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Company Releases Self-Storage Heat-Retention Products

Article-Company Releases Self-Storage Heat-Retention Products

Warm Storage Units, a division of Temperature Retention Systems Inc., unveiled its patent-pending Weatherization & Temperature Retention Systems and Door Curtains for the self-storage industry last week.

Debuted March 15 at the Inside Self-Storage World Expo in Las Vegas, the self-storage industrys largest conference and tradeshow, the products are designed to trap heat inside typical self-storage buildings consisting of front walls and roll-up doors.

Company President Jim Ciaciuch developed the products because he was looking for ways to reduce energy costs at his own self-storage facility in Port Angeles, Wash. He wanted to eliminate air flow and dust penetration into his units by creating a door curtain that sits directly behind a units roll-up door.

The products were energy-modeled and confirmed by Marky Moore, president of Capital Review Group in Phoenix, a consulting firm specializing in engineering, energy-efficiency and tax law.

Warm Storage Units has already manufactured enough of the new products to stock inventory through June. Later this year, it plans to launch its Cool Storage Units division to provide products that keep heat out of self-storage buildings.

Based in Port Angeles, Wash., Temperature Retention Systems manufactures and distributes temperature-retention systems for several industries, including self-storage. Its products include weather curtains, storage blankets and monitoring software.

Proposed Changes to Kansas Self-Storage Lien Law Pass House

Article-Proposed Changes to Kansas Self-Storage Lien Law Pass House

Legislation in Kansas that would revise the state's self-storage lien statute passed the state's House of Representatives in February by a 106-18 vote and is being deliberated in Senate committees.

The key changes proposed by House Bill 2647 (HB 2647) are to expand the public-notice advertising options for lien sales and to allow operators to use e-mail during the lien-notification process if an address is provided by a tenant. The lobbying effort for the revision has been led by the Kansas Self Storage Association and the national Self Storage Association. The current legislation has been in place since 1983.

The Kansas legislature will meet through the end of April before adjourning. The full calendar of events relating to the legislation, as well as the most recent version of the bill submitted by the Senate Committee on Judiciary, can be found by going to kslegislature.org and searching "2647."

ISS Blog

Yen and Yang: A Lesson in Self-Storage Refinancing 101

Article-Yen and Yang: A Lesson in Self-Storage Refinancing 101

By Anita Huedepohl

A couple of self-storage owners who are refinancing their facility loans have been contacting me over the past few days, and their approaches to the task are at polar opposites. Their experiences are a great lesson in what to do and what not to do when it comes to refinancing a self-storage loan.

Yen is looking to refinance on a newer facility with a really tight cash flow because the leaseup was hampered by a less than stellar economy since the projects completion in 2009, and he has virtually no marketing. Yen has great credit but borderline property income and financials that leave the file at the bottom of the underwriters to-do list. One reason is the numbers on the owner-generated profit and loss statements are worlds apart from what was on the propertys 2011 tax returns. Lesson No. 1: Whatever you do, dont fudge on income because the tax returns are the ultimate confirmation.

Yang has a significant loan size and a 10- out of 5-star property with an attitude equally as good. He cant produce the requested financials fast enough for us and almost anticipates what we need. The client is a seasoned investor with a resume of experience and a PFS (personal financial statement) to back it up. Not only is the clients property cash flowing on relatively new construction but leaseup is continuing to climb at record levels due to great marketing. Yang has come to the table prepared to close and asks what he can do to aid the process without being demanding. Lesson No. 2: Be prepared.

Yen has known of a maturity date on the loan for more than a year and had asked his lender for an extension, which it granted. The client just completed the tax returns for us a day ago and expects us to close tomorrow due to the looming deadline. Yen forwarded me an e-mail from his lender telling him he would not get another extension, so hed best go with the financing the bank is offering and start the appraisal process. Now the client wants us to close yesterday since he did not contact us far enough in advance of his self-imposed deadline dilemma. Lesson No. 3: When it comes to refinancing your self-storage loan, start early!

