Marketing is an essential part of operating your self-storage business. Facility owners and managers know the importance of selling their services to the public. What many don't know are the risks of overselling them. You should avoid making representations about your products or services that you know to be false or made without regard for the truth, understanding that your customers may rely on those claims.

The phrase “truth in advertising” should govern your marketing activities. Whether in your website, brochures, signage or conversation with customers, it’s always best that statements are factual.

It’s equally important that you choose descriptive words carefully. For example, never use words such as “guarantee” or “promise” unless it relates to “friendly service.” You should certainly never promise or guarantee the safety or security of tenants' property, and always avoid using words such as “security” in advertising. Instead, use factual phrases such as "perimeter fencing," "personalized-code access gates" or "fenced and lighted."

Over the last few years, there have been a number of cases concerning representations made by landlords and whether they could be considered fraudulent. Let’s take a closer look at three of these cases and see what self-storage operators can learn from them.

DiSanto v. Safeco Insurance of America, Court of Appeals, Ohio, 2006

In this case, the plaintiff rented a storage unit and purchased a third-party tenant-insurance policy from the operator. The tenant subsequently discovered that his property had been damaged from water intrusion and made a claim to the insurance company. The claim was denied.

The tenant sued his homeowner’s carrier and the tenant-insurance carrier. After paying on the claim, the homeowner’s carrier brought a subrogation action against the self-storage facility and tenant-insurance company. The main claim against the facility addressed the use of the terms “climate-controlled” and “dry and safe” in the facility’s advertising.

The court held “there is a genuine issue of fact as to whether appellant (tenant) justifiably relied on the alleged representations of the [operator].” As such, the case was allowed to proceed against the storage facility. The key issue dealt with the lack of definition in the lease and other advertising as to the terms “climate-controlled” and “dry and safe.”

Robinson v. Sovran Acquisition L.P., Supreme Court, Alabama, 2011

This case dealt with a claim by a storage tenant whose unit was broken into during a time when the facility's cameras were not operable. He alleged the facility committed fraud. In this case, the tenant failed to establish his claim because, at the time the rental agreement was signed, the premises were protected by functioning surveillance cameras.

When the rental agreement was entered, there was no evidence that the storage facility intended stop using the cameras in the future. Additionally, the court found that when the facility’s surveillance cameras were rendered inoperable due to an ongoing renovation, the operator did not have a duty to inform the tenants of such and, therefore, the tenant could not prevail on a separate claim of deceit against it.

Dilbeck v. Yates, Court of Appeals, Georgia, 1992

In this case, a tenant whose property was stolen sued the facility for the loss. His property was taken during a break-in that left no signs of forced entry. The tenant testified that he questioned the manager about prior break-ins before leasing the space. The manager told him no one had ever broken into any of the units. Unbeknownst to the tenant, there had actually been numerous incidents.

The tenant claimed the facility had committed fraud based on misrepresentations as to the occurrence of prior breakins. He argued that had he known the truth, he would never have rented the space. Although the facility had a very strong lease protecting it from liability for such a loss, the court held the tenant's agreement was void due to the manager's false statement. The court ruled in favor of the tenant and against the facility for the value of the stolen goods.

What You Should Do

So what are the lessons learned from these three cases? First, the facility’s rental agreement should include provisions confirming the tenant maintains care, custody and control of the stored property, no bailment is intended, and the tenant is responsible for having insurance for his stored property. There should also be a provision in the lease establishing a limit to the value of stored goods, which cannot be increased unless the tenant has proof of insurance for the higher value. Finally, there should be language stating facility does not guarantee the safety or security of the stored goods, and it cannot be held liable in the event that alarms, gate systems or camera systems fail or malfunction. If cameras are employed, proper signage should make it clear that although activity is recorded, the cameras are not being monitored.

Next, a facility operator must be honest in answering questions posed by prospective and current tenants. For example, if a customer asks if there's ever been a fire, theft or flood at the property, the operator must answer honestly. He is allowed to say, however, what efforts, if any, have been made to prevent similar occurrences in the future. As we can see from the cases above, if an operator acts with deceit, the court can choose to invalidate his defenses contained in the lease.

