When you think of a great team, what comes to mind? I imagine a college rowing crew at sunrise, gliding effortlessly across the smooth water with everyone in sync, pulling their oars toward a common goal. Unfortunately, in work life, the water is often shark-infested. Some people are pulling harder than others; some are outright coasting. And right above your head is a sign that reads, “The beatings will continue until morale improves.”

At times, it can difficult to build and lead a successful self-storage management team. It’s just as difficult to be part of one. However, with the following five key strategies, you can help your staff overcome the turmoil and glide smoothly toward success.

See Their True Colors

There are hundreds of personality tests available in the marketplace today. You’ve probably taken one at some point. Other than being flat-out fun, they provide insight to people’s characters. For the workplace, I recommend the Hartman Institute Color Code Personality Assessment. You can find it online and in the book, “The Color Code,” by Taylor Hartman.

What I like about this test is it breaks your personality traits into four colors. Each color defines a person’s strengths, weakness and work behavior. For example, I’m a red/yellow. That means I’m goal- and task-orientated, and I like to have fun. So, a good way to motivate me would be to help me find success in accomplishing my goals. This is true!

Not only does the color-code test provide insight to your personality, it helps you know how to work and communicate with people from other color categories. This information is extremely valuable and can be an entertaining, team-building exercise. Everyone gets a laugh and says, “Oh, that’s so you.” It’s a great chance to share a more vulnerable side of yourself. That’s OK because everyone else’s weaknesses are also being revealed.

Create Buy-In

Two years ago, I purchased a home. When I first looked at it, I loved it. Others saw it as a catastrophe. There were holes in the walls, doors were kicked in, it smelled like death and gym socks, and the former residents had used the living room to repair motorcycles. Everyone thought I was insane for wanting to buy it. My realtor said, “I’m glad you see the vision because I don’t.”

I had to work hard to get people to “buy into” my vision of the house. After a lot of blood, sweat, and swearing, I turned it around. Now that the project is finished, it’s easy to see the dream. Before the work was done, however, it was nearly impossible.

You need to get your team to buy into what you want to accomplish for the company. You don’t do this by showing them everything that needs to be done all at once. You break it up into “rooms,” and then into tasks. You begin by delegating. As your staff completes various tasks, they begin to have a sense of ownership in what they’ve accomplished.

As your team develops, give them more responsibility, and their buy-in will grow. As they become more committed, help sharpen their skills to become even more effective in what they do. Soon they’ll be the ones helping others buy into your vision because they’ll see what you see.

Keep It Clear

If your company’s organizational chart looks like the art my 3-year-old puts on the fridge, it’s time to have a talk. Clearly defined roles are essential to running a well-established team.

Nothing will bring staff down like not understanding the responsibilities of each team member. Not only will having clear roles help your team, it will help you hold them accountable. How can you hold employees answerable for certain tasks if they don’t have a standard against which to be held? A valuable exercise would be to ask employees how they see their responsibilities. Compare that information to your own summary. I imagine there will be some discrepancy, which means an opportunity for coaching and mentoring.

Every staff member needs to have a title. Make them feel important. You might have been CEO at the last six companies you worked for and it’s just a title to you. For someone else, though, that title might be extremely important, so don’t diminish it.

Meet Often

Meetings are important. They’re an opportunity to teach and guide your staff. More important, they allow time to talk about issues and ideas as well as frustrations they might have. To hold successful meetings:

• Foster a feeling of respect and an atmosphere of open communication.
• Understand that sharing stories from the trenches, laughing and socializing creates camaraderie.
• Come prepared and don’t waste people’s time.

Meetings can be done in creative, productive ways. They don’t have to be in a conference room. Try to mix things up. Go for a walking meeting, have lunch, do a conference call, or try a video call in Google Hangouts.

Communicate

Communication is easy yet also very complex. It encompasses everything from verbal exchanges to e-mails to non-verbals, such as a “thumbs up” or “high five.” To lead a successful team, you need to communicate with authority so they take you seriously, respect you, and trust that you have their best welfare in mind.

