By David Wilhite

Every self-storage facility owner/operator is subject to litigation from tenants who have suffered damage to their goods while in storage. Fortunately, our courts have generally held that one acceptable defense strategy is to offer customer storage insurance (CSI) to your tenants. That's why most savvy self-storage operators offer a CSI program, which can help reduce or eliminate a major insurance exposure while providing a valuable service to tenants. By making CSI available, you can help reduce the likelihood of litigation for damages to your tenants' stored goods.

What exactly is customer storage insurance? It is an insurance policy specifically designed for tenants, the customers of self-storage facilities. It typically provides short-term, low-cost coverage for specified perils, such as fire, hail, wind, lightning and other covered causes of loss. It usually also provides a limited amount of burglary coverage. (Note that while most homeowners' policies will provide a limited amount of off-premises coverage, most self-storage tenants are transient by nature and do not have homeowners' policies). CSI can protect your tenants' stored goods while ensuring your peace of mind. By simply making CSI available, you can help reduce the threat of litigation for damages to your tenants' stored goods.

It Pays to Know the Facts About CSI

Fact: All self-storage facility owners/operators are subject to litigation from tenants who have suffered damage to their goods while in storage.

Fact: One of the key elements in any legal defense against claims of negligence or liability (on the part of the operator) is whether or not customer storage insurance was made available to the tenant while he was renting storage space.

Fact: Today's judges are more likely to uphold the exculpatory provisions contained in your self-storage rental agreement when you make CSI available to your tenants.

Fact: There are precedent-setting court cases in which the self-storage operator was found to be not liable for damage to a customer's goods because CSI was made available.

Fact: Customer storage insurance must be considered a necessity and should be made available to every tenant.

What Does Storage Insurance Cover?

The availability of a comprehensive CSI policy is the easy, low-cost way to protect your tenants' stored goods from loss or damage from a wide variety of perils. Tenants valuables can be protected for amounts that typically range from $2,000 to $20,000, and polices can generally be written or renewed in three- or six-month periods. Standard covered perils generally include fire, lightning, smoke, burglary, water leaks, hurricane, explosion, tornado, building collapse, wind, hail, earthquake and vandalism.

No matter how large or small your self-storage facility may be, securing adequate coverage is essential for protecting your business and your peace of mind.

It is vitally important that customer storage insurance (CSI) be made available to your tenants in order to reduce your exposure to claims of negligence from those persons who have suffered damage to their stored goods. Universal Insurance Facilities Ltd. provides low-cost, A-rated CSI that will protect your tenants' stored goods as well as ensure your peace of mind. Universal's program is professionally staffed and underwritten by Ranger Insurance, one of the industry's top carriers. The company's CSI coverage may be purchased at any time by new and existing tenants, and there is no cost, paperwork or program maintenance for you. A sample of the actual CSI policy with exact terms and conditions is available upon request. For more information, call (800) 844-2101. Note: Universal does not offer CSI in Florida or Kentucky.

By Steve Cooper

The bottom line is the bottom line in any business. In today's self-storage environment, security sells. Building a safer and more secure facility from the ground up, or upgrading an older site to better keep up with the competition, not only makes sense, but also adds revenue and profit. Experience proves that what says, "You'll be secure here" to customers in the current marketplace is individual-unit door alarms.

General security is important. Crime Prevention Through Environmental Design (CPTED) principles lay the foundation for a more secure facility, then the specific security systems add benefits for safety, better risk management and more thorough operational control. "Access control and surveillance systems play a major role in keeping any establishment safer, but the one single item that more customers pay attention to in your advertising and in your facility is knowing there is specific protection for the unit they will be renting," says Bill Hamilton, president of San Diego-based Price Self Storage. "Individual-unit door alarms provide the protection our prospects and customers expect. They get real comfortable when they know the unit is alarmed."

Several security vendors serving self-storage have used a variety of approaches to provide a secure solution for each unit. Dating back to the mid-1970s, some of the earliest attempts to adapt available alarm technology could have been more successful. Since that time, innovations in technology and improvements in installation-labor methods have brought reliability and economy to the practice of alarming every door.

"If I were building my own facility, there's no question that I would put door alarms on," says John Arsement, division manager with John E. Hall Electrical Contractors in Virginia Beach, Va. "Since we learned how to install them efficiently, we have installed more than 10,000 sets of door contacts. We're proud of our record because the owners happily tell us that the systems are working well with no false alarms." Arsement comments that in cases where alarms have not worked well, the installation itself is usually suspect. "Somebody didn't do something right, if they have a lot of false alarms. With today's generation of matrix wiring systems, the problem shouldn't be in the equipment from the major suppliers. We've worked with at least three of the suppliers, and that gives us a basis of comparison."

The concept of arming a monitoring and alert device for each door is simple, but the engineering and execution can prove intimidating to most engineers, especially when there are limits to the cost that self-storage operators are willing to absorb. "The traditional self-storage environment is just too harsh for a lot of electrical and electronic systems," says Jon Loftin, vice president and systems engineer for Digitech International, a vendor of security systems designed especially for use in self-storage. "Components must be able to withstand and operate properly, regardless of heat, cold, dust, rain, ice and anything else that nature throws at them. With the hardwired system we've been using the last few years, we were able to overcome all of that."

In addition to hardwired systems, a few companies have experimented with wireless alarms, some with minimal success. According to Arsement, Loftin and others, the problem has been in trying to adapt equipment designed for residential and light commercial applications for use in the self-storage environment. "The difficulty has been trying to take off-the-shelf parts and make them work for a use where they were not intended. I've tried similar equipment at my home that didn't perform that well, so I would never expect it to work at my facilities," says Hamilton.

According to Loftin, "The spread spectrum technology is a good idea, but most of the equipment we've all tried in the past is really about the same as what's used for garage-door openers. It's subject to quite a bit of interference, but the main thing is, it's not designed to be used in or around an all-metal building. That's why we went all the way to ground zero to engineer an all-new approach that does work. We went back to basics and engineered a new device to meet all the specific demands we've encountered, the environmental factors, how to send and receive a radio signal when the transmitter is surrounded by nothing but metal, and how to easily retrofit an existing facility at a competitive price."

Hardwired systems, though effective, can be labor intensive. "We use apprentice-type labor to pull all the wire and apply the contacts," says Arsement. "Then we bring in the higher-priced technicians to do all the terminating and testing. We have learned the hard way that doing it right the first time is the only way. Once the units are rented, having access to the unit to do repairs or testing makes it hard on everybody: the owner, the manager, and the customer."

According to owners, installers and vendors, the appeal for someone to present a viable wireless solution to the industry has been eliminating the need for working inside the unit and reducing both the amount of labor involved and the skill level of the technicians. According to Loftin, "We could have come to the market a long time ago with a solution using what's called high-security alarm contacts, but it was way too expensive. Now, we have a solution that will be price-competitive with our hardwired system. Owners building new facilities will have a choice, and those with existing facilities will have a new affordable option they've never really had before."

Regardless of the technology used, customers appreciate the assurance that the unit they rent has the additional protection. "When I was in college," says Wendy Earley, a typical storage customer, "I rented a locker for the summer in a place that looked nice and was well-fenced. Somebody apparently jumped the fence, even though there was an automatic gate. My parents and I had to replace a microwave, a toaster oven and everything else that seemed to have value. The next summer, we stored in a place that had better alarms."

Arsement says, "Every door should be armed, even the vacant units. That way the manager knows, not only who is coming and going, but also whether or not they are actually going to their unit. We've seen where tenants would come on site just to use the dumpster." He also mentioned that alarming the empties keeps them clean and ready to show to prospects. "If even the vacant units are locked and alarmed, they're not available for people to throw trash into, or use as a place to relieve themselves, as we have seen on occasion."

Crime-prevention experts talk about "hardening the target." According to Roger Austin, CPTED specialist with the Tempe, Ariz., police department, "Anything you can do to make it hard for a criminal to do his thing will help. We have instituted a crime-free program specifically for mini-storage. In the past three years since we started the program, we've seen a 50 percent drop in calls to storage facilities."

