New York self-storage operator Manhattan Mini Storage is offering up to three months of free storage to displaced residents of the two apartment buildings that collapsed last week in East Harlem. A gas explosion is suspected of causing the incident, in which eight people were killed and dozens wounded. The offer also extends to residents of seven other buildings who were ordered to vacate because their power and gas were turned off.

“All New Yorkers will feel for the victims and survivors of this tragedy,” said Stacy Stuart, executive vice president at Edison Properties, the parent company of Manhattan Mini Storage. “But it hits us even closer to home because our E. 110th St. location is just a few blocks away, so these people are our neighbors. We’re going to do anything we can to help them during this crisis.”

Investigators suspect a gas leak triggered the explosion at around 9:30 a.m. on March 12, destroying the two buildings at 1644 and 1646 Park Ave., which contained a church and piano store in addition to apartments. Cleanup crews are continuing to remove debris to clear way for authorities to complete their investigation. Gas pipelines at the site will be pressure tested to determine if a gas leak was the cause, according to the source.

More than 60 people were injured and more than 100 residents displaced, the source reported.

Any residents who were relocated because of the explosion and are interested in taking advantage of the free storage are advised to call Manhattan Mini Storage at 212.786.7243.

Manhattan Mini Storage has 17 locations throughout Manhattan. It is owned by Edison Properties, a family-owned business that also operates Edison ParkFast, a network of 40 garages and lots throughout Baltimore, New York City and Northeast New Jersey. Edison's properties include workspace offices, executive offices and pre-built suites, The Hippodrome office building, and The Ludlow, a luxury residential high-rise on the Lower East Side.

The combined efforts of the national Self Storage Association and state associations have led to significant and substantive legislative developments that directly affect the rights of self-storage operators and their responsibilities to tenants. As many as 20 states have recently amended their laws regarding facility operation, including:

• Arizona
• Arkansas
• Colorado
• Connecticut
• Florida
• Georgia
• Illinois
• Kansas
• Maine
• Maryland
• Michigan
• Nevada
• New Jersey
• North Carolina
• Ohio
• Oregon
• Rhode Island
• Tennessee
• Texas
• Utah

A number of other states are targeted for changes this year. It’s critical that operators in states where laws have changed review the revised legislature and amend their leases and operational procedures to match the current requirements.

Most of the changes have been focused in five main areas: notice to tenants, late fees, limitation of value of stored goods, vehicle towing, and online advertising and sales. Here’s a look at these changes and how your self-storage operation might be affected.

Notice to Tenants

One of the most significant shifts in the majority of states with legislative changes is the use of an alternative method for notifying tenants of impending lien sale of their stored property. In most prior laws, lien notices were required to be sent via Certified Mail. Now many states permit the use of either verified mail (the sending of a First Class letter with a U.S. Postal Service certificate of mailing or other method of sending that confirms mailing) or e-mail.

However, not all states are consistent on the use of e-mail. A number require that if e-mail is used, there must be proof of receipt by the tenant. Fortunately, there’s self-storage management software available to meet this requirement. If the e-mail is unable to be verified as delivered, the operator is required to resend the notice via verified mail.

This shift recognizes that many self-storage tenants are mobile, and using e-mail may be a much better way to notify them an impending sale than the use of Certified Mail to a physical address at which they may no longer reside. The burden remains on the tenant to provide a valid last known address to the operator for notice purposes, as well as to update the operator about any changes to that address, including the tenant's e-mail address.

Late Fees

The recent changes to late-fee laws have generally resulted in states creating a “safe harbor” of fair and reasonable late fees to be charged to tenants of $20 per month or 20 percent of the monthly rental rate, whichever is greater. These updates have recently occurred in Arkansas, Illinois, Maine, Maryland, Nevada, North Carolina, Ohio, Oregon and Tennessee. Facilities in these states that are charging more than this amount need to reduce their late-fee charges or be able to demonstrate the fee being charged is tied to the actual costs incurred by the facility associated with late-paying tenants.

It’s very important to note these late-fee provisions don’t relate to the fees incurred by a facility as part of its lien process. These amounts are limited only to those that can be charged to a tenant that arise from his rent delinquency prior to the enforcement of a facility’s lien rights.

Limitation of Value of Stored Goods

The change to statutes to add a limitation of value to stored goods provide statutory support for the contractual provisions that are already common in most self-storage rental agreements. Pursuant to the state laws now included in Arkansas, Georgia, Illinois, Maine, Maryland, New Jersey, Oregon, Rhode Island and Tennessee, if the rental agreement contains a provision limiting the value of stored goods, the tenant is limited to that maximum value if he makes a loss or damage claim. The following is a typical provision that should be included in a rental agreement (the $5,000 amount is a generally used value but may not apply in all jurisdictions):

Limitation of Value: Occupant agrees that in no event shall the total value of all property stored be deemed to exceed $5,000 unless Owner agrees in writing to a higher value. Occupant agrees that the maximum value for any claim or suit by Occupant, including but not limited to any allegation of wrongful or improper foreclosure or sale of the contents of a storage Space is $5,000. Nothing in this section shall be deemed to create any liability on the part of Owner to Occupant for any loss or damage to Occupant’s property, regardless of cause.