Who do you think will be the faster to fund? It all comes down to your readiness to make the process flow and provide whats requested rather than combating what the underwriter needs to plaster the paper approved. Whats your lending approach, Yen or Yang?

Anita Huedepohl brings more than 25 years entrepreneurial experience to her current position as owner of Liberty Funding. Shes worked in the financial sector for more than 10 years and is experienced in all types of mortgage financing. She launched Liberty with the goal of providing market expertise to underserved sectors, namely the self-storage industry. To reach her, call 615.417.4710; visit www.libertynationwide.com.

Photo Gallery: Inside Self-Storage World Expo, Las Vegas, March 14-16, 2012

Gallery-Photo Gallery: Inside Self-Storage World Expo, Las Vegas, March 14-16, 2012

Public Storage Buys 6-Property Self-Storage Portfolio Formerly Managed by Extra Space

Article-Public Storage Buys 6-Property Self-Storage Portfolio Formerly Managed by Extra Space

Former Extra Space Storage facility in Montclair, Calif.Public Storage Inc., a self-storage real estate investment trust (REIT), recently purchased a six-facility portfolio from Babcock & Brown, an Australian global investment and advisory firm. The six self-storage facilities, which consist of 517,000 total rentable square feet and 5,500 units, were formerly branded and managed by fellow REIT Extra Space Storage Inc., and have been developed within the past three years. Their locations are Hialeah, Fla.; Montclair, Calif. (pictured); Philadelphia; Pompano Beach, Fla.; Randolph, Mass.; and Wayne, N.J.

Marc Boorstein, co-founder and principal of MJ Partners Self Storage Group, a real estate firm that helped broker the sale, said the previous ownership group also included lenders Bank of America, BMO Harris, Emigrant Realty and PNC Bank, though Babcock & Brown was the most recent owner. Boorstein and Jeff Jacobsen, also with MJ Partners, represented the sellers in the all-cash transaction.

Based in Glendale, Calif., Public Storage has interests in more than 2,056 self-storage facilities in at least 38 U.S. states with approximately 131 million net rentable square feet. Operating under the Shurgard brand name, the company also has 189 facilities in seven European countries with approximately 10 million net rentable square feet.

Headquartered in Salt Lake City, Extra Space owns operates more than 882 self-storage facilities in 34 U.S. states and Washington, D.C. The company's properties comprise approximately 585,000 units and approximately 64 million square feet of rentable storage space.

Video: Company President Fined $60K for Storing Toxic Waste at Austin, Texas, Self-Storage Facility

Article-Video: Company President Fined $60K for Storing Toxic Waste at Austin, Texas, Self-Storage Facility

A company president pleaded guilty to Texas water-code violations for hazardous waste Friday after investigators found she was responsible for storing toxic acid in a 10-by-20 unit at Pond Springs Mini Storage in the northwest part of Austin. Christine Giese, president of BenCor, a manufacturer of printed circuit boards, must pay $60,000 in fines for improper waste handling. She did not receive jail time.

After six months of Giese failing to pay her self-storage rent, management at the facility cut the lock on her unit and found nearly two dozen 55-gallon drums of a strange liquid. This finding launched an environmental and legal investigation. Hazmat crews later identified it as toxic acid that was dangerous to inhale. Environmental investigators later traced the acid to BenCor's plant in Brenham, 90 miles east of Austin.

Giese later confessed to paying a man to get rid of the waste. This man reportedly then paid another man in Austin to drop it off at the storage facility.

Pond Springs Mini Storage is part of a three-store self-storage operation, with all stores in the Austin area. The other facilities are Ben White Self Storage and Mopac Self Storage.

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Video Surveillance for Self-Storage: Modern-Day Considerations for Building a Camera System

Article-Video Surveillance for Self-Storage: Modern-Day Considerations for Building a Camera System

By Tony Gardner

In the 1940s, the Germans first used closed-circuit video systems to monitor a rocket-launch pad in Peenemunde, Germany. In the decades since, video surveillance has become a ubiquitous part of our everyday lives, from traffic-light cameras to pinhole cameras inside self-storage facility keypads. But how can these new systems benefit your facility? Whats different about the systems of today from those installed by Siemens in Germany during World War II?

