Maryland Gov. Larry Hogan signed an update to the state’s self-storage lien law bill on April 14 that enables storage operators to e-mail tenant-default notifications and advertise lien sales via e-mail or a website as long as tenants have acknowledged such procedures by initialing a statement on their rental agreement. House Bill 786 was supported by the Maryland Self Storage Association and national Self Storage Association and faced strong opposition from the Maryland-Delaware-D.C. Press Association, a newspaper advocacy group.

The final version of the bill passed the house and senate unanimously. The new law will go into effect on Oct. 1.

Introduced in February, the final language amended the original bill, which sought to allow self-storage operators to advertise lien sales in “any other commercially reasonable manner” as long as at least three independent bidders attend the auction. The auction-attendance stipulation was stricken in favor of requiring tenants’ acknowledgement of the default-notification and lien-sale procedures on the rental agreement.

In addition to enabling e-mail notifications and the use of websites for making public notification of auctions, the new law also allows self-storage operators to have vehicles towed after default reaches 60 days.

The public-notification provision is similar to other lien-law updates passed recently in several states, including Georgia, Indiana, Minnesota, Missouri and North Carolina. An updated lien law in New Mexico recently allowed operators to e-mail tenant-default notifications and conduct lien auctions online but didn’t include a provision allowing the advertisement of lien sales in media other than a local newspaper.

Sovran Self Storage Inc., a real estate investment trust that operates the Uncle Bob's Self Storage brand, was the subject of the winning entry in the 2015 Chartered Financial Analyst (CFA) Institute Research Challenge, an annual competition that gives business students hands-on mentoring and training in financial analysis and tests their analytical, valuation and presentation skills. The winning team was from Canisius College in Buffalo, N.Y., where Sovran is headquartered.

The Research Challenge is hosted by CFA Institute, a global association of investment professionals, and the Atlanta Society of Finance and Investment Professionals, one of the institute’s member societies that specializes in advanced studies and information on new developments in investments and financial management. Through the competition, college students receive mentoring from a professional research analyst as they analyze a publicly traded company, write a professional research report, and present their research results and recommendations to a panel of experts. Points are awarded to teams on the basis of their investment case, poise and ability to answer judges’ questions, according to a press release.

More than 4,000 students from 865 universities in 70 countries participated in this year’s ninth-annual competition. The Canisius team competed in the Americas Regional in Atlanta on April 15-16 before advancing to the Global Final on April 17, also in Atlanta. International regional competitions were held in the Netherlands and Philippines. In the finals, the five-student Canisius team beat competitors from Ateneo de Manila University in the Philippines, Kyiv National Economic University in Ukraine, and the University of Florida.

“The students at Canisius College have shown a strong commitment to the best practices in equity research, and throughout the competition they have demonstrated the diligence and dedication that will help them to succeed as they move on to careers in finance,” said Paul Smith, president and CEO of the CFA Institute.

Members of the Canisius team were Matthew Coad, Carl Larsson, Stephen Miller, Kevin Monheim and Ryan Zimmer.

The CFA Institute champions ethical behavior in investment markets and is an information resource for the global financial community. The organization has more than 129,000 members in 147 countries and territories and 144 member societies.

Sovran operates more than 500 self-storage facilities in 25 states. The company ranked No. 5 on the Inside Self-Storage 2014 Top-Operators List, which ranks the industry’s top 100 operators by net rentable square feet. Sovran’s portfolio comprises more than 34 million square feet in more than 305,000 units.

By Phil Murphy

It wasn’t long ago that self-storage companies didn’t have a choice when it came to answering inbound calls. They could try to juggle the calls internally, overburdening staff and missing calls, or they could outsource them to a third-party call center. The latter sometimes doesn’t work the way facility owners envision. A third-party call center may not understand your properties and business the way your managers do and may only be able to answer basic questions. In addition, it’s rarely local and may not be as flexible as you might wish it to be.

Today’s new technologies, like cloud-based software and Internet-based phones, lower barriers to entry and give self-storage operators a third option: insourcing. Bringing your calls back in-house opens you up to new business opportunities. You’re likely to increase revenue, decrease expenses, and enhance customer and employee satisfaction. These five steps will help you save money when you insource your call center.

