The Florida Self Storage Association (FSSA) will host a webinar that will help self-storage operators manage their facility revenue, June 18, 2-3 p.m. EST. Presented by Matthew Van Horn, vice president of operations for Cutting Edge Self Storage Management, the event will teach facility owners and managers about unit pricing and strategies as well as how to understand their market, how to train staff in revenue management and more. Topics to be covered include:

• Why self-storage operators need revenue management
• Preferred facility occupancy levels
• How often to raise rates and by how much
• The psychology of pricing
• How the largest self-storage companies manage their rates
• Understanding the market and competitors
• The importance of competition studies and how to conduct one
• How to get facility managers on board with revenue management
• Ways to incent managers
• Understanding facility financials
• Pricing strategies including online, tiered and location-based
• Creating a unique selling proposition
• Facility drive-by and curb appeal
• Having a marketing plan

Registration for the webinar can be completed at https://www1.gotomeeting.com/register/946863336. Interested parties can also click through to the registration page from floridassa.org.

Cutting Edge is a full-service company specializing in facility management, feasibility studies, consulting, development, and joint ventures. Van Horn, a board member of the FSSA, was hired by Cutting Edge in 2001 and promoted to the companys East Coast regional vice president of operations in 2002. He specializes in site operations and has managed, consulted or performed feasibility studies for facilities in nine states.

Van Horn is a regular contributor to the Inside Self-Storage magazine and website as well as the Inside Self-Storage World Expo, which takes place each spring in Las Vegas. His articles can be read at www.insideselfstorage.com/topics/matthew-van-horn.aspx. Videos of educational sessions presented by Van Horn can be previewed and purchased at www.insideselfstoragestore.com (type "Van Horn" in the search box).

The FSSA is a nonprofit organization of businesspeople involved in the self-storage industry in Florida. Its members include facility owners, operators, vendors, developers, investors, property managers and suppliers.

North State Storage, a wholly-owned subsidiary of the Dilweg Cos., has sold its entire self-storage portfolio of 13 properties in North and South Carolina, effectively exiting the storage industry. Dilweg sold the portfolio to focus on the acquisition and enhancement of commercial office and retail properties. The disposition of the portfolio was completed on May 23.

Five of the facilitiesfour in North Carolina and one in South Carolinawere purchased by Flagship of Orlando, Fla. They contain 2,479 units totaling almost 313,700 square feet. Dilweg acquired the properties over a 10-year span, selling them in late 2012 for more than $17 million.

The remaining eight facilities were purchased by affiliates of Hudson, Ohio-based All Stor Storage LLC. They are in Charlotte, Durham, Indian Trail, Matthews, Morrisville, Swansboro and Wilmington, N.C., and Rock Hill, S.C. Together they contain 4,074 storage units totaling more than 515,200 square feet. They have an average occupancy of 88 percent.

All Stor also acquired the North State Storage banner and will continue to operate the facilities and serve customers with the same onsite team.

With the current high demand for self-storage assets, the timing was ideal for us to sell our portfolio, said Anthony Dilweg, CEO of Dilweg Cos. We were able to capitalize on a market trend, add value to the assets and realize significant returns for our investors, which represent a win for all involved. Now that were out of the self-storage business, we will focus on core business segments of office and retail properties.

In addition to selling its self-storage facilities, Dilweg recently acquired four retail and office properties in the Triangle and expanded its reach in 2012 with the acquisition of four office buildings in the greater Atlanta area.

Dilweg is a full-service commercial real estate firm based in Durham, N.C. Since its launch in 1997, the company has gained broad experience in the acquisition, development and operation of office, retail warehouse/flex, multi-family and self-storage properties. Its investors have sponsored more than $510 million in asset value and more than 6 million square feet throughout Georgia, North Carolina, South Carolina and Virginia.

StorageMart, a Columbia, Mo.-based self-storage operator with more than 130 locations throughout the United States and Canada, raised $464 for Open Books, a nonprofit Chicago bookstore that promotes literacy. As part of the fundraising campaign, StorageMart gave away two tickets to a Cubs vs. White Sox baseball game this month and asked each entrant to vote for which of the two teams had the best fans. The company pledged to donate $1 for every vote.