Certainly, nothing can prevent a tenant from suing a facility for loss or damage to his goods. However, to enhance a facility's defense to such claims, it’s becoming increasingly important for operators to be clearer about the services they provide. As shown by these court cases, marketing is essential to self-storage success, but if not handled carefully and honestly, it can also be the reason for a facility’s failure.

Scott Zucker is a partner in the law firm of Weissmann & Zucker P.C. in Atlanta, where he specializes in business litigation with an emphasis on real estate, landlord-tenant and construction law. Zucker is a frequent lecturer at national conventions, author of “Legal Topics in Self-Storage: A Sourcebook for Owners and Managers,” and a partner in the Self-Storage Legal Network, a subscription-based legal services for self-storage owners and managers. To reach him, call 404.364.4626; e-mail [email protected].

The four publicly traded, U.S.-based self-storage real estate investment trusts (REITs)—CubeSmart, Extra Space Storage Inc., Public Storage Inc. and Sovran Self Storage Inc.—have released financial statements for the quarter that ended March 31. In general, all four entities showed gains in key areas, particularly funds from operations (FFO) and net operating income (NOI), while also continuing to invest in property acquisitions and development.

"We had a strong first quarter, and 2014 is shaping up to be another great year for us,” said Spencer F. Kirk, CEO of Extra Space. “We are seeing solid rental activity in most markets, and we're entering peak rental season with pricing momentum. Our acquisitions, year to date, have placed us on track for another robust year of acquisition activity despite a competitive market."

Christopher P. Marr, president and CEO of CubeSmart, expressed similar optimism. "Our strong performance to start the year was driven by our property portfolio and operating platform maximizing the continued positive trends in self-storage fundamentals and lack of new supply in our markets,” he said. “We are pleased with our position entering the busy rental season and confident in continuing to deliver on our internal and external growth expectations."

CubeSmart

CubeSmart reported FFO per share of $0.25, a 25 percent year-over-year increase. Same-store NOI at its 346 facilities grew 9 percent year over year. The company attributed this to 7 percent growth in revenue and a 3.2 percent increase in property operating expenses.

The operation gained 400 basis points in physical occupancy compared with the same quarter the previous year. The same-store physical occupancy was 89.5 percent as of March 31. The company’s total-owned portfolio, representing 378 facilities comprising 25.5 million square feet of rentable space, had a physical occupancy of 88.6 percent at the end of the first quarter.

CubeSmart acquired 10 self-storage properties during the quarter for $103.3 million including three in Florida, two in Maryland and single assets in Arizona, California, Connecticut, Pennsylvania and Texas. The company also opened a new facility in the Bronx, N.Y., and a mixed-use property in Malvern, Pa., at a cost of $41.6 million.

On Feb. 25, the company declared a dividend of 13 cents per common share. The dividend was paid on April 15 to common shareholders of record on April 1. The board of trustees also declared a dividend of $0.48 for the 7.75 percent Series A Cumulative Redeemable Preferred Shares that was paid on April 15 to holders of record on April 1.

CubeSmart owns or manages 539 self-storage facilities across the United States and operates the CubeSmart Network, which consists of more than 800 additional self-storage facilities.

Extra Space Storage Inc.

Same-store revenue increased 7.9 percent and NOI rose 9.4 percent compared to the same period in 2013. FFO was 55 cents per diluted share, resulting in 23.9 percent growth compared to the first quarter the previous year.

Same-store occupancy grew by 200 basis points to 90.4 percent as of March 31, compared to 88.4 percent at the same time in 2013.

The company purchased 21 properties during the quarter for approximately $249.7 million. Seventeen of the assets were acquired as part of a single portfolio in Virginia. The other four properties are in Alabama, California, Connecticut and Texas. Extra Space has four additional properties under contract for a total purchase price of approximately $39.3 million. The acquisition of these properties is expected to occur by the end of June.

The company paid a quarterly dividend of 40 cents per common share on March 28 to common shareholders of record on March 14.