1. Avoid the High Cost of Phone Infrastructure

When opening your own call center, the expense of infrastructure can be significant. Even a small center can exceed $10,000 in equipment costs alone. In addition to hardware and configuration, you have to figure in the cost of ongoing maintenance.

Fortunately, the introduction of next-generation cloud-based telecommunication standards have eliminated this cost entirely. Selecting a cloud-based call center, which allows you to answer calls using the phones and computers you already have, allows you to avoid the high cost of infrastructure.

2. Use the Staff You Already Have

Outsourcing calls can leave customers with incorrect information. When customers receive wrong directions or inaccurate information about your current special, it impacts their trust in your company.

There’s a distinct selling advantage when local expertise and a personal touch are woven into a business/customer relationship, even if it starts and ends with the phone. One of the latest innovations in call-center technology allows you to instantly identify callers and route them to the best person to answer the call. Within every company, there are employees who do a better job with leads and others who are better with delinquency. Skill-based routing can automatically direct sales calls to your company’s best representatives. It can even identify callers who are in late-payment status and send them to your collections specialist, even if that person is at a different facility.

Putting your employees’ individual strengths to work increases staff pride, customer satisfaction and revenue. Who are your top sales stars? Your best customer-service reps? Highlight those unique attributes and use this technology to maximize it.

3. Integrate Your Call Center With Management Software

Just as important as getting the call to the right person is ensuring key information is quickly accessible. The more information your agent or remote manager has when answering calls, the more likely he is to close the lead or provide top-notch customer service.

The latest call-center solutions integrate seamlessly with leading management-software packages so your representative can see lead and customer information, live inventory and pricing, specials, and location details immediately, without shuffling papers or logging into different systems. Some of the more advanced platforms can even allow you to take payments, follow up with leads and customers, or perform other account updates that are automatically pushed to the appropriate locations.

4. Determine Your Hours

Prospective customers usually don’t call in the middle of the night. My company has analyzed millions of calls and found only about 8 percent of them come in during off hours. Of those, 85 percent occur in the hour before or after a location closes. You can easily determine your own hourly call breakdown by examining your detailed phone bills.

Instead of spending thousands of dollars each month to answer a few calls, you can keep one property open an hour early and have another property can stay open an hour late, essentially covering your after-hours calls for the cost of one hour’s pay.

5. Make Sure Managers Know What to Say

Generic scripts don’t help you make sales. Every property is different, and you can sell better when you vary your script or sales approach to highlight an individual facility’s benefits. Hold meetings with star employees to better understand the sales strategies that work best at each location. Then write location-based sales scripts complete with a list of frequently asked questions and sales rebuttals. I’ve even seen agents or managers visit some of the locations whose phones they may be answering. This gives them a familiarity that can’t be duplicated through a computer system.

Hopefully, some of the mystery and hurdles that have prevented you from exploring your own call center have now been removed. Whether you’re looking to reduce expenses, increase rentals or just have better control of your own sales process, it’s becoming more of a reality with today’s call-center technology.

Philip Murphy is president of Next Door Self Storage, which owns and operates 14 stores in Illinois. He's also the president of CallPotential, the creator of a lead-management and do-it-yourself call-center solutions. For more information, visit www.callpotential.com or www.nextdoorselfstorage.com.

Update 4/20/15 – The Xenia City Council approved a rezoning ordinance earlier this month that will enable David Martin Construction Co. to pursue its self-storage development on a lot near the intersection of Kinsey Road and North Detroit Street. The ordinance changes the zoning on the 4.9-acre lot from residential to commercial planned unit development.

The council approved the measure 5-1, with councilmember Dale Louderback casting the lone dissenting vote. Louderback said he voted against the rezoning after meeting with residents and agreeing with their concerns. “As I do on any vote, I hear both sides,” he said. “I have to take the neighbors’ consideration to heart.”

Councilmember John Caupp called property owner David Martin’s projects consistently “first class” and argued a self-storage facility was better than alternative uses for the land. “I have no doubt that it will be attractive,” he said.

The zoning was approved on condition Martin meets previously established design criteria requested by city planners.

