The coalition forces won a decisive victory because they had great leadership. The campaign plan was communicated to everyone. It was bold, innovative and broke some old rules. But most important, everyone knew the part they needed to play.he war in Iraq has touched everyone in the world, directly or indirectly. Many of us sat riveted to our television sets watching embedded reporters feed us live pictures as our sons and daughters carried out one of the boldest, best integrated military campaigns in the history of warfare.

Those of us with stores in military communities watched our occupancy levels jump as deploying forces left in record numbers, leaving us to protect their belongings. The majority of us, however, have seen our inbound customer-inquiry calls drop, along with our occupancies. In my travels across the country and countless conversations with owners and managers, the universal sentiment I'm hearing is we are experiencing a soft market. If your rentals are up compared to last year and you got a 6 percent to 8 percent spring rate increase across the board, be ready for more competition.

Just like the coalition forces, smart bombs and cruise missiles played a major part in the Iraq campaign. Similarly, in self-storage, Yellow Pages ads, coupons and direct-mail play a role in our battle for market share. But in the final analysis, it took "boots on the ground" to win the Iraq war in such a decisive fashion. So it will be in this industry. It's time for our own "Shock and Awe" campaign, including the use of WMD: weapons of marketing dominance.

Our managers, assistant managers and part-timers are the secret. Their telephone skills and positive customer-service attitude will determine who wins and who continues to lose ground in the months ahead. As an owner, you must ask yourself, "Have I given them all the tools they need to succeed?" Better yet, have you even asked them what they need?

The coalition forces won a decisive victory because they had great leadership. The campaign plan was communicated to everyone. It was bold, innovative and broke some old rules. But most important, everyone knew the part they needed to play.

Have you created a similar campaign in your self-storage business? Do all of your employees fully understand what you expect to achieve this year? As we pass the mid-point of the year, it is not too late to get everyone together to assess the first half of this year's campaign and evaluate, as one team, the flexible strategies necessary to achieve your goals in the next six months.

It is time to shock and awe those potential customers--not with discounted prices, but superior skills and attitude. If there has ever been a time in the brief history of our industry when excellence in day-to-day operations will separate the winners from the losers, it is now. Which line will you be in when they are handing out victory ribbons at the end of December? Your entire team's actions will decide.

Overtime Clarification by U.S. Labor Department

By the time you read this column, the U.S. Labor Department will be finishing its official comment period on sweeping new federal regulations governing employer requirements for paying overtime. The proposed changes outlined in March's rule-making process represented the first update in salary levels in the wage-and-hour rules in the past 28 years. For example, the last revision to the job-description categories in the 1938 Fair Labor Standards Act was 54 years ago.

In a press release from late March, Tammy McCutchen, administrator for the Department of Labor's Wage and Hour Administration, called the revisions "moderate and measured." "Easy, clear rules mean employees will understand when they're entitled to overtime; employers will know what their obligations are," she said.

The release went on to say, Other proposed changes include revising job duties required to qualify for the exemption to better correspond to 21st-century workplace realities. The old regulations, written in 1949, mention job classifications that no longer exist, such as key-punch operators, straw bosses, leg men and gang leaders. Clarifying which job duties qualify for overtime pay will help workers and employers easily determine overtime entitlement for millions of workers whose status is currently unclear.

In the new proposal regulations, any worker earning less than $22,100 a year would automatically be entitled to overtime pay, regardless of whether he is paid hourly or earns an annual salary. This same worker would be exempt from this overtime-payment requirement if he manages more than two employees and has authority to hire and fire, or if he has advanced training--a technical degree, works in a specialized field, or works in the operations, finance and auditing areas of a company. An employer could also simply increase the base pay above the $22,100 annual level to remove the employee from the mandatory overtime category.

I wanted to bring this issue and these pending regulations to the attention of owners and mangers as well as all store employees. Could it change how you are being paid? Maybe. Could it mean every self-storage owner in America will need to rethink his management structure and employee work hours? Possibly. Is it worth everyone's attention? Definitely.

While the U.S. Labor Department feels it is making a quantum leap with these proposed changes, I feel it will take several years to fully understand the direct impact they may have on the entire self-storage industry.

Motivation and Inspiration for the Taking

Everyone can use a supply of motivation and inspiration from time to time. I would like to recommend one of the best sources I have found over the years: the writings of Og Mandino. Mandino, a widely read inspirational and self-help author, has written 18 books that have touched the lives of an estimated 10 million readers around the world.

Books such as The Greatest Salesman in the World, The Greatest Secret in the World, The Choice or The Return of the Ragpicker all have lessons to teach. I must admit, The Spellbinder's Gift has special meaning for me. I have found Mandino's writings to contain subtle nudging and meaningful encouragements, not finger-pointing. You can pick up one of these books 6 months or even years later and get a completely new insight you missed or did not fully understand from your first reading. Many of these stories can be read in a single night, yet have a profound way on how you view the morning.

In his introduction to The University of Success, Mandino writes: Forget yesterday and last month and last year, with their gloomy diary of failures and disappointments. All that is in the past. This is the day you were beginning to believe would never arrive and yet it is here! This is the day you begin to turn your life around. This is the day you commence learning the greatest secrets of success from experts and, more important, how to use what you learn to make a better world for yourself and those you love.

Now 79, Mandino lives with his wife, Bette, in New Hampshire. Anyone looking for a wellspring of words for personal motivation and inspiration need look no further than the pages of his works. You can also gain some insights from his website at www.ogmandino.com.