When you communicate with members of your team or even work superiors, always choose to be the bigger person. No matter how good it might feel to yell, punish or be passive-aggressive, don’t do it. It can sometimes be extremely difficult—believe me, I understand the struggle. But how can you expect your team to behave in a certain manner if you don’t do so yourself?

Clear communication is the key to a strong team, but leaders sometimes avoid giving concise instructions to walk a fine line between being strict or laid back. Their directives can sometime come across as optional. For example, “Jamy, when you get some time today, can you do a lock check?” This comes across as a suggestion with little priority. Instead try, “Jamy, I need you to get a lock check done by 2 p.m. today.” Now the communication is clear and she can be held accountable to the assignment.

These five strategies will facilitate your self-storage team-building. Not all staffs are going to be friendly. Your employees may not get along or even like each other. However, when teamwork and leadership are done right, that’s all that matters. The focus is shifted because everyone is pulling on their oars, and that creates a fulfilling and meaningful purpose.

Rick Beal is the district manager and part owner of Cubes Self Storage in Salt Lake City. He discovered his passion for the self-storage industry many years ago. Since then, his goal has been to help operators embrace new and innovative ideas. His approach to constant industry changes are based on a practical “rubber hits the road” application. His professional motto is “Storage is a business of inches not miles.” He can be reached at [email protected].

Storage Business Owners Alliance LLC (SBOA), a buying group for the U.S. self-storage industry, and List Self Storage (LLS), which operates a website for real estate professionals to list and identify facilities for sale, have promoted Alison DeJaeger to director of marketing and communications. She previously served as marketing manager for the sister companies.

“Alison has continued to grow in responsibility and leadership in our organization and has been instrumental in establishing our brand and image,” said Theresa Gallas, president of LSS and vice president of sales and marketing for SBOA. “Alison will continue to take a more public and prominent role within our organization, and we are thrilled to promote her to director.”

Founded in 2015, LLS has represented more than $2 billion in self-storage, conversion and development assets for sale nationwide, according to a press release. The website provides a directory of self-storage transaction specialists, providing a reference for all aspects of self-storage development, building, financing, purchasing, managing and selling.

SBOA members can take advantage of pre-negotiated discounts on goods and services from more than 30 preferred vendors, including SBOA Merchant Services and SBOA Tenant Insurance. The company has more than 6,000 member facilities.

StorageMart, which operates more than 190 self-storage properties across Canada, the United Kingdom and the United States, has acquired Assured Mini Storage in Lake Charles, La. The 7.4-acre property at 4852 Ihles Road is just off Country Club Road (LA-384). It contains more than a dozen buildings comprising 124,000 square feet of storage space in 800 units. A climate-controlled addition was completed earlier this year, according to a press release. Security features include PIN-controlled access, perimeter fencing and video cameras.

"We want every customer to have peace of mind while storing with us, even if they store something like electronics, photographs or antiques," said Cris Burnam, president. "Especially in warmer and humid climates, we find having climate-controlled units available is a big draw for customers looking to store temperature-sensitive items. This new property puts us in a good position to fill that need, with over 20,000 square feet of [climate-control]."

StorageMart also operates a second self-storage facility in the city, at 1515 Church St., the source reported.

Founded in 1999 and based in Columbia, Mo., StorageMart is privately owned and operated by the Burnam family, which has been in the storage industry for three generations. It serves more than 75,000 self-storage customers, and operates in Chinese, English, Punjabi, Quebecois French and Spanish.

Update 5/16/17 – While the SSAA continues to work with Hong Kong officials on viable solutions for self-storage operators to meet fire and safety demands, commercial real estate services firm CBRE Hong Kong has also offered its opinion on how the two sides could reach a compromise.

Among the most problematic regulations for self-storage operators to meet are the demand for increased corridor space between units and a larger ratio between windows and total floor area, according to an editorial written by Kelvin Leung, senior director of building consultancy services at CBRE Hong Kong, and published today by the “South China Morning Post.” CBRE believes the amount of available storage space will likely shrink by more than the 30 percent operators claim has been lost from tightening regulations due to the high cost of changing configurations and the likelihood of much higher rental rates.

