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Guardian Self Storage Promises to Protect the Right One

Video-Guardian Self Storage Promises to Protect the Right One

In this nod to film noir, Guardian Self Storage’s leading man talks about protecting “the right one.” While it seems like he’s referring to his leading lady, the smooth talker has someone else on his mind.

Sneak Peek Into the 2014 Inside Self-Storage World Expo Exhibit Hall

Article-Sneak Peek Into the 2014 Inside Self-Storage World Expo Exhibit Hall

It’s where deals are made, new partnerships are forged, and everyone has an incredible time. I’m not just talking about Las Vegas, the site of the 2014 Inside Self-Storage World Expo. I'm talking about this year's exhibit hall! On March 31 and April 1, at the Paris Hotel & Resort, attendees will have access to more than 120 exhibits covering every angle of the self-storage industry.

“It’s the ultimate ‘try before you buy’ experience,” says Troy Bix, vice president of ISS. “The two days in the expo hall enable attendees to meet with a number of companies and find out what’s new in the business.”

Here’s a sneak peek at the products and programs you'll find featured on this year's show floor, plus some of the cool items you can score for your goodie bag.

Unveiling New Stuff

Industry vendors often reveal new offerings at the ISS expo, and this year is no exception. Here's a sampling:

  • First-time exhibitor BOS Container USA, will have its portable-storage products on hand, including a new double-door model. The company’s Quick Build container is made of galvanized steel, travels flat and can be assembled without tools in minutes, according to CEO Kari Honkaniemi. The containers on display will be equipped with shelves, access ramps, cable and hose rack, and a tool rack.
  • Janus International Group will also have a portable-storage product on hand. The company’s Movable Additional Storage Structures enable operators to replicate their current storage units with relocatable structures that can be moved by a forklift. Janus will also feature the company’s doors and hallway systems, plus its ADA-compliance kits.
  • Syrasoft Self Storage Software will debut its new Android app, Syrasoft Mobile Manager, which lets customers view important unit and tenant information on their smartphones.
  • StorTrack will launch a new cloud-based service that provides local market-pricing conditions, analytics and trends to allow facility managers to make better pricing decisions. The app will be available to Android and Apple iOS mobile device users on March 31.
  • Marketing firm Michaels Wilder will offer live examples of “Swipe Advertising,” a new mobile technology that eliminates the one area of concern with mobile advertising—the mistake or accidental click. “The advertiser receives a true return on investment while creating a positive brand experience,” says Erik Rothchild, the company’s new business-development consultant.
  • Linkmedia 360 will share the company’s new digital-marketing and analytics solution, designed to help operators gain search visibility and better compete with the real estate investment trusts. Attendees who stop by the booth can also get a website assessment and uncover opportunities to improve online visibility. 
  • Storage.com will speak with attendees about its pay-per-rental marketing program, which has a one-time rental fee of $99. “We are excited to announce new programs that will help facility operators see an immediate return on investment on their marketing dollars,” says Nick Bilava, director of sales and marketing.

Fun Freebies

A trip to the expo hall wouldn't be complete without some great swag. This year's attendees can pick up a variety of items, from pens and sample products to bags and key chains. Several vendors are also sponsoring giveaways and contests or will have special guests in their booths. For example:

  • Online marketplace SpareFoot has several tricks up its sleeve. An illusionist will provide entertainment at the booth, as will company mascot the SpareFoot Foot, who will pose for pictures with attendees. Representatives will distribute the company’s new "Storage Odyssey" wall calendar, measuring-tape key chains and bottle openers. 
  • Visitors to the MiniCo Insurance Agency booth can enter a drawing for a Kindle Fire HD by completing a brief entry form or dropping off a business card.
  • Syrasoft will offer giant pens and free demo CDs.
  • Finance company The BSC Group will give away a limited number of LED flashlights “to shed light on all of the latest capital-markets trends and new loan programs for self-storage owners,” joked principal Shawn Hill.