The Passing of Ron Alton

I cannot finish this column without a brief word on the death of Ron Alton. Those who knew and worked with Ron and considered him a friend have lost a unique person. He was a hardworking man who was constantly urging those around him to realize their full potential as he pushed himself toward that same goal. Our thoughts and prayers are with Pam and her family, including everyone at Mini-Management Services.

Ron, you will be missed. May God be constantly at your side.

Jim Chiswell is the owner of Chiswell & Associates LLC. Since 1990, his firm has provided feasibility studies, acquisition due diligence and customized manager training for the self-storage industry. In addition to contributing regularly to Inside Self-Storage, Mr. Chiswell is a frequent speaker at Inside Self-Storage Expos and various national and state association meetings. He has introduced the new LockCheck inventory data-collection system to the self-storage industry at www.lockcheck.com. He can be reached at 434.589.4446; visit www.selfstorageconsulting.com.

Records-management in self-storage operations has always included minimal service options. Today, with new methods and technology, you can offer higher levels of service if you choose. This article discusses the value of adding services to your records-management portfolio.

If you are in the records-management business, you must provide a minimum of three levels of service: storage, retrieval and delivery, and indexing. These services separate you from simple records storage. There are additional levels that can be added to your service portfolio. Each can contain many variations and be delivered in several ways. The following paragraphs define and explain each service level, along with their components and your options for implementation.

Storage

The most obvious of the service levels is, of course, storage. This is your base service and where the annuity value of the business is found. Since records tend to stay in storage for long periods of time and retrieval fees deter movement, the base of storage grows each month from existing and new client accounts. There are several storage service options:

Box storage is the most common records-storage type. It is the simplest to provide and easiest to control. Box storage is usually charged by the cubic foot, and boxes vary in size. Odd boxes are charged at a higher rate than standard ones.

File storage is typical for medical records. These are maintained on open shelving and in the same order the medical client has maintained them. File storage provides less dense storage and is, therefore, charged at higher rates than box storage.

Film-media storage is very common. It includes microfilm, microfiche, X-ray files and videotapes. It is advised that this storage be maintained in air-conditioned space, since temperature and humidity have dramatic effects on the quality and rate of degradation of the film. It is also common for clients to not want to pay for air-conditioned space; consequently, many records centers store X-rays in open warehouse space at the request of the client.

Data-media storage is by far the most volatile records-storage medium. Data media is usually considered a vital record and acts as a back-up and history of computer systems. Casual storage of data media is not recommended by anyone. Storage of this media requires stringent controls and high costs.

Retrieval and Delivery

Retrieval and delivery services are relatively mundane and generally simple when controlled with a barcode records-management tracking system. This level of service generally includes four services, all of which can be outsourced if managed properly:

• Retrieval is the act of pulling a box or file from existing storage while maintaining a history of the activity and receipting for the unit of storage.
• Delivery is provided to the client on a standard, emergency or after-hours basis, depending on the level of service you define in your agreement. Nonstandard deliveries are always charged additional fees. Standard delivery is typically next-day service.
• Pick-up service is best provided as a scheduled event to pick up new items and return items to storage.
• Refile service is the replacement of items back on the storage shelving. This is usually done at scheduled times. Boxes are not generally returned to their original location, although files are always returned to their original box.

Indexing

Indexing services, sometimes called cataloguing, can be provided simply or in complex form. They are the primary difference between records management and records storage. Indexing is the means of finding record items, and it can vary in quantity and value to the client.

Numbering is the simplest form of indexing. Assigning a unique number to each item is absolutely required. This necessitates the client keep his own information database about the contents. This is a minimal service level and of relatively low value to the client.

Standard indexing is the best way to index a box. Generally, there are a standard number of fields entered into the client database relative to the item being inventoried. This could include record name or series, dates from and to, ranges from and to, owner or department, and destruction date. This has high value to the client and generally excellent profit margins for the records center.

File indexing is provided to some file types that are difficult to arrange in an orderly fashion within a box. Some record types require file-level indexing, the most common of which is legal files.

Document indexing is provided on a rare basis, when the indexing of key documents may reduce the cost of another business process. Litigation support is an example of this.

Professional Records-Management Services

Professional records-management services (PRMS) range greatly from mundane to highly sophisticated. These have the greatest value to the client and higher yield and margins to the commercial records center. Many of these services can be outsourced to records-management professionals in your community. A few of these are listed below. This is not meant to be a full catalog of PRMS services but merely a sample:

• Repackaging is a warehouse service, but it can assist in the management of the records, since improperly packaged records are difficult to handle.
• Re-indexing and homogenization services are very valuable and give the client a better understanding of what records are being maintained. This service has high value and high yield to the client and the records center. This activity can easily be outsourced.
• Retention-scheduling services may, at first glance, seem antiproductive to your storage goals. Indeed they are not--attention to retention issues ensure long-term relationships with clients.

The list goes on and on and on. There are perhaps 100 or more PRMS services that can be offered through your center.

Digital or Electronic Services

The future of commercial records management does not exist within the paperless office, scanning or enterprise document management. The future for commercial records-center automation is already here. The value is in providing services valuable to your client and profitable to you. Records-management software already contains the solutions that bring this high value and improved profitability. These are simply a few of the more obvious services--there are many more:

• Internet-based access to client information is perhaps the most important innovation in commercial records-center history. It is available in the primary software products on the market.
• Scan-on-demand service includes the retrieval of indexed files, scanning them and sending them via e-mial as a file attachment. This avoids delivery by courier and is high value to the client and high profit to the center.