“Our team at CBRE believes that there are viable solutions that can satisfy the operator and government’s requirements,” Leung wrote. “For example, container doors could be converted into sliding doors so that the corridor space will not be compromised while both doors are open. From our understanding, the [FSD] has increased the corridor dimension from 1 meter to 2.4 meters to create more space for firemen to move between containers in case of an emergency. A sliding door ensures that the firemen’s safety is taken into account without infringing on the self-storage space.”

Leung also called on the government to withdraw or alter its stipulation on the ratio between windows and floor area. “The ratio is a regulatory requirement applicable to office and residential buildings for the sake of airflow and hygiene,” he wrote. “CBRE does not believe that this ratio is necessary or suitable for the purposes of a warehouse. Since the foot traffic of warehouses is much lower than that of an office or residential building, we suggest the government reconsider this overarching requirement and judge each storage company on a case-by-case basis.”

In a letter also published today by the “South China Morning Post,” La Tona reiterated the SSAA’s stance to work with government officials to find common ground. “[The SSAA] shares the same concerns as the public; we are especially concerned about the safety of these facilities,” La Tona wrote. “We understand licensing and higher standard regulations are a consideration, and welcome working with the government to formulate proactive strategies.”

Last month, the Buildings Department, FSD and Security Bureau submitted another proposal designed to improve the fire safety in older industrial buildings, according to La Tona. “We welcome the proposals and believe it is important for the government and relevant stakeholders to work collaboratively on this,” he wrote.

At stake, according to La Tona and CBRE, is having enough storage space to meet consumer demand. “Given the city’s very limited space, self-storage plays an increasingly important role in Hong Kong people’s lives,” La Tona said.

The growth of small residences, particularly “nano flats” with usable space of less than 160 square feet, is among the drivers that necessitate adequate self-storage space in the market, according to Lueng. “These new guidelines have created murky waters for self-storage business owners and landlords,” he wrote. “While safety is a priority, CBRE urges the government and operators to find a middle ground so that the market demand is not ignored.”

“We are happy the government is willing to continue discussing and coming to a balanced understanding of all the issues in order to reach a consensus on storage layout requirements,” La Tona wrote. “Safety is the number one priority, and the industry is open and willing to work closely with the regulators to find a way to best adapt to these new and higher-standard rules, within an achievable time frame.”

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2/28/17 – The SSAA believes it has found a workable compromise to help self-storage operators meet fire and safety demands being imposed by Hong Kong officials. To meet the government’s distance and maximum-space requirements, the association will propose allowing operators to install fireproof boards to enclose clusters of units, according to a source. The SSAA came up with the solution after hiring a fire engineer from consulting group Arup and a team of surveyors.

“Fire-safety principles were very difficult for the sustainability [of] the industry, so it was important to match safety and sustainability in order to meet all stakeholder needs to find a win-win solution,” La Tona told the source.

If the SSAA’s proposal is approved by the FSD, operators will need their modifications approved on a case-by-case basis.

Though complying with modifications will be expensive, the costs are acceptable and sustainable, according to Kevin Chan, chairman of the Store Friendly Self Storage Group.

RedBox Storage estimated its costs would be up to HK$20 million and take more than a year to complete, according to the source. Oliver Leung Wing-hong, chief operating officer for RedBox, said he was hopeful the government would consider subsidizing the cost.

Government assistance is also supported by the Hong Kong Mini-Storages Association, which has demanded officials consider interest-free loans to self-storage businesses that can’t afford to make the improvements. The association told a source it estimates about 100 operators have gone out of business already and believes more than half of facilities won’t be able to meet requirements.

"[The government] should not go too far and should consider the feasibility of the regulations," said Peter Hung Kai-kei, chairman of the Hong Kong group.

The Hong Kong association represents about 70 percent of the local industry, a source reported. It has also hired fire engineers to seek suitable counterproposals.

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1/18/17 – The Self Storage Association Asia (SSAA), whose members represent about two-thirds of the industry’s gross floor area in the region, indicated it’s working with the Hong Kong Buildings and Fire Services Departments (FSD) on crafting safety standards that meet guidelines and are realistic for storage operators. Some of the standards that resulted in hundreds of citations being issued last month are impractical, Luigi La Tona, executive director of the SSAA, said yesterday during a press conference.