Each call saved is money in the bank. Industry surveys consistently show individual-unit door alarms are the largest contributor to the feeling of security customers enjoy. Surveys also show that alarms help justify premium rates in a competitive situation. Owners and self-storage customers seem to agree. That makes individual-unit door alarms a win-win security solution.

Steve Cooper serves as marketing director for Digitech International Inc., a supplier of crime-proofing access-control and security systems manufactured especially for the self-storage industry. For more information, call (800) 523-9504; www.digitech-intl.com.

By Cary McGovern

After almost three years of writing columns in Inside Self-Storage, I continue to get questions from owners and operators that show a degree of misunderstanding about how to operate records management in a self-storage operation with little or no cost or added effort. This column focuses on clarification of those issues.

What Drives Growth in Records Management?

I have been working in the records-management industry for more than 25 years. During that time, I have witnessed the growth of the industry beyond anyone's expectations. Early in my career I thought that government regulation drove the need, and so it does to some degree. But the single most prevalent reason for the huge growth in records management is "fear." It is the fear of litigation, fear of not keeping the "right stuff," fear of being blamed if something goes wrong. Fear drives records management today.

Records Management is an Absolute for Business

Businesses have no choice--they must keep records. The problem is that it is very confusing, and there is no immediate payback for keeping records the right way. I have witnessed, in literally thousands of companies, that business records always have the lowest level of importance until something goes wrong. The problem is that when something goes wrong, it could cost millions of dollars, usually in litigation; and the very thing that they try to protect is the thing that gets them. Keeping records too long is the most common mistake and the rule of the court is, "If you have it, you have to provide it in legal discovery."

Growth in Records-Storage Revenue

Iron Mountain, the worlds largest commercial-records business, wrote the following in a recent press release (For the complete press release, visit www.corporate-ir.net/ireye/ir_site.zhtml?ticker=irm&script=410&layout=9&item_id=58273):

Storage revenues increased to $82 million for the third quarter of 1999 from $60 million for the same period in 1998. This marks the 43rd consecutive quarter for which Iron Mountain has reported increased storage revenues. Storage revenues, which are considered a key performance indicator for the records and information-management services industry, are largely recurring since customers typically retain their records for many years.

Question: Do you know where most new accounts for records storage come from? Answer: Self-storage. The industry has used self-storage as the feeder system for new business. I have talked to records-storage salespeople who literally follow your customers into your facility and sell records management to them on your premises. If you don't believe that, then I can also tell you that I personally have done it many times. There was one self-storage facility I know well that had little or no security. I actually walked through their facility, took notes on who had records there, and eventually got more than 90 percent of the business from them. You, as a self-storage operator, are an easy target.

The industry estimates that approximately 5 percent to 10 percent of your self-storage units contain business records. Since most of you have only a month-to-month lease for your space, it is easy for your competition to get the business away from you. It is true to say (without exception) that records management is always cheaper and better than records storage. It is also true to say that records-management revenues in self-storage are three to five times the revenue of traditional self-storage. So, if you want to keep units full, offer records management services. When you convert them from records storage to records management, you lock them in because there is a retrieval fee for each carton. You have them, as the industry says, "held hostage."

Additionally, your revenue per unit in records management compared to self-storage grows significantly. Your customer gets better service, variable charges, doesn't have any hassle and you get more money. What's wrong with this picture? I always say to customers, "Yes, we can fix your records system, but the only problem is, it will cost you less to do it right." (You may want to refer to some of my past columns for additional resources. You can access them at www.insideselfstorage.com or www.fileman.com.)

How Do You Stop the Exodus to Commercial Records Centers?

Yes, you can offer records-management services without hassle. This is where the misunderstanding comes in with owners and operators who call me. As soon as they start thinking about records management, nearly everyone wants to jump in and compete with the "big boys." That may be a mistake for many of you who just want to hold on to your business and increase revenue with little or no new cost. Of course, if you have the where-with-all to do traditional records management, then do it. Most of my customers simply want to add value, increase revenue and use existing resources.

Records Management--One Unit at a Time

My proposed method of records management will do just that: Help you add value and increase revenue at your facility while utilizing your existing resources. You already have the basis of a profitable business in 5 percent to 10 percent of your existing units. You can go into the business within two weeks if you follow my nontraditional model, accruing very little new cost and becoming profitable in less than 90 days. (See my column in last month's issue of Inside Self-Storage.) The components of the model include:

1. The use of existing units. It is common for my customers to choose several larger, contiguous units, usually 10-by-10 or larger, to start. Simply take the divider walls down between the units. Remember contiguous units are not required, but simply assist in the logistics.
2. Lease racking one unit at a time only when you have the business to fill those units. Racks always maximize storage revenue. My shelving partner has designed layouts that maximize revenue in units size 10-by-10 or greater. My leasing partner can design a lease that can be added to as a facility grows.
3. Use time-shared software. Pay only when you use it. There is no up-front cost for this software and only a one-time cost for bar-code scanning equipment that can be added to your lease agreement along with the racking. (See www.fileman.com for more information.)
4. Outsource the labor and delivery manpower. I recommend outsourcing all of the activities. You will make a little less in transaction revenue, but you will have no personnel overhead.
5. Allow the customer to add new box and file data and request transactions via the Internet. Your system should allow the customer to add new boxes, request delivery and generate reports without any interaction with your manager. For this, you and the customer need only three things: Internet access through a service provider, e-mail and Microsoft Internet Explorer (all of which can be obtained for free).
6. Automatic billing. Billing should be automatic, with transaction and storage fees computed and maintained throughout the month. At the end of each month, billing is generated for you to send to your customer.
7. Training and education. A start-up manual, video training, audiocassettes training and a distance-learning program can be provided to you via telephone or the Internet.

You Should Be in the Records-Management Business

Regardless of your size, location or resources, if you own or operate a self-storage facility, you should be in the records-management business. Remember, it can be simple if you follow the nontraditional model. If you begin with this model, it may lead you to a decision about going into the more traditional form of the business. My advice to you is to take it one step at a time.

Regular columnist Cary F. McGovern is a certified records manager and the principal of File Managers Inc., a records-management consulting firm that specializes in implementation assistance and training for new, commercial records-center start-ups, as well as marketing support for existing records centers. For more information, contact Mr. McGovern at File Managers Inc., P.O. Box 1178, Abita Springs, LA 70420; phone (504) 871-0092; toll-free (877) FILEMAN; fax (504) 893-1751; e-mail [email protected]; www.fileman.com.

By Lance Comstock

You have read the magazines, gone to the trade shows, and even visited your competitors' facilities to see what they have to offer. You have finally made the decision as to what type of security system and which manufacturer you will invest in to protect your property and your tenants' goods. So, now what?

As your decision comes to a close, let's hope you looked at and weighed a decision as equally important to the functionality of the system as the components of price, features, etc.: installation and post-install support. As the industry and its security systems get more complex, one important fact remains true: If the system is not installed or maintained properly, it can give you and your customers years of aggravation and a breach in the security itself, exposing you to unnecessary liabilities.

The reality is that, once your property is open for business and units are being rented, your security system will be one of the most important purchases you make. If there is a failure in one part of the system, it will create great inconveniences for you and your customers. Finding the right installation company can be very difficult if you don't know the right questions to ask or what to look for in the vendor.

When researching, ask the manufacturer if he offers a dealer or distribution network of qualified and trained installers. This can be one of your more useful tools, and the best way to find qualified companies. If he does, don't just get one name but several, then make sure they are actually familiar with the equipment and installation in this particular industry. If they aren't, you may want to reconsider your purchase. Many times, customers will purchase equipment directly from a manufacturer, then look through the Yellow Pages to find the closest and cheapest burglar-alarm company, asking them to bid the install of the equipment. This is the wrong way to go. Even though the components may be similar to what the company may have installed in the past, there are many things that must be installed differently when looking at self-storage.

One of the most common mistakes unqualified companies will make is using the wrong switch and mounting method for an individual door-alarm system. If you look throughout your home or any commercial business with a standard burglar-alarm system, you will normally see a magnet and contact set, which measures approximately 2 inches across. This contact will only allow for a maximum gap distance of three-quarters of an inch. This contact is much cheaper and can appear to save you hundreds of dollars in the beginning, but it is not sufficient for storage use because the tolerances of self-storage doors will greatly vary. This switch may work for the first few years, but as the door tolerances increase and the magnet for the switch looses its effectiveness from being mounted to the metal surface, false alarms are inevitable.

