Some Americans may find getting credit for a business or car a little easier as the Federal Reserve launches a program aimed at boosting the availability of credit to consumers and small businesses.

To spur consumer lending, the Federal Reserve will lend up to $200 billion for autos, education, credit cards and more. The program, dubbed the Term Asset-Backed Securities Loan Facility, was first announced late last year and originally scheduled to start in February.

Participants must request loans by March 17. The program has the potential to generate up to $1 trillion of lending for businesses and households.

Source:  USA Today.com,  Fed Launches $200B Consumer Credit Program

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A public hearing took place in the Maine Legislature today that could have serious impact on self-storage businesses in the state. The session addressed SP 130, LD 366, “An Act to Protect Confidential Consumer Records in Self-Service Storage Facilities,” which, if passed, would require extensive administrative procedures on the part of self-storage operators.
 
The issue of abandoned records weighs heavily with self-storage operators and other commercial landlords as the number of failed businesses and delinquencies rises in tandem with economic anguish throughout the country. The proposed legislation in Maine emerged when a self-storage operator insisted on auctioning files containing private information from a defunct mortgage company, frustrating state officials.
 
Mini Self Storage in Scarborough, Maine, attempted to auction off the contents of a unit rented by a mortgage company that went out of business last summer. The unit contained 60 boxes of financial records, including loan applications with Social Security and bank-account numbers. The Maine Bureau of Consumer Credit Protection ultimately obtained a court order to confiscate the records. Other self-storage facilities have appealed to the bureau for advice in handling similar situations.
 
To protest the proposed bill, the Maine Self Storage Association and national Self Storage Association delivered letters to the bill’s sponsors offering alternate solutions that put the onus on the offending parties, not the self-storage operators themselves.
 
Under existing Maine law, items in a storage unit may be sold by the facility operator if a renter is more than 45 days late on payment. The operator is not required to inventory the unit or notify regulators when records are present, even if those records contain personal, medical or financial information. As greater numbers of mortgage companies go out of business, the risks associated with abandoned records increases.
 
Status and notes relating to the bill can be viewed here: http://janus.state.me.us/legis/LawMakerWeb/externalsiteframe.asp?ID=280030906&LD=366&Type=1&SessionID=8.
 
Source: Portland Press Herald, Your records for sale to the highest bidder

The Arizona Self-Storage Association (AZSA) has introduced a new bill to the Arizona Legislature requesting some long-overdue statutory revisions. The statutes that govern the lease and foreclosure activities of Arizona self-storage operations are more than 30 years old, and the AZSA says they no longer suitably protect tenants, the general public or the industry itself.
 
Spearheaded by attorney Richard Marmor, chair of the association’s Legal and Legislative Committee and a member of its board of directors, the bill addresses the following.

• Multiple-unit rentals: AZSA is requesting that the statute apply to singular and multiple unit rentals made by the same tenant. If passed, the legislation would allow storage operators to rent several units to one tenant under a single lease document.
  
• Foreclosure notification: The association seeks to modify the statute to permit more modern mailing methods such as a Certificate of Mailing to be used as proof of delivery of mail to tenants. 
  
• Foreclosure publishing requirements: AZSA is also seeking to eliminate the current requirement of publishing lien notices in local newspapers. The burden would still remain with the storage operator to ensure each auction sale is “commercially reasonable.” 

“Going to the legislature is never a sure thing, particularly given the tremendous efforts taking place there wrestling with Arizona’s budget woes this session,” said Marmor. “AZSA continues to be diligent in its efforts to represent and protect the public and our industry in the legislative arena.”
 
Marmor served three years as the association’s founding president. He lobbies the Arizona Legislature on behalf of self-storage operators throughout the state. He has been in the self-storage business since 1982 and currently works as a consultant to AZSA and individual operators.
 
For more information, visit www.azselfstorage.com.

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The U-Haul Co. of Dallas promoted Todd West to president. With 13 years of experience, West will be responsible for overseeing the daily operations of the company including truck, trailer and storage rentals.
 
West began his U-Haul career in August 1995 as an assistant-manager trainee for the U-Haul Center of I-45 in Houston. In January 1996, he was promoted to area field manager (AFM) of the U-Haul Co. of South Houston. Shortly thereafter, he was promoted to marketing company senior staff. Between April 1997 and April 2000, West served as AFM for the U-Haul Cos. of Austin, Dallas, North Texas and South Houston. He was promoted to marketing company president of U-Haul Co. of Dallas in July 2002. West left U-Haul in 2005, but returned in March 2008 as AFM for his current company.
 