“We are proactively working with the government in order to find safe and sustainable solutions,” La Tona said. Among the requirements the association has been working with members to meet include the elimination of aisle dead-ends, improved fire exits, lighting and signage, according to a source.

One of the sticking points is the requirement for a 2.4-meter gap between storage zones, which La Tona said the industry “could absolutely not meet.” The gap requirement would “drastically” and “negatively” impact the industry because of its need for floor space, he said. The SSAA estimates up to 50 self-storage facilities—about one-tenth of the market—could close as a result of the strict safety standards, a source reported.

An alternative to the gap requirement proposed by the FSD during a meeting with the SSAA on Dec. 30 would create sealed, 50-square-meter “storage islands” designed to stop the rapid spread of fire. “Their ultimate goal is to stop the spread of fire for at least 30 minutes,” La Tona told the press. “They have said this outright. They have been willing to accept alternative solutions to meet their goal.”

SSAA has retained a fire engineer from consulting firm Arup to help it propose possible alternative measures designed to keep a fire contained for at least 30 minutes. It plans to submit two proposals each to the Buildings Department and FSD, a source reported. “The FSD has been very clear that they will accept alternative solutions, and the industry wants to stay in communication and in collaboration with the FSD,” La Tona said.

While the FSD is willing to consider alternative proposals, “commercial considerations could not override public safety,” officials told a source. The FSD considers the 2.4-meter zone gap and a one-meter requirement between storage units and the ceiling to be “feasible and necessary.” The SSAA maintains the 2.4-meter requirement falls under general warehouse regulations and was “unheard of” by self-storage operators before last year’s fires, La Tona said.

The SSAA is hopeful it can reach a compromise with the FSD and announce a new set of approved standards by the end of March.

Launched in 2014, SSAA supports members' interests to help grow the self-storage industry in Asia.

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1/3/17 – Government officials have cited hundreds of Hong Kong self-storage operators for building, lease and safety violations following investigation of facilities in the wake of two devastating fires that killed two firefighters last summer. As of Dec. 23, the Buildings Department had issued 571 orders to 259 storage businesses demanding they fix safety problems. In many instances, fire escapes were found to be too few or too long, with storage units taking up too much space within facilities, according to Michael Pang Yuk-lung, chief building surveyor.

In addition, the Fire Services Department (FSD) has issued 1,267 fire-hazard abatement notices to 257 self-storage operators, of which only 50 have been satisfied, according to Terence Tsang Wing-hung, acting assistant director of fire safety. Violations of the fire ordinance include inadequate locking devices on escape doors, insufficient coverage of the hose-reel system, insufficient exit and directional signage, and obstructed or too few windows. The FSD indicated it has inspected 756 of 885 identified self-storage facilities, a source reported.

Of 871 self-storage businesses inspected by the Lands Department, 213 were suspected of violating their leases, according to Patrick Leung Yun-hing, principal land executive. The Lands Department has issued 13 improvement notices and 221 written warnings. It has also initiated 13 prosecutions related to occupational-safety violations endangering employees, Thomas Chan, chief occupational safety officer, told a source.

Business owners were given 28 days to bring their facilities into compliance. Further legal action could be taken if regulations aren’t met, Pang Yuk-lung said.

Officials from an unidentified trade association indicated self-storage operators had made strides in promoting safety awareness but felt “powerless” from new FSD requirements and feared the industry could be forced out of business, a source reported.

Strategic Storage Growth Trust Inc. (SSGT), a public, non-traded real estate investment trust focused on self-storage acquisition and development, has acquired a two-property portfolio in Asheville, N.C., for $10.25 million. Together, the facilities comprise 115,000 rentable square feet of space in 850 climate-controlled and drive-up units as well as 40 vehicle-parking spaces.

The property at 197 Deaverview Road contains 370 units, while the property at 75 Highland Center Blvd. offers 480 units. Both offer controlled access, perimeter fencing and video cameras, according to a press release.

“These facilities are in a growing community with excellent demographics, including college students, retirees and apartment renters, all of which represent good demographic groups for self-storage,” said H. Michael Schwartz, chairman and CEO. “We are pleased to add these facilities to our growing portfolio.”