Other very common mistakes from an inexperienced company will be its assumption that the wiring and contact will be accessible for repair if a problem is incurred. This is not the case. When the unit is rented, it is nearly impossible for the installer to ever gain access for any adjustments or wiring issues, thus rendering the alarm useless.

Most installers not familiar with installing hundreds of contacts on one job will also suffer from getting lazy by redundancy. Be sure your installation company has had experience with installing a door-alarm system of this type before hiring them.

Although few and far between, a company that can handle all aspects of the install is superior to having to use several different companies. In most security applications, you will need high-voltage electric conduit work, fencing work, concrete and low-voltage work. Finding a company big enough to handle all these tasks may be difficult, but they can usually get the install done quicker and cheaper than several different companies hired separately. It also helps to keeps the responsibility with one company if there is a problem somewhere, rather than getting into a finger-pointing contest to determine who is to blame.

It seems that what goes up must come down, and what goes in must get repaired on occasion. Be sure to check with your installation company as well as the manufacturer to determine the warranty period and service policies on your system. As many installation companies may be small, be sure to ask about their response time and number of personnel dedicated for service work. Also ask to see if they have any annual service agreements or 24-hour on-call service. As coincidence has it, gates always seem to fail at 5 p.m. on Friday. If your service company does not offer extended service, your facility may be left unsecured all weekend until Monday.

Lastly, your system may be comprised of a very complex mixture of power supplies, sirens, cameras, conduits, junction boxes, wiring and splices. Keeping track of all these items is important and is essential for service in the future. As the owner, you should demand in your negotiations to get a copy of the wiring and equipment schematics. These can prove to be invaluable in the unlikely event there are disputes with the installing company and a new company is brought into the picture to resolve any issues, or if a technician is on site for service and has never seen the property before.

Remember: The lowest price is generally not the best. Make sure you fully research the companies. Call their references and ask questions. With a very busy economy, it's easy to become lazy and just buy the lowest priced system or hire the company that responded to your phone calls. Your security is crucial, and access control is the nuts and bolts of your facility. It's what sets you apart from your competition. Don't treat the installation lightly--you may pay for it in the long run.

Lance Comstock is CEO of Preferred Technology East, a project-management and installation company to the self-storage industry of more than 12 years. Mr. Comstock is also president of Scottsdale, Ariz.-based PTI Access Controls, which has designed and manufactured access-control systems for the self-storage industry for more than 20 years.

While recently attending the Southwest Self-Storage Conference and Trade Show, presented in Phoenix by the American Mini Storage Association, my curiosity was piqued by one of their choices of speakers. The association had brought on board a Crime Prevention Through Environmental Design (CPTED) specialist with the Tempe, Ariz., police department. CPTED is a branch of situational crime prevention, the basic premise of which is that physical environments can be manipulated in such a way that they actually reduce the incidence of crime. Unlike other more aggressive methods of crime-prevention, CPTED attempts to use environmental factors to influence the perceptions of all users of a given space (i.e., a self-storage facility), addressing not only the opportunity for crime, but the sensation of fear on the part of potential victims.

The idea here is that the design and layout of your facility can potentially contribute to the avoidance of crime, but that really oversimplifies the concept. (For more information, visit www.cpted.org.) The bottom line is that, as owners or managers of storage facilities--especially if you're a resident manager--you have a lot at stake. Not only are your business and tenants' goods vulnerable, but potentially your home as well. This makes the decision as to what security systems to implement and maintain a particularly crucial one.

Before directing you to this issue's catalogue of articles regarding security issues--software, gates, alarms, installation, locks, etc.--let me just say that, obviously, safety and security are of utmost concern in both our personal and professional lives. People chuckled when they saw an article on tenant-operated methamphetamine labs publicized on the cover of our February issue, but we were barraged with phone calls from self-storage operators plagued with similar woes. And, in the case of many of these trials, the challenge isn't petty theft, it's the devious, conniving criminal mind. Make sure your managers are prepared to identify problem renters, or to recognize suspicious behavior or items on your site.

The safety of your facility will, of course, be bolstered by a sound security system. Whether you're a new developer or a seasoned veteran, it's important to keep abreast of the most current options in that arena. David Reddick provides a comprehensive overview of self-storage security hardware and software, and how best to choose it. Steve Cooper adds a more detailed focus on individual unit door alarms, while Arden Thoburn looks at closed-circuit television. Finally, Chris Shope shares his views on locks as more than just an ancillary product, and Lance Comstock highlights the importance of proper installation and support.

Hopefully, those of you who joined us in Buffalo, N.Y., last month took advantage of the unique exposure to an international market. Self-storage is spreading its influence over borders and overseas, which will mean a more challenging business climate for us all. Don't allow anxiety over crime or other manageable hazards to undermine your participation in what is sure to be an exciting--and profitable--future.

Be careful out there,

Teri L. Lanza
Editor
[email protected]

For a complete list of references click here

By Harley Rolfe

Note: The views expressed in this column are not intended to represent the opinions of Inside Self-Storage or members of its staff. We invite any comments and will present them in a subsequent issue, if appropriate.

Are there new facilities arriving in your area? If so, that's great for all the folks who benefit from development: architects, builders, suppliers, certain land owners, etc. And it's great for those who want to sell. It may not be the greatest for existing operators. So it's a good news/bad news story depending on who you are. More importantly, it's a typical story.

All industries go through this sequence as they mature. A new service is introduced and is well received. For a while the problem is creating enough supply to handle all comers. Initially, individual suppliers can offer a commodity; but that period passes and on comes the difficulties of price competition. It's the opening gun for interest in marketing. This story should be comforting. We are not dealing with rocket science. Many have gone before us. It's how marketers make a living.

Usual Competitive Response

If the management orientation has been one of offering a commodity, then it's a matter of getting prepared to give a rate-level response to new suppliers. To endure as a successful approach, we know that price competition should really be cost competition. So we need to look for areas of cost advantage. I have mentioned in previous columns that the level of marginal unit-operating cost for self-storage operations is quite low, so it's not possible to cut much there.

That leaves financing. While not literally an operating cost, debt service is regarded like one in this kind of situation. Here an existing facility is likely to have an advantage: They may have little or even no debt. That would ease cash-flow pressure and provide room for the rate-level contest. The new facility may not be so fortunate. Its new debt-level obligations could discourage aggressive pricing. So, they may not be too willing to move down as you push to maintain your market position. Without some kind of cost advantage, it is difficult to persevere for long using a rate-level response.

Time to Bail?

There's another reaction. A friend who was in the self-storage business in the Pacific Northwest took a look at the developing situation in his area and decided it was time to sell. He wanted no part of what he thought was going to be a dogfight. I tried to tell him that there were a number of things he could do to insulate himself, but his "day job" prevented him from devoting very much attention to his facility. With a resident manager, the facility had pretty much run on its own.

What's Normal?

I've been asked about a norm for promotion expense as a percent of total sales. Operators are looking for guidelines as they pick their way along an unfamiliar route. Many have never spent serious money on marketing. Spending on Yellow Pages is about it. Anything more can seem like a lot.

Other industries do have such norms. They are used to a competitive market and have been responding for years. Both they and their industry have a track record. But most current self-storage operations function as a commodity; so the first move is to segue into a product-type operation. That is a transitional step. Next is the ongoing operation of the facility on the product basis. The norm we're after relates to the latter ongoing phase. Few have gone there, so the guideposts aren't established, yet. It will seem like you're flying blind for a while.

Time to Rock 'n Roll

It's no fun to face a competitive threat for the first time. The normal reaction is to retrench, get conservative to preserve resources. But that isn't the usual way to engage in a competitive contest. Normally, the more aggressive the opponent, the more active the home team gets. But just when it's time to rock 'n roll, the opposite may seem to be the best course. Also, direct price responses usually can only go on so long. More creative differentiation approaches need to be introduced. Still, persons not familiar with marketing options hesitate to expend resources under pressure circumstances. It's no time to try out unfamiliar fixes.

You Woulda Thought...

