On the positive side, they require less personnel, which means lower labor costs and fewer employee-related issues such as the need to hire, fire, train, settle disputes, etc. In addition, the lack of a managers residence increases a facilitys rentable square footage and eliminates the cost of apartment construction and maintenance. Automated sites allow for 24-hour access, which not only helps justify higher rents, but implies greater customer service and convenience. Finally, the ability to rent units around the clock means great revenue potential.

On the flip side, sites with minimal or no onsite staff face greater security challenges. First, the absence of consistent onsite management means fewer eyes observing facility activities. Second, while kiosk solutions can handle many manager duties, i.e. renting units and collecting payments, they cant do everything. To rent units, you need vacant spaces. If these are kept unlocked, they might be misused by other tenants, vandals or criminals. If they are locked, how do you allow tenants access to newly rented space? And how do you handle overlocks?

To successfully develop, market and protect a manager-less site, you must make the most of technological tools, smart devices that communicate with each other and your security system.

Electronic Door Locks

Kiosks make it possible for tenants to rent units, pay rent, procure a copy of their rental agreements, purchase tenant insurance and even buy locks for their units. On the security side, they can collect a tenant fingerprint, copy a drivers license and take a tenants photograph. This is more than even a human manager will sometimes do in the course of a new rental. But there are things a kiosk cannot do, such as lock or unlock a unitunless you use electronic door locks that tie into your management and security systems.

Electronic locks do not alter the conventional operation of a facility. A tenant still uses his own lock to secure his unit once the rental process is complete. What they allow, however, is the automatic unlocking of a unit when a new rental is made via a kiosk, and the locking of a unit if payment is delinquent or a tenant ends his lease.

Heres an example of how a system with electronic locks works: A new customer arrives at a facility at 2 a.m. and rents a unit using the kiosk. Upon completion of his rental, he receives a PIN code that he enters into the nearest access-control keypad. Three things happen simultaneously: the gate opens, his unit is unlocked, and his unit alarm is disabled.

A well-planned and designed electronic lock interfaces with your alarm and access systems, becoming an integral part of your site security. Not only does this integration reduce your overall security costs, it allows your electronic lock to be smart, meaning it knows when a door is open, closed or something in between. It will not lock until the door is ready. It will also be able to report all changes in the state of the door as well as its current lock position to the site computer.

A Closed-Loop System

In a closed-loop system with acknowledgment features, all of your devices are smartthey can listen to your PC and answer it. In general, self-storage security systems use a method called polling to communicate with remote devices such as keypad access controllers and multiplexed alarm-system components. The PC sends a message to all remote devices, making a status request. In essence, it asks the devices if anything new has occurred since the last poll. The response could be that a gate code was entered, a door was opened, or a lock changed from locked to unlocked.

If action is required, the PC will send a command to the necessary device, and the device will confirm with a report of what it has done. Think of it this way: When two people converse, they acknowledge what they have heard from the other verbally or through body language. The same is true of a quality security system.

If only one end of the system has the ability to communicate, data loss is likely. For example, a door at your facility is opened. The alarm component monitoring the door detects the change in door state. In an open system, i.e., one that does not require a status report from all devices, the alarm will transmit the data to the PC, which is good. But because theres no back-and-forth communication, the alarm doesnt know if the data was properly and fully received by the PC. It deletes the message. If the PC didnt receive it, too bad, so sad. The door-opening event is lost forever, and no alarm sounds.

Using a true closed-loop system featuring acknowledgement codes at the remote-device and PC ends, data loss will never occur. The system is designed so the alarm component does not delete a change in door state until it receives the proper acknowledgement code from the PC. The ability to re-send the information is intact, and the data will be transmitted again during the next status request. The result is a truly secure system.

Communication Speed

Sometimes having smart devices isnt enough. For a security system to be truly successful, you must consider its speed of communication. For example, if you have 10 multiplexers and four keypads, a total of 14 devices must be continually polled by your PC. If a tenant comes to the entrance gate, he doesnt want to wait long for it to open. The faster the PC can communicate with the entry keypadsend its status request and receive the data (in this case, a PIN code)the less time the tenant will wait. In the meantime, the other 13 devices need attention, since there may be doors opening or closing or a tenant at another keypad on the property.

When purchasing your security components, consider how long it takes to send and receive data between your PC and remote devices. Also consider how frequently the devices are polled. The more frequently they are polled, the less time it will take for them to respond to an event, be it gate-code entry or a change in door status that yields an alarm. Your poll rate is the number of times per second your PC sends a status request to a device and receives an answer (one full cycle). Fast systems poll about 10 times or more per second. Faster is always better, so if your system exceeds this rate, youre in great shape.