Whether you’re looking for new vendor partners or just want to meet up with existing ones, the ISS Expo Hall is place to be. Forget “What happens in Vegas, stays in Vegas.” You’ll want to remember this trip! Get show details and register at www.insideselfstorageworldexpo.com.

ISS Expo Expands Self-Storage Roundtables to Include 3 Topic-Themed Sessions

Article-ISS Expo Expands Self-Storage Roundtables to Include 3 Topic-Themed Sessions

To meet attendee demand and accommodate more topics than in past years, the Inside Self-Storage World Expo in Las Vegas has expanded its usual roundtable networking event into a series of three topic-themed education sessions. The Roundtables Track on the morning of April 1 will allow self-storage owners, managers, investors and developers to meet with industry experts in a more intimate setting to ask questions and discuss key issues. Attendees will be encouraged to rotate tables every 10 minutes to enhance their experience.

The Software Roundtables, 9:30 to 10:30 a.m., are devoted exclusively to software-related issues. Topics include “The Value of Software Integration Between Vendors,” “Security and Theft Prevention,” “Integrating Social Media With Your Management Software,” and more.

The Add-On Profit Centers Roundtables, 9:45 to 10:45 a.m., examine ways for self-storage operators to generate more profit through ancillary products and services. Discussions will focus on boat/RV storage, retail products, wine storage, truck rental, cell-tower leases and portable storage.

The final session, Mish Mash Roundtables, 11 a.m. to noon, will encompass a wide range of subject matter. Topics include “Using Technology to Reduce Accounts Receivable,” “Common Self-Storage Construction Mistakes,” “Self-Storage Manager Wages and Bonus Incentives,” “Banking Strategies for Property Acquisition,” and many others.

The expo’s concurrent education program, March 31 and April 1, includes nine tracks covering issues related to self-storage ownership, management, marketing, investment, finance, building, development, liability and more. Five add-on workshop options are also available, focusing on day-to-day management, development, facility ownership, legal issues and social media.

The conference and tradeshow will take place at the Paris Hotel & Resort. Discount registration rates are available through March 28.

Created for self-storage owners, managers, developers, investors and suppliers, the ISS 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.

Yardi Acquires Self-Storage Software Provider Centershift

Article-Yardi Acquires Self-Storage Software Provider Centershift

Real estate software firm Yardi Systems has acquired Centershift Inc., a provider of management software for the self-storage industry. The Centershift team will continue to serve customers from its Salt Lake City offices.

“We are extremely pleased to be joining the Yardi team,” said James Hafen, president and CEO of Centershift. “We have long recognized that the self-storage industry was underserved when it came to technology. The breadth of services that Yardi brings to the table surpasses everything self-storage operators have come to expect from the technology available to them today. Joining Yardi introduces new possibilities to this increasingly sophisticated market, and that is an exciting prospect for all of us.”

Yardi is a designer, developer and supporter of software for real estate investment management and property management. Its suite of programs  includes operations, accounting and ancillary processes, and services with portfolio-wide business intelligence and platform-wide mobility. The privately held firm has more than 500  employees.

“We are delighted to welcome the Centershift team and get to work leveraging our respective strengths to benefit the self-storage market,” said Gordon Morrell, executive vice president and chief operating officer for Yardi.

Launched in 2001, Centershift provides Internet-based rental-management and point-of-sale software solutions for the self-storage industry. Its clients include real estate investment trusts and ownership/management organizations of all sizes. The company’s Store Enterprise and Advantage applications were designed for integration with websites, call centers, Web aggregators, mobile devices, centralized mail services, corporate offices and other business systems.

Based in Santa Barbara, Calif., and founded 40 years ago, Yardi serves clients worldwide from offices in Asia, Australia, Europe, the Middle East and North America.