Fans could enter the ticket drawing by submitting their votes through StorageMarts Facebook page or company blog. After 464 votes, the Cubs edged the White Sox for the best fans, 51 percent to 49 percent. The winner of the game-ticket raffle was Ross Wasserstrom of Oak Park, Ill.

By Tricia A. Adams

Whether you lease storage containers or modular units for residential or commercial use, your insurance exposures are different from those of a company that just sells these units. Where their exposure ends with the sale, yours for lease may be just beginning. Its critical to understand the fine points of your insurance coverage to make sure your business is protected.

General Liability

This is the biggest exposure faced by mobile-storage and modular-leasing companies. A standard general-liability policy covers bodily and property damage that arises from the operation of the named insured. Since storage companies retain ownership of the units but do not occupy them, the mobile-leasing companys general liability does not extend to third-party claims arising from the units.

Additionally, steps, stairs and entrances create a problem, as theyre not a normal part of the unit being provided and may in fact be installed after delivery. Of course, if a third party is injured in a leased unit, hes going to sue both the owner of the unit and the occupant. If the customer doesnt have sufficient limits to cover the claim, or no insurance at all, the legal responsibility will fall on the company that leased it. A master policy in the name of the leasing company that will extend to the lessee is the best way to cover that exposure.

Property Coverage

This type of insurance responds to the storage unit itself for damage by fire, lightning, hail, vandalism and other damage caused to the unit by perils specified in the policy. It carries a deductible per claim, which is the amount you must pay for each claim. The amount of coverage for the leasing company is based on the total value of mobile units leased. Units not on lease can also be covered under the same policy.

Some storage companies offer this coverage in house through a waiver built into their lease agreement. The problem with this is many insurance departments have taken the stance that if a customer pays for coverage under the waiver, its in fact insurance and requires an insurance license to sell. Violation of this insurance law can result in daily penalties against the leasing company and return of all funds paid by customers that can be deemed as premium. Check with your state insurance department before putting the waiver in place.

Contents Coverage

Contents coverage is not normally offered by commercial or mobile-storage companies, but there is an all-risk product available that will cover direct damage to the contents of the mobile-storage unit. Homeowners insurance will limit on- and off-premise limits and will usually require the unit be located within so many feet of the home to pick up the exposure.

Also, homeowner coverage usually pays a flat percentage of the dwelling value and will lump together the amount of coverage for all out buildings unless theyre scheduled separately. Furthermore, if the contents are damaged from a defect in the leased unit, the homeowners policy will not respond and will flip that unhappy customer right back to you.

Liability Coverage

Mobile-self storage companies that store containers off the customers premises also face liability issues. You have that unit in your care, custody and control either at your building or in a fenced lot. Regardless of the security you offer, should a loss occur on your property from fire, windstorm, hail, lightning, vandalism or theft, you have a degree of responsibility for the goods in storage.

Read your policy and be sure to advise your customer of goods you cannot cover in storage (such as flammables, hazardous materials, fine art, electronics, etc.). Your insurance company should be notified if any of these substances need to be covered so it can endorse your policy for special conditions. Your customers have a right to expect their goods will be safe in your care, and you have a legal responsibility when you remove the goods from their premises to ensure they remain safe.

If you deliver your own containers, you should have sufficient transit coverage to cover the goods in transit, including the contents if you remove them from the lessees premises. If you subcontract the transit, secure a certificate of insurance from the carrier you hire, naming you as additional insured on their transit policy to cover your interest in the unit being transported.

Tricia A. Adams is president of Allen Insurance Group as well as a senior underwriting manager. The company has been nationally recognized for servicing many niche markets for more than 60 years. The agency writes coverage in more than 48 states and Canada, and represents 200 reputable insurance companies. For more information, call 800.922.5536; e-mail [email protected]; visit www.allenins.com .

A-AAAKey Mini Storage No. 43 in San Antonio features a complex melding of colors, textures and materials to create an eye-catching exterior appearance. Capco Steel Inc., a steel supplier and erector of metal buildings, RV and boat storage, provided the steel, panels and building erection.

The project architect incorporated several building material elements such as split-face concrete masonry units (CMU) and textured CMU, which incorporated the use of an exterior insulation and finish systems (EIFS) skim-coating system with a course sand-type finish. It also features bold sections of glazed CMU, which looks like it has glazed tile manufactured into the surface, and large linear aluminum accent panels.