Vehicle Towing

The addition of a towing right in lieu of having to enforce a lien against titled property like a car, boat or RV has lifted a significant burden for many self-storage operators, especially those who permit vehicle and boat parking on their property. Without such towing rights, operators would typically be required to not only fulfill the notice and advertising requirements of their state’s self-storage law, but to comply with motor vehicle lien-sale laws (or watercraft/vessel laws).

With this statutory exception, operators are able to request a licensed towing company to tow the vehicle from the site and require the towing company to then process the vehicle for eventual sale. The facility, by statute, is not liable for any damage caused to the vehicle after it’s towed, and the facility still reserves its rights to collect the unpaid rent through regular collection methods. By invoking the towing right, the facility simply releases its claim over the stored property as collateral held pursuant to its lien. The states that have added this towing right include Colorado, Georgia, Illinois, Maine, Maryland, Nevada, New Jersey, North Carolina, Ohio, Oregon, Rhode Island, Tennessee and Utah.

Online Advertising and Sales

Many of the recent legislative changes in states such as Arizona, Colorado, Michigan, North Carolina and Ohio have included provisions that permit online advertising in lieu of newspaper ads or alternative announcements of the sale as long as they are deemed to be “commercially reasonable.” Commercially reasonable has been defined in most instances to be a method of advertising that results in obtaining a minimum number of potential bidders. If online advertising, which arguably attracts more visitors than print, is able to attract a minimum numbers of bidders to attend the auction, then it will be considered sufficient.

In addition to the use of online or alternative advertising for lien sales, a number of states, including Georgia, Maryland, North Carolina and Oregon, have statutorily clarified the right of operators to conduct their lien sales via the use of online-auction sites. These few states have recognized the efficacy of selling a tenant’s property online. Such a determination supports a similar approach in other states.

These recent changes have a direct effect on how self-storage operators conduct business. If your state recently adopted new statutes, it’s up to you to ensure they’re followed. More changes are likely to come as the national and state associations continue to push current legislation that will benefit the industry. Keep up to date on the legal changes in your state, and then follow them accordingly. 

Scott Zucker is a partner in the law firm of Weissmann & Zucker P.C. in Atlanta. He specializes in business litigation with an emphasis on real estate, landlord-tenant and construction law. He’s a frequent lecturer at national conventions, author of “Legal Topics in Self-Storage: A Sourcebook for Owners and Managers,” and a partner in the Self-Storage Legal Network, a subscription-based legal services for self-storage owners and managers. To reach him, call 404.364.4626; e-mail [email protected].

There’s something wrong here. Self-storage operators keep spending buckets of money on marketing. They invest in efforts to generate phone calls, walk-in visits and Internet leads. But for far too many of them, it’s a huge waste of money and time.

Why? Because they invest absolutely nothing in creating a system to manage and follow up on those leads. The phone rings, the manager answers and nothing productive happens. Web leads come in and no one responds. A prospective customer walks in and leaves, and nothing ever comes of it. No one is prepared to handle those leads, and no one follows up. It’s like going fishing and not having a net to bring in the big one.

Developing and implementing an effective lead follow-up system is critically important in the goal to maximize marketing, increase closing percentages and make more money. Turning more leads into rentals is one of a facility manager's most important job responsibilities.

The most successful and professional self-storage operators have developed lead-management systems for their business, some more sophisticated than others. But whether the system is low-tech 3-by-5 cards or a high-tech automated one, the important thing is to ensure all prospective leads are documented and followed. To fail to maximize every potential lead is irresponsible on the part of the manager and inexplicable on the part of an owner.

There are four specific steps to developing and implementing an effective lead-management system. You should follow this process whether you operate one facility or several. Every potential lead is important to success, no matter the size of the self-storage company.

Step 1: Training

Spending even one thin dime on any marketing makes no sense if you fail to ensure the person responsible for reacting to the leads is well-trained. Why wouldn’t you make sure your manager knows how to answer the phone? Or how to respond quickly to Web leads? Or how to effectively make a sales presentation when someone walks in the door? Don’t take for granted that your manager knows how to do any of this, especially if you haven’t invested in his training. That’s unfair. Your manager should be trained in professional phone and in-store sales presentations, closing techniques, and effective lead follow-up.

