When building a new self-storage site, your feasibility expert will inevitably recommend that your project include a large number of climate-controlled units. The increased need for this feature bodes well for developers, as it resolves another issue they often face—getting more building coverage on the lot. In fact, the easiest way to maximize square footage is to combine buildings and eliminate driveways. We’re seeing projects with buildings that are 100 to 200 feet or wider. This allows you to get more than 40 percent building coverage without having to build multi-story.

From here, you need to consider a new twist in the product mix: exterior-access (drive-up) climate-controlled units. Owners haven’t much embraced this concept in the past because of fear that all the heated or cooled air would be lost when a customer leaves his unit door open for too long, adversely affecting the entire building. While it’s true this could result in energy loss, you can build in safety measures to mitigate the problem. This makes the benefits outweigh the concerns.

The first advantage is there’s an outstanding desire for these units, as they offer exceptional convenience. This type of space is very rare in the marketplace, so if you’re building a new site and include these units, you’ll set yourself apart from the competition.

You’ll also make more money. How? Because you can charge more for an exterior-access climate-controlled unit than a conventional drive-up unit or interior climate-controlled space. At my sites, I’m charging a 15 percent premium. Normally these units will be built in larger sizes, ranging from 10-by-15 to 10-by-30 or greater.

Design

Some design changes will be necessary to accommodate exterior-access climate-controlled units. The first thing you’ll need to do is insulate the exterior door jambs. This can be done with regular fiberglass insulation, unless you need to comply with the 2015 International Energy Conservation Code (IECC). If that’s the case, you’ll need to use spray foam to get the appropriate amount.

None of the standard roll-up door manufacturers make a door that will comply with the code, so you’ll need to purchase a sectional door that has a roughly R-19 value. Most building company’s standard door jambs aren’t designed to accommodate sectional doors. Normally, you’ll need to order a center plate on which the sectional door’s torsion spring will be installed.

The sectional doors are purchased through a local dealer who’ll handle installation. One problem with these doors is they don’t have a locking system to incorporate the double-lock approach that's standard in the self-storage industry. This will involve some customization.

If you’re also installing your building on a 1 percent grade to minimize the number of steps on your project, these doors can be installed to follow the grade like a standard self-storage door. The door company will think you’re crazy, but it does work. I’ve done it on all my buildings.

Insulation

The problem of losing conditioned air through open unit doors should be mitigated by installing insulated walls on the interior. Then you’ll only lose the heat in a few units, not the whole building. You should have insulated walls every 40 feet. These will consist of regular four-inch, R-13 insulation with Galvalume partition on both sides.

For your HVAC system, you’ll have a vent in every (or every other) unit so you get the correct heat or coolant forced into the space. The duct should be on the inside wall of the normal climate-controlled unit, and then you’ll install these small ducts every 10 to 20 feet.

Cost

Climate-controlled units cost a lot more to build than traditional ones, so it makes sense to convert as much of the building to climate control as possible. For years, we built structures in which the inside units were climate-controlled and the outside units were not. This design is becoming obsolete when following IECC in northern climates (regions four through seven). The adoption of the code stipulates a thermal break in the foundation must be made between the heated and unheated units. This is an expensive option and a bad detail because it allows the two sections of the foundation to move separately.

To avoid this, you can just build a total climate-controlled building. Plus, you may save money in many states because you can design an insulated floating slab in lieu of a standard frost-wall foundation. The insulated foundation design is considerably cheaper than the conventional.

Whether you’re looking to build your first climate-controlled site or your 12th, consider this convenient product niche to complement your total offering. Not only can you increase your property’s revenue with drive-up climate-controlled units, they’ll help you better compete in a busy market.

Jamie Lindau is a self-storage owner and the national sales manager at Trachte Buildings Systems, which designs, manufactures and erects a full line of pre-engineered and customized steel self-storage systems, including single- and multi-story, portable storage, interior partition and corridor, and canopy boat/RV. He presents Trachte’s free “Building Blocks of Self-Storage” seminar in more than a dozen cities throughout North America every year. For more information, call 800.356.5824; visit www.trachte.com. 

Self-storage properties are constantly changing hands, and Inside Self-Storage is regularly notified of these market transactions. Many are covered in detail on the ISS website and available for viewing on the “Acquisitions and Buying” topics page. Following are additional acquisitions and sales that weren’t covered.