The additional puzzle: Where can existing owners turn for help? In other kinds of business, the industry association would be there to help members thrive. It's one of their most valued services. But in this industry, the Self-Storage Association (SSA) offers little marketing help for present owners being pressed by new competition. They may offer some assistance with Yellow Pages ad layout advice and point-of-purchase displays, but such responses are anemic in the face of serious market combat.

Yet, the SSA offers extensive assistance to developers, both in written material and trade shows aimed at newcomers attracted to those fine returns. They provide them with excellent knowledge--coaching, guidance and pitfalls to avoid--that many existing owners never got. Moreover, those lessons were born of the hard knocks present owners had to suffer on their own. The SSA must know that added capacity in the association has the potential to threaten those souls located in any area of expanding operations. It would seem that before offering aid and comfort to newcomers, they would move hard to make more room in the industry first.

A while back, I had a personal experience in that regard: I offered the SSA use of my book. They did not answer--I received no comment at all. Maybe the book is no good, but the association doesn't offer anyone's marketing material. It seems to have little interest in helping existing owners respond to the competition it fosters. The local state/regional associations focus on the welfare of existing operators. The national organization seems less inclined--at least on the marketing front. It is a source of pride to herald the "growth" of the self-storage industry. By growth they mean added capacity and more units. Continuous added capacity inevitably leads to destructive competition. As I've said before, competition is great for society, but hell on suppliers. I mention this only to lament the dearth of marketing resources available to operators who find themselves on the wrong end of the self-storage industry "growth" story.

Where to Turn

There are two facets of cost related to getting marketing help: 1) the personal time and raw cost of gaining information, and 2) the risk in lost effectiveness if the answers turn out not to work. A problem caused a need for information; the problem continues, and there is a penalty for not solving it. So choosing a poor solution not only wastes the direct cost of the action taken, but also exposes the operator to the continuing costs of not solving the problem.

Another part of the dilemma for the marketing novice is how to tell the straight stuff from the pretenders. If you don't know a whole lot about a new subject, how do you determine how good the information that you're getting? Under those circumstances and in a situation where you often need to know--quickly--how can you judge enough to bet your business?

Earlier I mentioned that price is the first weapon of choice in the face of new competition. Operators can persevere for a while using it. But who wants to just persevere? Owners want to prosper. Next month, I'll offer some suggestions on sources for marketing help.

Missed some previous issues? Check the web at www.hardnosed.com.

Harley Rolfe is a semi-retired marketing specialist whose career includes executive-level marketing positions with General Electric and AT&T. He also owned lodging and office facilities for more than 20 years. Mr. Rolfe holds a bachelor's degree in economics from Wabash College and a master's degree in business administration from the University of Indiana. He can be reached at his home in Nampa, Idaho, at (208) 463-9039. Further information can also be found in Mr. Harley's book, Hard-Nosed Marketing for Self-Storage.

By Chris Shope

High-security cylinders and padlocks have millions of usable combinations, and are available with or without master keying.

The typical self-storage owner may think of padlocks and other security locking devices as profit-making items that help renters lock their units. Locks are heavier and more expensive than boxes, but are sometimes viewed as just another ancillary product, something to put a few bucks in your pocket.

For the past three years, I have been actively making sales calls on self-storage facilities from coast to coast. The first question I am usually asked about locks is the price. Very few people ask about usable key codes or the actual quality of the locking systems at first. In the beginning, this was difficult for me to comprehend.

We entered the security industry with a full line of locks developed for the casino-gaming, vending and amusement industries. With the distinction of selling security products to these industries came the responsibility of manufacturing a line of locks that could compete with companies such as Medeco and Abloy. Like these companies, we take an active roll in new-product development and maintaining the integrity of our trade, which is why we don't consider locks an ancillary product.

In the early '80s, the self-storage market was not consumed by low-end lock and security products, but still was focused on high quality and inventive ideas. In the past decade, the market has become price-driven, but with this trend comes a problem: You cannot keep reducing prices without diminishing your quality and features. Hence, a lower-end line of locks emerged to compete with some ancillary companies' products, but there are still products available tailored to companies with security in mind.

Many of the new, state-of-the-art facilities and some older facilities have moved from padlocks to more enhanced security systems. Modern facilities, as well as retrofitted older facilities, are using extra security measures to enhance their marketing programs. Our hand-assembled locking cylinders are unquestionably still our biggest selling cylinders. And with the increasing problems of theft, chemical storage, drug labs and other criminal activities on the rise, the number of master-keyed facilities has increased.

Believe me, I know what you are thinking: Master-keyed facilities--I can't do that. Well, you will be surprised to learn that some cities and municipalities now require master keying for fire codes. And none of the facilities that operate with our master-keyed systems have been compelled to drop their operation. Since 1985, when we developed this system, we have had no security breaches or legal problems, and we have sold over a million of these cylinders, all of which are still in operation.

We all can see tremendous change happening in the industry. There is a marketing advantage in promoting a high-security facility. Look at your entire facility, from the surveillance system to your gates, and build a system that complements your surroundings. Locks are part of that system. When you promote security, your customers will not only appreciate your efforts, they will have a superior level of confidence in your facility.

Chris Shope is the national sales manager for L.A.I. Group, which manufactures a complete line of security locks and custom-designed security hardware for the self-storage and other industries. The L.A.I. team is committed to taking knowledge gained from other security industries and applying it to the self-storage market. For more information, call (800) 422-2866.

By Arden Thoburn

The self-storage industry is growing at such a rapid rate, crime can hardly keep up. As the industry grows, so grow the many ways for criminals to take away from your bottom line. It seems they work as hard at trying to take things away from you as you work to protect your facilities.

One of the most important factors in deterring crime in a facility is lighting. Another, which works closely with your lighting, is a closed-circuit television (CCTV) camera system. With adequate lighting, a CCTV system can work much more efficiently in the night hours, when most criminals are taking advantage of dimly lit areas of your facility, exploiting a weakness in your security system. With proper lighting and camera placement in all vulnerable areas, your system can act as a deterrent to crime as much as anything else.

With the proper deterrents in place, you create a mental block for most perpetrators of crimes. You must admit that most criminal minds are lacking common sense and good judgement or they wouldn't be in such a predicament. What I'm getting at is that simple: Commonsense practices for deterring crimes before they happen can save on the bottom line.

You can keep it as simple as possible in regards to your security-system design, or you can get highly sophisticated. One rule of thumb is the KISS method: Keep it simple, Sam, Simon, Sally, etc. I've found that most facilities require a very basic system. Keep in mind that if you have already purchased additional property on an adjacent lot, you may consider thinking ahead. This means it will require a system you can grow into, so your dollars will be better spent and you can save on the bottom line in the long run.

One thing to consider is whether to purchase black-and-white cameras vs. color. Black-and-white cameras give higher definition and better contrast lines of resolution. Most of the time, details are in black and white. Color-camera technology has vastly improved in recent years; however, you can lose some details in the color spectrum as the color sometimes camouflages the images you're trying to improve upon. Again, you must decide which is the best for the bottom line.

You must also consider the type of control system for monitoring and recording of the camera signals. Again, I must stress the need to keep it simple. The control part of the system is where your dollars are stretched a little. The multiplexer is a device used to combine multiple camera signals to be recorded on one industrial video recorder, and there are a number of types available. Two of the most common units are referred to as simplex and duplex. The simplex version gives you all the recording capabilities, but limited displays of single or switching of cameras on the monitor as you're recording. The duplex version gives you all recording capabilities, but more display options while you're recording. Obviously, the simplex version will cost you less, and we know what that means.

You can take it a step further and get into the new digital-recording devices available today, and eliminate the need for videotape recorders. You can record up to 32 cameras at a maximum of 71 days with digital equipment. This product can connect through a local area network (LAN), integrated services digital network (ISDN), modem or the Internet. These systems are the future of the CCTV industry; however, they are more costly.

In sharp contrast, you might consider a simple quad system, which includes a quad compression unit that enables you to record a maximum of four cameras on an industrial recorder. You can always replace the quad unit when growing the system with more cameras and a multiplexer. This makes for a low-budget system to work with until such time your bottom line improves.