What’s the No. 1 thing your managers must learn how to do with prospective leads? Get the person’s name and phone number. Without that information, there’s likely no sales presentation, no follow-up and no rental. And do not rely on caller ID to get the caller's number. That's tacky, unprofessional and potentially inaccurate.

Step 2: Set Expectations

Does the person responsible for maximizing lead-generation efforts clearly understand what’s expected of him? How many leads out of 10 are your managers expected to close? Do they know? Do you?

The most successful operators have clear expectations regarding lead-closing percentages and continually monitor those numbers for greater performance. If managers have no clear expectations or goals, how do you or they know if they’re doing a good job? For any lead-management system to work, you have to set and monitor these numbers:

• Response time to Web leads
• Percentage of phone leads converted into rentals
• Percentage of walk-ins converted into rentals

Step 3: Documentation

An effective lead-management system is not yellow sticky notes or black ink on the manager’s palm. Professional managers have a system for documenting every phone call, Web lead and walk-in. While some operators use their management software to keep up with their leads, one of the most effective systems, and the one I prefer, is one that uses good old 3-by-5 cards. Sometimes low-tech beats high-tech. Here’s how you do it:

• Add a stack of 3-by-5 cards next to the phone.
• When the phone rings or someone walks in, the manager should grab a card and start making notes, including the person’s name, number, circumstance, timing, what, when, where, etc. (You cannot take too many notes.)
• The manager then uses this information during the sales presentation. (People love to hear their name used two or three times.)
• If the customer doesn’t rent at that time, the card is placed in a 3-by-5 card plastic holder with date dividers. It should be filed under the date when a follow up call should be made. For example, if the customer says he needs storage on Saturday, the card should be under Friday’s date. That way the manager can call the prospect on Friday to reconfirm the appointment.  
• In addition, all calls, walk-ins and Web leads are documented on a lead-tracking form and updated as events occur.

Here’s a tip on getting every name and phone number, which should not be optional: Do a $100 gift-card giveaway every month for customers. When a customer calls or walks in, the first thing the manager should say is, “Before I forget, we give away $100 each month. If I can get your name and number, I’ll go ahead and enter you in the drawing.” You’ll get every name and number. Simple. Easy. Effective.

Step 4: Inspection

Anyone who expects his facility managers to keep tracking logs or lead notes but never takes time to review said logs or notes is establishing a horrible precedent—and not because the managers fail to use the system. They simply assign importance to those things that are important to their supervisor or owner.

For example, if the owner or supervisor never looks at the collections worksheet, the manager believes collections to be unimportant. If you want lead management and follow-up to be viewed as important by your managers, you must regularly inspect the process. You should:

• Review the 3-by-5 cards or management system for timely follow-up
• Check the tracking log for marketing channels
• Ask why customers don’t rent the space

Creating and implementing an effective lead-management system is one of the easiest yet most important tasks you can undertake to increase your rentals and income. If most prospective customers rent space from someone, why not you? Using a system where prospect names and phone numbers won’t fall through the cracks will ensure you’re maximizing your marketing efforts. After all, if you’re going to fish, make sure you’ve got a net.

Bob Copper is the partner in charge at Self Storage 101, an industry consulting firm that assists facility owner/operators and managers in developing more effective and profitable operational systems. The company also aids in conducting performance reviews and providing the necessary tools to perform at higher levels in a competitive industry. To reach him, call 866.269.1311; e-mail [email protected]; visit www.selfstorage101.com.

The education DVDs that will be recorded during the Inside Self-Storage World Expo in Las Vegas, March 30-April 2, are now available for pre-order in the ISS Store, an e-commerce website providing research and education products for industry professionals. Customers can choose from 30 individual seminars and eight discount packages covering self-storage ownership, management, marketing, development, construction, investment, financing and risk management.

Discount savings on pre-orders for individual DVDs and bundles range from 14 to 25 percent and will remain available through the conclusion of the show. Of the nine education tracks being offered during the event, six will be recorded in their entirety. Each session will be available as an individual DVD or on-demand video. Each complete track is being offered as a DVD set.

In addition, the “Self-Storage Builders Bundle 2014: DVD Education 12-Pack” includes all 12 sessions from the Development & Construction and Investment & Finance tracks, while the “Self-Storage Operation 2014: DVD Mega Pack” includes all 15 sessions from the Ownership, Management and Marketing tracks.

DVDs are expected to ship by May 23, while on-demand videos of individual sessions are scheduled to be available for purchase in late May. Session and package details can be found at www.insideselfstoragestore.com. Choose "ISS Expo 2014 Session DVDs" from the left-hand menu.

