An entrepreneur has launched a collection company focused on helping self-storage operators collect delinquent rent and avoid lien sales.

Drew Poland of Drew Poland Consulting is working with one self-storage operator and hopes to add more to his companys list of clients. 

Poland started an online IT management company at age 19. A few years later, he began a photography business specializing in weddings and architecture. Now hes hoping to help self-storage operators collect past debt and avoid the hassle of lien sales.  I never like to see a persons unit go to auction, he says. That is someones items that they care greatly for. By offering my services I can help facilities increase profit and avoid auctions.

Poland is also launching a cycling-based clothing line, Fixed Apparel, which provides street wear for cyclists who want to show their passion when off the bike. Fixed Apparel is set to launch April 1 with three shirt designs.

By Rob Wright

The majority of owners who get into the self-storage business come in as neophytes, with little to no understanding of how to be a successful investor. Thats because many dont start their careers in self-storagetheyve spent most of their adult life learning and perfecting their skills in other industries. Some get into storage to supplement their existing income; others view it as an investment. In reality, self-storage owners are as diverse as the tenants they serve.

But you dont have to be an expert to be successful in the storage industry. You just need to align yourself with professionals who can help guide you through the necessary phases. There are a number of issues a new owner will face, such as obtaining financing, finding a suitable location, establishing a relationship with a building manufacturer, erecting buildings, and marketing and managing the facility.

One of the most important decisions a new self-storage owner will make is in the area of construction. Once youve established a relationship with a manufacturer and ordered building components, the next step is to prepare the site for erection of the buildings. Following are suggestions that may alleviate possible problems and help keep the opening of your facility on schedule.

Building It Right

Having a site in good physical condition will expedite construction. First, the slab surface should be clean and unencumbered, ready for the components to be delivered, positioned and attached. Then there needs to be a solid base of stone, gravel, paving or concrete around the perimeter of the foundation slabs and staging area. This will reduce downtime in the case of bad weather, and will also prevent materials from being damaged or soiled. If materials have to be replaced, youll lose time and increase your costs.

When it comes to pouring the foundation, hire a qualified concrete contractor. Some contractors may be capable of pouring a driveway, but lack the experience to pour a slab that meets the specifications for a self-storage building. Concrete must be poured to the correct dimensions of the structure, and your contractor must have the tools and abilities to do this. Incorrectly poured slabs can delay a project while materials are modified or repaired to adjust. This kind of expense can and should be avoided.

You should also employ a professional and certified construction crew. Your building manufacturer may able to provide its own. Without the proper erection procedures, personnel, materials and expertise, this very important phase can become unduly expensive and time-consuming. Using an experienced erector is crucial because the construction will move faster, there will be fewer misused parts, and the overall quality of the product will be enhanced.

Not all self-storage construction crews are alike. While most are familiar with metal-building installations and can do a competent job on a variety of generic buildings, the better ones will be familiar with your specific manufacturers product. Each building is designed differently and requires unique parts. A crew familiar with your particular manufacturer can hit the ground running without constantly reviewing its parts lists and plans to understand which items go where, how they fit together, and how theyre attached. This crew can be more efficient, and the quality of work will be superior.

Supervision Makes a Difference

Unfortunately, some companies that provide labor will send construction crews to a site with no supervision. This is a mistake because a site supervisor conducts progress checks as the project moves along and final walk-throughs as it winds down. Plus, a supervisors presence will ensure every phase of contruction stays on track.

Every phase of the self-storage business is important, but the ultimate product tenants use is the building itself. Unless the construction process is planned and properly executed, owners can lose time and money. Avoid this by taking the selecting and preserving your site, and then hiring the right personnel to see your project through to completion.

Rob Wright heads up project management for BETCO Inc., a single-source manufacturer of metal self-storage buildings. He can be reached at [email protected] ; visit www.betcoinc.com .

By Tony Gardner

Technology is relentlessly progressing, so it's not surprising that the way self-storage facilities are managed continues to evolve. For decades, owners have used standalone management software to run their single-facility operations. But what do you do when you own multiple sites? That answer depends on several factors. The great news is the leading software vendors have taken the hassle out of the process.

Storing Data

Let's start with the different software technologies you can use to manage your multiple self-storage facilities. A model some companies use is called a "thin client." This is where all your site data is stored on a remote server, and the facility computers link to it. A browser, such as Internet Explorer, is used to access the data over the Internet.