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3/30/15 – The Xenia City Council introduced a rezoning ordinance last week that would enable David Martin Construction Co. to pursue its proposed self-storage development on a 4.9-acre lot near the intersection of Kinsey Road and North Detroit Street. The ordinance would change the zoning from residential to commercial planned unit development, according to the source.

The property is between two apartment complexes and borders Xenia High School and condominiums to the east and south, respectively. Although city staff said the zoning change is inconsistent with the city’s X-Plan, its report recommended the council approve the application as long as the resulting development meets design criteria to help it blend in with its surroundings, according to Brian Forschner, planning director.

Design stipulations would include the use of stone at the base of the office building and pitched roofs on all buildings. Officials also want a landscaping fence or wall in front of the property and stone posts that tie-in with the office building, the source reported.

Property owner David Martin told the council he proposed the self-storage facility after he had difficulty selling the land. He has owned the lot for 20 years, according to the source.

The storage project was opposed during the public hearing by resident Roger Collins, who told the council he and other neighbors are concerned about potential dust and noise from the construction project.

The council could vote on the rezoning ordinance during its next meeting, the source reported.

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3/25/15 – David Martin, owner of David Martin Construction Co., hopes to build a self-storage facility on an empty 5-acre plot of land he owns in Xenia, Ohio. The Xenia City Council will hold a public hearing this week to discuss rezoning the parcel on Kinsey Road near the Kinsey Village Apartments.

If his project is approved, Martin will be required to submit detailed site plans, according to Brian Forschner, city planner. Although the storage development is still in the planning stages, the facility might include small-office space in addition to storage units, Forschner told the source.

Xenia is 21 miles from Dayton, Ohio, in the Dayton Metropolitan Statistical Area. The region has several development projects underway, according to the source.

David Martin Construction is a privately held company based in Xenia, Ohio.

NASCAR driver Ryan Sieg will greet fans and sign autographs at the Uncle Bob's Self Storage Talladega Kickoff, April 28, in Birmingham, Ala. Open to the public, the event at 6604 Walt Drive will take place 5:30 to 7:30 p.m.

Sieg drives the No. 39 Chevrolet Camaro for the RSS Racing team in the NASCAR Xfinity Series. Uncle Bob’s recently announced it will sponsor Sieg for 16 races in the series. “Talladega is the place everyone wants to race, and to say I’m enthusiastic to come back in the Uncle Bob’s car would be an understatement,” Sieg said. “I also can’t wait to meet fans at Uncle Bob’s in Birmingham.”

During the event, fans can enter to win tickets to the Winn-Dixie 300, a NASCAR Xfinity race at Talladega Superspeedway on May 2, courtesy of Uncle Bob’s and WZZK FM 104.7, which will broadcast live from the event. Morning radio personality Greg Burgess from “The Rick & Bubba” show will host. Fans can also take photos of Sieg’s race car.

“Talladega is a special time around here, and the enthusiasm can be felt all over the community,” said William Tierney, area manager for Uncle Bob’s Alabama facilities. “With Ryan involved this year, it’s doubly exciting for us as a company. We’re thrilled to be a part of the experience on this level.”

The younger brother of NASCAR driver Shane Sieg, Ryan Sieg made his NASCAR debut in 2009. RSS Racing has competed in NASCAR events since 2009 from its headquarters in Tucker, Ga.

Uncle Bob’s is the operating brand for real estate investment trust Sovran Self Storage Inc. The Buffalo, N.Y.-based company operates more than 500 self-storage facilities in 25 states, including five in in the Birmingham, Ala., area.

By Zachary Esparza

Technology is increasing at an incredible rate. To fully take advantage of it in the self-storage industry, facility operators need be aware of the available tools and how they work together. Technology has the potential to increase rentals, improve revenue, streamline workflow and provide better customer service. At the same time, consumers are more knowledgeable about mobile apps, online-payment capabilities and other computer-driven features, and they expect advanced services and products from the companies they patronize.

Think of your facility technology as the foundation of a house. It provides the base to support the home’s other components and functions. Let’s take a look at some of the newest and best tools operators are using today and how they integrate to create a solid, successful structure.

The Framework: Facility-Management Software

A facility’s management software holds the operation together. With everything and everyone now connected via the Internet, it’s more important than ever to ensure your software is meeting the changing needs of your customers and business.