Today, phone-line equipment with built-in modems are available for monitoring your facilities from the office or home. You can even carry the receiver with you on the road and simply plug into any available standard phone line to monitor your facility. There are also some simple software packages for monitoring your system from a laptop or home computer.

CCTV systems can help you market your facility in today's competitive market. You can take a bite out of crime, but a criminal will always be biting at your heels. So be prepared, and stay a step or two ahead. Remember that CCTV can help as a deterrent to crime as much as anything else, but there's no guarantee that CCTV will stop all crime from occurring. It will, however, help improve the bottom line.

Arden Thoburn is vice president, national sales manager for Greensboro, N.C.-based Crest Electronics Inc., a manufacturer of video-security products, including black-and-white and color monitors, multiplexers, quads, time-lapse recorders, event-alarm recorders, lenses, domes, video motion detectors and more. For more information, call (888) 502-7378, or visit www.crestelectronics.com.

By Barry Morris

Most people in the self-storage business are familiar with Capco Steel, which has designed, engineered, constructed and erected steel self-storage buildings for 15 years. The name Artistic Builders Inc. (ABI) hasn't existed as long and may not be as familiar, but Capco's sister company seems to be rapidly gaining recognition in the industry similar to that of its older sibling.

As the owner of Capco, Charles Plunkett was approached a few years ago by a local group in San Antonio, Texas, about building a self-storage project from the ground up. Having a background in general contracting but being several years removed from it, Plunkett decided to return to the general contracting arena. This "appetite," as he calls it, led to the formation of ABI in 1994. The company built the San Antonio group's complex, a project that won a facility-of-the-year award in 1996.

From the Ground Up

Plunkett describes ABI as a multi-tasking company providing development assistance and building of self-storage facilities. "Most of our work is not hard bid work--someone saying, 'Here's a set of plans; give us a bid on this project'--although we're capable of doing that. Rather, most of our work exists because someone has the idea that they want to develop a storage facility and doesn't really know what to do. They come to us and we'll assist them in what I call pre-development work: helping them evaluate their site, what kind of construction difficulties they'll have there, their real-estate deals, and so on.

"We will actually, in many cases, come up with a conceptual design of the overall look of the project that's generally intended to fit within the area where it's located. Then they can either have their architects and engineers develop the plans, or we can take care of that. We can then build it for them from the ground up and hand them the keys when it's finished."

Some contractors include services that may present a conflict, but ABI avoids such situations. "One aspect of pre-development analysis we do not get involved in is doing market-feasibility studies," Plunkett says. "We will recommend people to market analysts, and we would generally always recommend that they have a feasibility study done. But we're professionals in designing and building facilities, not in doing feasibility studies; and we've always felt there was an inherent conflict to someone hiring us to tell them whether or not we should build a project for them."

ABI will also represent clients at meetings with cities to acquire necessary variances, zoning adjustments and the like. "It's pretty normal for us to represent our clients at various hearings and, so far, we've been successful on every occasion."

ABI gets a letter of intent, with a small advance payment, from a client wanting to enlist its help during the hearings process, says Senior Project Manager Glenda Jacoby. While not a legally binding contract, the letter-of-intent process exists to discourage what Jacoby calls "tire kickers," assuring the client is serious about ABI's involvement in their project. In citing the need for this provision, Jacoby lamented, "On one job, we worked with a client for eight months--at no charge--before we ever broke ground." However, if the client stays with ABI to complete the project, the advance payment is applied to the contract amount.

Quality and Commitment

ABI's basic philosophy is very simple: You are what you build. "I know this word is used loosely, but we are really known as a 'quality' company," says Plunkett. "We work very hard to do a good job, and we are not known for cutting corners or taking the short road on things. It's not uncommon for us even to spend money out of our own pocket on a project if we feel that it needs it and, for some reason, don't feel justified in charging the customer."

Much of ABI's business comes from people who have seen the company's finished projects, says Jacoby. "It's very common for us to hear such comments as, 'Boy, this is not like the typical storage facility we're used to seeing.'" ABI's reputation for quality recently brought it together with Brundage Management Company. ABI has completed work on one new Brundage property (another facility-of-the-year award winner), and two more are being constructed. Some of Brundage's older facilities are also being remodeled by ABI to more closely resemble the company's newer developments.

Plunkett feels ABI's focus on the self-storage industry is important to its success, and adds that other companies trying to capitalize on the industry's growth may not be qualified to do so. "We could be actively pursuing building office buildings, restaurants and so forth, but we feel we're highly specialized in self-storage," he says. "We have a lot knowledge to offer people, and a lot of experience and ability that we feel not a lot of people have. And we enjoy the industry. Therefore, we have stayed focused in this industry when the temptation has been there to go into other things."

It's not uncommon for developers to award projects to ABI even if other companies underbid them, says Plunkett. "We try to provide a good value and be very fair in our pricing, but we can't always do it as cheaply as someone else. But we never know what they're doing to get there. Everything is not always apples to apples. They may be cutting corners and so forth, and that's just something we choose not to do. Our reputation is at stake."

By David Reddick

Planning the security systems for your self-storage facility has become a rather complex task. The long and short of it is that there are a lot of choices and you will have unique wants and needs that respond to your market area and how you want to operate your business. Let's begin by defining the environment:

• The self-storage software program you use directly impacts your security system. It makes little sense to operate two separate systems if they can be interfaced or integrated so that many operations are accomplished automatically.
• There are a number of vendors who provide security systems specifically for this market. Self-storage is a unique business and vendors who specialize in this market provide features you need and that are useful in operating your business.
• Many different systems are available. For example, access control (keypads or card readers), individual door alarms (hardwired and wireless), CCTV, perimeter beams, graphic displays, etc.
• Systems/vendors offer unique features. Everyone tries to differentiate themselves from their competition. Providing a capability that no one else offers is one way to say, "my system is better."
• The physical layout/structure of your site will impact your security decision. Single-story, multi-story, inside units, outside units, etc., will impact your specific security system configuration.
• What your competition has to offer can make a difference. Do they have an automatic gate? Do they offer 24-hour access? Do they have and market a door-alarm system?
• Your marketing plan needs to relate to your security system. Security systems can be very effective marketing tools that can increase rates and occupancy.
• Everything has a cost. Your budget will ultimately dictate what you do. Leaving your security decision until late in the game often limits your ability to purchase the security system that will best meet your needs.

Understanding what is available will take the most time, but it is also the most important activity you will undertake. You need to be an informed buyer and that mandates that you do your own research and make your own comparisons.

Property-Management Software

Your software decision is directly related to your ultimate security decision. In most cases, choosing a software program will be the first thing you do. This naturally occurs for several reasons:

• The self-storage property-management software you select will be your primary tool for operating your business. As such, it must meet all of your operational needs, i.e., automatic posting of rent and late fees, generation of customized late and lien notices, printing customer receipts, as well as providing you the financial information you and your CPA need.
• A fair amount of customization will be required to meet your state laws and the conditions specified in your lease agreement. This customization and the fine tuning required as you implement your system will take some time.
• Learning how to use the software will also take you and your managers some time. While it is true that the simple operations (i.e., renting a unit) can be learned quickly, the countless variations (how to take a partial payment or do a pre-lease, for example) will require more hands-on knowledge. The key point is that the time to learn must come before a customer is standing across the counter in the rental office.

Selecting your software will require you to make the fundamental decision of which operating system you will use. It is basically a choice between DOS and Windows. Our industry has grown up on DOS, and there are many vendors with lots of storage experience who can provide you with a reliable and stable DOS-based system. Many of these vendors are working hard to provide Windows-based systems, and there are several who have successfully made the transition. I'll make the following observations for your consideration:

• It is virtually impossible to purchase a new PC that does not have Windows already installed.
• There are inherent conflicts in running a DOS-based program on a PC with Windows. Not that these issues can't be resolved, but it often takes extraordinary knowledge and skill to smooth out all the bumps. These obstacles can be significant when running your DOS-based security system on the same PC as your Windows-based management software.
• Development of Windows-based systems is tedious and difficult. It takes time, both in the development shop and in the field, to provide a system that is reasonably reliable. Early releases (versions) may provide you with some significant challenges. If you are not prepared to do Beta testing for your vendor, look for systems that have been in use for a period of time, and talk with people who use them.
• Finally, why buy old technology? The reality is that all new features and capabilities will come from Windows-based systems, not DOS.