By integrating kiosks, electronic door locks and smart devices with your access controllers and alarm systemsand meeting the need for speedyou can achieve an unmanned site that is monitored and truly secure. Make the most of smart devices, and get smarter in your day-to-day operation.

Tim Seyfarth is president of Phoenix-based Global Electronics Ltd., which provides gate-access controllers, alarm systems, electronic locks and Windows-based access/alarm-system software. For more information, call 602.437.8005; e-mail [email protected]; visit www.global-electronics.com.

If you dont offer the security features your customers expect, they will take their business elsewhere. In this age, youre probably no longer the only game in town. Chances are theres a brand-new facility in the area or an existing one that has completed a fancy retrofit. In either case, theyve likely got state-of-the-art security with all the bells and whistlesand they let your potential customers know it.

Most people want to store their valuables at a clean, secure facility. You can tell customers all about your door alarms, electronic gate access and onsite manager, but having a video-surveillance system with a highly visible display in your front office shows them youre serious about security. While the primary function of the surveillance system is to deter and (when necessary) catch thieves, its secondary function it to capture new business. So lets consider the components of a quality camera setup.

Video Cameras

Always choose brand-name cameras with day/night capabilities and a resolution of at least 480 lines. This will provide you with a clear, crisp image on your monitor, even when light is minimal. In addition, use an auto-iris varifocal lens. This type of lens automatically adjusts for different lighting conditions, and the varifocal feature enables you to focus on exactly what you want to see in an image.

Digital Video Recorders (DVRs)

There are two types of security-related DVRs: PC-based and proprietary. Both can be configured to allow remote video monitoring, which offers tremendous advantages, including off-site video storage and the ability to monitor activities in multiple locations from a distance.

A PC-based DVR is similar to a personal computer. It receives video input through a video-capture card and records the images to a hard disk. PC-based systems are priced comparably to proprietary DVRs but have been shown to be less reliable and user-friendly.

Proprietary DVRs are self-contained units dedicated to providing video surveillance and recording. Most of their functions, such as the compression and encoding of video, are performed by exclusive processors incorporated for each specific process. This type of system uses embedded operating systems, which ensure high reliability, noise reduction and superior image quality.

Installation

A video-surveillance system (or any security system, for that matter) is only as good as its installation. Any wiring exposed to the elements should be installed in an approved raceway, i.e., conduit, PVC or wire mold. Any splices in the wiring should be soldered and taped, and those splices should be kept to a minimum. Additionally, all wiring should be UL-listed and properly shielded, which protects it from voltage spikes. Of course, only use a licensed security contractor with verifiable references.

It can be daunting to choose a surveillance system that properly meets your security and budget needs. Hiring a competent and knowledgeable contractor can streamline the process, assuring you the very best combination of quality and affordability. Remember, bad equipment and professional installation is no better than quality equipment and bad installation.

Display

Your customers wont likely notice the kind of cameras youre using, but theyll certainly notice the quality of your video display. A plasma or LCD monitor will leave a positive impression. Alternately, a poor-quality display is likely to make them lose confidence in your site. While theres nothing wrong with saving money, be aware of the potential pitfalls of doing things on the cheapit can end up costing you more in the long run. As they say in the restaurant industry, Make it nice, or make it twice.

A high-quality, professionally installed video-surveillance system will create a good impression with your current and future customers. Indeed, its better save your money than to install a system that performs poorly. By investing in a superior system up front, youll win new business, face fewer reliability issues, and enjoy a system that provides years of trouble-free use.

Matthew Nattenberg is the owner of Pacific Rim Security in the San Francisco Bay area. Nattenberg has been a licensed security and alarm contractor for more than 14 years. For more information, call 925.962.1699; visit www.pacificrimsecurity.com.

The Payment Advisor is a monthly Q&A column to which readers can submit questions about card transaction systems, electronic funds transfer, check acceptance and processing, wireless transactions, international funds transfer, and other payment issues. To participate, e-mail questions to [email protected] . Also watch for quarterly articles on related topics.

Q. What does ACH mean?

A. ACH (Automated Clearing House) is the paperless funds-transfer system maintained by the Federal Reserve and other approved operators. It uses electronic networks to exchange funds. An ACH transaction is an electronic funds transfer through the Federal Reserve Bank from a checking or savings account. It can be used for recurring, automatic payments and direct deposits.