“As technology has evolved, management software has grown to be an important and integrated part of a busy and thriving business operation,” says Steve Weinstein, a software and security consultant for QuikStor Security & Software, a provider of software and security products to the self-storage industry. “With integrations to insurance companies, credit card processors, call centers, kiosks, aggregators, websites and more, management software becomes the central nervous system of a web of products and solutions all focused on helping an operator reach more business, cut costs and improve efficiency.”

Today’s software is evolving into a centrally located “software as a service” (SaaS) model, says Jon Reddick, vice president of Sentinel Systems Corp., which also provides software and security products to the storage industry. Often called “on-demand software” the cloud-computing infrastructure delivers one application to many users, regardless of their location.

“It provides more support for automated rentals via kiosks, websites and call centers, which allows customers to rent space outside of traditional business hours,” Reddick says. In fact, cloud computing has opened up a whole new world for self-storage operators and their customers, enabling them access data anywhere, anytime from an Internet-connected device.

“At first everybody was excited about the benefits of using a Web-based product—and there are many,” says Ramona Taylor, president of Space Control Systems Inc., a provider of self-storage management software, including two programs that use cloud technology. “But once they got on the Web, a whole new range of benefits emerged.”

The biggest, perhaps, is the ability to interface with other technology-based services. Cloud-computing has also advanced other online capabilities, including the ability to take reservations and payments. Some software programs even allow tenants to sign their lease agreement online.

“Studies have shown that up to 40 percent of rentals take place online,” says Yvette Apodaca, marketing manager for SiteLink, a provider of property-management software. “Rentals increase when managers lease to tenants by phone and share the rental agreement for the tenant to sign during the call. Archiving these documents electronically in each tenant’s file for instant, on-demand retrieval is more reliable, efficient and less costly.”

Australia-based Fort Knox Self Storage is testing a new tool that will speed up the rental process. The product, called iSign, allows new tenants to enter their information on a tablet or touch-screen monitor during the move-in process in place of completing hard-copy documents.

“One of the biggest benefits with iSign is that it’s reduced our overall signup time by over 60 percent,” said Corey Osmond, design and digital manager. “This works out to a huge 15- to 20-minute time saving for each client. We’re also seeing less errors in customer information and more satisfied clients.”

In addition to saving time, the system reduces the need for paperwork or manual filing. Once the data is entered and finalized, it’s stored instantly in the facility’s management- and collaborative-software programs. The system also generates a PDF of the rental agreement and other information, which is e-mailed directly to the tenant. iSign is in beta testing at the Fort Knox Moorabbin, Victoria, facility, and the company intends to roll it out to its seven other Melbourne-area locations by mid-year.

The Doors: Self-Storage Kiosks

Self-storage kiosks will never completely take the place of the manager behind the counter or “depersonalize” the storage experience. Rather, they provide convenience for customers, a self-serve option for those who seek it, and a way for facility operators to operators with a way to rent units and collect payments when the office is closed.

“Owning a kiosk is kind of like having a 24/7 assistant manager who rents units, takes payments and is always onsite to handle the needs of a tenant,” says Michael Sawyer, director of marketing for OpenTech Alliance Inc., a provider of self-storage kiosks, call-center services and other technology. “Using a touchscreen computer and automated voice prompts, new customers can purchase a unit and insurance, even a lock, then sign the lease and move in.”

Kiosks can be ideal for properties with a single manager or those that are unmanned. Steve and Barbara O’Rourke, who opened Ames West Side Storage in Ames, Iowa, last October depend on their self-storage kiosk to handle new rentals and take payments. Because the O’Rourkes have full-time jobs—Steve is a contractor and Barbara is a nurse—the kiosk is integral to operating the 90-unit facility. The technology also appeals to younger generations, particularly in Ames, which is home to Iowa State University, Steve O’Rourke says.

The Utilities: Communication Tools

While operator-customer touch points are increasing on the Web and kiosks, the phone remains a cornerstone to interacting with new and existing tenants. “The Internet is becoming a larger source for leads in the industry, but nothing replaces the phone when it comes to interacting with customers,” says Phil Murphy, president of CallPotential, which offers lead-management and do-it-yourself call-center solutions. “Whether it’s answering questions and booking a reservation, or dealing with a customer-service situation, the right phone tools help make this process easier for managers.”