The large accents of purple-glazed CMU are intended to provide large blocks of color. Typically, the grout line between the colored CMU would be visible. The developer wanted to move beyond that type of standard detail. Special, colored epoxy grout was ordered in the exact color as the glazed CMU to place over the mortar joints. The mortar between the block was cut back to an appropriate depth so the joints could then be filled over with the grout. The end result is a large block of color where the typical joints simply disappear.

 

The walls were painted with a high-quality, elastomeric paint. This system was to function as the building's primary waterproofing system. A base coat of primer/filler was applied, then two coats of high-quality elastomeric coating.

The challenging part was the smooth, sand-textured block and the split-face block were to be painted different colors. This meant the line between the differing elements, as well as the line where this paint system abutted the colored CMU, had to be precisely cut in to provide a neat, straight line and fully waterproof each joint or transition. This was a painstaking process and took a great deal of time to achieve.

With changes in elevation in the foundation of the large, three-story building, combined with linear lines that intertwine around the perimeter, placement of horizontal elements was crucial. This involved the careful planning and monitoring of the elevations at differing building elements. Split-face CMU, smooth CMU and glazed CMU all work in concert in precise locations of a large structure to create this finished product.

The complexity of the finish is immediately apparent upon first glance. Its difficult to fully appreciate the amount of detail required to produce this finished product. The special aluminum linear panels were supplied and installed by Capco Steel Inc. These panels required precise placement to integrate with the window systems and flashings.

The board of directors for Extra Space Storage Inc., a self-storage real estate investment trust, has declared a quarterly dividend of $0.40 per share on the common stock of the company for the second quarter 2013. This is a 60 percent increase over the dividend of the previous quarter, which was $0.25. The dividend is payable on June 28 to stockholders of record at the close of business on June 14.

Extra Space also released its quarterly earnings for the first quarter of 2013 on April 29. A conference call took place on April 29 during which CEO Spencer Kirk, along with Scott Stubbs, executive vice president and chief financial officer, and Karl Haas, executive vice president and chief operations officer, reviewed first-quarter performance. The conference call playback, available through May 29, is accessible by calling 888.286.8010 in the United States or 617.801.6888 internationally. The conference ID is 78100435. A replay of the call is also available on the investor-relations page of ExtraSpace.com.

Headquartered in Salt Lake City, Extra Space owns or operates 965 self-storage properties in 35 states; Washington, D.C.; and Puerto Rico. The companys properties comprise approximately 640,000 units and 70 million square feet of rentable space.

Self-storage operators in the United Kingdom have effectively absorbed the impact of the 20 percent value-added tax (VAT) imposed by the government on the industry last October, according to a Self Storage Association of the United Kingdom (SSA-UK) survey. Results show that many operators chose to shield customers from full price increases by phasing in the VAT during the year, losing just 5 percent in average net rentals in 2012.

In addition, national average occupancy remained stable, declining 2 percent in 2012 to 68 percent for the year, with the average length of stay per customer actually increasing to 41 weeks, according to the survey.

"The VAT rise affected most of our operators and made self-storage a more expensive product for the customer. However, our members are confident that sales and profits can be maintained with 79 percent of surveyed firms expecting profits to be the same or improve this year, said Rodney Walker, CEO of SSA-UK. The effect of the VAT increase has yet to be fully measured, but with average occupancy only falling 2 percent over the year, members are confident of reversing this over the coming year."

Business use of storage units continues to be high, representing 42 percent of occupied space in the U.K., up from 36 percent in 2010. Operators may also benefit from emerging trends in the British housing market. A recent survey by the Royal Institute of British Architects indicated a majority of homeowners in newly built houses reported insufficient storage space.

Although the VAT forced operators across the U.K. to increase prices, the tax has not triggered a significant drop in occupancy, according to Ollie Sanders, partner and head of self-storage for Deloitte Real Estate, a U.K.-based full-service real estate firm that produced the survey on the associations behalf. It has been an interesting test of the price elasticity of the product and goes to show that the industry has remarkable resilience to the economic downturn and is well placed to capitalize on future economic growth, Sanders said.

Survey respondents included 85 companies representing 468 U.K. self-storage facilities. The report estimates there are 830 self-storage facilities in the U.K., with 40 percent of the market (330 locations) controlled by the largest operators.