There are many other services that allow commercial records centers to become one-stop records shops for clients. The service levels you offer are entirely optional. The higher the service levels, the higher the value to the client and the more profit to you.

Regular columnist Cary McGovern, CRM, is the principal of FileMan Records Management, which offers full-service records-management assistance for commercial records-storage startups, marketing assistance, and sales training in commercial records-management operations. For assistance in feasibility determination, operational implementation or marketing support, call 877.FILEMAN; e-mail [email protected]; www.fileman.com.

Daily Cleanup

	Several times a day, check the grounds for litter, including natural refuse such as leaves, stones, twigs, etc., and man-made rubbish like paper, bottles, cans and cigarette butts.
	Haul boxes, mattresses or other furniture tenants leave behind to the dumpster.
	Keep restrooms clean and stocked with paper products and hand soap.
	Sweep bare floors several times a day.
	Wash windows at least three times a week with a good commercial cleaner.
	Keep countertops free of clutter. Clean with a commercial disinfectant daily.
	Dust retail displays every day. Keep stocked.
	Keep counter or collateral display stocked with facility brochures and other useful information.
	Dust or vacuum camera equipment, equipment area, video monitors and video recorders regularly.

Security

	Keep video cameras free of dirt and dust by vacuuming regularly. Inspect equipment weekly for broken or dusty lenses, split or frayed wires, and tampering. Make sure cameras are focused and angled where you want them.
	Slide gates should be lubricated and checked for tension. Examine vertical lift gates for belt wear and tightness--the tighter, the better. Sprockets, or gears, should be inspected for wear and replaced when needed. Replace slide-gate rollers if they are wobbly.
	Check seals and gaskets on keypads for leaks. Make sure sprinklers are not directed at the keypad. Once a year, open the keypad and inspect it for worn or corroded areas. Clean with alcohol and a toothbrush.
	Keep VCRs and digital video recorders free of dust by keeping them behind glass or using a dust cover. Inspect cables regularly for damage.
	Be sure there are enough light fixtures to adequately illuminate all corridors, driveways and areas between buildings. Burned-out bulbs should be replaced immediately.
	Wired door alarms need to be inspected every time a unit becomes available. Check the sensing device. Look for damage to the door switch or magnet. Be sure wires are in good condition. Examine brackets for breakage or tampering. Batteries in wireless door alarms should be tested often and replaced as needed.

Unit Interiors

	Inspect each unit upon vacancy. Swipe corners and walls for cobwebs, bugs, dust and grime. Sweep and mop the floor.
	Check for insects or rodents. Hire an exterminator to get rid of pests.
	Look for water spots, stains or leakage on the ceiling. Run a duster or broom over the ceiling to catch dirt and cobwebs.
	Lock all vacant units with inexpensive yellow padlocks that are keyed alike.
	Check pull cords on doors for wear, especially if they are on the outside.

The Maintenance Unit

	Keep cleaning supplies well stocked and conveniently located. Replace mops, brooms, dustpans, rags, etc., as needed.
	Check tire pressure and charger for golf cart regularly. Schedule annual maintenance checks. Clean upholstery often; replace it when torn or worn out. Have a clean sign that states "Rider rides at own risk."
	Have several sizes and varieties of tools available, including hammers, screwdrivers, bolt-cutters, ladders, a ratchet and socket set, nails, screws, spackle, vise clamps, saws, tie-down straps, oils, lubricants and a cordless drill with nut drivers, bits and a jig. Other tools to consider are battery chargers, jumper packs or cables, portable floodlights, air tanks, compressors and floor polishers.
	Have a workbench with bins or shelves to keep all tools and replacement parts organized. Hand tools can be hung neatly on a piece of pegboard.

Curb Appeal

	Keep bushes, flowers, trees and lawns trimmed and neat.
	Trim tree branches that threaten power lines or are a threat to buildings during severe weather.
	Signs should be bright and easy to read. Replace bulbs and faded lettering or graphics as needed.
	If you don't have guard posts, get them. If you do have them, consider using a post sleeve rather than scraping and painting regularly.
	Get potholes fixed, but rely on professionals to do the job.
	Keep cracks clear of weeds by using a commercial weed killer.

The Management Office

	Have carpets professionally cleaned every six months.
	Once a month, remove window screens and storm windows, and wash inside and out.
	Rearrange retail items and displays monthly to attract attention and track inventory.
	Ensure phone, faxes and copy machines are free of dust and working properly. Stock ink and paper and keep the manufacturers' numbers handy for repairs.
	Keep collateral displays stocked with colorful brochures of the facility and useful pamphlets, such as "10 Things You Must Know Before You Rent a Storage Unit."

Building Exteriors

	Instead of painting faded metal doors and buildings, refinish with a high-quality, protective coating.
	When replacing door and building numbers, use the highest quality vinyl numbers possible in an easy-to-read, block style.
	Check door screws, sweep any cobwebs and dirt out of the guides on doors, and oil or lubricate springs with a very light coat of oil to reduce friction and prevent rust. Check the tension and adjust according to manufacturer's directions.
	Regularly inspect building exteriors for damage such as cracks, rust, and fading or peeling paint.
	Check built-up roofs for bubbles or cracks in the asphalt topping and loose flashing attachments.
	When inspecting metal roofs, look for loose screws, deteriorating rubber washes, separation of lap joints and exposed sealants that have cracks or bubbles.
	With standing-seam metal roofs, be on the look out for separation of panel laps, loose-flashing fasteners and exposed sealants.
	Check gutters regularly for leaves and other debris. Give gutters a thorough cleaning each spring and fall.
	Make sure down spouts are draining water away from the buildings.