106 Self Storage in Plympton, Mass., was sold for $3 million to a private investment firm. The 6-acre property at 106 County Road comprises eight buildings containing more than 330 units and a rental office. The transaction was facilitated by Investment Real Estate LLC (IRE).

The two-property A Self Storage Depot portfolio in North Carolina was sold for $8 million. Built in phases, the properties at 450 Naples Road in Hendersonville, N.C., and 875 Charlotte Highway in Fairview, N.C., comprise 71,450 rentable square feet of storage space in 503 units. The seller was represented in the transaction by James Cox, vice president, and Joey Godbold, CEO, of SVN Percival Partners LLC, both broker affiliates for the Argus Self Storage Sales Network.

Aberdeen Mini Storage in Aberdeen, Wash., was sold for $2.2 million to a California-based buyer. The 1.8-acre property at 316 S. Washington St., comprises 44,689 square feet of storage space in 327 units. The buyer and the seller, a national self-storage operator, were represented in the transaction by Christopher R. Secreto, an investment specialist for Marcus & Millichap (M&M).

Brazos Moving and Storage in College Station, Texas, was sold to a limited-liability company (LLC). Completed in January, the property at 10099 State Highway 30 comprises 60,550 rentable square feet of storage space in 408 units. The buyer and the seller, an LLC, were represented in the transaction by Dave Knobler, first vice president of investments, and Charles “Chico” LeClaire, executive managing director of investments for M&M.

A Dallas self-storage facility managed by real estate investment trust CubeSmart was sold. Opened in 2017, the property at 5505 Maple Ave. comprises 100,239 rentable square feet in 1,111 units. The buyer and the local seller were represented in the transaction by John Arnold, Bill Bellomy and Michael Johnson, brokers with Bellomy & Co.

East Hickman Self Storage at 8103 Vaughn Circle in Lyles, Tenn., was sold for $2.7 million. The off-market transaction was co-brokered by EquiCap Commercial and Argus affiliates from Grisanti Group Commercial Real Estate.

F&R Grand Avenue Mini Storage in Peoria, Ariz., sold for $2.1 million to an international self-storage investment group. The property at 8543 Grand Ave. spans just over an acre and contains 338 units. The California-based seller was represented in the transaction by Jeff Gorden, vice president, and Kyle Topper, associate, for Eagle Commercial Realty Services, both Argus affiliates.

Fortuna Road Storage in Yuma, Ariz., was sold to a private investor. The property at 11707 S. Fortuna Road comprises 61,218 square feet of storage space in 434 units. It also contains vehicle-parking spaces. The buyer and the seller, also a private investor, were represented in the transaction by Devin Beasley, land-investment advisor, Luke Elliot, investment specialist, and Michael A. Mele, senior vice president of investments, for M&M.

Great Space Storage in Bonita Springs, Fla., was sold to a private buyer. The 2.9-acre property at 11301 Bonita Beach Road S.E. comprises 40,230 rentable square feet in 329 units. It also contains two apartment units and 17 parking spaces. The seller was represented in the transaction by Ryan Clark, director of investment sales, for SkyView Advisors.

Hyde Park Storage in Tampa, Fla., was sold to a private investor. The property at 1600 W. Platt St. comprises 10,916 rentable square feet in 205 climate-controlled units. The buyer and the seller, also a private investor, were represented in the transaction by Elliot, Mele and Brian Fulton, investment associate, for M&M.

Elmo Storage in Austin, Texas, sold to a Houston-based buyer. The property at 405 E. St. Elmo Road contains 319 units. The buyer and the local seller were represented in the transaction by Arnold, Bellomy and Johnson.

Self Storage Centers of America in Tampa, Fla., was sold to a private investor. The property at 9234 Causeway Blvd. comprises 79,325 rentable square feet of storage space in 705 units. The buyer and the seller, also a private investor, were represented in the transaction by Elliot and Mele.

Southside Storage at 4724 S. Walnut St. Pike in Bloomington, Ind., was sold. The seller, an LLC, was represented in the transaction by Mele, Sean M. Delaney and Jeffrey L. Herman, investment specialists with M&M. They were assisted by M&M Regional Manager Joshua Caruana. The buyer was represented by Jeff Brawley, managing broker for Weichert, Realtors – The Owens Group.