Sources:

ISS Blog

A Self-Storage Manager Touts the Protection Benefits of Tenant Insurance

Article-A Self-Storage Manager Touts the Protection Benefits of Tenant Insurance

A guest installment by Stephanie Tharpe, District Manager, A Plus Storage of Tennessee LLC

I was a big naysayer when it came to self-storage tenant insurance. For years, I thought it was a waste of time. I would place a piece of paper in front of a tenant and expect him to decline. What changed my mind? It was actually a very personal matter.

Almost two years ago, my husband and I were renting a home that was burglarized. Not only was it scary, but we never found out who did it. And we did not have renters’ insurance. I had talked about it, even gotten pricing, but it fell through the cracks and I never purchased it. It was not my landlord’s responsibility to cover our belongings, so we took a $5,000 loss. I immediately purchased renters’ insurance, which got me thinking ...

As a district manager for 12 self-storage properties, I get all the crazy phone calls from tenants who are angry and want compensation from us because they believe we are responsible for everything. Even though it’s explained in the rental agreement, tenants only hear what they want to hear and seldom read their lease. Our managers are trained to explain the rental agreements but, again, I’ve had several conversations with customers who did not understand their responsibilities. Anything can happen. A break in, a tornado—the list goes on and on.

Homeowners’ insurance covers storage, sometimes. I’ve had customers call their agents right in front of me only to find out they’re not covered. Also keep in mind, the deductibles are high and if the insurance company feels the damage is due to negligence of the property owner, it will not cover it. I’ve actually had an agent come out for a claim and tell me this to my face (ie: the water leaking in the unit was the culprit).

We can protect ourselves by stating, “You were offered insurance, you declined, and here is the document you signed.” And be done with it. However, I find it is so much better for customer relations to hand them the brochure with the phone number and say, “That is why you have insurance. Just call and they will help you.” Have we had claims? Yes, we have. Were they handled professionally? Absolutely.

There are three main reasons to offer a pay-with-rent tenant-insurance program. First, in case of an unfortunate loss, I want my tenant to have quick access to financial compensation. I know my lease states my facility and owners are not responsible for our occupants’ stored contents, but that will not stop a very disgruntled tenant from taking my owner to court if something happened and he was not insured.

Which brings me to No. 2: Tenant insurance helps protect my owner from our tenants with an extra wall of protection. Whether there is one claim or 20 in an unfortunate incident, my owner doesn't have to reach into his pocket to compensate the tenant(s) as a "goodwill" move.

Finally, the revenue that can be generated from tenant insurance is all found money. The tenant-insurance tool (when properly put into play) in most cases generates more revenue than truck rentals, boxes, locks and packing supplies. For example, if 400 units are at 85 percent occupied, in five months you could have 60 percent of your tenants on the insurance you offer. That equals. $735 per month to the facility and $126,000 increased property value to the owner based on a 7 percent capitalization rate.

These are the facts and I have proof. I’ve watched managers at all 12 of our facilities be successful with enrolling tenants with insurance. We do not believe in or practice a mandatory program, either. It’s very obvious and makes great business sense to put this into play properly.

In just six months, our insurance partner helped us enroll more than 1,750 tenants in our insurance program. This is a lot of "found money" to us and extra protection for all involved. We accomplished this with nothing ever spent out of pocket. Our insurance partner even paid for our limited license on all 12 stores.

Our managers average enrolling eight out of 10 new tenants in the insurance program by assuming the sale properly. When you have these results across the board, the time you take to enroll the tenant becomes irrelevant. It takes us under a minute. We did reach out to our existing tenants in the six-month timeframe and enrolled approximately half of them (not making it mandatory). Actually, our insurance partner did all that on our behalf. Again, we did not have to any out-of-pocket expenses or spend extra time to doing this on our own.

After one year, we have phenomenal income, protection for everyone and all my managers received a raise. The lowest-performing store (only because its the smallest) sold more than $9,000 in insurance policies in 2013. Our highest performer sold more than $26,000. We pay 20 percent commission. In my humble opinion, offering self-storage insurance really is something to seriously consider.