For information on companies that provide information, products and services to assist in the maintenance of self-storage sites, please visit the Inside Self-Storage online Buyer's Guide at www.insideselfstorage.com and search the following categories:

	Building Components
	Cladding
	CCTV and Video Surveillance
	Coatings and Waterproofing
	Doors and Door Hardware
	Flags and Banners
	Maintenance Products/Services
	Pest Control
	Roofing and Related Products
	Signs and Numbers

The self-storage industry has undergone a tremendous transformation over the past two decades. In its infancy, developers could build a facility at just about any location and reach stabilization in a relatively short period of time. However, as land prices continue to escalate and zoning restrictions become more stringent, site selection has become paramount in constructing successful facilities.

While a number of markets have become saturated due to high construction levels over the past several years, there are still many locations that are underserved, particularly in secondary and tertiary markets. New development is expected to continue to decline over the next year, which should help stabilize occupancies and strengthen asking rents. Sales activity will benefit as investors seek higher returns than those offered by mainstream real estate products with minimal management requirements.

Self-Storage Goes Mainstream

The acquisition of Storage USA by General Electric has lifted the self-storage industry into the big leagues. For years, the industry was dominated by mom-and-pop operations; however, the entrance of GE is certain to take the industry to a new level. Currently, only 11 percent of the industry is controlled by the top five largest self-storage companies, leaving nearly 32,000 facilities under the control of private ownership. Slightly more than two decades old, the self-storage industry is sure to undergo many more transformations.

Historically, self-storage facilities have been financed by local banks; however, the popularity of these facilities will continue to attract new sources of financing. Consolidation of the industry will continue to gain favor as competition increases. Although new construction of self-storage facilities is expected to continue to decline due to lower occupancies, a lack of affordable land and more stringent zoning restrictions, larger, well-financed companies will be able to capitalize on the segregated industry.

One example is the new emphasis placed on customer service. Customers are demanding a wider array of services, such as rental vehicles, 24-hour service and high-tech security systems. Larger, better-financed companies that are able to provide these services in a consistent, high-quality manner often achieve a competitive advantage over their smaller counterparts, resulting in higher values when the former properties are sold.

West

The West will once again set the bar for sales activity in 2003. This region led the nation during 2002 with nearly 45 percent of all self-storage construction, totaling approximately 6.2 million square feet. The lion's share of the new construction was concentrated in California, where more than 4.6 million square feet was completed. Despite the elevated level of construction, strong in-migration and a transient population kept occupancy levels stable at 88 percent.

Although it is difficult to compare rental rates among properties due to the large discrepancies in unit size, unit mix and services rendered, rental rates realized an increase across the board. (Note: For the purposes of this report, only three unit sizes were analyzed: 5-by-5s, 10-by-10s and 10-by-20s.) Rents grew at an impressive rate of 10 percent for 5-by-5 units, to an overall average of $35 per unit. However, rent growth would be considerably less if rental concessions, which are often offered on the smaller, more abundant units, are included.

As land prices continue to escalate, many developers have been inclined to add smaller units to the mix due to their higher rent per square foot, which makes the facilities more attractive to investors on a pro forma basis. Average rents realized an increase of 8 percent for 10-by-10 units, to $72 per unit. However, rents for the larger 10-by-20 units grew at a rate of only 3 percent, to $109 per unit.

The escalation in rents and a larger pool of real estate investors in the market helped push the median sales price per square foot up nearly 9 percent, to $57. The price per square foot has been skewed upward, however, due to a large percentage of sales occurring in California, which boasts a median price of $65 per square foot.

South Central

Declining construction levels will allow occupancy to rebound in 2003, but it will remain under the national average. In 2002, developers kept construction levels on par with 2001, bringing approximately 2 million square feet to the area.

Texas led the region, with almost 1.5 million square feet completed. Occupancy levels also remained constant at 84 percent during 2002; however, occupancies fluctuated greatly depending on the time of year and the state. For instance, 2002 numbers dropped to 81 percent occupancy, but then rebounded in the third quarter to 86 percent. Alabama had the lowest occupancy in the region and the nation, at 74 percent, while Louisiana had the region's highest occupancy, at slightly more than 88 percent.

Although rents remained flat at $26 per month for 5-by-5 units, average rents jumped 9 percent for a 10-by-10, to $52 per month, and 7.5 percent for 10-by-20s, to $77 per month. This increase appears aggressive at first glance considering the stagnant occupancy levels; however, much of the gain can be attributed to higher demand and a smaller supply of larger unit sizes.

Median sales prices slid more than 15 percent in 2002, to $29 per square foot. The decrease is attributed to a higher proportion of older facilities, which traded at an average price of $1.5 million, down from $2.2 million in 2001. However, investors continue to show strong interest in self-storage facilities due to their high cap rates, which are hovering around 10.5 percent, and the relatively small amount of upfront capital required to begin investing. A lack of for-sale inventory continues to limit investment activity due to the large percentage of owner/operators who view their properties as long-term investments.

Southeast

Values in the Southeast are expected to increase in 2003 as occupancies continue to improve and positive rent growth materializes. Nearly 3.9 million square feet of storage space was brought to the market during 2002, down from 4.8 million square feet in 2001. Florida was surpassed by only California for the most self-storage construction in the nation, with nearly 2.5 million square feet completed in 2002.

