market may adjust to rising interest rates and the first new development of any scale in several years. Weve started to see self-storage investors moving to smaller markets and suburban properties as they search for higher yields. I believe this will continue, as there is still plenty of capital for self-storage investment.

However, if investors are in search of bargains, theyll need to move a bit further down the quality spectrum. For example, Moodys Investors Service reported that over the last three to six months, non-major market prices have risen 5.6 percent, outpacing the 0.7 percent rise in major market prices.

Self-storage has outperformed almost all other real estate asset classes over the last few years, but the recent plateau by the industry REITs may be a sign of things to come. That's not to say we'll see a dramatic correction in property values or performance, but all good things must come to an end. With real estate investor sentiment remaining strong, weve found that the uncertainty in the market (interest rates, inflation, stock market fluctuation, etc.) may actually be increasing the demand for self-storage from large institutional investors and small entrepreneurs looking to invest in the stability of our business.

Ben Vestal is president of the Argus Self Storage Sales Network, a national network of real estate brokers who specialize in self-storage. Argus provides brokerage, consulting and marketing services to self-storage buyers and sellers and operates SelfStorage.com, a marketing medium and information resource for facility owners. For more information, call 800.55.STORE; e-mail [email protected]; visit www.argus-selfstorage.com .