In the 1970s and 80s, most video systems consisted of a black-and-white monitor, some form of mechanical multiplexor to display all the cameras onto that single monitor, and perhaps a time-lapse VCR for recording. Finding specific recorded video on the tape was an exercise that tested the most patient of people, and even when found, it was typically too grainy to be worthwhile. It really wasn't until the beginning of the 21st century that affordable and useable video surveillance became available for the self-storage industry.

A closed-circuit TV camera system.

When it comes to this technology, theres no single right answer as to the "best" system to install. However, there are a number of factors to consider when building a video system for your facility. These include:

  • Budget. A self-storage operator could opt for a basic system that covers only a few public areas or have dozens of high-end megapixel cameras installed to cover each hallway.
  • Lighting. Is the facility well-lit at night? Just like the human eye, a camera needs some form of light to monitor activity. If lighting is sparse, then the operator should account for that by installing cameras with infrared LEDs built in to allow a camera to see in low-light conditions.
  • Area. Is the facility in a high-crime area that requires additional cameras? Is vandalism a concern, or do you have a problem with graffiti on a back wall or alley?
  • Competition. This is the equivalent of keeping up with the Joneses. If your competitor down the street just installed a high-end video system and is promoting itself as the safest place in town to rent, then youll likely have to do something on par or better to keep from losing prospects or existing tenants.

Of course, there are many other considerations each facility owner must weigh. One thats often overlooked is how the system will be monitored and by whom. Unfortunately, many facility owners install a video system then forget about it, thinking its mere presence is deterrent enough. Others look at it only after a crime or incident has occurred. There are many ways to be interactive with your video system to not only ensure a safe environment for your tenants but to keep your finger on the pulse of the operation.

A central video-monitoring station. 

Integrated Features

Some self-storage owners opt for a hands-off approach and hire a central-monitoring station to monitor facility cameras. This service ranges from reactive, when motion is detected during certain hours, up to live viewing of the camera footage 24 hours per day. Understandably, the price for monitoring will vary with the level of service required. As enticing as this type of service may be, it simply doesn't fit into most budgets. That means owners or managers should take steps to be more involved by using the features built into their modern digital-surveillance systems.

A video-surveillance camera installed on a self-storage building.

For example, many storage facilities without an office make use of technology, such as a kiosk, to help run their operation. That same principle can be used with contemporary video systems. Digital video recorders (DVRs) are all-in-one devices that can become your operational command center by using the following integrated features:

  • Remote access. Most of today's DVRs can be accessed remotely via the Internet either through proprietary software installed on a computer or a Web browser such as Internet Explorer. Once connected, users have the ability to view their facilitys live cameras, review recorded video and make configuration changes. This allows owners or managers to jump on their computers from anywhere to instantly view whats going on at their facilities.
  • Portable devices. Premium DVRs also permit users to view their cameras via a smartphone or even a tablet device. This allows busy owners who are on the go and not tied to their computers to quickly log in and check on the office staff or facility status.
  • DVD and USB recording. In the "old days," video would constantly record onto a VHS tape, which made searching, archiving and providing evidence to investigative authorities difficult. DVRs now record onto a digital hard drive, just like your computer, which allows for increased storage and instant searches. In addition, providing specific recorded events for the police or an insurance company is as easy as burning a copy of it using the integrated DVD burner or an external USB drive. The original copy of the incident is preserved on your DVR.
  • Alarm inputs/outputs. This is where system integration really gets exciting. Imagine adding a connection from your perimeter-beam or office-alarm system that will immediately start a corresponding camera to record when triggered. Or how about connecting a siren or strobe light that activates when motion is detected by a given camera? Both of these scenarios are now possible.
  • E-mail notifications. Expanding on the alarm inputs/outputs is the ability of the DVR to e-mail you when an event occurs. For instance, if you want to be notified every time a particular camera detects motion during the hours your office is closed, you can set up the system to send a notification e-mail as well as video snapshots taken seconds before, during and after the event.
  • Central monitoring software (CMS). If an owner has several facilities, or if a district manager is responsible for more than one facility, it can be cumbersome to log in to multiple facility DVRs. Advanced DVRs offer CMS software that enables a single login for multiple facilities. Owners can even mix and match cameras from various sites onto a single screen, enabling them to view offices from each of their facilities.
  • Audio microphone. Watching video is the essence of a typical surveillance system, but theres no reason to limit it to just video. Now you can improve customer service by placing microphones in the rental office and listening to how your managers interact with tenants. The audio is recorded in conjunction with a selected camera for a true audiovisual playback the owner can watch later or experience remotely in real time.