SSGT is also converting a vacant industrial building in Asheville to self-storage. Once complete, the facility will comprise 72,000 net rentable square feet of storage space in 650 climate-controlled and drive-up units.

SSGT focuses on the acquisition, development, redevelopment and lease-up of self-storage properties. Its portfolio currently consists of 18 storage facilities in eight states comprising approximately 1.4 million net rentable square feet in 11,900 storage units. The company is sponsored by SmartStop Asset Management LLC, a diversified real estate company with a managed portfolio of 107 self-storage facilities in Canada and the United States. Its managed properties comprise approximately 7.8 million rentable square feet.

 

Texas-based Big Tex Self Storage is developing a new facility in Garden Oaks, a neighborhood of Houston. Expected to open in June 2018, the property at 3480 Ella Blvd. will also serve Oak Forest residents. The 100,000-square-foot, climate-controlled facility will share a site with Ella Plaza, a multi-tenant shopping center.

The development will be the first in the area to provide a pedestrian realm with sidewalks and landscaping along W. 34th ½ Street, according to a company press release. Customer amenities will include a retail store that sells moving and packing supplies, complimentary truck rental, and the free use of dollies and platform trucks. The new location will contain a covered loading area as well as security features such as controlled access, individual door alarms and video cameras.

"Garden Oaks and Oak Forest have seen tremendous growth over the past five years, and the Big Tex Storage team is excited to be a part of that evolving story,” said company owner Bobby Grover. "Houstonians want to be a part of this community thanks to its beautiful tree-lined lots, top-rated schools and fun neighborhood restaurants and bars.”

Garden Oaks was named one of the city’s “Hottest-of-the-Hot Neighborhoods” last year by Houstonia, a news, entertainment and information source, the release stated.

Big Tex is focused on the development of multi-story storage assets in select markets. The company opened a new site in Montrose, Texas, last fall and recently added two new storage buildings to its facility in The Woodlands, Texas, as part of its phase-two development.

Founded in 2005, Big Tex is family-owned and -operated. Its three facilities in Montrose, River Oaks and The Woodlands, Texas, comprise 400,000 square feet of storage space. The properties also feature wine and vehicle storage.

There could be any number of reasons why you’re ready to sell your self-storage property. No matter the motivation, you likely want top dollar at the closing table. So how do you get what you deserve for your facility? Here are five operating strategies that will put a smile on your face on settlement day.

1. Implement a Revenue-Management Program

In the past, perhaps you’ve only raised rates on tenants when you increased your vacant-unit pricing, or maybe you’ve never raised them at all. Now’s the time to reconsider that strategy. Implementing rate increases on a schedule can significantly improve your bottom line. Increasing rates just $5 on 300 units will result in an $18,000 annual revenue gain. When you apply an 8 percent capitalization (cap) rate to that gain, you get a $225,000 increase in facility value.

2. Reduce Delinquency

All self-storage operators have past-due renters, but it’s damaging to the business to be too lenient. Not only are delinquent tenants causing you a headache, they’re taking up valuable space you could be renting to a paying customer. You might normally pass an overlocked unit, sigh, and mentally write off the $120. But at an 8 percent cap rate, you’ll lose $1,500 in facility value for every month that unit goes unpaid! How much are you prepared to lose? Get delinquents to pay, and you’ll improve value.

3. Improve Occupancy

The goal is to fill units and increase your number of paying renters. Here are four quick ways to boost physical occupancy:

• Improve your facility’s Web presence and search engine optimization.
• Implement a referral program, and perhaps a discount for new customers.
• Create a revenue-based incentive programs for your facility managers.
• Enhance your facility’s curb appeal.

4. Reduce Expenses

Every dollar you cut from your expenses adds exponential value to your property value and, therefore, sale price. For example, at an 8 percent cap rate, each dollar in expenses saved translates to $12.50 in additional facility value. Here are a few examples of costs you can easily eliminate:

Dumpsters. Unless this is a selling point for your tenants, why would you allow them to eat into your profit by filling your dumpster? Either put a lock on it or switch to a municipal waste-collection program that gathers only your manager’s office waste.