Q. Why should you accept ACH payments?

A. Self-storage is based on recurrent rental payments. ACH allows you to accept payments at a markedly lower cost than a credit-card transaction and significantly reduces the likelihood that a payment will be reversed. For example, if rent for a unit is $100 per month, the average cost to accept this payment by credit card would be in the range of $2.50. The cost to accept this payment via ACH should be less than 30 centsalmost a 90 percent reduction in fees. This is why so many of the self-storage software vendors are emphasizing ACH for recurrent payments as a feature of their programs.

Q. Can I accept credit-card and ACH payments? Even from the same renter?

A. Yes, you can. Forms of payment can be mixed, depending on the needs of the merchant and customer. For example, you might want to accept a credit card for an initial payment or when the customer is buying a specific item such as a lock. However, after youve established a relationship with the renter, its highly advantageous to accept his monthly payments by ACH.

Ross Federgreen is a co-founder of CSRSI, which provides an integrated approach to the analysis, design, implementation, deployment and management of electronic transaction services and systems. Since 1999, the company has helped more than 350 public and private institutions reduce the cost of acquiring money and minimize the liability exposure related to payment transactions and customer data. For more information, call 866.462.7774, ext. 1; e-mail [email protected]; visit www.csrsi.com.

By Pieter Kark and Ken Yap

While asleep, Ginny dreamt many dreams, but the one she remembered when she awoke was a strange one: It was about life insurance. Wait No It was actually about leaving her home, savings and self-storage business to her daughter and granddaughter, and her fear the IRS would take too much of everything.

The storage business Ginny had started with a partner was beginning to grow faster and bigger than either had expected. Just a few months before, her daughter had given birth to a long-awaited granddaughter, the apple of Ginnys eye. Fortunately, Ginny had lived long enough and traveled far enough to know that if she didnt have a will and estate in good financial order, the financial success she worked so hard to achieve might never make it into little Cassies hands.

The nightmarish part of Ginnys dream was not the fact of her demise, but the possibility that the IRS might take so much of her estate there would be nothing left. Also, though she had life insurance to offset the estate taxes, it wasnt enough to cover the widening expanse of the business. In reality, even at its present rate of growth, the storage facility could break more than a million and a quarter in revenue in a couple of years, maybe sooner. If life insurance pushed her worth above a million and a half, the IRS might take 40 to 50 percent.

Ginny woke in a cold sweat and called her financial advisor, who told her the answer was simple: They would purchase some life insurance now and look at the business projections. Then they would set up an irrevocable trust that would buy her life insurance once her business and estate were big enough to make it worthwhile to do so.

Irrevocable, asked Ginny, as in I cant change it?

Thats why we need to talk in detail, said her advisor, insisting he would give her materials to consider in building a good estate plan.

As it turns out, the final trust for the life insurance has to be irrevocable, but doesnt have to tie up all of Ginnys resources. If the insurance is enough to handle her estate taxes and other expenses, the IRS wont include it when it adds up her estate. Of course, shell need to put in gifts of cash each year so the trustee can pay the premiums, but Ginny can pay for that from the profits of her business.

In addition, if Ginny leaves clear instructions, the trustee will pay the IRS and any other necessities out of the trust, and her family can inherit the estate without having to sell it for taxes. Ginny doesnt need the trust right now, but shell need to have it in place when her storage business approaches the right size. Meanwhile, she has time to think things through and make a wise set of plans. No more nightmares!

If Ginnys story sounds familiar, perhaps you should consider whether to trust or not to trust your estate plan with life insurance. And as with any important financial decision, consult a reputable advisor.

Pieter Kark was educated in England and Massachusetts and has worked as a teacher for nearly 40 years. He has written extensively on medical, scientific and ethical matters and currently writes creative nonfiction. Last winter, he closed his neurology practice to move to San Jose, Calif., and collaborate on a book about healthcare with his wife. He is also a licensed Avatar Master (www.avatarepc.com). Mr. Kark can be reached at [email protected].

Ken Yap is a registered representative at World Group Securities and an associate at World Financial Group. He shows self-storage business owners and professionals how to potentially pay less taxes, plan for retirement with tax-deductible dollars, transfer ownerships, and protect the future of their companies. For more information, call 408.977.3408; e-mail kenyap@sbcglobal.

I recently relocated from Santa Barbara, Calif., to a small city of 30,000 people just north of San Luis Obispo. Its a cozy little town where the cashier at the grocery store talks to everyone in line and the bag boy still asks if he can carry out your groceries. Everywhere you go, people greet you with a smile and ask how youre doing today. At first, it felt a little strange. Here is a town where customer service is still alive and well!