Stephanie Tharpe is the district manager for A Plus Storage of Tennessee LLC, where she manages a portfolio of 12 facilities in Nashville, Tenn., and oversees the company's branding and social media. She has 16 years of self-storage experience. In 2012, she was named Manager of the Year by the Tennessee Self Storage Association. Ms. Tharpe will also be a featured speaker at the Inside Self-Storage World Expo, March 31-April 1, in Las Vegas. Her seminar, “Self-Storage Manager Motivation and Retention,” is on March 31 at 10 a.m. in Champagne 2. To reach her, visit www.aplustorage.com.  

Self-Storage Marketplace SpareFoot Wins Bronze Stevie Award for Customer Service

Article-Self-Storage Marketplace SpareFoot Wins Bronze Stevie Award for Customer Service

SpareFoot, an online marketplace for the self-storage industry, received a bronze “Stevie Award for Sales & Customer Service” during a ceremony on Feb. 21 in Las Vegas. The company’s “Amazing Customer Experience” (ACE) team was honored for Front-Line Customer Service Team of the Year in the “other service industries” category. The annual awards honor achievement in sales, contact centers and customer service.

The ACE team handles inquiries about self-storage rentals from customers across the nation. SpareFoot was one of eight finalists in its category. Other finalists included Wyndham Vacation Ownership and the United States Equestrian Federation.

“The members of the ACE team are absolutely thrilled to be named a bronze winner in this year’s Stevie Awards and are honored to see our names among those of companies and organizations that we respect and admire,” said Josh Lipton, ACE team leader. “More important than that is the validation it gives our efforts to deliver the type of experience to our customers that we would wish for ourselves.”

The storage industry was also recognized through the call-center and customer-service efforts of CubeSmart, a self-storage real estate investment trust. The company received three gold awards for Contact Center of the Year, Customer Service Department of the Year, and Customer Service Training Team of the Year. This is the second consecutive year CubeSmart has won three gold awards.

More than 1,500 entries representing numerous organizations, industries and sales executives from around the world were submitted for this year’s awards.

SpareFoot.com helps consumers find and reserve self-storage units, with comparison shopping tools that show real-time availability and exclusive deals. With a network of more than 7,000 storage facilities ranging from mom-and-pop operations to real estate investment trusts, the company reaches prospective storage renters though partnerships with brands including SelfStorage.com, ForRent.com and Penske Truck Rental.

Why Self-Storage Makes Sense in Mongolia: Possibilities for this Promising Market

Article-Why Self-Storage Makes Sense in Mongolia: Possibilities for this Promising Market

By M.A.D. Investment Solutions

When investing in real estate in a promising region like Mongolia, it's best to look at smaller, unexploited niche markets. The country still abounds in those, and among them is the self-storage sector.

Nearly every country in the world has some form of institutionalized self-storage solution. Self-storage is all over the United Kingdom and United States and growing rapidly in China. Mongolia is a country where self-storage makes great sense, but surprisingly, no one has yet implemented the concept there.

A Huge Demand for Space

Mongolia is not only a country of nomads, its economy is entirely seasonal, with considerable activity in  summer and a very calm winter. The capital, Ulaanbaatar, is a city undergoing massive growth. More than half of its population lives in temporary housing and is looking to relocate to permanent structures. In addition, the country is going through the world’s biggest mining boom and the development of a mining-supply chain as well as infrastructure developments. All this leads to a considerable pent-up demand for self-storage in the capital.

As real estate agents, one of the most regular requests we receive is for a garage space or cheap, empty apartments where tour companies, supply-chain operators and small, seasonal businesses can store equipment, vehicles, tools and stock/inventory for a few months with constant access. Not only that, but as Mongolia is not a manufacturing country, it relies on imports to grow its economy. A vast majority of businesses need to import and store their inventory, be it food, furniture, construction equipment, supplies, spare parts, etc. In fact, we rent two entire houses in Gandan to store our own supplies and equipment.