Springfield Mini Storage in Sonora, Calif., was sold for $1.65 million to Huntington LP of Burbank, Calif. The 1.74-acre property at 21660 Brian Lane contains five single-story buildings comprising 26,230 rentable square feet of storage space in 278 units. It also includes a manager’s office and residence. The seller, 1426 Investments, was represented in the transaction by Bobby Loeffler, president, and Tyler Skelly, national director, of The Loeffler Storage Group.

Storage Saums Road in Katy, Texas, was sold to a Dallas-based buyer. The 2.96-acre property at 19936 Saums Road comprises 27,270 rentable square feet of space in 306 units, and includes land for expansion. The buyer and Conroe, Texas-based seller were represented in the transaction by Arnold, Bellomy and Johnson.

Stow Away Mini Storage in Yuba City, Calif., was sold for $1.4 million to an exchange buyer from Redding, Calif. The 2.64-acre property at 889 N. George Washington Blvd. contains 11 single-story buildings comprising 30,965 rentable square feet of space in 264 units. It also includes 24 open-parking stalls, a manager’s office and residence. The buyer and the seller, Dannye A. De Lorenzo Trust, were represented in this transaction by Loeffler and Skelly.

Superior Storage in Edinburg, Texas, was sold to a San Diego-based buyer. The property at 3102 S. McColl Road comprises 70,640 rentable square feet in 542 units. The buyer and Texas-based seller were represented in the transaction by Arnold, Bellomy and Johnson.

Tallassee Mini Storage in Tallassee, Ala., was sold for $915,000 to a local investor. The 2.2-acre property at 89089 Tallassee Highway comprises 27,400 rentable square feet of storage space in 190 units. The seller was represented in the transaction by Bill Barnhill and Stuart P. LaGroue, both Argus affiliates.

A two-property portfolio in Clinton, Mo., was sold for $1.79 million to Eagle Avenue Storage LLC. Highway 7 Storage at 252 N.W. Highway 7 comprises 53,530 rentable square feet. EMC Self Storage at 502 E. Pine St. contains 15,024 rentable square feet and has room for expansion. The seller was represented by Larry Goldman, an investment property specialist for RE/MAX Commercial and an Argus affiliate.

Phillips Development & Realty purchased a 1.5-acre parcel on Southwest Boulevard in Kansas City, Kan., on which it plans to build a 100,000-square-foot storage facility containing 710 units. Construction is slated to begin during the third quarter, with the facility opening in late 2019.

A private investor has purchased a 7.3-acre property at 27 N. Courthouse Road in North Chesterfield, Va., to develop a self-storage facility. The buyer and the seller, an LLC, were represented in the transaction by Elliot and Mele.

Argus is a Denver-based network of real estate brokers who specialize in storage properties. Formed in 1994, the company has 36 broker affiliates covering nearly 40 markets.

With offices in Atlanta, Houston, and Austin, Texas, Bellomy & Co. focuses on the sale of self-storage, industrial, office and retail properties nationwide.

Headquartered in Saint Charles, Ill., EquiCap is a boutique brokerage firm specializing in the self-storage industry. Its primary focus is the mid-west and mid-south markets.

Since its inception in 1998, IRE has provided brokerage, construction, development and management services to self-storage owners and investors.

The Loeffler Self-Storage Group specializes in self-storage real estate in California and Nevada, having closed more than 80 transactions in those states.

Founded in 1971, M&M is a commercial-property investment firm with more than 1,500 investment professionals in offices throughout Canada and the United States.

SkyView is a boutique firm specializing in self-storage acquisition, development, facility expansion and renovation, refinancing, and sales. Based in Tampa, Fla., the firm also has offices in Cleveland and Milwaukee.

Source:
Rebusiness Online, Phillips Development Buys 1.5-Acre Site, Plans 100,000 SF Self-Storage Facility in Kansas City

Plains Road Mini Storage in Mentor-of-the-Lake, Ohio, has donated free use of one of its self-storage units to Little Annie’s Hope Train (LAHT), a nonprofit that helps the homeless in Akron, Cleveland and Painesville, Ohio. The organization previously operated out of the garage of LAHT founder Annie Felice Kline.