Headquartered in Salt Lake City, Extra Space owns or operates 1,052 self-storage properties in 35 states; Washington, D.C.; and Puerto Rico. The company’s properties comprise approximately 700,000 units and 78 million square feet of rentable space.

Public Storage Inc.

Revenue for same-store facilities increased 5.1 percent, or $21.3 million, in the quarter, as compared to the same period in 2013, primarily because of higher realized annual rent per occupied square foot and higher average occupancy. Cost of operations for the same-store facilities increased by 4 percent, or $5.3 million, in the quarter as compared to the same period in 2013.

FFO was $1.74 per diluted common share, compared to $1.57 for the same period the previous year. NOI increased $30.8 million during the quarter compared to the same period in 2013, including $16 million for same-store facilities.

During the quarter, the company completed two new developments and an expansion project, adding 335,000 net rentable square feet to its portfolio for $40 million. An additional $195 million in development and expansion projects currently underway will add another 1.9 million net rentable square feet, company officials said.

The company reported a regular common quarterly dividend of $1.40 per common share. It also declared dividends with respect to various series of preferred shares. All the dividends are payable on June 30 to shareholders of record as of June 13.

Based in Glendale, Calif., Public Storage has interests in 2,202 self-storage facilities in 38 states, with approximately 141 million net rentable square feet. Operating under the Shurgard brand name, the company also has 188 facilities in seven European countries, with approximately 10 million net rentable square feet.

Sovran Self Storage Inc. (Uncle Bob's Self Storage)

Total revenue increased 18.1 percent over the previous year's first quarter, while operating costs increased 16.6 percent, resulting in an NOI increase of 18.9 percent. Same-store NOI increased 9.3 percent year over year. FFO for the quarter was 88 cents per fully diluted common share, compared to 82 cents for the same period the previous year, a 7.3 percent increase.

Net income available to common shareholders for the first quarter was $26.7 million, or 51 cents per fully dilated share. For the same period in 2013, net income available to common shareholders was $14.3 million, or 47 cents per fully diluted common share.

Same-store revenue increased 8.3 percent year over year, helped by an increase in average occupancy of 310 basis points and 3.4 percent increase in rental rates. Average overall occupancy was 88.7 percent, with units renting for an average of $11.75 per square foot, an increase of 9.2 percent. Facilities showing the strongest revenue gain were in Florida, Georgia, New York, North Carolina and Texas, officials said.

Sovran has acquired seven self-storage properties this year for $95.4 million. Two of the facilities are in Florida, one in Illinois, two in Maine and two in Texas. The assets add approximately 546,000 square feet of rentable space to the company’s portfolio. The company is also under contract to purchase 17 additional self-storage facilities for $120.7 million.

The company paid a quarterly dividend of 68 cents per common share.

Sovran, which operates facilities under the brand Uncle Bob's Self Storage, operates 487 facilities in 25 states, with a large presence in Texas.

Update 5/5/14 – Canada-based self-storage operator Less Mess Storage Inc. has completed its €14 million purchase of five City Self-Storage properties in the Czech Republic and Poland. The deal finalizes the company’s entrance into the self-storage industry and includes a name and operational change from DGM Minerals Corp., which was a mineral-exploration firm.

The company also announced a leadership change, with Guy Pinsent taking over for Peter Smith as president and CEO. Smith will remain chairman of the board and act as vice president of corporate development.

Pinsent has a background in investment and corporate banking, real estate investment and development. He was formerly a partner at Personal Storage, a self-storage operator in the United Kingdom, before focusing on self-storage opportunities in Poland and other European markets.

"This acquisition represents an important first step in building a substantial self-storage business in a high-growth region with almost zero market penetration—a huge opportunity,” Pinsent said. “The five stores acquired, four of which are freehold properties in excellent locations in Warsaw and Prague, are generating growing cash flow with further upside potential. Poland and the Czech Republic, which have just celebrated 10 years' membership of the European Union, have robust macroeconomic outlooks which will further underpin the self-storage story. We now have a lot of work to do in rebranding, restructuring and rolling out the business.”