The large amount of new construction has lengthened rent-up schedules; only 17 percent of facilities reach 70 percent occupancy during the first six months of operation, compared to the national average of 29 percent. Although occupancy levels improved by nearly 200 basis points during 2002, average occupancy in the region, at 83 percent, remained nearly 250 basis points under the national average.

Average rents for 5-by-5 units increased by a moderate 2.5 percent, to $32 per unit. Relatively low occupancy levels also kept average rents for 10-by-10 units stable, at $60 per unit. However, 10-by-20 unit rents actually declined 1.5 percent during 2002, to $92 per unit.

Low occupancy levels and stagnant rent growth translated into a reduction in sales prices and rising capitalization rates. The median sales price fell more than 10 percent, to $42 per square foot. Meanwhile, cap rates increased 100 basis points, to an average of 11.3 percent, to offset the increased risk associated with these investments.

Inclement weather has translated into increased expenses for operating and maintaining facilities in the region. Damage from an unusually severe storm season caused insurance claims--and later, premiums--to spike. Maintenance expenses also rose as owners swallowed deductibles and funded repairs themselves in an attempt to reduce premium hikes.

Northeast

An abundance of affordable financing and high barriers to entry will translate into buyers paying premium prices for well-located facilities in the Northeast. The scarcity of affordable land surrounding highly populated areas has kept development under control.

Construction declined by nearly 400,000 square feet during 2002, to 1.45 million square feet. States like New York and Massachusetts have an average of 1.6 and 2.4 square feet per resident, respectively, compared to the national average of 4.3 square feet. Furthermore, many of the swelling units in these large metropolises often have very little storage space, creating a greater demand for off-site storage. As a result, the Northeast region boasts the highest occupancy level in the nation. High demand and limited supply have kept average occupancy elevated, at 88 percent.

Relatively high occupancy rates allowed owners to raise rents considerably in 2002, particularly for larger, more popular unit sizes. Rents grew at a moderate 4 percent for 5-by-5 units, to $35.50 per month. However, 10-by-10s and 10-by-20s realized dramatic increases of 31 percent and 36 percent, to $93 per month and $145 per month, respectively.

Rents in this region have historically been the highest in the nation. Much of this is attributed to the many climate- controlled facilities in these densely populated areas. In response to skyrocketing rent growth, the median sales price increased by 35 percent, to $55 per square foot. With an average-sized transaction at 76,000 square feet, the Northeast region boasts the highest average price per transaction, at nearly $4.7 million.

North Central

A limited amount of new supply will boost occupancy levels and rent growth in 2003. Construction fell dramatically during 2002, with the completion of only 600,000 square feet of storage space, compared to 1.3 million square feet in 2001. Nearly half, or 270,000 square feet, was built in Illinois, which led the region for the second straight year. Despite higher levels of construction, however, Illinois continued to lead the region in occupancy, recording a healthy 92 percent, which is 7 percentage points above the region's average of 85 percent.

On the whole, occupancy in the region slipped 300 basis points during 2002. There are, however, large fluctuations in renter demand depending on the season, which pushed average occupancy from a low of 78 percent in the winter to a high of 88 percent during the summer.

In spite of faltering occupancy growth, rents managed to grow at a healthy pace. The average rent for a 5-by-5 unit increased by 12 percent during 2002, to $30 per unit; however, it remains below the national average of $32.50 per unit. The average rent for 10-by10s grew at about half that rate, to $54.50 per unit. Likewise, remuneration for a 10-by-20 grew at a similar rate of 6 percent, to an average of $80 per unit--again, well below the national average of $98 per unit.

Investment activity slowed slightly during 2002, as many owners elected to hold on to their properties during the uncertain economic conditions, which contributed to the 25 percent increase in the median sales price, to $58 per square foot. Meanwhile, average cap rates remained steady at levels between 10 percent and 10.5 percent.

Long before the events of 9/11, the self-storage industry faced law-enforcement officials appearing unexpectedly at rental offices for various reasons. Generally, a police officer or member of a federal law-enforcement agency walks into your office, flips open a leather badge case with what purports to be a police ID, and flips it shut before you are ever able to recognize or read the items presented. Then he starts asking you questions.

Most frequently, police are interested in storage of drugs or drug-manufacturing paraphernalia, stolen property, or property in dispute between two parties. Since 9/11, self-storage facilities have become the target of more investigations from terrorism-interception organizations. The situation tends to scare or intimidate managers or staff who have no training on how to handle these types of actions. It is exacerbated by the fact the law-enforcement officer will sometimes challenge an employee's patriotism or law-abiding emotions to get the information he needs.

The fact is law enforcement can have all the information it needs or wants, but there are proper ways to ask for or receive it--whether or not you wish to turn it over. This article addresses when you have to provide information, what type of information to give out, and what to ask for before you do so.

Warrants and Subpoenas

Sometimes law-enforcement officials are attempting to gather information to build a case against a person. They come to you to see if some of their hunches are correct. You, on the other hand, have a file in which your tenant has provided names, addresses, contact information, copies of photo IDs, and possibly bank references, credit-card numbers or credit reports. I am not suggesting you be uncooperative with law enforcement. However, providing this information without the proper documentation from the officer can result in liability to you. There is a right and wrong time and process to provide this information.

Generally, the law-enforcement officer wants to see a tenant file or open a unit. In the case of the tenant file, your first question should be, does he have a subpoena or search warrant? In the case of opening the unit, does he have a search warrant? If the officer has a subpoena or warrant, generally, you have to make the information available or give the access stated. You do, however, have the right to see the warrant and make a copy for your files; I strongly recommend you do so.