Much like other technology, phone-based tools come in a wide variety. They’ve expanded beyond call centers to include text-messaging services, payment capabilities, and automated and live phone calls to facilitate collections. “These tools allow the manager to track and control [his] entire collection process,” Murphy says.

Phone-based tools can also save an operator time. Individual collections calls can take hours, and are often the most disliked part of the job. New programs now enable operators to reach dozens of customer at once. “Along with reaching out to customers, these same tools can be used to provide the customer with payment options such as pay-by-phone or pay by text,” Murphy says.

Self Storage Consulting Group LLC, which manages 35 facilities in seven states, has implemented text messaging to contact its delinquent tenants. “It’s quick, painless and easy,” says company president Gregory Ellsworth. “Texting our otherwise hard-to-reach delinquent tenants improves collections by 40 percent. This saves four out of 10 units from going to auction, which no one enjoys—the operator most of all!”

The Windows: Mobile Apps

Mobile apps are all the rage today, so it’s only natural they’re beginning to emerge in the self-storage world. The Lock Up Self Storage, which operates 33 facilities in eight states, was ahead of the curve, launching its first mobile app in 2011. Being an early adopter provided a number of challenges for the company, such as integrating the app with the company’s existing management software. “Like with anything new, there were bugs to work out,” says Andrea Carnes, vice president of operations.

Last year, the company launched The Lock Up Storage App, which allows tenants to keep track of the unit numbers and gate-access codes for each location they’re using. The app also includes online bill pay and a “tap to call” feature that automatically phones the customer’s facility.

“We realize that nowadays, people are required to remember innumerable codes and passwords,” Carnes says. “Now, tenants have all of that information at their fingertips, in their mobile devices.”

The Roof: Security

Security protects it all, and with the evolution of technology, it has advanced to a fine precision. Cameras are sharper, and live coverage can be viewed online. Access-control components such gates, keypads and even lighting are evolving. “Storage security has also been focused on interface. By leveraging evolving technology and the near saturation of high-speed Internet connections and smartphones, the way tenants and operators interact with security is changing fast,” Weinstein says.

Grainy, out-of-focus and hard-to-see images of yesterday’s analog-video systems are gone. “With mega-pixel cameras, huge digital-storage capabilities, high-speed Internet connections, and smartphone apps, not only can you record and review in the facility great detail, but you can also access your cameras and recorded footage remotely from your computer or mobile device.”

Tenants are no longer restricted to entering PIN codes or swiping a card for access anymore, either, Weinstein adds. “Remote transmitters integrated to the access-control system, RFID and proximity technology, and even smartphone apps are all new ways in which tenants can interface with access controls.”

There are also Web-based tools enabling operators to control or inspect their property from any device with Internet. A text message or e-mail can even be sent to the facility operator or tenants in response to preconfigured important events and offline operation of keypads, Reddick says.

With so much technology available, it can be daunting to determine which ones are best, most affordable and efficient. Just as a house isn’t built by throwing all the materials together at once, you’re self-storage technology platform won’t be in place in a week or even a month. It takes time to find the right tools that will most benefit your business.

“Ambitious owners will continue to corner the market by making it easy for consumers to use their property,” Sawyer says. “Turning a typical self-storage operation into a business that outperforms the competition is what technology is all about.”

Zachary Esparza is a sophomore journalism major at Arizona State University in Phoenix. His emphasis is business journalism with minors in film and media studies and business. He recently interned as a contributing writer to “Bakersfield Life,” a lifestyle magazine covering Bakersfield, Calif. After graduation, he hopes to direct movies while writing about his struggles and successes of owning his own business. To reach him, e-mail [email protected].

Update 4/17/15 – Penticton officials have given Action Steel Sales Ltd. and Penticton Self Storage Ltd. a two-week extension to fix the drainage issues and a damaged retaining wall between their properties before the city takes legal action, according to the source.

Although no progress has been made in regard to repairs, the council granted the extension to Mike Nixon, owner of Action Steel, and Dennis Meakin, owner of Wine Country Self Storage Ltd., which owns the Penticton Self Storage property, after the two men agreed to meet to resolve the issues, the source reported.