The "change of business" transaction was completed under the policies of the TSX Venture Exchange and formally approved by company shareholders on March 27. As part of the transition, the company’s common shares were consolidated on a 12-to-1 basis, company officials said in a press release. Less Mess also issued 815,000 stock options to officers, directors and consultants of the company.

Less Mess will continue to operate its records office in Vancouver, British Columbia, Canada, but has added headquarters in in Warsaw, Poland, and offices in Prague, Czech Republic. The company's common shares are now listed on the TSX Venture Exchange under the stock symbol "LMS."

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1/14/14 – DGM Minerals Corp., a Canada-based mineral exploration company, has signed a definitive agreement to purchase five City Self-Storage properties in the Czech Republic and Poland for €14 million. Finalization of the deal will mark DGM’s entrance into the self-storage industry and include a name change to Less Mess Storage Inc. The transaction is subject to approval by DGM shareholders and the TSX Venture Exchange, a Canadian stock exchange.

All five facilities are controlled by entities owned by Norway-based Selvaag Gruppen A.S. DGM has agreed to purchase the business entities and their storage-property assets. The facilities will be rebranded as Less Mess Storage.

In conjunction with the acquisitions, DGM will consolidate its current issued and outstanding shares on a 10-to-1 basis, company officials said in a press release. The company first announced its intent to buy the properties in November.

Three of the storage facilities are in Prague and two are in Warsaw, Poland. Four of the assets include attached real estate. DGM has identified Central Europe as a strong growth market for self-storage, and officials have said the acquisition will make the company the largest self-storage operator in the region.

"We've spent a lot of time and resources assessing this opportunity for DGM, and we continue to feel that it has outstanding potential. Self-storage is an attractive sector to be in, and this particular opportunity gives us five established self-storage businesses, all purpose-built or renovated specifically for self-storage, and all in central, inner-city locations where real estate values are expected to grow,” said Peter Smith, president and CEO. “We also feel there is a significant growth opportunity for self-storage in Central and Eastern Europe, given that a city like Warsaw, for example, with a population close to that of Toronto, has only two self-storage stores, both of which we will acquire under the transaction."

The two Warsaw properties are in the areas of Krakowska and Torunska. The Krakowska facility is comprised of 25,000 square feet of rentable space in 695 units. It includes retail space and an office. Self-storage is offered on four levels of the building, with two additional floors of rental office space above the storage area. This section has a separate entrance and elevator. The building also has an underground parking garage with 43 spaces. Built in 2006, it is four kilometers from the city center and averaged 93 percent occupancy in 2013.

The three-story Torunska facility is comprised of 30,000 square feet of rentable space in 747 units. It also has a retail area and 12 parking spaces. Built in 2007, it is eight kilometers from downtown and averaged 80 percent occupancy last year.

The three Prague properties are in the communities of Dejvice, Holesovice and Pankrac. Built in 2008, the Dejvice facility is the newest location in the deal. It is comprised of 28,000 square feet of rentable space in 635 units. Self-storage is offered on six floors, with an additional 34 spots for vehicles. The asset averaged 67 percent occupancy in 2013.

The Holesovice facility is on an 85,000-square-foot lot, with 54,000 square feet and 556 units devoted to self-storage. The property includes a three-level main building and a two-floor secondary structure. The buildings were built in 1951 and converted to self-storage in 2002. In addition to storage, the property has retail space and an office area large enough for central staff to run the Czech and Poland operations, company officials said. Just three kilometers from downtown Prague, this facility averaged 80 percent occupancy last year.

The Pankrac facility is a leased property due for renewal in 2022. It is comprised of 25,000 square feet of rentable space in 633 units. Originally a three-story parking garage, it was converted to self-storage in 2002. In addition to storage, it has a retail area and 10 outdoor spaces for vehicles. The asset averaged 87 percent occupancy in 2013.

Total revenue for all five self-storage facilities last year was $4.16 million, showing 20 percent growth during the last three years, company officials said. To finance the acquisitions, DGM intends to raise between $12 million and $15 million in a private-placement financing.