LAHT most recently benefited from a drive spearheaded by Colin Metz, a 7-year-old resident of Willoughby, Ohio. The child started collecting goods for donation after watching a YouTube video about the mistreatment of a homeless man. “When I saw that, I walked away and went into my bedroom and started crying,” he said. “Then, I talked to my mom and told her I wanted to go out and give stuff to the poor.”

The boy’s mother, Colleen Brown Metz, contacted Kline to ask what items her charity needs most. Her son then organized a donation drive at Grant Elementary School, where he attends and his mother teaches, to collect blankets, clothes, hygiene products and more. “He really did it all,” she said. “He collected the stuff from the classrooms. He sent the fliers out. He communicated with the principal. He really spearheaded this.”

In addition to donations from students, parents and teachers, LAHT received hand warmers and new clothing from the Willoughby Junior Women’s Club. The items were distributed to those in need on Feb. 22, at St. Mary Catholic Church in Painesville.

“I just feel so happy right now,” said Colin Metz, who handed out donation bags during the event. The church also provided hot meals during the giveaway.

Kline, who launched LAHT three years ago, recently received a “Lifetime Achievement Award” from President Donald Trump for her charitable efforts, the source reported. Along with handing out the “survival bags” twice a week, she gives out laundry vouchers, and is now partnering with a barber at Dapper Shave and Cut to provide free haircuts.

Source:
The News Herald, 7-Year-Old Willoughby Boy Collects Donations for People in Need

Strategic Storage Growth Trust Inc. (SSGT), a public, non-traded real estate investment trust focused on self-storage acquisition and development, has acquired a newly constructed facility in the Tampa, Fla., suburb of Riverview. The multi-story property is near U.S. Route 301, which runs across the South Atlantic states, according to a press release.

The 3.4-acre site at 9811 Progress Blvd. comprises 54,000 square feet of storage space, including 28,000 square feet of climate-controlled space, in 695 units. Security measures include keypad entry, individual unit alarms and video cameras.

“A focus of Strategic Storage Growth Trust is to acquire self-storage properties that have the opportunity to add value to our portfolio through active management,” said Wayne Johnson, chief investment officer. “This newly constructed, class-A property is in an area with growing demand for self-storage, and provides an amenities package that we believe will be particularly attractive to our customers.”

The buyer and the seller were represented in the transaction by Luke Elliott and Michael A. Mele, investment specialists for Marcus & Millichap, a real estate investment firm with offices in Canada and the United States.

SSGT recently completed its purchase of a ground-up self-storage development in Pembroke Pines, Fla. The site includes 84,000 square feet of storage space in 870 climate-controlled units. The company is also converting a former industrial building in Asheville, N.C., to self-storage, and has two properties under development in the Greater Toronto Area.

SSGT focuses on the acquisition, development, redevelopment and lease-up of self-storage properties. Its portfolio currently consists of 23 storage facilities in 10 states comprising approximately 1.7 million net rentable square feet in 15,300 storage units. The company is sponsored by SmartStop Asset Management LLC, a diversified real estate company with a managed portfolio of 111 self-storage facilities in Canada and the United States. Its managed properties comprise approximately 8.1 million rentable square feet.

In a joint venture with Patriot Self Storage Management, real estate investment firm Passco Cos. LLC has acquired Private Mini Storage in Houston. The facility will be rebranded as Patriot Self Storage, according to a press release.

The three-story property at 4217 San Felipe St. is in the River Oaks community. It comprises 54,294 square feet of rentable self-storage space in 503 climate-controlled units. It also offers 1,000 square feet of wine storage.

“This purchase offered the opportunity to acquire a high-performing self-storage asset in a market that is primed for strong economic growth,” said Passco President Scott Allen. “Houston has an exceptionally diverse and growing local economy, which will continue to drive demand for these properties over the next several years.”

The buyer and the seller, a partnership between real estate firm Clarion Partners and Private Mini Storage, were represented in the transaction by Kenneth Cox, executive managing director, and Aaron Swerdlin, vice chairman, of NKF Capital Markets, the real estate firm that brokered the transaction.

Headquartered in Irvine, Calif., Passco is a real estate investment firm specializing in the acquisition of commercial, multi-family and self-storage assets. Its services include asset and property management, leasing, and property development and construction. Passco has $2.5 billion in assets under management and is involved with more than 50 properties in 17 states.