Employee hours. Do you have more than one employee running your property? Are there ways you can implement technology to reduce staffing needs? There are now many solutions in the self-storage industry such as call centers, online rental programs and kiosks, all of which reduce the need for customers to meet with an onsite employee.

Utilities. If you’re paying for high-speed Internet, a phone plan with unlimited data or—worst of all—cable or satellite television at your facility, now’s the time to cancel some services or renegotiate packages and fees. For example, perhaps you can downgrade your Internet plan. If you can cut that bill by $50 per month, that’s $600 per year in expenses saved, which translates to $7,500 in property value at an 8 percent cap rate.

5. Improve Curb Appeal

Enhancing your curb appeal shows potential buyers you care about your property. A dilapidated facility, on the other hand, sends a red flag to most buyers. When they see minor aesthetic issues neglected, they’ll immediately wonder if more serious maintenance has been deferred, such as leaky roofs or faulty HVAC systems. Here are some pointers to improve the look of your facility:

• Landscaping. All your landscaping and grass should be trimmed, neat and clean. Cut or remove any oversized plants, especially any that are blocking visibility from the road. Add fresh annuals to your flower beds.
• Signage. First and foremost, signage should be visible from the road frontage. If it’s a little worn, now’s a good time to replace or upgrade it. Additionally, it should be well-lit (ordinance permitting).
• Office. Since this is the hub of your facility, you’ll want it to be presentable. The office should be freshly painted, free of clutter, well-lit and clean. Retail-sales inventory should be dusted and organized. The restroom should be thoroughly cleaned and fresh-smelling.

All this work reflects pride of ownership and signals to buyers that you’ve taken excellent care of your facility. That first impression gets them talking to your broker about the financial side of the property—and potentially making an offer. Whether you’re a few years away from selling or ready to take advantage of the market’s current low cap rates, this checklist covers the most cost-effective ways to boost facility value.

Isaac Rothermel is a broker advisor at Investment Real Estate LLC, which has provided brokerage, construction, management and development services to self-storage owners and investors since 1998. For more information, call 717.779.0804; e-mail [email protected]; visit www.irellc.com.

Optima Self Store has opened in Stamford, England, using portable metal shipping containers as storage units. The property on Uffington Road is behind Moles Country Store and near Morrisons supermarket, according to a press release.

In addition to a range of container sizes for personal and commercial storage, the facility offers document and vehicle storage. Security features include controlled access, perimeter fencing and video cameras.

“Our location, along with flexible terms and 24-hour access, makes Optima ideal for those looking to store things in the town, whether that be households or local companies,” said director Steve Sugden. “Unlike some of the large self-storage operators, we offer a personal service and try to be flexible to each individual’s needs. We also offer long-term storage for those going abroad or having refurbishment work done at home, or for businesses looking for a permanent low-cost storage option.”

In addition to Stamford, Optima serves the surrounding villages of Empingham, Essendine, Great Casterton, Wansford and Wittering.

The Kansas legislature is considering a bill that would remove the sales-tax exemption from self-storage and several other services. The house approved the measure 78-42 on Monday, sending it to the senate. The proposal is part of a larger budget strategy to help offset a proposed 1 percent sales tax reduction on food that would occur in 2020, according to a source. The house passed the food-tax measure 117-3.

Other businesses affected by the bill are collection agencies; detective services; non-residential cleaning services, including commercial plumbing; pet daycare; private security guards and security systems; and towing. Kansas sales tax is 6.5 percent.

The measure is being generally supported by Republicans but has received pushback from Democrats and some moderate Republicans, a source reported. Those opposed to the bill have argued the services included will largely affect the poor. Rep. Patsy Terrell noted home renters would be affected by the inclusion of self-storage.

The state would generate about $60 million per year over the next two years by repealing the sales-tax exemptions, which is nearly equal to the amount that would be lost by lowering the sales tax on food to 5.5 percent, according to a source. The two strategies were initially part of the same bill proposed by Rep. Kristey Williams but were separated for an earlier house vote.

House representatives also removed gym memberships at non-profit and government-owned centers from the original list of services targeted for the exemption repeal. Sales-tax exemptions in Kansas amount to about $6 billion, according to the state.