Nixon told the Penticton City Council he questioned the engineering of the retaining wall and said it’s actually comprised of two walls, neither of which is on his property. A partial collapse of the retaining wall that occurred during repair work in September 2014, as well as improper backfill on the structure, weren’t Action Steel’s responsibility, he argued.

Meakin told the council the wall was already constructed when he purchased the property 10 years ago and said none of the issues regarding lack of permitting or engineering of the wall surfaced when he researched the property before acquiring it. The wall was constructed as a “concrete fence” and never intended to act as a retaining wall, he said. The self-storage owner also argued the wall wasn’t designed to have backfill piled against it and should have been built on a natural grade, according to the source.

“We’ve attempted to reach a settlement with Action Steel for responsibility for replacing the fence with a proper wall, but have not been successful,” Meakin told the council. “Action Steel has taken the position I am totally responsible for replacement of the 6-foot retaining wall to support their fill, drainage and engineering of its fill. I don’t agree with that. To my knowledge, I do not have a legal obligation to provide support to the adjoining property owner above natural grade."

Meakin asked the council to remove the fill so that he could rebuild a proper retaining wall on natural grade, the source reported. The fill would have to be removed prior to reconstructing the wall, he said.

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3/19/15 – City officials in Penticton, British Columbia, Canada, have issued injunctions against Action Steel Sales Ltd. and Penticton Self Storage to fix drainage issues and a damaged retaining wall between their adjoining properties. The injunctive action was taken after the businesses failed to come up with a joint resolution for the property issues, according to the source.

Drainage, fill and retention issues have been present at the properties since the late 1990s, but problems escalated in October 2013 when uncontrolled surface water entered a storage unit, the source reported. The self-storage property is at 2360 Government St., and the steel distributor is at 2365 Barnes St.

A site investigation revealed the retaining wall along the east property line of the storage facility didn’t have a permit and was failing. The wall stopped working during repairs last September, and the city notified both property owners to request a joint solution to the issues, according to the source.

The self-storage business has argued that the original wall was constructed as a fence not intended to serve as a retaining wall. The owner proposed to remove the existing wall and replace it with a lower one, which could cause the higher lot on the Action Steel side to collapse along the property line, the source reported.

Action Steel maintains the wall was always a retaining wall and has expressed concerns about it running the length of the property line.

Without a resolution to fix the problems and safety concerns raised by the city’s legal counsel, officials warned both businesses about possible injunctions in January. City staff began preparing notices on the titles of both properties late last month, according to the source. A “notice on title” is an enforcement tool used by local governments in British Columbia that appears in public title searches and indicates that a property may be in breach of local government bylaws or regulations.

The notice on the Action Steel property indicates unsafe conditions due to failure to control surface water. The notice on the Penticton Self Storage property indicates unsafe conditions due to failure to complete a building permit. City officials voted unanimously to take further injunctive action in 30 days if work to repair the retaining wall has not begun, the source reported.

If no work has been done to repair the wall within the specified time period, the city would then perform the necessary repairs and bill both businesses, according to the source.

Punk-rock music trio My Version of It has recorded its most recent album—the band’s eighth release—inside a New Castle, Del., self-storage unit. Although the band didn’t originally plan to create a makeshift recording studio at a storage facility, members were forced to come up with a creative solution when the band lost its normal practice space, according to a press release.

“Dave Grind, our drummer, had the idea after watching several episodes of ‘Storage Wars’ to find a local mini-storage place that would allow us to set up shop,” said vocalist Jared Morris. “They said we could practice there, and they didn’t mind the volume, but they didn’t provide free electricity.”

To solve the power problem, Grind purchased a generator. After practicing in the unit for a few months, the band decided the acoustics were good enough to record. “It sounded good in there, and we’ve never been totally happy with being rushed in the recording studio, so we decided to give it a shot ourselves in the storage unit,” Morris said.

The resulting album is called “Will Thrill You in Minutes.” Featuring 17 tracks, it was mixed in New Castle by lead guitarist Matt Schmidt and mastered in Portland, Del. Available on Amazon, iTunes and Spotify, it “takes DIY ethos to a different level,” according to the band.