In a world where everything is increasingly computerizedwe use the Internet to purchase goods, find services and pay bills, and get lost in a nightmare of push-button automation every time we call a businesscustomer service seems like a thing of the past. How many times have you gone to a store and failed to be acknowledged by the person behind the counter? In the good old days, service was what kept customers coming back and set you apart from competition. Nobody wants to frequent places where the waiters are rude and the clerks ignore you. On the other hand, we appreciate the business that greets us with a smile, treats us with respect and seems to want our patronage.

Lets face it: To people looking for self-storage, a 10-by-10 unit is only space. Theyre not going to live in it, theyre just going to store their goods for a while. But they still want value for their money, and most prospects will call at least four facilities before they rent. Price is always a factor in their decision-making process, even if most facilities charge within a few dollars of their competitors. To lure tenants these days, many sites offer heightened security features and other amenities, such as individual unit alarms, climate control and ancillary services like truck rental. These are nice, but you dont need them to be successful.

The Value of Service

Why some facilities in the same market more profitable than others, regardless if they are state-of-the-art sites or 20 years old with manual gates? Its the service tenants receive that makes one store fare better than another. Good customer service begins with how you treat callers on the phone. If, during the course of your phone conversation, you can make a caller comfortable, convince him his goods are important to you, answer all his questions, and build value into your offering, he will likely rent from you.

But service doesnt stop there. Once the prospect has become a tenant, you must continue to meet and exceed his expectations. Stand and greet everyone who enters your office with a smile. If youre on the phone, immediately make eye contact and acknowledge their presence.

Keep your gate log open on your computer so you know when tenants enter your facility and call them by name when you see them. Walk through your property several times a day and talk to tenants. Ask them how theyre doing, or offer them a bottle of water or soda.

Consider printing some How are you doing? cards to mail to tenants. These simple postcards can ask them to rate your facility or offer other feedback, such as suggestions for improvement.

Offering first-rate customer service will not only keep current tenants satisfied, it will win you valuable referrals. Remember that a kind word and a smile dont cost you anything, and The golden rule is a great foundation for your service philosophy.

Pamela Alton-Truitt is the owner of Mini-Management, a nationwide manager-placement service. Mini- Management also offers full-service and "operations only" facility management, training manuals, inspections and audits, feasibility studies, consulting and training seminars. For more information, call 800.646.4648.

I frequently hear stories from self-storage owners about managers who are natural-born salespeople. Ive heard tales about the imaginative use of merchandising displays and signage to trigger impulse sales, as well as the clever packaging of related retail products into all-in-one kits. But the story that really got my attention had little to do with selling.

It was the end of a particularly hectic day. The manager was looking forward to a little downtime as he walked through the parking lot to pick up any trash or debris. Thats when he found the pink diaper bag. Inside were diapers, bottles of formula, a pacifier, even a small teddy bearbut no identification of any kind. He was about to toss it in the lost and found when he remembered how his little girl couldnt sleep without her pacifier. So with a sigh, he took out the days receipts.

After a little detective work and a few phone calls, he managed to contact the relieved parents. A little while later, crying baby in tow, they returned to claim the bag, and thanked him profusely. After a week or so passed, his boss showed him a nice letter the young couple had written about his good deed. Over the next few months, there were more than a few new customers who asked for the manager by name. It seems the grateful parents hadnt stopped talking about him.

The point is, while we can measure the effects of direct sales, we cant measure the long-term effects of outstanding service. We dont know how many new customers we earn by providing customer-oriented service or how much our business image improves each time we go out of our way to be helpful and friendly. We do know, however, that its worthwhile to teach and encourage employees to give outstanding customer care.

Creating a Service Culture

Great service begins with the creation of a service-oriented work culture. Visitors to your facility should be welcomed in a friendly, polite manner and addressed formally. Thank you and please still go a long way toward creating a positive impression. Although managers should cross-sell, they should also remember that customers needs are always their first consideration. Show customers how to save money, and theyll remember you for what you didnt sell them.

Another way to create a service culture is to make use of an Employee of the Month or similar incentive program. Invite customer feedback by displaying self-addressed, postage-paid postcards on the counter or including them with monthly statements. These cards can use check the box questions on service, site cleanliness, etc., as well as space to write personal commentary. Encourage customer participation by entering every reply in a monthly drawing for a modest prize, and reward employees based on who receives the most favorable responses.

If a manager gets a compliment, make a big to-do. Take the manager out to lunch, and post notices around your site. Consider putting the managers picture in your next ad or newsletter.