DGM is based in Vancouver, British Columbia, Canada. As a mineral exploration company, it has focused on the acquisition and exploration of mineral projects in Canada. It has its common shares listed on the TSX Venture Exchange.

The new and currently unidentified owner of The Place With Space self-storage facility in Ypsilanti, Mich., is a suspect in a string of alleged unit thefts that occurred between March 22 and April 9, beginning just two weeks after the previous long-term owner, Warren Heldt, died. It is unclear when the new owner took over, but Heldt filed paperwork with the Department of Licensing and Regulatory Affairs of Michigan as the owner on Nov. 20, according to the source.

A media release about the incident stated a “58-year-old Augusta Township resident” was identified as the only suspect.

The Pittsfield Township Police are investigating the larcenies that took place at 5200 W. Michigan Ave., where police said the new owner entered units, stole items and possibly sold them. The number of compromised units was not released, nor did police comment on what led them to pinpoint the storage owner as the suspect. Some of the missing items have been recovered and returned, the source said.

Police are asking anyone with information to contact them.

Australian self-storage operator National Storage REIT (NSR) recently acquired a self-storage facility in Townsville, Queensland, Australia, for $17 million. It’s the first standalone acquisition for NSR, which began operating as a real estate investment trust in late 2013. The facility is the largest in the company’s 62-property portfolio.

Built in 2005, the facility at 399 Woolcock St. encompasses more than 16,500 meters of storage space. It features two two-story buildings and 1,467 storage units. Amenities include covered loading, a large reception area, rental offices, meeting rooms and an onsite manager’s residence.

The purchase will be funded from NSR’s debt facility, and settlement is expected later this month.

“This acquisition presents a significant opportunity for National Storage to add value and capitalize on the synergies of our center management platform, particularly around organic growth,” said Andrew Catsoulis, managing director. “It is well-located in an anticipated potential growth area with access to a broad customer base, including government and military markets, which we are keen to explore.”

NSR is the first independent, internally managed and fully integrated owner and operator of self-storage centers to be listed on the Australian Securities Exchange. The company is actively pursuing acquisition opportunities that are in line with its asset-management strategy, according to a company press release.

With lending back online, many are predicting an increase to the current low interest rates, which could have a significant impact on self-storage buyers and sellers. In this roundtable, real estate experts in the western states discuss new construction in their markets and offer advice to owners who are thinking about selling their facilities or refinancing existing loans. Participants include:

• Steve Boldish, Oregon Self Storage Brokers, Medford, Ore.
• Tom de Jong, Colliers International, San Jose, Calif.
• Jeff Gorden, Eagle Commercial Realty Services, Phoenix
• Joan Lucas, Joan Lucas Real Estate Services, Denver
• Jason Wilcox, Raven Commercial Real Estate, Kent, Wash.

Unemployment is now at 7 percent and the Federal Reserve’s bond-buying program is in position to start tapering, which will most likely lead to higher interest rates. What should savvy self-storage owners be doing to ensure they’re well-positioned to succeed?

Boldish: Owners giving thought to selling in the near future, particularly those in second- and third-tier markets, should consider putting their property on the market in 2014. Rising interest rates and tighter federal lending guidelines will drain the buyer pool and lead to lower sales prices. First-tier markets remain strong, especially for larger facilities.

Gorden: Savvy property owners would do well to take stock of their plans for the entirety of the next real estate cycle. Long-term holders who use debt should secure it now for the long term while it is relatively low-cost. Development-minded investors would benefit by having their house in order and projects in the pipeline. Historically, as interest rates rise and lending becomes more profitable, there's more debt financing available, albeit at higher cost.

Wilcox: The most important thing is for investors to understand their leverage. With expected higher interest rates, owners and investors should look to hedge their interest-rate risk and rate lock.

With real estate prices now 2 percent to 4 percent higher than the last real estate boom (2007), how have buyers adjusted their underwriting? Should owners consider selling, refinancing or expanding their portfolio?