Established in 1945, U-Haul has a network of more than 15,650 locations in 50 states and 10 Canadian provinces. For more information, visit www.uhaul.com.

As the economy continues to take America for a wild ride, self-storage owners are left looking for creative ways to rent more units, reduce operating cost and improve customer retention. Many have found that using technology to automate existing facilities is producing some real benefit. Some have even discovered they can operate their facility with limited or no onsite staff.

“In this tough economic climate, automation has enabled me to undercut the market and still be open when my competitors are not,” says Robert Walker, owner of Self Storage of America, an 1,100-unit facility in downtown Indianapolis. “A minimal investment in automation has allowed me to eliminate staffing expenses on Sundays, Mondays and all holidays, saving me $10,000 annually.”

Five years ago, running a self-storage facility without an onsite manager was something attempted by owners of only very small facilities. The idea of running a 25,000- to 40,000-square-foot facility without a manager was unheard of; but today, unmanned sites have become more commonplace. As it turns out, all facilities end up being unmanned to some degree.

Hours of Operation

It’s no secret that consumers have become use to and even expect to do business on their schedule. Gone are the days when a business can keep banker’s hours. In this respect, automated storage facilities are better equipped to serve today’s consumers. Traditional facilities with onsite or resident managers usually hold office hours for 8 to 10 hours and are closed for business the rest of the day, where unmanned facilities are open up to 24 hours.

When it comes to renting more units, there’s not much argument that when a potential renter is looking for a storage space after hours, he will bypass facilities with the light out in the office and go to the one down the street where business is still happening. But there’s a catch: To be open for business when the office is closed takes an investment in infrastructure including electronically controlled access, security cameras, ample lighting, a self-service kiosk to rent units and process payments and, yes, people.

While technology has improved to a point where customers can serve themselves, there are still times when only a live person will do. Someone still needs to answer calls, clean out units, perform lock checks, hold auctions and be available to deal with customer issues. This part of the puzzle is being solved with the help of a call center and a part-time employee to stop by the facility on a regular basis.

Designing and Building Unmanned Facilities

Jim Adams, president of Secure Holdings Inc. in Indiana, has made developing and operating fully automated facilities a part of his company’s long-term strategy. “Having built unmanned facilities from the ground up as well as more traditional storage facilities, I know firsthand each model can be done successfully,” Adams says. “A few years ago, it became obvious that we could not all buy prime locations in urban markets like Public Storage. With many of the metropolitan markets already saturated, I started looking at how I could develop a quality facility in second- and third-tier markets.”

Adams found the competition in these markets would be easy to beat, but the markets would not support large facilities that could carry the overhead associated with traditional manned storage. With an eye on development and operating costs, he determined he could build a high-quality, smaller facility by focusing on the property and not the office.

“When I surveyed the competition, I saw most did not have paved driveways, which I felt was a must,” he says. “They did not have the 8-foot fencing, cameras or good lighting and, more important, they were closed more than often than they were open. Focusing more on the quality of the facility as a whole and less on the office, we are able to provide customers with the same level of amenities found at a class-A property.”

Adams also points out that development and construction cost less too. A smaller site plan means lower legal fees, easier access to permits and better cash-on-cash return.

As far as marketing, Adams says the game is the same when it comes to attracting customers. “You still have to get the phone to ring, and the kiosk will only rent to people who are standing in front of it. You must be close to your customers, advertise on the Web and in the Yellow Pages as well as on site. Having a facility with class-A amenities is the secret.”

Managing Unmanned Facilities

After fully automating his facilities, Adams has discovered the technological advantages he offers provide customers with benefits that often exceed those available from his competitors, and they allow him to operate his facilities at a lower cost. He can manage several facilities from a central location and provide even greater focus on cleanliness, security and convenience, at a price that keeps his customers happy and coming back.

Jon Mutchner, owner of The Storage Center in Terre Haute, Ind., converted his two traditional facilities into a single, centrally managed operation. Even though his sites are three miles apart, they operate seamlessly and efficiently with the use of inventive technology. He found that within 90 days of implementing an automated approach, his kiosk served 88 customers and brought in $28,000 in new rentals.

“There are no excuses. We’re always open, and we can rent a unit or take a payment anytime of the day or night,” Mutchner says. He also finds that outstanding accounts-receivable have diminished since installation of this new technology. “Our automation is a unique convenience, and it increases our potential to keep customers.”