The idea is to encourage a service culture by teaching and rewarding customer-oriented behavior. Remember: Service starts at the top. The more service-minded you are, the more service-minded your employees will be. Not only will it add to your bottom line in the long term, its the right thing to do in the short term. That alone makes service worthwhile.

Roy Katz is president of Supply Side, which distributes packaging as well as moving and storage supplies. The company has developed merchandising programs for many leading companies including Storage USA, the U.S. Postal Service, Kinkos and Mail Boxes Etc. For more information, call 800.284.7357 or 216.738.1200.

Professional management is the key to self-storage success, but finding just the right staff is never easy. When Susan and Lothar Knieriemen of the Sun Harbor Self Storage in Summerfield, Fla., opened their first facility, they discovered the answer lay, not in a single manager or couple, but in a talented team of part-timers.

We were originally going to just throw up a few of those storage buildings behind our real estate business. However, further investigation and the opportunity to attend industry seminars led us to believe we should expand on the square footage and go full force into the storage business professionally, says Lothar. Sun Harbor, in phase two of construction, will have 63,000 square feet and 482 units when completed this year.

Susan and Lothar were not willing to settle for less than perfection as they assembled the team for their store. With years of management, real estate and accounting experience, they knew there were many truly professional people living in their community who would be willing to work part-time hoursand prefer it to a full-time commitment. Dissatisfied with the prospect of hiring just one or two good people, they wanted an all-star lineup.

The Sun Harbor team consists of four women who each work 15 to 20 hours per week under Susans supervision. Between them, they cover the 55 hours per week the office is open. Another part-timer picks up trash and cleans the property, and subcontractors are used for any heavy-duty maintenance tasks. With the aid of her personal assistant, Susan oversees the self-storage facility as well as the real estate business, Sun Harbor Realty, she also owns with Lothar.

Our lease-up rate was more than double the estimates in our feasibility report, explains Susan. We reached breakeven in 90 days and have consistently maintained 80 percent to 85 percent occupancy, even as new buildings have been brought on line over the past year. I attribute this directly to our office staff.

Meet the Team

The first team member the Knieriemens hired was Linda Blevins, who previously worked in a law office in South Florida. Susan already knew her personally. Linda can convince just about anyone to rent a unit, including all of her family and friends, who rent from us now, she teases.

Theresa Rizzo was the next member brought on board after retiring from the Marion County Sheriffs Department. According to Susan, Theresa is proud of her Italian heritage and is not afraid to use her great sense of humor with customers. Her ability to get people to do what she asks of them with her firm but gentle way is especially helpful in dealing with delinquent customers.

The third hire was Karen Riddle, Lindas sister-in-law, who had previous self-storage experience. Karen seems to have a special way of dealing with customers who move down here from out of state, says Lothar. She is willing to help them with all kinds of moving issues and questions.

The final member of the Sun Harbor squad is Tamara Trush, who previously worked as Susans assistant controller for nine years. Tamara has one of the best accounting minds ever and is extremely knowledgeable about computers. I hired people I could trust. I can train them to sell self-storage, but I cant train them to be honest, Susan says.

Sharing Responsibilities

Tamara makes up the teams work schedule on a six-week rotation. Everyone gets the same number of hours, and they can always switch days with each other to suit their individual needs. Vacation and sick time are not a problem because Susan and Tamara simply schedule around it. If necessary, they shift their hours between the two businesses to fill in gaps.

Susan formulated office procedures so the office team handles the basics of move-ins, move-outs, payments and transfers. She and Tamara share the daily responsibility of sending welcome and late letters, making bank deposits, and performing other routine tasks to take some of the day-to-day burden from the rest of the team. Everyone is required to make reminder and delinquent-customer calls when necessary.

The Secret to Success

When asked if having a team of all part-timers is confusing for customers, Susan says, Most of our customers know each staff member by name. The girls excel at sellingtalking with prospective customers and current customers, either on the phone or in person; showing spaces; and describing the features and benefits of storing with us. They never miss a chance to talk with our tenants.

Whats the key to making it work? Our big success secret is we all have a good time working here. Its an extremely relaxed environment but also professional. Our staff doesnt have to put on a smile when someone walks in the door; chances are theyre already chuckling about something else. The girls are friends outside the office and do a lot of things socially. Theres no jealousy among them, and they are willing to help each other, whatever the situation.

Many owners doubt that part-time employees can be as productive as their key managers. But part-timers are rarely paid to work at higher levels. As the saying goes, its possible to be pennywise and pound foolish. By failing to sufficiently compensate part-time staff, owners miss out on 15 percent to 20 percent of their sales opportunities each week because their fill in employees are not effective.