You also have the right to look at the officer's badge and identification card, although he does not have to let you make a photocopy or write information down. You can at least ask for a last name, badge number and the department with which the officer is affiliated. Before taking any action on a warrant or subpoena, or even talking to the officer, you can and should call the department to verify his identification and purpose. All good law-enforcement agencies will provide you validation if you call and ask, "Officer X is in front of me. Can you give me a description of what he is supposed to look like?"

You have to make certain the search warrant allows the officer to do what he says he wants to do. That is, if the search warrant says the officer has the right to search unit 48A, all you can do is give him access to unit 48A, even if the tenant has other units in his name. You do not have to assist the officer in lock-cutting, lock-picking or otherwise gaining access to the unit. However, it is my experience that if you do not assist, he will probably damage your door. Therefore, if you are presented with a valid search warrant--especially if you have cylinder locks--assist in the picking, drilling or removing of the lock. Once you have given the officer access to the unit, give him privacy. When the officer has completed his search, ask if it is acceptable for you to overlock or relock the premises.

If the search warrant or subpoena commands presentment of documents, you are obligated to provide copies. Never part with your originals! There is only one exception to the document rule: If you have pulled a consumer credit report on your tenant from one of the credit-reporting services--TransUnion, Experian or Equifax--and you do not have a release from the tenant that allows you to provide the report to law-enforcement agencies, you may not give a copy or even allow the officer to view it.

There are special privacy laws that apply to individual credit profiles, and you must protect them carefully. This is normally not a problem, because all police agencies have agreements with credit-reporting services to allow officers to obtain copies of an individual's reports when necessary for a criminal investigation. Therefore, you simply say, "I cannot, by law, give you the credit report; but of course, you can obtain your own copy." There are few instances in which a law-enforcement agent will give you any hassle about refusing to turn over a credit report. Most of the time, he is looking for information from the application or lease. Oftentimes, he simply needs the unit number or numbers to get a proper search warrant.

When There Is No Warrant

The more difficult situation is when a police officer does not have a search warrant or subpoena but wants to talk to you or obtain copies of information from your tenant file. This is a tough call. You have already asked the law-enforcement officer for a copy of a subpoena or search warrant and he has told you he does not have one. You cannot simply turn the file over to the officer. However, as stated above, sometimes officers have to follow hunches in criminal investigations. They may not have enough information to ask a judge for a warrant or subpoena and need more proof to show there is valid suspicion.

As a law-abiding business owner, you may not want to interfere with these types of investigations. On the other hand, turning over your tenant files without a subpoena or search warrant can expose you to potential liability for violation of privacy. Therefore, explain to the officer that while you are not able to turn over copies or allow him to examine records without a warrant or subpoena, you are happy to answer as many questions as possible, in conversation, so there is no exchanging of documents. Therefore, if the police simply want to know an emergency contact or unit number, you can open the tenant file and tell him. If the officer wants to know banking or credit-card numbers, or what Social Security number the tenant gave you, you can, if you choose, provide the information.

There is a fine line here. First, police officers do not like to be told they cannot have something they want. They may even try to coerce or cajole you into releasing records without a search warrant. But all good police officers know there are proper ways to obtain information, and there are dangers involved in giving information to anyone who flashes a badge. There are consumer-privacy laws that vary from state to state; and on the federal level, there is the consumer-privacy law that pertains to an individual's credit profile. If you give information to any governmental authority who seeks it, you may violate your tenant's privacy rights and be subject to a lawsuit.

Second, you want your tenants to be completely and accurately candid with you in the application process so you have the valid information you need to meet obligations imposed by self-storage statutes. This includes information about alternate contacts, lien holders, etc., which is required by various statutes around the country. If your tenants think you may share information without proper authority, they may withold. You need tenant's information so you can properly operate your business and conduct lien processes, if necessary.

Third, although regrettable to say, there are some police officers who use their badges for purposes of conducting their own personal business. Remember when NYPD Blue's Dennis Franz checked to see if his best friend's wife was squirreling away assets in a self-storage unit? Unfortunately, police officers do sometimes help themselves, their friends and relatives to information under the guise of an investigation. If you were to fall victim to such a ploy, you would be liable to your tenant if determined as the source of information. Additionally, there is always a question of the validity of identification and a badge until you verify it.

Build a Relationship

There are a couple of things you can do to build a relationship with local law enforcement. For one, you can ask them to drive through your facility on occasion, especially at night. Driving through and observing potential criminal activity on which the officer can act without management's involvement is a blessing. Second, you can allow police to use your facility for drug/bomb dog training; you admit police to allow their dogs to sniff the locked doors of units. If the dogs react positively for drugs, explosives or other items, the police can then obtain a search warrant.

It's understandable to desire a positive relationship with law-enforcement officials. You want your facility to be patrolled. You want to ensure police or city officials do not "hassle" you with zoning violations or other minor issues. You also want to make certain law enforcement responds quickly to your calls.

However, privacy laws dictate you cannot simply be a stool pigeon. All law enforcement agents--up to and including prosecutors--have clear standards they must follow to make a verdict stick. You, as a small business operator, face the threat of a civil lawsuit if you violate a tenant's privacy. You have to be prepared to explain this concept to law-enforcement, despite the fact they may pretend not to understand. In a relationship of mutual respect, the law should be able to obtain the information it needs without asking you to compromise your business.