Potential Building Costs

Let's assume we're going to buy a land parcel of 10,000 square meters. The cost of land connected to infrastructure near the airport is still reasonable at an average of $7 per square meter, and we'll factor in another $10 per square meter for infrastructure improvements. The cost to build a self-storage-type warehouse is about $350 per square meter. The total project costs are $2.97 million. If we assume the built-up area to be 80 percent (8,000 square meters), the construction costs are $362.50 per square meter. 

  • Land purchase: $7 x 10,000 square meters = $70,000
  • Infrastructure improvement: $10 x 10,000 square meters = $100,000
  • Built-up area: .80 x 10,000 square meters = 8,000 square meters
  • Warehouse construction: 8,000 square meters x $350 = $2,800,000
  • Total project cost: $70,000 land purchase + $100,000 infrastructure improvement + $2,800,000 warehouse construction = $2,970,000
  • Total cost of construction: $100,000 infrastructure improvement + $2,800,000 warehouse construction = $2,900,000
  • Cost of construction per square meter = $2,900,000 total construction cost / 8,000 square meters = $362.50

Now let's assume the leasable area to be 85 percent of the built-up area, or 6,800 square meters. If we charge self-storage rental fees of $5 per square meter per month, there is potential to generate $34,000 per month, or $408,000 per year. This amounts to a gross yield of 14 percent and an estimated net yield at 12 percent. Better economies of scale and use of space can be achieved on a larger plot of land.

In addition, we would expect a capital growth of approximately 15 percent per year for the next five years. Additional advantages of such a scheme are the relative speed of construction and setup (about six to eight months), considerable industry demand, and the low cost of facility maintenance and operation.

This might not be the most lucrative investment, but we believe it to be a unique product in a fast-growing market with considerable potential for duplication and economies of scale.

M.A.D Investment Solutions is a real estate firm specializing in foreign investments in the properties sector of Ulaanbaatar, Mongolia. For more information, visit www.mad-mongolia.com.

Menards Self Storage Plans Expansion to Facility in Eau Claire, WI

Article-Menards Self Storage Plans Expansion to Facility in Eau Claire, WI

Driven by consumer demand for more heated units, Menards Self Storage has submitted plans for a proposed expansion at its Eau Claire, Wis., facility. Subject to city approval, the project at 3230 E. Hamilton Ave. would replace several parking spaces at the front of the property with 37,500 square feet of storage in 151 climate-controlled units.

“The decision to expand this facility has come based on a high demand for climate-controlled units on a consistent basis since the facility opened,” Tyler Edwards, a Menards real estate representative, wrote in a letter to the city.

Edwards also said the additional units would be a more effective use of the facility’s space since traffic visits to the site amount to only a few cars each day. The structure that would be expanded currently comprises 52,000 square feet of storage in 181 indoor units. Prior to being converted to self-storage in 2010, the building was a Menards home-improvement center and also previously served as a Gold’s Gym, according to the source.

Menards also operates a self-storage facility in Sheboygan, Wis.

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MJ Partners Releases Overview of 4Q 2013, Year-End Self-Storage REIT Performance

Article-MJ Partners Releases Overview of 4Q 2013, Year-End Self-Storage REIT Performance

MJ Partners Real Estate Services has released a 32-page report highlighting key performance metrics from the year-end and fourth-quarter 2013 financial results issued by the four publicly traded U.S.-based self-storage real estate investment trusts (REITs)—CubeSmart, Extra Space Storage Inc., Public Storage Inc. and Sovran Self Storage Inc.

The report offers a market overview, including implied cap rates and investment activity for all four REITs, as well as chart data and side-by-side comparisons on self-storage facility performance. It also contains information from analysts on macroeconomic trends impacting the storage industry.