Boldish: Buyers are asking for past three year’s income and expense in addition to trailing 12 months. The days of selling on pro forma income are gone. Buyers are also seeking upside potential by scrutinizing a facility’s market rates and occupancy vs. their competition. When deciding to sell, refinance or expand, each owner needs to thoroughly examine his particular market.

de Jong: The dynamics are different in each market. The top markets in California have benefited from a huge imbalance of buyers to sellers driving pricing up to historical levels. The additional media coverage on the real estate investment trusts and the self-storage market in general have certainly helped contribute to the aggressive pricing we’ve seen.

In smaller, more rural markets, however, the dynamic is different, with prices and capitalization rates lagging well behind the larger markets. Depending on the owner's individual circumstances, he could be encouraged to sell now given the high prices, refinance given the low interest-rate environment, or expand now that banks are lending again (albeit more cautiously) on development projects.

Gorden: Buyers today are underwriting to actual performance with a confident expectation of reasonable revenue growth. It's reported that household wealth has recovered from the recession, largely due to a run up in the stock market, and the housing market and household formation is on the upswing in most markets. Rent growth has been strong in the multi-family arena, and one would expect some translation to self-storage. To sell, refinance or expend the portfolio is a personal decision for each investor, but the opportunities for each are great, if only for the near term.

Do you believe development will have a major impact on your local market in 2014? If so, how may self-storage projects and square footage are currently in the planning stages?

Boldish: At this time, I don't have definitive numbers on new construction starts in Oregon, but in the past six months, I’ve been contacted by several investors seeking land in tier-one markets to build new facilities. They're also seeking existing properties that lend themselves to expansion or conversion. This is a definite change from the previous three years.

de Jong: Development is making a major comeback, which started earlier in 2013. Although there's heavy demand to develop, the San Francisco and Silicon Valley markets are seeing outrageous valuations on land prices and huge barriers placed by local planning departments. Self-storage is not the first choice local agencies typically would have for a site, so caveat emptor (let the buyer beware!) that if zoning doesn’t allow for self-storage as a use, you may be facing an uphill battle!

Site selection is going to be the biggest constraint to local development, with conversions likely gaining in popularity. As this time, I’m aware of four new self-storage developments in the Bay Area, with at least several more likely to pop up throughout the year.

Lucas: There are very few places left in the Denver market that really could use another self-storage facility. However, we recently completed a study to take a look at what is currently on the drawing boards and were amazed to learn there are 13 facilities totaling well over 1 million square feet in the development pipeline across the Front Range. This is not good news and shows we may be heading into another cycle of overbuilding in the near future.

Ben Vestal is president of the Argus Self Storage Sales Network, a national network of real estate brokers who specialize in self-storage. Argus provides brokerage, consulting and marketing services to self-storage buyers and sellers and operates SelfStorage.com, a marketing medium and information resource for facility owners. For more information, call 800.55.STORE; e-mail [email protected]; visit www.argus-selfstorage.com.

Update 5/2/14 – MakeSpace Labs Inc., a startup business specializing in valet self-storage services in New York City, has raised $8 million in venture capital, bringing its total funding to $10.1 million, company officials said in a press release. The infusion of capital has been led by Los Angeles-based UpFront Ventures, and new investors include Founders Fund and OATV (O'Reilly AlphaTech Ventures). All existing seed investors also re-upped during MakeSpace’s latest round of funding.

“With the help of our investors, we’re reinventing the entire concept of how city-dwellers dwell. There’s a rising global trend of urbanization and micro-living, that is, more people are moving to cities and living in increasingly smaller spaces,” said Sam Rosen, CEO of MakeSpace. “Space constraints rank as one of the most stressful aspects of living in a city, but it doesn’t have to anymore.”

MakeSpace intends to use the capital to launch an iPhone app this summer, build out its backend infrastructure and hire additional sales representatives, according to the source. The company also has plans to expand local services in another major city by the end of this year.

“I view MakeSpace as reverse Amazon,” said Mark Suster, general partner at Upfront Ventures, who has joined the MakeSpace board. “Amazon blew up the distribution model of retail. It said, ‘Do you really need to have expensive real estate near your house in order for you to get goods?’ and made it hard for local retailers to compete by having huge cost advantages. Because MakeSpace can store your stuff in a remote location, yet ship it to you at a moment’s notice, we have huge scale advantages to the archaic physical storage infrastructure.”