The ISS Expo will take place at the Paris Hotel & Resort in Las Vegas. Discount registration rates are available through March 28. Created for self-storage owners, managers, developers, investors and suppliers, the expo is the industry’s largest conference and tradeshow, comprising four days of education, exhibits and networking opportunities. The event focuses on strategies for generating revenue, best practices, current trends, and new products and services. Details and online registration are available at www.insideselfstorageworldexpo.com.

Conceived as a central hub allowing self-storage owners, operators, developers and investors to obtain cutting-edge information and resources, the ISS Store is owned and operated by ISS, a dynamic services provider that has served the self-storage industry for more than 20 years. The brand includes ISS magazine, the ISS Expo, the Self-Storage Training Institute and Self-Storage Talk, the industry’s largest online community.

The Pittsburgh building occupied by Your Self Storage and used during the filming of “Silence of the Lambs” in 1990 will be auctioned at 1 p.m. on April 24. The 106,000-square-foot, four-story structure at 7502 Thomas Blvd. will be auctioned by commercial real estate firm Hanna Chartwell, with bidding starting at $100,000, according to the source.

The building is owned by the Focer Revocable Living Trust, part of the estate of self-storage operator Henry Focer, who died in September. “We have been directed by the trust that owns the property to sell and close before Memorial Day, with proceeds going to the estate,” said Mike Berland, executive vice president with Hanna Chartwell.

The self-storage business will vacate the property once the sale is closed, while tenants are already in the process of moving their belongings, said Bill Matthews, senior sales associate with Howard Hanna Real Estate Services, which is marketing the property.

The movie thriller “Silence of the Lambs” was released in 1991 and starred Jodie Foster as a young FBI trainee and Anthony Hopkins as Dr. Hannibal Lecter, a diabolical criminal who is also a cannibal. During one scene, Foster’s character arrives at the storage facility looking for clues to a series of murders and crawls under a door into a unit.

Matthews said the original sign for Your Self Storage remains inside the building, but he does not expect the property’s movie connection to affect its sale price.

Inside Self-Storage (ISS) has published a new online image gallery, "That's Wild! Self-Storage Professionals Showcase Pets and Animal Events.” The free presentation features photos of furry companions and co-workers submitted by industry owners and managers, as well as information about several animal-based events or fundraisers supported by operators. Viewers will see stories about Manny, the “mama’s boy” Jack Russell Terrier; Poppy, the dog who became a self-storage marketing icon; Snickers, the canoeing Cavalier King Charles Spaniel; and others. The gallery can be viewed at www.insideselfstorage.com/galleries.

Additional insight about self-storage operators and their support of animal-related causes can be found on the ISS website topic pages for Charity/Fundraising and Marketing. Readers can also share their pet-centered stories and photos on Self-Storage Talk, a community of industry professionals who gather online to discuss marketing, customer service, rental rates, staffing, development, and many other topics.

For more than 20 years, ISS has provided informational resources for the self-storage industry. Its educational offerings include ISS magazine, the annual Inside Self-Storage World Expo in Las Vegas, an extensive website, the Self-Storage Training Institute, the ISS Store, and Self-Storage Talk, the industry’s largest online community.

Self-storage operators US Storage Centers and Iron Gate Properties have joined forces to form Westport NW Management LLC, a strategic partnership that will develop and acquire storage facilities in the Pacific Northwest. The current portfolio includes six locations with a seventh in development.

“I’m excited about this new partnership and the professionalism and experience US Storage Centers adds to this venture,” said Glen Aronson, president and CEO of Iron Gate. “In addition to our newest property in development, we have an acquisition pipeline filled for 2014 and 2015.”

Aronson’s primary focus will be new acquisitions and development. US Storage Centers will be responsible for managing the facilities and marketing the portfolio.

“Combining the success, experience and resources of US Storage Centers with one of the best regional operators in the Northwest will produce exciting results,” said Charles Byerly, president and CEO of US Storage Centers. “Glen brings regional expertise, relationships and experience in getting deals done. Our goals for the future of self-storage in the Pacific Northwest were in alignment from the beginning, and the strengths of both companies complement each other in a way that will advance our vision for Iron Gate Properties.”

The joint venture will also expand it’s third-party management services in the Oregon and Washington self-storage markets.

“One of the many benefits we provide for our third-party management clients is the ability to reach an operational scale through a larger platform, such as revenue management or marketing budgets,” said Dave King, director of business development for US Storage Centers. “We believe with the additional goal to expand third-party management services to local operators in the Oregon and Washington markets, many operators in the Pacific Northwest will benefit from our platform.”

US Storage Centers owns, operates or manages more than 75 self-storage in 12 states including Arizona, California, Georgia, Florida, Nevada and Texas.

Iron Gate owns and operates five properties in Vancouver, Wash., and one in Beaverton, Ore.