By Jen Alsip

Online marketing and search engine optimization (SEO) used to be all about banner ads, paid-link building, e-mail campaigns and pay-per-click. While those things are still used, to be truly relevant to todays consumer, self-storage operators must add strategic content marketing in the SEO space to the mix.

SEO refers to anything Internet-related thats based on organic results. In other words, its when someone goes to their favorite search engine and types in a keyword or phrase related to self-storage, and your company appears naturally in the results. Making sure your information is visible in the search is important and plays a huge role in the art of communicating with your customers without selling them. Its about creating fresh, relevant and unique content through your website and social media that reaches your ideal customers and enables you to earn a presence in the SEO space.

For any business, content marketing is one of the most important online activities to enhance SEO ranking. Unfortunately, many self-storage operators are not fully using it because they lack an understanding of the concept, impact and necessity of content marketing. As a result, they frequently get stuck in the old way of doing SEO, which entailed writing keyword-heavy content tailored for search engines vs. the new waywriting engaging content for readers.

Its about focusing on user intent, which takes a little more time but yields great results. To fully leverage your content-marketing activities, follow these three simple steps.

1. Identify Personas for Your Target Audience

You likely have a target audience for your self-storage business, and often the audience is quite broad, such as women ages 35 to 50 who have kids, baby boomers or college students. While there are certain characteristics that go across the entire target audience, there are also many subsets of people (called personas) within the target.

For example, using the women ages 35 to 50 who have kids target audience, you could have specific personas of married, working mom, stay-at-home mom, single, working mom, etc. Each of these personas has different interests and will respond to specific content. Someone whos younger with preschool kids may be looking for more engaging content, whereas an older working woman with teens may be more responsive to the technical information you can provide. Therefore, identify the various personas within your target audience so you can reach and engage each group.

2. Create a Targeted and Consistent Blog

The purpose of your blog should be to connect with and engage readers by providing value to them through relevant content. After all, when readers like the information you provide, theyre more apt to return to your site and ultimately store with your facility. The key is being able to provide usable content for all the personas youve identified.

Staying with the women ages 35 to 50 with kids example, you may write a narrative blog titled Choosing a Self-Storage Facility to reach the stay-at-home mom persona. The next day, you may write a technical blog called How to Safely Pack Items for Storage to reach the working-mom persona. Each blog would have a different tone based on the persona youre targeting.

In addition to providing relevant content, being consistent in your blogging activity is important. Whether you post something daily, three times a week or four times a month will depend on the topic and your readers. The key is keeping your schedule consistentdoing the same number of posts every week. Posting a blog every day for a month and then not doing anything for two months can hurt your SEO efforts. For most businesses, doing three to four blog posts per month is sufficient.

3. Concentrate on Engaging Your Audience

Engaging your audience means getting them to share your information with others via their social media channels, comment on your blog posts to create conversations, or click to your marketing pages to learn more and ultimately make a purchase decision. Its about getting your readers to take some sort of action without pressuring them to do so.

Todays readers dont want to feel pressured to do anything, so the engagement needs to be natural. Even the search engines have changed their search algorithms to make the results more innate based on what a user would naturally do.

Putting a link within your blog post to a page on your site thats related to a product youre talking about is totally fine and recommended. Someone would naturally click on that page since theyre reading a post about the topic. But adding eight different links with optimized anchor text that either all go to the same page or to one specific product is the epitome of putting pressure on a reader.

Additionally, when you keep the focus on engagement and categorize your blog posts correctly, your posts can show when someone is looking at your products. In other words, if someone is shopping and comes across your self-storage facility, they can see that you wrote a blog about it and click to learn more, which can then influence their buying decision.

Make Content Marketing Work for You

Content marketing is a way to expand your reach, build relevancy in the search engines to gain traffic and visibility, and convert readers into buyers. Realize, though, that it is just one piece of having a winning online-marketing strategy. No single technique will make your self-storage business profitable. However, when you combine content marketing with all the other online and offline marketing activities you do, youll soon realize the success and profit you deserve.

Jen Alsip is the content marketing manager for Volume 9 Inc., which creates custom-search marketing campaigns for clients, including a mix of SEO, paid-search management, social media, local-search marketing and website development for more than 100 clients and 200 managed websites. With 11 years of experience in Internet marketing, she helps put together strategies for her clients to improve their outreach and personalize the information theyre putting on the Internet. For more information, visit www.volume9inc.com .