Several of the investment groups that have invested in MakeSpace also have capital interest in the social media space. Founders Fund is connected to Facebook, Spotify and others, while OATV has interests in Foursquare. Original seed investor Lowercase Capital has invested in Twitter.

MakeSpace received $2.1 million in seed funding in December 2013.

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3/19/14 – MakeSpace Labs Inc., a startup business specializing in valet self-storage services in New York City, has launched a new mail-based service that enables customers anywhere in the world to store and ship their belongings. MakeSpace Air is an extension of the company’s localized pickup and delivery offering, with the added element of long-distance shipping. MakeSpace believes the new service will be attractive to traveling customers who would like items shipped to their destination or military families who typically use traditional self-storage, according to the source.

All MakeSpace users receive an itemized, cloud-based catalog of their stored containers. Customers can peruse their stuff online and request delivery of specific belongings. Items delivered locally are done so by company drivers, while MakeSpace Air deliveries are mailed at discount shipping rates, the source reported.

“We’re building a scalable company in a business that traditionally is not scalable. We can scale because of the tech we built,” said Sam Rosen, one of three company founders. MakeSpace technology includes optimized driving routes and pickup schedules, and an online categorizing system.

Similar to other valet self-storage providers like Boxbee Simple Urban Storage and Storrage Inc., MakeSpace stores customer belongings in a secure warehouse. For local users, it will store four company-supplied bins for $25 per month and $6.25 for each additional container. Customers must commit to three months of storage. Local delivery is $29.

MakeSpace Air customers can use their own boxes and are charged $6.25 per 3 cubic feet of space. They must commit to six months of storage.

In either case, MakeSpace will store and deliver oversized items including bicycles, golf clubs and televisions for extra fees. The company doesn’t currently store extremely large items like sofas, beds and tables, although it may accept them at a later date, according to its website. With MakeSpace Air, a customer who stored his skis and didn’t want to travel with them could have the company deliver them anywhere in the world.

“Everyone wants a GroupMe story, an Instagram story, to be bought for a billion dollars by Facebook. That’s not the reality for our startup,” Rosen said. “It doesn’t faze us like that. If we are going to disrupt public storage, we’ll get there one customer at a time.”

Treasure Island Storage will celebrate the grand opening of its newest self-storage facility in Ozone Park, N.Y., on May 6. It’s the operator’s 10th location in the New Jersey/New York region. The event at 78-02 Liberty Ave., 11 a.m. to 2 p.m., will include prizes and refreshments. New customers will receive a $25 Amazon gift card and get their first month of storage rent for free.

The company purchased the 84,000-square-foot industrial building in Queens from the U.S. Postal Service in late 2012 for $6.55 million. The site had been used as a mail-sorting facility for the 30 years before its conversion to self-storage.

“We love the Ozone Park neighborhood and believe it to be a very strong, stable, customer-service-based community,” company president James Coakley told the source.

The other Treasure Island Storage properties are in Brooklyn and Queens, N.Y., as well as Asbury Park, Cherry Hill, Howell, Lakewood, Old Bridge, Paterson and Woodbridge, N.J. The company also offers packing and moving services and studio space for artists at its Brooklyn facility.

By Derek Whitney

Finding new tactics to promote your self-storage business has never been easier. A fresh Google algorithm update and exciting new features offered by social media networks make it easy to market your facility without increasing your advertising budget. These highly effective tactics will get your message in front of more consumers.

Get More Free Traffic From Google This Year

If you create a blog for your website and answer questions in your blog posts, Google will send you free traffic. In 2013, Google released the Hummingbird update, which benefits business websites with content written for readers, not search engines. You don't have to worry about keywords in 2014, just write content that answers your customer's frequently asked questions.

For example, if your company receives phone calls from people wanting to know what size unit they would need to store the contents of a one-bedroom apartment, write a helpful blog post that answers this question. The people calling probably searched online first and couldn’t find the answer. If you respond to this question on your website, Google will reward you with high placement in its search-engine results.