Founded in 2006 by Hal Perdew, Patriot Self Storage is headquartered in Osprey, Fla. Its principals have more than 40 years of real estate and financial-management experience, according to its website.

NKF offers investment sales, transaction management, debt placement, proprietary lending, and appraisal and valuation advisory services. The group has completed more than $6 billion in transactions across more than 540 properties.

U.K. self-storage operator Safestore Holdings PLC has released its financial statement for the first quarter of its 2018 fiscal year, which ended Jan. 31. The report indicates Safestore experienced growth in revenue and occupancy for most of its operating portfolio in France and the United Kingdom but saw a drop in average rental rates across the board.

Total revenue for the period was up 9.8 percent to £35.1 million, with “like-for-like” growth for the group up 4.5 percent, using constant exchange rate, in both operating regions. Same-store revenue in the U.K. grew 4.3 percent, while the company’s Paris business increased 5.5 percent compared to the same period in 2017.

Occupancy across the company’s portfolio was 70 percent at the end of the period, an increase of 1.4 percent. Same-store occupancy was 71.5 percent, an increase of 2.8 percent. U.K. occupancy was 68.9 percent, a 1.9 percent bump from a year ago. Rental rates across the U.K. portfolio fell 4.9 percent year over year, with same-store facilities decreasing 1.1 percent. In France, occupancy was 74.9 percent, down .5 percent from a year ago, while rental rates fell 3 percent.

"Our first-quarter performance has been pleasing, supported by revenue from our recent acquisition of Alligator Self Storage complementing solid like-for-like growth. The strong trading momentum from our Paris stores continued in Q1, combined with encouraging U.K. occupancy growth,” said Frederic Vecchioli, CEO.

"Over the last 18 months, we have consolidated our market-leading positions in the U.K. and Paris with the addition of 30 stores to the portfolio via the acquisitions of Space Maker and Alligator and the opening of six new sites,” Vecchioli continued. “We continue to progress our new store pipeline with four new sites in London (Mitcham, Paddington Marble Arch), Birmingham Merry Hill and Paris Poissy. In addition, our strong and flexible balance sheet allows us to continue to consider value accretive investments as and when they arise.”

The company’s unrented unit space is also a primary source for future revenue growth. "Our priority, and largest opportunity, remains the significant upside from the utilization of our 1.9 million square feet of invested, unlet space,” Vecchioli noted. “We remain confident in the future and focused on the continued delivery of value to all shareholders."

Safestore operates 146 self-storage facilities, including 120 facilities it owns in the U.K. and 26 in France. Its storage properties comprise 6.27 million square feet of storage space and serve approximately 60,000 customers.

Source:
Safestore, First quarter trading update for the period 1 November 2017 to 31 January 2018

As self-storage providers, we’re always looking for ways to connect with our customers where they are. Today’s consumer wants an easy, mobile-friendly way to inquire about available storage units and current rates. And he would prefer to do it without having to talk to anyone.

A research report from technology firm Aberdeen Group discovered that live chat was by far the preferred method of communication for online shoppers. This is especially true for young people who’ve grown up texting as their main form of communiqué rather than voice-to-voice conversations.

There are several other reasons why live chat might be a good idea for your storage business. Let’s explore them.

Convenience

Chat is quickly becoming the preferred method of first communication among customers. This is because they can get immediate feedback to their questions without feeling like they’re going to get pressured to buy like they might over the phone.

“I think people are intimidated to get on the phone with a sales rep and ask about pricing or process questions too early because they don’t want to get hard-sold when they’re just fact-finding,” says Katie Meurin, marketing director for ZCO Corp., a mobile-app development company. “Live chat allows them to get answers with no delay, but also gives them the ‘out’ of being able to sign on and off chat as they please.”

Customers get the best of both worlds: the opportunity to communicate with a live person while still being able to control the situation. They’re also able to do other things while on chat. According to digital-marketing firm Econsultancy, 51 percent of customers prefer live chat because it allows them to multi-task during the conversation.

Potential Expense Reduction

One of the best benefits of live chat is it can reduce a self-storage facility’s expenses. Store managers can juggle other tasks while chatting with a customer. They can also manage multiple chat sessions if needed. A study by market-research company Forrester Research shows that live-chat service is 17 percent to 30 percent cheaper than using the phone.