This model works well when you have a fast and reliable Internet connection at each of your sites. However, any Internet problems will prevent you from doing the most basic of operations such as taking payments or moving a tenant into a unit. There are speed issues as well because every transaction must make the roundtrip between the site and the remote server data.

The next technological leap is called "SmartClient" technology. This platform, similar to thin-client architecture, houses data on a remote server, but the facility computer also has a copy of the data. Using real-time synchronization, the two data sets are always the same. The advantages of this approach are many, including instant transactions, less reliance on Internet speed or load time, real-time data backups, etc. Both models offer advantages, so do your homework and ask your preferred software vendors which technology it uses and why.

Selecting Software

Once you choose a data model for your facilities, youll need to choose a software company that supports that model and has the features you need. Shop around for enterprise management software that offers the same look and feel as your site-side management software. A manager should be able to navigate through the site's interface just as easily as he does the corporate side of the software. This goes for reports, making payments or moving in a tenant. This will reduce the learning curve throughout your organization and provide a better sense of uniformity for new employees.

When shopping for software, look for key features that will allow facility owners, managers and call-center operators to effectively access information from each site in real time. These features will vary between vendors, so ask questions about their operation and how user-friendly they are for the site manager and corporate user.

For example, consolidated reporting is one of the greatest tools an owner or management company can have when managing multiple sites. Good reports will provide necessary data across an entire portfolio, a specific district or any combination that works for your business.  This reporting permits you to tailor advertising, specials and other incentives to adapt to a given market.

Making Changes and Announcements

When you own a single self-storage facility, its fairly simple to make setting changes on the fly, whether you want to modify your gate hours or change your delinquency settings. But what happens when you have 50 facilities spread across 10 states? Making those changes typically requires a district manager to go to each site and update the settings, which increases the possibility for human error and reduces efficiency. Through the use of global settings in enterprise management software, you can select all your facilities, those only in specific markets, or even a single facility and modify all settings at once from the comfort of your corporate office or home.

Enterprise management software is meant to narrow the geographic divide between facilities by allowing owners to view data and effortlessly communicate with managers. One way to do that is through a softwares instant-chat feature. This tool is typically accessed directly in the corporate side of the software and allows an owner, call-center operator or regional manager to send an instant message to the facility manager. The better tools allow you to carry on a full dialog not only with one but several facility managers simultaneously. This time-saving tool is great for broadcasting messages to all or only targeted facilities to announce new promotions or specials.

Working With Call Centers and Kiosks

Depending on your operation and the number of facilities you have, you might also use an in-house or third-party call center. Your site-side management software should provide a notification when a rental, payment or reservation is made at the call center. This alerts the manager when a new tenant reserves a unit or a delinquent payment is made so theres no need to call the tenant. Ask your software vendor how it handles site notifications. E-mails are good, but you really need something that will pop up and get the manager's attention.

One part of enterprise management software that is often overlooked is that which interfaces with other products in the storage industry such as kiosks or online-reservation aggregators. A strong interface that allows these products and services to obtain real-time unit information or take and record payments is just as important as any of the other features mentioned. Ask your software vendor how it manages such an interface and what tools or products it offers to directly expand your presence on the Internet.

Technology continues to shape how we build our brand with prospective tenants, allow tenants to make payments, or even how we rent units. From allowing a district manager to access any of your companys facilities from his laptop to renting units through a call center halfway across the country, your management software shapes your business and allows you to manage multiple facilities as if youre sitting right there in the facility office.

Tony Gardner is vice president of QuikStor Security & Software, a one-stop-shop for security and software products in the self-storage industry since 1987. For more information call 800.321.1987; visit www.quikstor.com for a free software demo.

Selfstorage.com, a website containing information and resources for self-storage operators and customers, has launched 2011 Economic Outlook Survey of self-storage businesses to shed light on how they fared in 2010. The three-minute survey, open to all self-storage owneres, invites participants to share their experiences regarding revenue and occupancy from last year as well as their expectations for the year ahead.  

The survey is open until June 30, and the findings will be shared with the industry upon completion.

The results of last years survey revealed that 40 percent of respondents experienced lower revenue in 2009 than 2008.

To participate in the survey, visit http://owners.selfstorage.com/survey/2011survey/default.asp.

Owners.SelfStorage.com is a community of vendors, owners and industry insiders dedicated to sharing industry information.