And Now, on to Security

An overview of self-storage security systems will help you focus as you prepare to do your "homework." I think it is most easily understood by separating these systems into three categories: access control, individual door alarms, and ancillary systems and devices.

Access-Control Systems

Access-control systems provide a means of selectively allowing tenants to enter your facility. The most common method uses an entry and exit keypad in conjunction with a motorized gate. Your customer keys in his unique passcode at the entry keypad and, if certain conditions are met, the system will signal the gate to open and record the date and time this tenant has entered the site. Egress from the site is handled in the same manner at the exit keypad, and the system records the date and time this customer has left your facility.

Access-control systems can also be used to control entry via a door with an electric lock, i.e., to an interior corridor where inside units are located. The more sophisticated systems will support both gates and doors and selectively permit access only to those tenants having units in that particular inside corridor. Card readers are also available with many access-control systems. Some use proprietary cards (must be obtained from the supplier) and others use the customer's debit/credit card. The vast majority (99 percent) of self-storage facilities use keypads.

It is important to note that access-control systems only signal the gate to open. They provide a momentary closure (one to two seconds) of the circuit connected to the two normally open contacts at the gate motor. The gate motor (often referred to as "gate operator") controls how long the gate remains open and when the gate closes.

Holding the gate open is most often accomplished with the use of safety loops, which are connected to a loop detector inside the gate operator. Loops are wires embedded in the ground in front of and behind the gate. The loops and detector can sense a vehicle, which is in the way of the gate, and hold the gate open until the vehicle has cleared. They act as both "safety" and a signal to close the gate. Beams are sometimes used in place of loops. They are not as reliable and generally require more maintenance. We are beginning to see an occasional case where local codes require both beams and loops. In my opinion, the use of beams should be as secondary safety devices and not primary safety devices.

Your gate operator should always include a "timer to close." These timers are variable; for example, you can adjust the amount of time before the timer to close signals the gate, i.e., 15 seconds, to close. This is a fail-safe device that will help ensure the gate will close if someone keys in at the entry keypad (or card reader), then changes their mind, backing up and never crossing the loops.

The operation of an electric door strike is somewhat different in that it is always locked unless the circuit is closed. This means that the device (keypad) connected to the door strike must have the capability of holding the circuit closed for some period of time (five to eight seconds, for example) to allow the customer to physically open the door. Remember that exit must always be allowed without restriction.

Gates. Gates are available in an infinite variety. Sliding gates and vertical-pivot gates are the most common in the self-storage business. Swing gates are almost never used. Sliding gates are equipped with rollers that follow a track on the ground to keep the gate on course, or are a "Cantilever" style. Cantilever gates are built to support themselves, i.e., they have rails and rollers that support the gate allowing it to open and close without touching the ground. Vertical-pivot gates (somewhat new to the industry, but catching on) also support themselves. The gate and operator are purchased as a package. The gate opens by pivoting 90 degrees. It is counter-balanced so it can be easily raised manually if required.

The optimum size for a gate in our business is 16 feet wide by 6 feet high. This will allow any vehicle, which can legally travel our roads, easy access (room to spare) to your facility. The reality is that your local fire department is probably going to dictate the width of the opening. Don't give up the fight too easily as very large gates and openings can complicate your operation and add unneeded cost to your project.

Entry/Exit. Designing your entry/exit is something that should be done early in your project. Too often we see plans reflecting gates that don't fit, no provision for keypads or card readers, no conduit specified and little consideration to the flow of traffic. As an industry, we seem so preoccupied with coverage and unit mix that we don't consider how our customers are going to get in and out of our facilities. A normal situation would specify a 16-foot opening that would be a shared entry/exit (one gate). The traffic flow would be reversed so the customer enters and exits on the left side of the driveway respectively.

Keypads (or card readers) would be placed on the left side at a point 12 feet away from the gate--one for entry on the outside of the property and one for exit on the inside. Remember, it is as important to know when a customer leaves as it is to know when he arrives. Access to either keypad would be done from the window of the customer's vehicle. Ample space would be provided so the customer could easily straighten the path of their vehicle to line up with the keypad and proceed through the gate once it opened. The gate would be back from the main thoroughfare to allow room for three or four vehicles, and would be easily viewed from the office. Sufficient parking would be available outside the gate for prospective tenants, delivery vehicles, etc. There are, of course, many acceptable variations.

Your access-control system vendor should be able to provide you with scaled drawings to assist you in designing your entry/exit, placement of keypads/card readers, size and placement of required concrete pads and placement of conduit. Today's access-control systems are rich with features tailored to meet the unique requirements of self-storage. Individual passcodes, multiple time zones, holiday programming, discrete access levels and make late/pay up are just a few standard capabilities you will need to operate your facility. Evaluating the practical use of features available as they apply to how you want to run your business will help you in your decision-making process.

Individual Door-Alarm Systems

Door-alarm systems, by design, have inherent access-control capability. The most common configurations utilize the entry function to not only open the gate, but to also disable the alarm on that tenant's unit door. An entry message is recorded, and the date and time the unit door is opened is also recorded. For example, "OPEN 1124 9:37 4-26-2000." Thus, you not only have a record of when the tenant entered the site, you also have a record of when they entered their unit. When the unit door is closed, the system will record a close message (CLOSE 1124 10:14 4-26-2000) for the unit, which will also record the date and time. Upon keying out at the exit keypad, the system will open the gate and record an exit message (EXIT 1124 10:17 4-26-2000) and re-enable the unit-door alarm.

At this point, you will have a permanent record of the tenant's entry, open door, close door and exit from the facility, a much more complete record of the tenant's onsite activity than simply an enter and exit message provided by an access-control system. And, most certainly, a more complete record than just an enter message captured by an access-control system using only an enter keypad and providing a free exit.

Individual door-alarm systems are still the best way to secure a self-storage facility. Considering that most break-ins (60 percent or more) are accomplished by tenants, electronic monitoring of unit doors makes a lot of sense. The classic break-in scenario goes like this: An individual rents a unit, probably paying in cash. He spends a fair amount of time on site observing move-ins and other activity where unit doors are open (so he can see what's inside). As each "good" tenant leaves and the opportunity presents itself, the individual cuts the lock, sorts through the unit contents placing the valuable items at the front of the unit, closes the door and secures it with his own lock. When he has eight or 10 units secured (I've seen as many as 35 or 40 at a time), in comes the truck and out goes someone else's goods. The unit doors are left locked, and no one is the wiser until the real tenant returns and his key doesn't fit.

I will occasionally hear opinions that since it is the door that is alarmed, burglars will cut through unit walls and obtain goods in that manner. The reality is that while this may occasionally happen, the vast majority are accomplished as described above. It's a whole lot easier. The other reality is facilities that post appropriate signage ("Every Unit Alarmed"), who market this capability by describing and demonstrating it to every prospective tenant, and who include it as part of their advertising, probably send problem tenants "down the street." After all, why would a burglar select a target with an individual door-alarm system in place when they could go down the street to a facility that doesn't have one?

The marketing capability of an individual door-alarm system is enormous. Properly and consistently done, the sales pitch can easily increase revenues $2 to $5 per unit per month and increase occupancy between 5 percent and 10 percent. Let's build an example: Take a facility with 50,000 rentable square feet and convert it to 500 equivalent 10-by-10s. In this market, a 10-by-10 rents for $50 per month. Add $3 per unit per month (on the low end of the scale) and increase occupancy by 6 percent (also on the low end of the scale). The result? An increase in revenue of approximately $32,000 a year. Further, at time of sale, the value of the facility would increase about $280,000 using a 10.5 CAP rate.

How do you sell door-alarm capability? Simple. You have your manager demonstrate the capability every time he shows a prospective tenant a unit. On the way to the unit, the manager explains that the security system provides a "secret" and unique passcode to each customer. Entering his passcode at the gate not only lets them in to the facility, it also disables the alarm on his unit door. When they arrive at the unit, the manager says, "We obviously haven't entered a passcode. Let me show you what happens when the door opens." The manager opens the unit door and the system sirens sound, clearly audible throughout the site. The system will automatically "time out" the siren after whatever period of time you desire, such as 25 or 30 seconds.