Owners operating unmanned or partially automated facilities agree that customers like the self-service experience and appreciate the benefits the technology provides. “I can sometimes look out of my window and watch customers as they use the kiosk—they love it,” Mutchner confirms. He finds the younger generation of self-storage customers is increasingly adapted to technology, find it comfortable, and often prefer automated solutions that allow them to conduct business quickly, at times that work best for them.

While there are those who say operating an unmanned facility is risky, Adams says, not really. In fact, he finds there is no appreciable difference in the number of break-ins or incidents of vandalism that occur at manned vs. unmanned locations. Proper site configuration reduces any unit-number confusion, and his kiosks even print maps for new customers so they know exactly where their unit is located. He also says customers don’t seem to have a preference as to whether the facility is manned. Mutchner agrees: “These days, some people put too much weight on the value of eye-to-eye contact and handshakes. This generation wants to do it themselves.”

Technology

When you examine the differences between a traditional storage location and a more automated or unmanned facility, the key differentiator becomes clear: technical sophistication. While the traditional model takes advantage of a personal touch (so long as there’s a good, personable manager available), more automated locations give customer access to valuable services even after the office has closed. Self-serve options on the Internet and on site give new and existing customers the ability to rent units, pay their bill, retrieve gate codes and update their account information. Connectivity allows management to take place remotely, often in real time.

Unmanned locations do require a greater investment in technical infrastructure, and connectivity is critical. Nevertheless, most owners find the return on investment is sound. “When we consider the faster lease-up, lower operating cost and increased cash-on-cash return automated facilities provide, unmanned operations are the secret to making money in many markets,” Adams concludes.

Robert A. Chiti is the president and CEO of Phoenix-based OpenTech Alliance Inc., developer of the INSOMNIAC line of self-storage kiosks. For more information or to see an online demo, visit www.opentechalliance.com.

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Extra Space Storage and Inside Self-Storage (ISS) will host a free webinar on “Choosing and Evaluating a Third-Party Self-Storage Management Company,” April 29, 2009, at 11:30 a.m. ET. The live event will be presented by Noah Springer, director of strategic partnerships for Extra Space, and Jim Stevens, the company’s senior vice president of acquisitions and business development.
 
The webinar will arm self-storage owners and operators with the information they need when choosing a third-party management company to run their business. The presenters will explain the differences between management-company styles and services and provide criteria for evaluating candidates. Attendees will learn how to determine if a company can adequately manage a facility’s revenue, marketing, technology, staff and more. Interested parties can register at www.insideselfstorage.com/webinars.

The one-hour webinar is sponsored by the Extra Space 3Plus Management Program. 
 
Springer manages the 3Plus program and handles acquisition efforts for Extra Space, having completed approximately $200 million in self-storage acquisitions from managed owners and joint-venture partners.
 
Stevens joined the company in January 2001 as a divisional vice president. He was promoted to his current position in November 2006 and, since that time, has overseen more than $465 million in self-storage acquisitions.
 
Based in Salt Lake City, Extra Space is a real estate investment trust that owns or operates 654 self-storage properties in 33 states and Washington, D.C. 
  
ISS provides a monthly trade magazine, bi-annual tradeshows and educational resources for the self-storage industry. It is the owner of the Self-Storage Training Institute and Self-Storage Talk (www.selfstoragetalk.com), the industry’s largest online forum and community.

Kansas Gov. Kathleen Sebelius and Nancy-Ann DeParle, a former Clinton administration official, may soon join President Obama's health care reform team.

If confirmed by the Senate, Sebelius would be named health and human services secretary. As the director of the White House Office on Health Reform, DeParle would work with Sebelius as the president's point person coordinating outreach to Congress on health care reform.

Obama's first pick for the health and human services secretary post, former Senate Majority Leader Tom Daschle, withdrew in early February amid questions about unpaid taxes.

Obama also announced the release of $155 million in stimulus package funds to establish 126 new health centers. The centers will be designed to help provide primary and preventive health care services to people without health insurance.

Source:  CNNPolitics.com,  Obama Taps Sebelius, DeParle for Health Posts

Someone claims to have been injured on your property. What do you do? Panic? No, that won’t help. Envision that you will go to the poorhouse because of an unfair legal system? That won’t help either. Besides, for the most part, our legal system really is pretty fair. So what should you do?

Obviously, whenever an accident occurs at your site, your first priority is ensuring anyone injured gets the assistance he needs. But after health and safety issues are addressed, get and document the facts. In other words, perform an investigation, the sooner the better. Large companies typically have a risk-management department that provides pre-printed “Incident Report” forms. Smaller companies can, and should, accomplish the same thing with a forward-thinking manager and a blank sheet of paper.