On March 23, self-storage operators will have free access to a webinar titled An Owners Perspective on Renovation and Door Replacement, presented by Glen Nicotra, founder and managing partner of City Storage LLC, and Richard Lillie, southeast region sales manager for Janus International. The online seminar will address:

• The pros and cons of facility renovation
• The renovation and replacement of self-storage doors, including cost-effective options
• Replacing doors on occupied self-storage units
• How to reduce door-related claims by self-storage tenants

The webinar will take place at 1 p.m. ET. The free registration process should be completed at MiniStorageMessenger.com/webinar.

Nicotra has more than 20 years of experience in commercial, multi-family and residential development. His portfolio includes City Storage, more than 2,900 multi-family homes and several single-family subdivisions in three major metropolitan markets.

Lillie joined Janus in 2008. He was the companys 2009 Salesperson of the Year and is a frequent presenter for the Georgia Self Storage Association.

Janus is an international provider of self-storage doors, hallway components, portable storage and mezzanine systems. The company will be exhibiting at the Inside Self-Storage World Expo in Las Vegas, March 14-16, at the Paris Hotel & Resort. The company can be found in booth No. 609. Show information can be found at www.insideselfstorageworldexpo.com.

Florida self-storage operator StorSafe has partnered with AERC Recycling Solutions to provide electronic-waste recycling centers at all four StorSafe locations.

Acceptable e-waste materials include computers, computer accessories and peripherals, monitors, telephones and related equipment, cameras, gaming consoles, cables, wires, and other electronic equipment.

Storage and recycling go hand-in-hand, said Lindsay Landmesser, vice president of sales and marketing, AERC Recycling Solutions. People bring their unwanted electronics to storage facilities because they dont want these materials cluttering their homes and are unaware of how to properly dispose of them. By bringing electronic waste to StorSafe, people will have more space to store other valuable possessions and have the peace of mind of knowing that their electronics will be safely recycled."

StorSafe is located throughout Florida in Apollo Beach and Collier Lake (Tampa-St. Petersburg metropolitan area), Hammocks (Miami metropolitan area), and Sanford (Orlando metropolitan area).

With a green focus, AERC Recycling Solutions assists customers in end-of-life management of assets, including those containing sensitive data and components hazardous to the environment. With six locations in the United States, including one in West Melbourne, Fla., the company maintains a zero-waste-to-landfill policy for all of its hazardous electronics and electrical-recycling services.

The Nevada state lawmakers are considering Senate Bill 150, which would amend the state statutes governing self-storage (NRS 108.4733) and make several changes to existing self-storage lien law. These include legal e-mail auction notifications (with confirmation of tenant receipt), newspaper-free advertising requirements, and new procedures for handling delinquent tenants  protected property.

The bill, introduced by Sen. Mike Schneider, allows owners to notify tenants by verified means, which includes traditional mail or electronic communication, as long as there is evidence of receipt.
In addition, the pre-auction newspaper advertising requirements are removed. The only requirement is at least five bidders who are unrelated to the owner must attend the auction for it to be commercially reasonable.

 This allows storage operators to use more modern means of communication than what was available in 1983 when the law was originally written, said Travis Morrow, president of the Nevada Self-Storage Association. Verified is intentionally broad in its definition of electronic communication, deeming it as communication between two computers. Morrow said the broad usage creates flexibility so that in 10 to 15 years, the law wont need to be redrafted to include new technological advances.

The operator can still use Certified Mail if thats what makes them more comfortable, Morrow said. But the U.S. Postal Service offers other proof-of-mailing options that are far less expensive.

In regard to protected property, or property illegal to sell in a lien sale, Morrow said the new law would decrease operators liability because it requires tenants to disclose in advance if theyre going to be storing protected property and specify what exactly it is. Examples of protected property include:

• Documents or electronic data containing Social Security numbers, credit or debit card information, bank account information, passport numbers or information, and medical or legal documents
• Pharmaceuticals and prescription drugs
• Alcoholic beverages
• Firearms

In the past, for example, if a manager inadvertently sold a firearm to a convicted felon at an auction, the manager and operation would have broken the law. This new stipulation is designed to remove that possibility, Morrow explained.

Furthermore, SB 150 specifies how an operator is to dispose of or turn over protected property. Destruction must be in accordance with the law. Another option is to ask local law enforcement to remove the items. The self-storage representative forfeits all liability once law enforcement has assumed possession.

The bill went through a senate judiciary hearing March 1. Morrow was present and said the hearing went well and the association will have the chance to work on the minor changes the judiciary committee suggested.