All four REITs reported healthy numbers, with each reporting occupancy levels during the fourth quarter of at least 89 percent. Public Storage achieved the highest occupancy, 93 percent, during the quarter, while CubeSmart showed the largest year-over-year occupancy gain, improving from 85.1 percent to 89.3 percent.

Sovran, which operates the Uncle Bob’s Self Storage brand, tallied the largest revenue gain for 2013 with an increase of 7.7 percent. CubeSmart showed the largest year-over-year revenue growth during the fourth quarter with an increase of 6.7 percent. Same-store net operating income was also up during 2013 and year over year for all four companies, with Extra Space having the largest gains at 8.9 percent for the quarter and 10 percent for the year.

Public Storage garnered the largest rent per square foot from same-store locations at $14.41, followed by Extra Space ($14.11), CubeSmart ($12.74) and Sovran ($11.02).

The PDF report can be downloaded for free from the MJ Partners website. Inside Self-Storage recently published a summary of fourth-quarter and year-end financial results for all four REITs.

Headquartered in Chicago, MJ Partners is a full-service real estate brokerage and investment banking company specializing in commercial real estate, mortgage banking and consulting services. The company's clients include major financial institutions, private equity funds, REITs, opportunity funds, insurance companies, pension-fund advisors, corporations, private developers and entrepreneurial businesses.

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OpenTech Partners With Carol Krendl to Redesign its Self-Storage Call Center

Article-OpenTech Partners With Carol Krendl to Redesign its Self-Storage Call Center

OpenTech Alliance Inc., a Phoenix-based provider of self-serve kiosks, call-center services and other technology for the self-storage industry, has engaged Carol Krendl, CEO of employee-evaluation firm SkilCheck Services Inc., as a business consultant to redesign its call-center services. Krendl will help OpenTech advance its training curriculum and further develop the company's cloud-based sales and service application, LiveAgent!

“We're excited about the opportunity to transfer our knowledge to the INSOMNIAC Live! call center," Krendl said. "SkilCheck will provide strategic planning and leadership training to call-center management and customized computer-based training courses for their internal team of storage counselors to develop a sharper and more competitive process to sell and service self-storage customers.”

"We are excited to have Carol contributing to our education and training process. The addition will greatly improve the skill set of our storage counselors and provide our call-center clients with a level of knowledge and expertise that is not currently available in the industry,” said Robert Chiti, president and CEO of OpenTech. “Carol has been listening to and rating self-storage phone calls for years. She has heard it all and knows what works.”

Krendl has been involved with self-storage since 1984. She has been active in the national Self Storage Association for more than 13 years and is vice president of Excellence in Management, a third-party management company currently managing more than 20 properties. Krendl will be participating in the Inside Self-Storage World Expo in Las Vegas, March 30-April 2, where she will present a seminar titled “Mastering Your Self-Storage Pricing Strategies,” as part of the concurrent education program. SkilCheck will also be exhibiting in booth No. 432 in the expo hall.

In addition to the new partnership with Krendl, OpenTech recruited Carrie Giordano, a 10-year veteran of the call-center industry who also has 20 years of inbound and outbound sales-leadership experience. As OpenTech's manager of recruiting, training and retention, Giordano will be working closely with Krendl to implement the new training curriculum and processes, including advanced telephone-sales instruction and employee-performance standards.

Giordano is currently overseeing the development of a new proprietary call-scoring tool that will be used internally and by call-center clients. The new feature will be included as a free upgrade to INSOMNIAC Live! clients through OpenPortal, a manager’s toolbox for configuring OpenTech products and services.

OpenTech provides several models of INSOMNIAC self-serve kiosks as well as a range of self-storage rental solutions including the INSOMNIAC Live! Call Center, INSOMNIAC Online Web and mobile applications, LiveAgent! software products, and the INSOMNIAC ILock Security System, all available through the company's Self-Storage Cloud. The company will be exhibiting in booth No. 323 at the ISS Expo.

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