This demonstration provides a graphic example to the prospect of the door-alarm capability. I should add that the manager provides other descriptive information such as the systems-records entries, opening of doors, etc., and that the door alarm is re-enabled when the tenant exits the facility. Most door alarm systems are "hardwired," i.e., each unit is physically connected to the control system in the rental office. This connection is shared in some fashion to avoid the need of physically running wires from each unit back to the office.

Wiring and switches. There are several wiring schemes in use, with the most prominent being "multiplexed." One or more multiplexers are placed on each building and are used as a central point to connect the wiring from each unit. Multiplexers are connected together using communications cable, which can be routed in a variety of ways and placed to minimize wire lengths and conduit requirements.

A reed switch is placed inside the unit and its associated magnet is placed on the unit door. They are positioned so that when the door is closed, the magnet and switch are "aligned" and within the operating gap of the switch, normally two to three inches.

Several different types of reed switches are used. A floor-mounted switch is ideal for roll-up doors. This device is anchored to the floor of the unit inside the door and on the same side as the door latch. The magnet associated with the switch is mounted on a bracket, with the bracket being mounted on the inside of the door. The bracket provides an easy way to align the magnet to the switch and position it within the operating gap. The other type of switch is normally used with swing doors. This switch is mounted to the door header, and the magnet mounted on the door. A bracket is not usually provided unless the particular swing door has no header for mounting the switch.

Many facilities will use the swing-door switch with roll-up doors. The magnet is mounted on the upper part of the door (inside) and to the side. The switch is positioned by using a bracket, which is mounted to the unit wall. The use of swing-door switches on roll-up doors is done because of cost--they are generally $5 or $6 less than floor-mounted switches, which are more expensive and require some additional wire and connectors to install.

The arguments for using floor-mounted switches with roll-up doors are: 1) the point at which these switches and magnets are mounted is the most stable position of the door and more likely assures that the alignment and operating gap are maintained for an extended period of time; and 2) the magnet never gets "rolled up" inside the door when the door is opened, thereby avoiding the wear and tear that causes magnets to fall off over time.

Door-alarm systems that are hardwired operate in a "normally closed" condition. This means that the each circuit has continuity when the unit door is closed, and the magnet and switch are aligned and within the operating gap. An easy way to visualize this state is to make a comparison to a light and light switch. When the light switch is turned on, the circuit is complete and "closed." When the switch is turned off, the circuit is broken or "open."

Normally, closed systems also protect against wires being cut or components being disconnected since either will create an "open" condition and, therefore, generate an alarm. Hardwired door-alarm systems are normally installed during construction since all the wiring, switches, etc., can be placed inside. They can, however, be installed on the outside of the buildings after the facility is leased up. Installing a door alarm system on the outside (commonly referred to as a "retrofit") is being done with increasing frequency in our industry. There is no disadvantage to an outside installation, but there are two considerations that impact cost.

Reed switches used with an interior installation cannot be used for an outside installation since they can be easily "defeated." These switches are appropriate for an inside application because they are located on the back side of the unit door and, therefore, are not accessible from outside the unit. Switches that are accessible from the outside must be "high-security" or "anti-defeat" devices, and they are simply more expensive ($10 to $12 more) than standard reed switches. In addition, since wire for the units is run along the outside of each building, it should be concealed for aesthetic reasons as well as to protect the wire. It is important to note that protecting the wire from the sun is every bit as important as protecting it from moisture.

Protecting and concealing wire can be accomplished by using conduit or steel molding. Conduit is not very attractive, and wire placed in conduit is sometimes difficult to service. Molding, on the other hand, is attractive (many colors are available) and servicing wire is much easier than with conduit. Molding manufacturers have costs for each piece and part used, e.g., straight runs, 90s, couplings, etc. As a general rule of thumb, you can figure 85 cents to 90 cents per linear foot for molding. Assuming that your average unit is 10 feet across, you can estimate molding to cost about $9 per unit. Adding $12 per unit for anti-defeat switches will bring your incremental costs for a retrofit door alarm system to $21 per door/unit.

Wireless door-alarm systems have begun to make an appearance in the self-storage industry. Their primary appeal is the avoidance of having to discretely wire each unit. The perception is that material and installation costs are less than those of hardwired systems. The only way for you to determine which method is less expensive is to request proposals from hardwired and wireless vendors. The other claim of wireless-systems vendors is that you can market unit-alarm security on a customer-by-customer or unit-by-unit basis. In other words, the customer can rent unit alarm security for their unit(s) for a fixed amount per month in addition to their rent, if he chooses to do so.

There is a real question as to whether or not this kind of marketing is effective. We most certainly know that facilities with door-alarm systems can use the alarms as a marketing tool. You will have to decide if a unit-by-unit option is viable for your market. Perhaps discuss the merits with owners who use wireless systems and make your own judgement.

Individual door-alarm systems have many variations and features that will help you tailor them to your situation. For example, door-alarm systems are used at facilities without gates. The customer is still required to key in, which disables his unit alarm, but without an exit keypad to re-enable the unit alarm, the system is programmed to rearm at close. This means that when the tenant closes his unit door, the system automatically resets the alarm. This is not an operational problem, it simply means that instructions regarding the system must be slightly changed for the tenants. They need to understand that they must key in each time they open their unit door. This feature is used at many facilities without difficulty.

One feature I consider imperative as well as useful is "multiple units." Your security system must have the capability of linking all units rented by the same customer. This allows him to use only one code for entry and exit, regardless of how many units he rents from you. Customers with multiple units have a habit of only entering the codes for the units they believe they will need to access. Invariably, once on site, they determine that the things they need are in a unit for which they have not entered a code. They open the door and the alarm sounds. The multiple-unit feature eliminates this problem.

The multiple-unit feature has another advantage to the facility, since many changes can be accomplished through programming in place of making physical wiring changes to the door-alarm system. For example, if you take two 5-by-10s and combine them to make a 10-by-10, you will have two doors on the 10-by-10. Without the multiple-unit feature, you would either have to wire both doors together (in series), or put your lock on the second door so the customer could not use both doors. With the multiple-unit feature, it is a simple programming change to designate the second door as a "secondary unit" and give the customer full use of the unit.

Individual door-alarm systems are reliable and can be a productive security and marketing tool for an extended period of time. They are, however, dependent on the quality of the material used and require that they be properly installed. And as with any system, some preventative maintenance will assure proper operation. Your individual door-alarm system vendor should provide you with a specific installation overlay on your site plan/unit mix indicating conduit requirements, multiplexer locations and how each door switch is to be wired. Since these systems are low-voltage DC, care should be taken to provide separation (8 inches minimum) between conduit for the door-alarm system and conduit for AC power.

Ancillary Systems and Devices

There are an infinite number of security devices and systems available for use today. The most common ones used in our industry are perimeter beams, intercoms, closed-circuit television (CCTV) and site-graphic displays. Let's examine them one at a time.

Perimeter Beams

In the use of perimeter beams, a "line of sight" projection of an infared beam will annunciate an alarm if it is interrupted (something is in the way). They are commonly used along fence lines surrounding the facility, but can be installed at other points if useful. These are referred to as PIR beams.

PIR beams were originally introduced as a single-beam system, i.e., only one beam was transmitted to a receiver/reflector. They were only moderately dependable as almost anything (weeds, birds, dust, etc.) could interrupt the beam and cause an alarm. Dual beams followed and reliability increased, since both beams had to be interrupted at essentially the same time to cause an alarm condition. Quad beams (four) are now the most common and are much more reliable than dual- or single-beam systems. PIR systems are priced on a "distance sensitive" basis, i.e., the longer the beam, the more it costs.

Many beam systems offer control and annunciating equipment that allow them to stand alone and, therefore, operate as an independent entity. Beam systems used in self-storage are more commonly connected to the site access-control system and operate under its control. PIR systems should be treated as ancillary security and used only when a specific need is identified. They have limited value as a general-security system.

Intercoms

Intercoms are an easy and reliable way to provide voice access between the rental office and key points throughout the facility. Intercom systems include a master station and one or more substations. Master stations are designed to support one, two, three, five, 10 or 20 substations (there may be other variations) and are priced accordingly. The larger the capacity, the more they cost. Substations are relatively inexpensive, generally come with a plastic or metal face, and should always include a "call button" to provide a way for the substation to contact the office.