Advanced Camera and DVR Abilities

If you want to expand the above DVR features and have even more control over your facility, consider a pan, tilt, zoom (PTZ) camera. The price of these cameras has dropped significantly over the years. These enable you to track tenant or manager activities around the facility. Most PTZ cameras can be controlled directly from the DVR software in the facility office or even remotely. When not actively controlling the camera, you can set up "tours" the camera will follow to ensure its always patrolling the grounds. A few strategic PTZ cameras can be just as effectiveif not more soas a dozen stationary cameras.

A pan-tilt-zoom (PTZ) camera.

When you couple all the new DVR features with high-resolution cameras, you can create a powerful, integrated solution that will enable you to provide a safe environment for tenants and their belongings, in addition to staying on top of the daily operation of the facility. Increased securityreal and perceivedshould also allow you to increase rental rates due to the added value and safety at your facility.

Video surveillance has evolved considerably over the years, both in the sophistication of the cameras and what they connect to; however, the basic need for monitoring events has stayed the same. The modern systems available today allow for a more complete and integrated solution, enabling owners, either onsite or around the world, to actually see and hear whats happening at their facility at the touch of a button. Is it time to upgrade your video-surveillance system?

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.

Houston-Area Amazing Spaces Wins Self-Storage Award from Local Website for Third Straight Year

Article-Houston-Area Amazing Spaces Wins Self-Storage Award from Local Website for Third Straight Year

The Amazing Spaces Storage Centers location in The Woodlands, Texas, has been named The Best of The Woodlands winner in the Best Storage or Self-Storage category for the third year in a row by WoodlandsOnline.com.

With 380,000 visits per month in 2011, WoodlandsOnline.com covers The Woodlands, a Houston exurb with more than 150,000 residents. Each year the sites visitors are asked to vote for their local favorites in more than 80 categories.

Our entire Amazing Spaces team appreciates our wonderful customers, and we thank them for voting us Best in The Woodlands for the third year in a row, said Joe Ordanes, facility manager. We are honored to be a part of such a great community here in The Woodlands, and we stay committed to continue delivering the highest quality of service and value in The Woodlands area.

Open since 1998, Amazing Spaces currently operates four locations in Greater Houston. The properties provide self-storage, RV and boat storage, wine storage, packing and moving supplies, and Penske truck rentals. Amazing Spaces Franchising LLC also offers franchise opportunities to qualified applicants.

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Wallet Protects Modesto, Calif., Self-Storage Employee from Gunshot Wound

Article-Wallet Protects Modesto, Calif., Self-Storage Employee from Gunshot Wound

A staff member at Modesto Mini Storage in Modesto, Calif., survived being shot during a robbery Wednesday evening when a bullet fired by the suspect hit his wallet, which shielded his thigh.

Police told the source three men went into the facility on Standiford Avenue while an accomplice waited outside in a vehicle. The three men demanded money from an employee before the group got into a fight. One of the suspects fired a shotgun. Even though the bullet didn't pierce his leg, the staff member suffered mild injuries from a struggle with the suspects.