At Sun Harbor, all team members are paid above the average hourly wage for similar retail positions in the communityin addition to receiving regular and year-end bonuses. While the exclusive use of part-time employees may not work for every facility, the Sun Harbor experience cannot be ignored. The Knieriemens have proven what a happy and motivated staff can accomplish, and the difference hiring the right employees can make, even as part-timers.

Jim Chiswell is the owner of Chiswell & Associates LLC. Since 1990, his firm has provided feasibility studies, acquisition due diligence and customized manager training for the self-storage industry. In addition to being a member of the

Inside Self-Storage Editorial Advisory Board, he contributes regularly to the magazine and is a frequent speaker at ISS Expos and various national and state association meetings. He can be reached at 434.589.4446; visit www.selfstorageconsulting.com.

Does the subject of how to answer the telephone at your self-storage facility really deserve a whole column? If you answered “no,” how would you qualify your phone skills? Are you a cold fish or a risk-taker when it comes to greeting customers? Consider the following rating scale:

• Cold (Safe):

“Thank you for calling XYZ Storage. This is Bob.”

Cool (Not as Safe):

“It’s a great day at XYZ Storage. This is Bob. How may I help you?”

Warm (Not Very Safe):

“It’s a fantastic day at XYZ Storage! This is Bob. What can I do for you?”

Hot (Not at All Safe):

“Helloooo! I hope you are superific. My name is Bob, and I want to know how I can do my personal best for you!”

Does anything above a “safe” greeting work for you? The others are certainly more memorable. Go ahead and call your competitors. I’m willing to bet most of them are not very impressive in the phone-answering department. If you’re interested in how you can generate more business for your facility by improving your phone salutation, read on.

What the Greeting Does

Your phone greeting is important for many reasons. First, it identifies you to the caller. He knows he has reached the correct number and (if the greeting is executed correctly) that he has reached a live person, not an automated system.

Next, the greeting informs the caller who you are and what you do. If your business is “A Space Place,” the name is clever enough; but unless you add “a self-storage superstore,” the caller might not know what your business is about. Once you add that bit of detail, you have begun to set yourself apart from the rest of the business world.

The greeting sets the pace of the call. Use enough speed in your delivery to sound motivated, but be careful the words don’t come tumbling out too fast, or your caller will be confused and feel rushed. Speed can overrule the content of the message if you’re not cautious. I once called a local pizza parlor and got this scripted greeting: “Thank you for calling Pizza Hut, home of the personal pan pizza. This is Bob. Will this be for pick-up or delivery?” The first time I heard it, the rep said it with pizzazz, and it was effective. On subsequent calls, however, it sounded redundant and canned, and most of the time, the speaker went way too fast.

The greeting also sets the tone, essentially making or breaking the call. Again, success is all in the delivery. If your supervisor requires you to answer the phone with a cool or warm greeting and you’re not up to the task, you’re setting yourself up for failure. The motivation for excellence comes from within, not from striving to meet a minimum requirement. It helps if you get comfortable with the greeting by adopting it to your own style.

For example, consider comedians. Their delivery styles are essential to their success, even though they may be drastically different from their peers. One of my favorite comedians is Steven Wright, whose slow and lifeless delivery would be a phone-answering disaster. On the opposite end of the spectrum is Bob Goldwaith. His delivery has so much animation it hurts. What is common between these artists is they have developed a personal style, a trademark. So figure out which phone approach works best for you, and make it yours.

Create a Compelling Reason

Here’s a fact of life: People want to be with those who are positive and add to their quality of life. If you’re willing to go out on the limb with your phone greeting—just a little bit—you can get callers to visit your store just because they want to meet that upbeat person on the other end of the line.

Keep in mind many prospects seek self-storage because of a stressful event occurring in their lives, and a positive force is very welcome just then. If you are genuine and motivated in your presentation, if it doesn’t sound forced or “purchased,” you will naturally communicate the desired message to your callers.

It’s the Way You Say It

Some days are harder than others when it comes to selling yourself in a phone greeting. That’s where the hot version really excels—that part about your “personal best” is the clincher. Many self-storage sales have been sealed (or lost) at the “hello” stage of the business/customer relationship. That’s why, before you answer the phone, you have to prepare yourself to give it your all: Take a deep breath, smile, and go!

Try it. Risk a little, gain a lot. Don’t be afraid to be memorable. Go out on a limb and see if you don’t brighten someone’s day because you answered the phone with a unique, positive, “You gotta do business with me” attitude.