The Hummingbird update will lower your pay-per-click advertising costs because you’ll see more traffic coming from organic search results. Post your articles on a blog page so each article will have its own URL for Google to index, and remember to include a strong call to action at the end of each.

Your self-storage business will get fewer phone calls when potential customers find the information they need online. This is especially important if you have a toll-free number and pay for each call you receive.

Social Media Promotion Tactics

You probably already use several social media networks to promote your business, but you may not get the exposure you deserve. Your self-storage facility should use them as modern versions of the Yellow Pages.

First, create a Facebook fan page for your business and use the description to include keywords consumers would use when searching for a local storage facility. Avid Facebook users (and there are millions of them) use the Facebook search provided by Bing as often as they use traditional search engines to find local businesses. Google also shows Facebook fan pages in its search results.

Next, create a Google+ account and get your storage facility on Google+ Local. Google will return your listing, including your location on a map, facility photos and reviews of your business, from Google+ users when people search for a local storage facility. Make sure you provide all the information requested when creating your listing so people searching for storage will see everything they need to decide that your business will solve their problem.

Lastly, open a YouTube account and publish videos featuring your business. Be creative! A video showing people how to pack a storage unit to make the most of the available space will get more views than a virtual tour.

Offer Solutions Instead of Advertisements

Self-storage is a solution to a problem. Promote the solution instead of your business. For example, online entrepreneurs, such as those who sell products on eBay or Amazon, often have homes packed with boxes that are getting in their way. Homeowners trying to sell their house may find it difficult to interest buyers if their home appears cluttered. These people may not realize how renting a storage unit will solve their problem until you point it out to them.

Write an article promoting a solution and place it on a custom tab for your Facebook fan page, or use the article as a post for your Google+ business page. Rewrite the article and create a resource box at the end urging readers to visit your website for more information. Submit the article to online article directories, trade publications, local newspapers and other media outlets that are eager for fresh content.

Go Mobile

If you promote your business on social media, where many users access their accounts from mobile devices, optimize your website for smartphones, tablets and laptops. Make sure that when people click on your link on your Google+ page or fan page, they don't have a problem navigating your website. If they have a hard time finding your phone number or can't see which size units are available, they’ll move on to your competitor.

Writing articles and managing multiple social media accounts is time-consuming, so delegate some of the work to an employee who has good communication skills and likes to spend time on Facebook and YouTube. Think outside the box when creating your 2014 marketing plan and people will remember your business when they need self-storage.

Derek Whitney is a blogger for Lackland Self Storage, which has locations in New Jersey and Pennsylvania. He  enjoys blogging about self-storage social media, search engine optimization and local search.

Self-Storage Talk (SST), the self-storage industry's largest online community, surpassed the 7,000 member mark this week, just one year after reaching 6,000 members in April 2013.

SST member 7,000 is a new self-storage manager who first turned to the community looking for information about facility-management software. User mhndz84 is the onsite manager for Sierra Storage in South Merced, Calif. She joined the forum after a recommendation from her facility’s general manager. “I have always worked in the customer-service field but never for a storage company, and I honestly love it!” she said.

SST members include self-storage managers, operators, owners, investors, developers and suppliers. They use the site to discuss a diverse range of topics, from day-to-day management challenges to legal issues to construction-related questions and much more. SST also includes state-specific forums, in which members can communicate about issues and developments within their local areas.

"To reach yet another milestone on Self-Storage Talk is amazing," said Amy Campbell, SST’s community manager and editor of Inside Self-Storage (ISS). "Our members are a welcoming bunch and are quick to share their knowledge with newcomers like mhndz84. Plus, they’ve truly developed a tightknit community in which they support each other through challenges and celebrate one another’s successes."

Launched in January 2008, SST is the official forum of ISS, a dynamic services company that provides publications, events and educational resources for the self-storage industry. In addition to its more than 7,000 registered members, SST features approximately 7,800 discussion threads and nearly 70,000 posts in 20 topical subforums. Registration is free at www.selfstoragetalk.com.