Sammuel Leon Luna, 21, and Richard Wells Westover, 18, were detained by officers inside a getaway vehicle. Police are still looking for two additional suspects. The source does not reveal if video surveillance equipment captured the incident.

Modesto Mini Storage's website reveals the stand-alone facility has 24-hour access and rents units after office hours using a kiosk.

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ISS Blog

Taxes Plaque Self-Storage Operators Stateside and Abroad: Sales Tax, VAT, Property Tax

Article-Taxes Plaque Self-Storage Operators Stateside and Abroad: Sales Tax, VAT, Property Tax

The 2012 tax-filing deadline is just a few weeks away, which is putting money matters at the fore of many Americans' minds. I would venture to say that if you haven't yet done your taxes, you either find the task extremely off-putting or you're concerned about owing money, as people expecting refunds are generally quick to claim their due. In either case, you'll likely be holed up with TurboTax in the weeks ahead or hoofing it down to H&R Block.

Taxes are also on the minds of U.K. self-storage operators this week as the British Finance Minister, George Osborne, made a budget proposal that would force them to charge their customers value-added tax (VAT), otherwise known as sales tax. The proposal is subject to discussion between self-storage operators and the British office for revenue and customs, but if the legislation comes to pass, the law would go into effect Oct. 1.

U.K. self-storage operators Big Yellow Group PLC and Safestore Holdings PLC issued statements this week, expressing concern for the potential impact on the industry. Though they indicated the blow could be largely absorbed by their commercial customers, most of whom can recover the VAT, stock prices for both companies fell as a result of the budget proposal. (To learn more, read "U.K. Self-Storage Companies Could Be Forced to Charge Sales Tax.")

Two types of tax plaque self-storage businesses in the United States: sales tax and property tax. Operators in several states have battled against the application of sales tax to their service. South Dakota is the latest to propose sales tax on unit rentals. SB 142, introduced Jan. 24, would impose a 4 percent sales tax on the gross receipts derived from self-storage unit rentals and a 4 percent privilege-use tax on the rental payments for use of the property.

The measure is similar to a law struck down three years ago by the South Dakota Supreme Court. In that case, self-storage operators successfully argued storage units were rented real estate and not a service that should be subject to sales tax. If SB 142 were to pass, it would become the first state bill to inflict sales tax on self-storage since New Jersey raised its tax from 6 percent to 7 percent in 2006. Fortunately, New Jersey lawmakers this year have introduced a bill that would lower the sales tax back to 6 percent (though self-storage will still suffer).

Sales-tax legislation was also introduced in Illinois and North Carolina last year. The potential tax revenue has become enticing to more and more state legislatures, and each time a new law passes, it increases the chances of facility operators suffering the same fate in other states. The national and state self-storage associations have become particularly vigilant on this front, and arm themselves for the battle they may face ahead.

Property tax presents another woe for some self-storage owners. Though their net operating income may have suffered in recent years due to lower rental rates and occupancies, their properties have continually been assessed at higher values by local tax assessors, who have noted the overall success of our business model. As a result, you may be paying a higher property tax than is supported by your facility income and cap rate.

Should you challenge your property-tax bill and potentially save yourself money on one of your largest expense items? Find out in this recent article, written for Inside Self-Storage by Jeffrey Turnbull: "Appealing Self-Storage Property Taxes: Reducing Facility Expenses and Increasing Profit." As president of Kodiak Mini Storage LLC, Jeff has been involved in the self-storage business as a developer, owner and operator for more than 17 years, and currently owns two facilities in the Charlotte, N.C., market.

The conflict with the proverbial tax man is as eternal a part of the human experience as the desire for free will and a love of chocolate ... It is unlikely to fade away. But we can be alert and take action when the burden on the individual or business rivals or outweighs the potential benefit to society at large. What tax-related skirmishes have you experienced in relation to your self-storage business? Have you joined with other operators in your area to fight a sales tax, or gone head to head with the county assessor? Were you successful? What would you have done differently? Share your tales on the blog. It'll be more fun than deciphering tax forms this weekend!