Bob Copper is the founder of Self-Storage 101, a provider of do-it-yourself management tools. The company empowers managers and owners to take control of their assets and compete with institutional players at a fraction of the cost. For more information, call 866.269.1311; email [email protected]; visit www.selfstorage101.com. RK Kliebenstein is the president of Coast-To-Coast Storage. He can be reached at 561.638.1851 or via e-mail at [email protected].

The most mature self-storage market in Canada is Vancouver Lower Mainland, British Columbia, where the first facility was developed in 1975. Today, the industry is flourishing, with rents and occupancies up, cap rates down, and supply and demand in balance. A construction boom is under way, and by the end of 2006, self-storage square footage is expected to be one-third higher than in 2003.

Back in the ’70s, initial storage developments were 40,000- to 45,000-square-foot, single-story, unheated, concrete-block buildings with drive-up access and overhead garage doors. According to the first self-storage survey released in 1978, the Lower Mainland was home to six facilities with a reported vacancy of 24 percent. Compare those statistics to a survey completed in February 2005:

• The average facility size in the Lower Mainland is just shy of 60,000 square feet, ranging from 35,000 to 135,000 square feet.
• There are an estimated 95 facilities, existing or under construction.
• By the end of this year, the supply of self-storage will be more than 5 million square feet, representing 2.2 square feet per capita, based on recent B.C. population estimates.

The storage-per-capita ratio is low compared to the closest U.S. market, Seattle/Tacoma/Bellevue, Wash., which has a supply of 5.5 square feet for every resident. However, if all pending proposals move forward as scheduled in the Tri-Cities (Coquitlam, Port Coquitlam and Port Moody), Langley and North Shore, the Lower Mainland number will increase to 3 square feet per person before 2007.

Major Players

When all scheduled projects are completed next year, five companies will own more than half of the Lower Mainland’s 5.4 million square feet of self-storage:

• Public Storage, the largest U.S. self-storage developer, has the biggest portfolio in the Lower Mainland, with more than 1 million square feet in 15 facilities, including one under construction in Surrey and another in the preliminary approval process in Vancouver. The company constructed two facilities in Vancouver in 2003-2004 and expanded a third.
• By the end of 2006, Maple Leaf Self-Storage, a Canadian company, will have the second-largest portfolio, with 770,000 square feet in nine facilities. With the site it opened last fall, plus the two it’s currently building and another in the approval process, Maple Leaf doubled its portfolio in three years.
• Ranking third is U-Haul International Inc., another U.S. company, which purchased the Cambridge portfolio in 2000. It has 10 Lower Mainland facilities with a net-rentable area of about 467,000 square feet.
• AAA Self-Storage Depot owns four facilities, with another under construction in North Vancouver City and a sixth planned for the District of North Vancouver. Advanced Storage Centres has four facilities. These two Canadian-owned portfolios total approximately 650,000 square feet.

Due to the cost of land, most new Canadian facilities are a minimum of two stories, commonly three or four stories in urban locations. Prices per acre run $300,000 to $500,000 in suburban locations; $1.6 million to $1.8 million on the North Shore; and $2.3 to $2.6 million in Vancouver. Although land costs may vary widely, the range of land values per square foot of building is relatively narrow, at $20 to $30.

Trends and Costs

Distinct construction trends have emerged in Lower Mainland’s self-storage projects. The most common structure is concrete tiltup with a steel frame and roof system. Most new facilities make at least a portion of their units climate-controlled.

Security systems include card- or keypad-controlled gate access, video monitoring throughout the site, card-controlled elevators, and individual-unit alarms. Though most facilities have resident managers, the newest ones don’t (with the exception of those being developed by Maple Leaf). Manager apartments are being replaced by larger office/reception and display areas.

This year, the majority of developers reported spending $55 to $62 per square foot for multistory concrete and steel. Extraordinary projects are the exception, of course. For example, now under construction in West Vancouver is a four-story facility incorporating extensive brick accents, textured concrete and glass paneling. It will feature a unique “greenroof” system (layered above the conventional roof), planted with three shades of low-lying foliage that blooms at different times of the year. The design of the foliage, viewed from above, will resemble a stream, mirroring the river to the east.

Occupancy

Occupancies have been steadily climbing since 2001, with all areas of the Lower Mainland reporting vacancies of less than 5 percent. Rents range from $35 per month for a 5-by-5 unit in a suburban location to $470 per month for a 10-by-30 in Richmond. One newer Vancouver location is reporting an average rental rate of $28 per square foot and 55 percent occupancy in just nine months.