Increased Sales Conversions

Across most industries, the effectiveness of live chat in the conversion process has been proven time and time again. A case study featuring Jerome’s Furniture in Southern California showed its conversion rate was 10 times higher for customers who used chat.

West Coast Self-Storage recently initiated live chat to engage with potential customers. The company found that of those who inquired about rate and availability, the conversion is close to 90 percent. It also found that customers are using chat to inquire about a range of other things such as insurance, location and cancellation policies.

“Our chat program has been successful because our customers are able to use it to ask quick questions rather than picking up the phone,” says Grant Runyon, Internet sales associate for West Coast. In January 2018 alone, the company logged more than 300 chat sessions.

Competitive Edge

One last thing to consider is how many of your local competitors are using chat. The answer is probably very few. Chat is seen as a “big-player” tool, but the fact is it isn’t expensive. According to Business.com, the average cost of a single license on a basic plan ranges from $20 to $40 per month. Many software vendors also have free trial periods that can be as long as 30 days.

The key is to look for a provider that offers additional features such as proactive chat, predefined (canned) responses, and visitor information such as geolocation, IP address, referrer links, time on the website and number of visits. It should also offer chat statistics like quantity, performance, handle times and chat-to-sale conversion (e-commerce goals). You’ll also want a program that easily integrates into your Web platform and works on mobile.

Adding live chat to your methods of customer communication should be a no-brainer. For a relatively low monthly fee and no need for additional staffing, you can quickly answer your customers questions and, hopefully, convert them into storage customers.

Derek Hines is a writer for West Coast Self-Storage, a self-storage management, acquisitions and development company with facilities in California, Oregon and Washington. He writes extensively on all subjects related to self-storage. For more information, visit www.westcoastselfstorage.com. 

While there are some aspects of running a self-storage facility that can be fun, collections are a task dreaded by many managers. Contacting past-due customers can be stressful. However, not all tenants who fall behind are having financial difficulties. Some simply aren’t good at keeping track of their monthly bills. Consider the following to streamline your collections process and improve your success rate.

Be Clear

During move-in, be clear about your payment policies and thoroughly explain the default process. Tell your new customer about late fees, what it means to be in lien status, what happens if a unit goes to auction, and other charges so he’ll know what will happen if he becomes past due. Then give him an opportunity to ask questions.

Follow up with a welcome e-mail and repeat these policies. If the information is presented to the customer during lease signing and again in a follow-up message, you’ll know it was covered twice, even if customer doesn’t remember it.

When working with past-due customers, be sympathetic to their circumstances, but refer to the lease. It’s a legal, binding document and the terms are spelled out. Make it clear his belongings will be sold if he ignores the bill.

Be Friendly

To make the rent-collection process easier, get to know your customers. Talk with them while they’re on the property. Building a positive rapport will make it easier to discuss their account, particularly if they fall behind.

Sometimes a customer simply forgets to pay a bill. When you reach out to him in a friendly manner, particularly after you’ve developed a relationship, he’ll respond quickly. Other times, your tenant could be having a hard time. In this case, be pleasant and explain the late-fee and default process. This will often motivate him to get caught up. If he’s ignoring your phone calls, e-mails or texts, then it’s time to get more serious.

Be Consistent

When it comes to delinquent accounts, consistency is key. Make collections a part of your weekly routine. Put it on your calendar as a Tuesday/Thursday/Saturday or Monday/Wednesday/Friday task. Make phone calls one day, send an e-mail on another, text on the next contact day, and then send a notice by mail. Repeat as needed. Here’s a summary of how to use each method:

• Phone: Call the home and/or cell phone and leave a message if no one answers. After several messages, call the work phone, emergency contacts and alternate numbers, asking for your customer to call you. Try to reach late-payers at different times of day, which gives you a better chance of tracking them down. If you only call in the morning and they work until 5 p.m., they may not get your message until after your office is closed. Stay late one evening to call past-due accounts.
• Snail mail: For the cost of a stamp, piece of paper and envelope, you may discover your customer has moved. Make sure you have up-to-date contact information, as it will be useful if you must send Certified letters.
• E-mail: Using the same procedure as with phone calls, send e-mails at different times of day. The customer might not check e-mail in the morning but may do so after dinner. If he has a bunch of messages to read, you want yours near the top. Use a clear subject line to let him know it’s important he opens the e-mail and responds.
• Registered e-mail: When you send registered e-mail, you receive a record of when it’s sent, when it’s delivered to the customer’s mailbox and when it’s opened. You’ll also receive a message if the message was undeliverable.
• Text message: Are you set up to text through your system? If your state law allows it and you have permission from the customer, you can send a text asking him to contact you regarding his unit/account.
• Social media messages (private, not public): If your storage business has a Twitter, Facebook or other social media account, reach out to your late-payer via private message and ask him to contact you regarding his account.