As soon as possible, report the incident to your insurance company. Although your carrier may want to perform its own investigation, the first question you will be asked is, “What happened?” You’ll also need to know who was involved, when, where, how and how badly they were injured. It may be that neither you nor any of your employees were onsite when the alleged accident happened. Therefore, the investigation may be done by telephone when the accident is first reported.

Hopefully, you will never have to deal with onsite injuries. The old saying “An ounce of prevention is worth a pound of cure” is a good start, but not always sufficient advice. And accidents do happen, often in ways that we couldn’t possibly have imagined.

Get the Facts

Getting all pertinent facts is important, but what may be less obvious is the necessity of thoroughly documenting the information obtained. Yes, it can be time-consuming to write down everyone’s name, address, e-mail address, home phone number, cell phone number, what they observed and their relationship to the injured person, along with the date, day of the week, time, weather conditions and even what parts of the body were injured.

You may wonder if detailed documentation is really all that necessary; after all, you have a good memory. The world will not stop spinning if you don’t do it, but a small effort now can save a lot of time, effort, aggravation and money in the future for you, your insurance company and lawyer.

Some claims get resolved (denied or paid) quickly, often within a couple of months. However, the contentious ones can go on for years, and may involve litigation. During this extended time period, employees, insurance adjusters and lawyers can come and go. Therefore, the better the initial investigation and documentation, the more likely it is that the claim can be properly valued and defended, if necessary, even two or three years after the accident.

It’s never a bad idea to have a camera onsite (whether it be surveillance or a cell phone) to provide photographic documentation of accidents. In a slip-and-fall case, a photo of the injured person’s shoes could be helpful. Likewise, a picture of floor signs warning of a wet floor near where the person fell can be useful. The point of taking photographs is not merely to document fault-finding, but rather to help someone who was not present understand what happened.

You do not need to provide photographic documentation of someone’s pain or injuries. Their medical records will be sufficient. Likewise, no gory or demeaning photos should be taken.

Don’t Lay Blame

Premises liability laws vary on a state-by-state basis and can be confusing. By way of example, a facility owner’s duty to an injured person can depend on whether he is classified as a trespasser, licensee or invitee. Similarly, whether a condition of the premises results in liability may depend on whether that condition is determined to be “unreasonably dangerous” (as opposed to merely dangerous) or “open and obvious.”

Business owners and managers do not need to concern themselves with these legal distinctions during the initial investigation. Claims adjusters and lawyers can sort through these issues after the fact. In other words, the initial investigation should not be about winning and losing, but rather about documenting the facts. To borrow a phrase from Sergeant Joe Friday from the TV show Dragnet, “Just the facts, ma’am.” It is not appropriate during the initial investigation to get into a debate as to who is to blame or is responsible.

Likewise, you should not rush to judgment against yourself or your premises. Remember, the purpose of the initial investigation is to get and document information, not assess, assign or accept blame.

As a final cautionary note, be very careful about what you say. What does “I’m sorry” mean? Sometimes juries have to determine whether that is an acknowledgement of fault or a natural expression of sympathy. Likewise, what does it mean to say, “Here’s my insurance information, which will take care of it”? Is that an admission of fault? Is this the same as saying, “They will pay you whatever you want”?

After being informed of an onsite injury, the first priority is the health and safety of anyone involved. After that, investigate and document what happened. Time and effort spent initially can save much more time, effort and aggravation later in the process of resolving a claim. Finally, let the insurance adjusters and lawyers suffer through the legal analysis. After all, that is what they are trained and paid to do.

Joshua T. Kutchin and Rocky Little are directors with Fanning, Harper & Martinson P.C. in Dallas. Both ar board certified in personal-injury trial law by the Texas Board of Legal Specialization, and practice primarily in the areas of personal-injury negligence, product-liability litigation, and premises liability litigation, with significant experience in self-storage issues. For more information, call 214.369.1300; e-mail [email protected].

The Dow Jones hit its lowest in 12 years after insurance company American International Group's (AIG) huge quarterly loss added to worries about the U.S. financial sector.

The Dow Jones industrial average (INDU) lost nerly 300 points, or 4.2 percent, according to early tallies, ending at its lowest point since April 25, 1997.

The S&P 500 (SPX) index lost 34 points, or 4.7 percent, closing at its lowest point since Oct. 28, 1996.

Source:  CNNMoney.com,  Dow Below 7,000