All primary self-storage security systems should include provisions for an intercom system. At a minimum, intercom substations should be associated with the keypads or card readers supported by the primary site-security system. The use of intercoms has been one of convenience in the past. Today, intercom systems are viewed as security and safety devices and are being installed throughout the site, particularly in inside corridors, multi-story buildings, etc. The real decision is not whether to install an intercom system, but how large a master station to buy that will meet your existing and future needs.

Closed-Circuit Television (CCTV)

CCTV is available in black and white or color and, in its most simple form, consists of one camera displaying an image on one monitor. Few CCTV systems are limited to only one camera and, since it doesn't make sense to add a monitor for every camera you place, the CCTV manufacturers have developed equipment to handle multiple cameras.

The early systems used a "switcher" that would allow the office to manually select which camera image to display or to switch from camera to camera at a specified interval. Switchers were commonly built to accommodate four or eight cameras. Next came the quad system, which split the monitor screen into four equal parts so the images from four cameras could be displayed at the same time. These systems also provided the ability to display a "full screen" for a designated camera should the office personnel want to enlarge the image.

Today's systems utilize technology that allows the cameras to be multiplexed, allowing the monitor to view eight, nine or 16 different images at the same time. Single, enlarged images can still be viewed easily by office personnel. A time-lapse VCR is often included with CCTV systems to provide the ability to have a record on videotape of all activity viewed by the installed cameras. Videotapes are generally archived and labeled with the start and end dates should the site need to review activity at a certain point or during a specified period of time.

There are a number of motivations for using CCTV at a facility. They range from simply wanting to see gate activity (if not readily viewed from the rental office) and perhaps having a video recording of all entries and exits, to having a comprehensive video record of site activity, including what was stored and by whom. You can spend as much money as you want on CCTV systems and should remember that they have some marketing value when monitors are prominently displayed in the rental office. You should also consider that such systems require some human intervention to be effective; therefore, their value is often "after the fact" as opposed to systems that are electronically based, e.g., individual door alarms.

Of particular interest is the newest remote-viewing capability now available at a reasonable price. These systems use a differential transmission protocol over a dial-up telephone line, which greatly enhances the quality of the video image and increases the "effective frames per second." This gets you much, much closer to real-time viewing than anything previously available on a dial-up basis. Owners with remote, unattended facilities should investigate this technology. You could be in your distant office (or at home), dial the telephone number and view your site (from multiple cameras) using your PC monitor. It is really slick!

Site-Graphic Displays

These systems provide a full-color view of your facility indicating units, buildings, etc. Unit colors are changed as their status changes, e.g., rented/vacant, tenant on-site, tenant in unit (alarm systems) and alarms (PIR or alarm systems). They often will also include activity messages across the display as these messages are generated by the primary system.

Most graphic displays address only the security system, including rented and vacant units. Other displays will also provide management information, such as delinquent, lien and unrentable status. They display the site by "paging" or "scrolling," as most sites are too large to fit on a single screen. Some vendors provide the site with the ability to reflect changes in the unit mix as they occur and stipulating what will be displayed and in what color. This gives the facility the ability to keep the display current (I had two 5-by-10s and now I have a 10-by-10) and to only display what they deem necessary; for example, they may not want to display delinquent units.

Site-graphic displays are most effective when displayed on a separate, larger monitor. DOS-based systems require a dedicated processor (a low-end PC) to run the separate display. Windows-based systems utilize a second video card to operate the separate monitor. Both approaches work satisfactorily, but the Windows-based display offers more capability and opportunity for future development.

Site-graphic display monitors are often placed in a cabinet along with CCTV monitors and other peripheral devices. This provides the rental office with a "high-tech" control center that also gives customers and prospects some real sizzle when they visit the office. Cabinets can be purchased from a variety of vendors or can be built at and by the site. Building a cabinet on site is easy, and there is not much for you to know. For example, once you have decided what will be placed in the cabinet, you can easily determine the horizontal shelf space required. The depth will be determined by the size of the monitor you select for the graphic display, as this is almost always the "deepest" component.

Construct the cabinet and place the required shelves. Make sure that access to AC power is provided, and allow for wire to placed through holes in the shelves or a space are the rear of each shelf. Paint the inside of the cabinet black. This reduces the opportunity for light to bounce around inside the cabinet, reducing the effectiveness of the displays. Purchase a piece of smoked Plexiglas cut to match the opening at the front of the cabinet. Obtain a hinge(s) suitable for mounting the plex on the cabinet frame. A piano hinge works well for this purpose. Hinges are not necessary, but you will want to have access to the inside of the cabinet from time to time, so make it easy on yourself. Locate your closest instant-sign store and arrange to have some lettering cut to label the devices inside the cabinet. You may also want to have your site name and logo prepared for placement on the plex. White letters show up very well on smoked Plexiglas. This lettering can be prepared so that words or groups of words are registered (in a straight line with appropriate separation between letters and words), which will make it easy for you to affix them. If you are not up to the task, the sign shop will place them for you for a nominal charge.

Shop around for other devices to be placed on the inside of the cabinet that will enhance the high-tech look. For example, Walgreen's sells a digital alarm clock with 4-inch, red digits that shows up extremely well behind the smoked Plexiglas. You may also want to include a simple key lock available from almost any hardware or builders store. The real magic is provided by the site-graphics display and the CCTV monitor. Color and movement is significantly enhanced when viewed through the smoked Plexiglas.

Compatibility With Your Property-Management Software

Self-storage property-management software systems generally have the capability of communicating with self-storage access-control and individual door-alarm systems. This is an important consideration since it reduces work in the rental office and helps ensure that the management and security systems are "in sync."

The primary protocol used is referred to as "interfacing," which essentially means that the management software is downloading information to the security system and the security system is acknowledging receipt in some manner. Information that is commonly sent to the security system includes move-ins, move-outs, change passcode, make late and pay up. Other data is becoming available that will allow assignment of time zones, access levels and multiple-unit designation.

There has been much discussion about establishing a "universal-interface" protocol that would allow software and security vendors to communicate between systems using the same standards. Several documents have been written and shared among the involved vendors, but a ubiquitous spirit of cooperation is not in place. From a customer's point of view, it would be ideal to have the flexibility to select a preferred software vendor and a preferred security vendor and be assured that an interface exists that would communicate 100 percent of the required information. Today, this capability only exists with vendors who provide both software and security or, in selected instances, where liaisons have been established.

The introduction of Windows-based systems further complicates the interface debate and the decisions you will make regarding software and security. Windows-based security and software systems can operate in a stand-alone mode, but they can also be "integrated" if obtained from the same vendor. Integrated systems completely avoid the interface question since they are essentially a single program, written in the same code and sharing the same database.

What Kind of Computer Does Your System Require?

This question is asked because a self-storage operator has a computer and wants to know if it will run the system, or because he is planning to purchase a new PC and wants to know what to buy. The question of using an existing PC should be easily answered by the security vendor if you can specify the general configuration. Does it run DOS or Windows? What version? How much memory (RAM)? How much hard-drive space is available? What other programs do you run?

Purchasing a new PC requires you to consider what's available on the market as well as what the vendor's system requires. The probability is high that a new PC will more than meet the vendor's system requirements. PC technology is changing very rapidly and you should consider your new PC as a short-term investment (two to three years.) At that point in time you must consider the merits of obtaining new equipment and discarding old equipment.

The other issue with buying a new PC is where to go to make your purchase. I would suggest that you discuss your purchase with your self-storage vendor(s) before you buy. Certain brands have high failure rates and hardware/software packages at cheap prices are not always the value they seem to be. Remember that you are going to depend on the PC to run your business. This may be an important--but not critical--consideration as it relates to your management software, but it is absolutely essential when your PC is responsible for your security system.

Dave Reddick is president of Sentinel Systems Corp. of Lakewood, Colo., which has been manufacturing self-storage software and security systems since 1975. Mr. Reddick can be reached by calling (800) 456-9955 or (303) 242-2000; fax (303) 242-2010; e-mail [email protected]; www.sentinelsystems.com.