Be Thorough

Attempt to contact past-due customers at least a few times each week and reach out in several ways. Keep a record of your efforts. Impart a sense of urgency so they don’t ignore your attempts to contact them.

Start your outreach as a friendly reminder. Your message might say, “Oops, did you forget?” From there, get more determined each week so by the end of the month, you’re all business when you discuss lien fees, scheduled auctions, the lock-cut fee, Certified letter fee, etc. Be perfectly clear to these tenants that time’s running out to save their belongings.

If you have customers who are chronically late, send reminders that their rent is now due or late fees are posting soon. If they still haven’t responded by the end of the month, send another reminder. These various attempts should all be documented in their account notes.

Be Flexible

If your business allows it, offer options to assist the customer in getting caught up on rent or moving out of the unit so you can rent it to someone else. Here are some options:

• Settlement agreement: Take a partial payment and have the person empty the unit within a specific period.
• Payment plan: Offer a weekly or bi-weekly payment plan to help the tenant catch up. However, make it clear that if he misses one payment, the unit is automatically rescheduled for auction and full payment is required to stop the sale.
• Abandonment agreement: Give your customer the option to sign over the unit and its contents to your facility. Then you can dispose, sell, donate or auction the belongings. This enables you to make the unit rentable for a paying customer.

Once a customer is in lien/auction status, continue to go through all the steps, even if you think you’ll get a settlement or a payment. This way you’re covered if he doesn’t follow through. If the customer is making payments, you can always delay the auction to give him a chance to catch up.

When all else fails, send the account to a collection agency. Sometimes the fear of a bad credit report is enough to spur customers into action. Don’t just use it as a threat. Follow through if for no other reason than the customer will learn there are consequences to not paying. It may prevent it from happening again at another facility.

Unfortunately, for some self-storage customers, out of sight is out of mind. People will pay their car payment, cell-phone bill, electricity or rent, but they tend to forget about their storage unit. It isn’t a priority, especially if their stored items aren’t of high monetary or sentimental value. In some cases, customers don’t pay their bill until they’re at risk of losing their goods. However, a storage bill needs to be just as important as any other expense.

Donna Edwards is a manager at Plantation Self Storage in Bluffton, S.C., which is operated by Southeast Management Co. She joined the company in 2013 and has more than 10 years of experience in property management. Her marketing experience includes setting budgets, designing marketing plans, and creating all types of advertising. For more information, call 843.815.8000; e-mail [email protected]; visit www.southeastmanagementcompany.com. 

Scott and Valerie Gayer, owners of Valscott Properties LLC, are developing Kansas Expwy Self Storage in Kansas City, Mo. Expected to open in March, the facility will be the couple’s third storage property in the state, according to the source.

The 4.6-acre site at 1031 S. Wabash Ave. is near the southwest corner of Grand Street and Kansas Expressway. The first phase will include six buildings comprising 28,000 square feet in 150 units. The second phase will add another seven buildings, some of which will be climate-controlled.

“We’ll let the market dictate the size of the units in the second phase from what we rent out in the first phase,” Scott Gayer said, adding that the city has granted occupancy as each building is finished. The project has taken several years to complete in the face of various challenges. Adding the utilities infrastructure, for example, posed an obstacle because it had to run through the adjacent Walgreens parking lot, Gayer said.

Designed by Derington Architects LLC, the facility is being built by Hambey Construction LLC. Additional companies involved in the project include Latifi Engineering, Miller Engineering PC and Pinnacle Design Consultants LLC. Springfield First Community Bank financed the $1.3 million construction loan, the source reported.

The Gayers acquired Downtown Storage in Springfield, Mo., in 2009 and Sunshine Storage in the same city in 2011. Valscott is based in Springfield, Mo. 

Source:
SBJ, From the Ground Up: Kansas Expway Self Storage, Phase I