Average monthly rents range from $1 per square foot in more rural locations to a reported $2.33 in a new Vancouver location. The single highest expense for facility owners is property taxes, as expense ratios run between 35 percent and 40 percent.

Cap Rates

Cap rates, which have fallen considerably in the last three years, have meant more good news for self-storage developers. Before 2002, there were few large acquisitions, with the exception of OnGuard’s sale to Cambridge in 1990 and its subsequent purchase by U-Haul in 2000. The cap rates in each transaction were very similar, at 10 percent to 10.5 percent.

In 2002, one of the larger portfolios was marketed at a cap rate below 8 percent; it generated considerable interest but was unable to attract offers at less than 9 percent. The sales of a single facility and a four-facility portfolio in late 2004 were in the range of 8 percent to 8.5 percent. The properties were purchased by a consortium of local investors new to the industry.

The self-storage market in the Vancouver Lower Mainland has come a long way since 1975, offering continued opportunity for investors. Those interested in development should keep a close eye on existing and pending projects as well as operational and population trends in each trade area.

Candace Watson is a real estate appraiser who has specialized in self-storage for more than 25 years. Her company, Watson, Clee & Associates, does regular surveys of self-storage supply, occupancy and rents in the Lower Mainland, and prepares feasibility studies for prospective developers throughout British Columbia. Ms. Watson is also president of Canadian Self Storage Valuation Services Inc., dedicated solely to self-storage valuation. For more information, call 604.681.2929; e-mail [email protected].

Self-storage owners purchase automatic access-control gates to heighten the security of their premises and the safety of tenants goods. Customers feel confident about storing their possessions in a gated facility because gates are great deterrents to potential burglars and vandals. Various insurance programs will even discount premiums for storage owners who have a fenced property with an access-control gate. But security equipment must be properly maintained or it can become a potential liability.

Vehicle damage and bodily injury caused by defective gates are some of the most frequently reported insurance claims. Gate damage isnt considered a severe loss; but if it happens frequently, it can be costly, because your insurance company may raise your premiums.

When a gate does malfunction, it typically closes prematurely and hits or entraps a vehicle, causing dents, scratches, broken windows and side mirrors, and possibly injuries. In one example, a gate closed on a tenants truck before he had completely entered the property. It trapped the vehicle between its steel bars, scratching the paint and denting the side door. His son, in the passenger seat, luckily had his arms and hands inside the truck, or the gate could easily have crushed them when it closed.

In another claim, a woman parked her car under a vertical gate while loading items from her storage unit. The gate slammed down and smashed the windshield. Her daughter, who was in the backseat, suffered an injury when a piece of glass from the windshield flew into her eye.

Decreasing Risk

Mechanical devices carry the risk of malfunctioning from time to time, but preventive maintenance and commonsense will help keep your gate in top working order. Following are some guidelines for properly maintaining access-control gates and keeping customers safe:

• Display all warning signs provided with your gate, making them visible on each side.
• Automatic gates are not for pedestrian use. Keep the front and back of gate areas clear, and do not allow children to play near them. A separate pedestrian gate is recommended for areas accessed by people on foot.
• Contact a trained technician to maintain and repair the gate system. Never attempt to repair the gate yourself.
• Keep and refer to the gates installation and maintenance manual and safety instructions.
• Keep a record of all gate inspections and maintenance performed.
• Have all gate functions and movement checked on a routine basis.
• Do not use the gate if it operates improperly, is damaged or difficult to move.
• Dont over tighten the operator clutch or any other devices to compensate for a stiff or damaged gate.

Additional Facts to Consider

Gate malfunction is a good example of why storage owners may want to consider taking out higher limits of business-liability insurance. Business liability provides protection against bodily-injury and property-damage claims. If you were found liable in a lawsuit, it would cover the sums you would be legally responsible to pay, up to the policys limits. Its good practice to take out higher limits of liability. In case of an accident followed by a pricey lawsuit, it protects your assets and your peace of mind.

This article is a guideline to aid in minimizing risk in self-storage facilities. The information it contains is intended to be of general interest and does not address the circumstances of any particular individual or entity. Nothing in this document constitutes legal advice, nor does any information constitute a comprehensive or complete statement of the issues discussed or the laws relating thereto.

Amy Brown is part of Universal Insurance Facilities Ltd., which offers a comprehensive package of coverages specifically designed to meet the needs of the self-storage industry. For more information, or to get a quick, no-obligation quote, call 800.844.2101; visit www.universalinsuranceltd.com.