In other changes, the bill would eliminate the distinction between personal property and items for which a title is required (most often, boats and other vehicles) in regards to the type of lien held, giving the facility a possessory lien for all personal property from the first day of late rent. Because motor vehicles, boats and personal watercraft would now be included among personal property, they are subject to possessors lien status.

The possessors lien wording may give some operators pause, as evident in the Self-Storage Talk thread Nevada SB 150. [http://www.selfstoragetalk.com/nevada/4653-nevada-sb150.html]. But Morrow said this kind of lien is common among self-storage laws and emphasizes why its extremely important to overlock units headed to auction. Otherwise, if property is removed from the facility, the lien can end. He also reminded operators that liens and lien sales are not operators only recourse in collecting debt, citing collections agencies and lawsuits.

Though its not new legislation, climate-controlled facilities and their managers should take note of Section 21: If an owner or a person acting on his or her behalf fails to indicate the range of temperature and humidity of a facility in any advertisement that refers to it as being climate controlled or fails to maintain the temperature and humidity of the facility within the advertised range, the owner is guilty of a misdemeanor and is liable to the occupant for any damages that are caused to the occupants personal property.

Morrow clarified that this rule has been codified for some time and, though its not ideal that an operator can be charged for something they didnt put in an advertisement, changing this section was not something the association wanted to pursue at this point. He added many operators are unaware of this rule and that joining the state association will help them in compliance with finicky rules such as this.

Weve still got a long way to go and a lot of battles to fight, perhaps against other industries and interests who are affected, Morrow said, specifically mentioning newspapers. But overall, Morrow feels good about the progress this bill would make.

The most recent draft of the proposed legislation can be found at http://www.leg.state.nv.us/Session/76th2011/Bills/SB/SB150.pdf.

While many self-storage professionals will flock to the Inside Self-Storage World Expo in Las Vegas, March 14-16, to take part in the education program, most are equally eager to meet with industry suppliers in the exhibit hall. The shows exhibits will be open at the Paris Hotel & Resort on March 15, noon to 5 p.m., and March 16, 9 a.m. to noon. More than 150 vendors will be on site to answer questions as well as demo and sell their self-storage products and services.

Product categories include but are not limited to: self-storage building components, security products, management software, third-party online directories, loan products, marketing services, consulting services, retail merchandise, brokerage services, and much more. This years exhibit hall features a record number of new exhibitors22 in all. Newcomers include G5 Marketing, Payment Processing Inc., American Access Systems Inc., PureRFid Inc., Virtus Real Estate and Mace Security Products.

Attendees should take advantage of the exhibit hall to meet with current suppliers, shop competition and learn from the experts about new products and services that canand willbetter the bottom line of their businesses, said Danica Cullins, director of ISS event sales. An opportunity to have these important live discussions all in one place is duplicated nowhere else.

The ISS Expo also features four comprehensive education tracks covering the industrys most relevant issues, four add-on intensive workshops and multiple peer-to-peer networking events. Details about the industrys largest conference and tradeshow can be found at www.insideselfstorageworldexpo.com. Registration can be completed online or by calling 800.230.2311. Pre-registration pricing ends March 11.

Storage Deluxe recently closed a $11.6 million financing deal for the purchase and development of a property in Brooklyn, N.Y.

The financing, obtained from Wells Fargo Bank, includes the $6.5 million purchase of an existing building from The Jewish Press Inc., as well as funding for converting the building into a self-storage facility. Cohen & Perfetto LLP, a Manhattan-based real estate law firm, assisted in the transaction.

Over the past year, Cohen & Perfetto has been fortunate enough to be involved in several of Storage Deluxes new developments in New York, said Louis A. Perfetto, managing partner.  We hope these deals will become an example of not only its growth as a company but also some positive movement in the current economy.  

The existing building, located on Third Avenue near Carroll Street, is on the cusp of the up-and- coming Red Hook neighborhood and just beside the Gowanus Canal. Storage Deluxe will convert the building into a climate-controlled facility over the next year, with 66,850 gross square feet and approximately 1,458 self-storage units. 

Matia S. Nikolovienis and Christine Mulryan oversaw the transaction. Solomon & Bernstein represented The Jewish Press Inc. Reed Smith LLP acted as the attorney for Wells Fargo Bank.

Cohen & Perfetto LLP is a full-service boutique real estate law firm that serves land developers, residential and commercial developers, banks, institutional and individual owners, landlords and tenants, and lenders and borrowers from middle market to Fortune 500 companies.