Jeffrey Greenberger practices with the law firm of Katz Greenberger & Norton LLP in Cincinnati, which primarily represents owners and operators of commercial real estate, including self-storage. Mr. Greenberger is licensed to practice in the states of Ohio and Kentucky, and is the legal counsel for the Ohio Self Storage Owners Society and the Kentucky Self Storage Association. He is a regular contributor to Inside Self-Storage magazine and the tradeshows it sponsors. For more information, Mr. Greenberger can be contacted at Katz Greenberger & Norton LLP, 105 E. Fourth St., Suite 400, Cincinnati, OH 45202, or by calling 513.721.5151.

A first-generation door the owner attempted to repaint, with poor results.

The best time to think about maintenance of your doors and hallways is at the point of purchase. Wise purchasing can do much to prevent future maintenance problems. All products are not the same. Some people think they are being thrifty when they buy at the lowest possible price, but there is a big difference between being thrifty and being cheap. Being cheap means buying inexpensively without regard to quality, value, and the long-term consequences of the purchase. Being thrifty means getting the most value for your dollar.

Don't be a cheap buyer of doors if you intend to keep the project. An informed buyer will know the differences in quality and will set his price accordingly. Maintenance and other problems will cost more money in the long run.

Some manufacturers still use low-quality paints that don't provide a 20-year warranty. Paint finishes that do offer this guarantee are called siliconized polyesters and are available as a standard paint finish from the best door and hallway suppliers. Most manufacturers have gone to grade E or F steel, which guarantees 70,000- to 80,000-PSI strength. This makes the doors harder to damage.

Door latches are made of stainless steel, and the slide part of the latch should be magnetic stainless steel to work with the security system. All springs should be lubricated with a heavy coat of white, lithium grease from the manufacturer. All exposed fasteners should be stainless steel. All of the drum wheels should be protected from scoring and wear from the axle with prelubricated bearings. Tension should be adjustable in increments of 16, adjusting each spring evenly, not individually. The astragal should be a bulb type for a continuous seal at the floor and should be UV-protected.

If these purchasing specifications are followed when orders are placed, many maintenance problems will be eliminated. A considerable amount of money will be saved by the owner in the long run.

First-Generation Doors

Doors belong to one of three generations. First-generation doors were available between l969 and l976, and were heavy, hard to operate, and used grease on guides and axles. The doors had old paint systems designed to last only five or six years without extensive chalking and fading. The locking system added virtually nothing to security, as it was held on to the curtain with small pop rivets. There was no thought given to the replacement of worn-out parts. The lock system was not secure and easily broken. The door required constant maintenance.

In some cases, people used sectional doors that were field-painted and consumed valuable head room inside the unit. These doors also had an inferior locking system offering little security. In many cases, these doors have already been replaced; if there are any still around, they should be swapped for new. By this time, they will have been painted at least twice. The painting adds about six pounds per application, making the doors heavier and more difficult to operate as well as being dangerous to adjust.

Second-Generation Doors

Second-generation doors were supplied between l975 and the present. The paint system was upgraded by most manufacturers in l998. Any manufacturer not using a 20-year guaranteed paint should not be considered as a good supplier of doors.

In many cases, the plastic used as an astragal on the bottom bar and in the guides as a wear strip has completely deteriorated. There is metal-to-metal wear between the axle and the door-support bracket, which, if a door has heavy use, often causes the bracket to erode through the axle and make the door impossible to open or close.

Springing on second-generation doors was generally poor and the springs were allowed to rust without any lubrication from the factory. In many cases, this has caused spring failure, which can be quite expensive to correct and makes the doors dangerous to operate. Springs on these doors were not designed for long operation.

None of the doors introduced up until l999 had any kind of tension-adjusting device. Adjusting spring tension could only be done by factory-trained installers. The inside stops at the top left and right inside corners were often bent out by the installer, causing the door curtain to go past the stop and flip around, possibly hitting the person operating the door. This situation has caused several serious injuries.

The locking device, while more secure than that on first-generation doors, was zinc-coated and subject to severe rusting. In l999, one manufacturer introduced stainless-steel locks, which are presently the industry standard. The second-generation door was not designed for heavy use and will not sustain it.

Third-Generation Doors

Third-generation doors have only been available since 2002. These doors all have bearings between the axle and the drum wheel, making them maintenance-free. Improved 20-year, guaranteed, siliconized polyester paint is a standard feature.

All of these doors have an easy tension adjustment, which does not require removal of hitch pins. A bar can be inserted in the fixture and turned to the proper tension. A bulb-type astragal of improved or UV-resistance plastic is used.

All springs are prelubricated with a heavy coat of white, lithium grease and are designed for higher cycle life of 15,000 operations. The door-latch system is stainless steel, with the slide being made of magnetic stainless steel to accommodate various security systems.

Anyone not using third-generation doors is likely facing future maintenance problems. These are costly and have a negative effect on property value. Don't be caught in the lack of value trap.

First-Generation Maintenance

A second-generation door with a missing pull rope and worn-out astragal.

If an owner has first-generation doors, there are several things that can be done to improve their operation. First, remove all the old grease in the guides as, by now, it is dirty and acts as a glue would, impeding operation.

If the doors are chalky and faded, the chalky film will need to be removed with Armor All auto cleaner, available at most auto stores. After they have been cleaned, a layer of auto wax will help make the appearance more acceptable. If the finish is too far gone, it would be best to repaint the door with a good, industrial-quality enamel.

After refinishing has been completed, it is best to add more tension to the door to help its operation. This can be done by holding the axle with a pipe wrench and releasing the axle clamps that hold the spring tension. Probably one-quarter to one-half turn of tension will be required.

As these doors are 25 to 30 years old, it might be wise to consider replacing them. The liability created by their poor operation and the detrimental effect of their appearance will offset the cost. When replacing doors, most owners will contact their tenants to obtain a key for a short period of time. Tenants may want to attend the door-replacement procedure. They will then hire a security officer with a video camera to film it. This procedure should take no more than 20 minutes per door and will protect the owner against possible future litigation. When first-generation doors were first installed, they were not expected to last more than 20 years, so a functional life has been fulfilled, and the time has come for an owner to improve his property.

Second-Generation Maintenance

A scuffed hallway needs a kick plate installed.

Second-generation doors supplied in the '70s and early '80s used much of the same technology as their first-generation counterparts. Again, they are 20 to 25 years old with deteriorating paint and plastic that needs replacement. New doors may be the best option.

Plastic used on the bottom bar and inside the guides can be removed and replaced by simply opening the raceway with a screwdriver and pulling it out. The material is available from any door manufacturer and can be replaced by a manager as units become available. With the raceways open, the astragal may be pulled out through the mini-lock-latch side hole and a new seal reinserted.

From the inside of the door--with the door curtain within 4 inches off the floor--white, lithium grease should be applied to the exposed springs and the axle where it goes through the support bracket. Greasing the rusty spring will not completely stop deterioration, but should allow a few more months of operation before it breaks. This spraying of the rusty spring and axle can be done on any unrented units by the manager. As units become available, the manager can take care of the need to grease the springs and axles of the doors.

When viewing the door from the inside, make certain the inside stops at the top of each corner of the door are bent in and fully engage the bottom bar. There have been many cases of the door coming out of the tracks and hitting the person trying to operate it.

Clean the guides with a soft cloth and apply a coat of Armor All. If the door latch or outside lift clips and handles are rusty, they can be replaced with new parts made of stainless steel. As noted above, this can all be accomplished by the manager using products that are readily available at an auto store or even Wal-Mart.

Third-Generation Maintenance

A bent inside stop and loose bottom bar going past the stop.

Third-generation doors only need to be cleaned and Armor All applied to any exposed plastic parts, probably no more than once a year. These doors have been designed for low maintenance and long life expectancy.

Hallways need to be cleaned and any areas of wear or damage replaced. Most of the time, damage occurs at the bottom of the door as a result of being hit by carts. This damage can be covered with a Galvalume kick plate about l4 inches from the floor. Corner guards can also be applied at corners showing damage or wear.

Investments should be protected using continuous maintenance and cleaning procedures. It is important not to settle for products that are less than the best, as these will cost more in the long run. When the time comes to recoup your costs, the money will be returned with profit added. A good-looking project, even if it is l5 to 20 years old, will rent better and keep its value longer.

Some people think one door is just like another, but that is not true. Look for the features mentioned above when selecting doors and eliminate future maintenance problems.

Dan Curtis is president of Storage Consulting & Marketing in Atlanta, which specializes in market studies, feasibility, site layout and design, marketing, conversions and climate control. He is also vice president of Janus International Corp., of Temple, Ga. Janus manufactures self-storage doors, hallways and partition systems. For more information, call 770.432.2417 or 404.427.9559; e-mail [email protected].

At the 2003 Inside Self-Storage Expo in Las Vegas, three U.S. self-storage veterans discussed their perspectives on the growing self-storage market in the United Kingdom and Europe. In a unique International Business Forum, Ken Nitzberg, chairman and CEO of Devon Self Storage, Jim Chiswell, president of Chiswell & Associates LLC, and Ray Wilson, president of Charles R. Wilson & Associates, provided insight to this entrepreneurial frontier. Following are excerpts from the informational exchange.

Comments From Nitzberg

Self-storage in Western Europe and the United Kingdom is a fascinating opportunity. It's like you can start over, after 30 years of business in the United States, with today's knowledge and capital.

There are some 350 million people served by approximately 500 facilities in the United Kingdom and Europe. The issues over there are different than in the United States. Probably the biggest difference is the European public doesn't know what self-storage is. They don't know how to find it or how to use it. You have to first educate your market about the self-storage product.

When we open a site in the United States, we typically budget about $3,000 a month for advertising, of which 98 percent is for Yellow Pages. In Europe, we budgeted $10,000 a month for the first two years. The first year, we tried everything--the Yellow Pages, TV, newspapers, fliers, radio and trolley cars. Our facility leased very slowly until we hit about 30 percent, then the line went vertical. And it all came from referrals. In the second year, we only advertised in the Yellow Pages and have not spent a dime more since.

In terms of leases, lien laws and insurance, the culture differences and approaches to renting a unit are huge. We have leases in five or six languages. The Dutch look at the lease for 30 seconds, sign it and move in. In Germany, customers take the lease home to read it. They highlight sections and ask you questions for three weeks before moving in. The French make several visits, drinking coffee each time, before taking the lease home. Three weeks later, they sign it.

To the best of our knowledge, in the countries where we operate, there are no lien laws. In France, Germany and Holland, there is no legal way to sell the goods of a defaulted customer and release the unit. In Holland, we use bill collectors. You have to decide how aggressive you want to be. Some operators give goods away to charity, some throw them away and some store them. But there is no legal way, so it is a problem.

The insurance issue is very similar. We don't have insurance for things like wrongful sale of a customer's goods because you're not supposed to sell them. Other than that, insurance price and coverage are very similar.

When Devon considers opening a new facility in Europe, we do conversions. Getting a piece of raw land in a desirable location for self-storage is exceptionally difficult. Then getting permits is almost impossible. Regulatory agencies have no rules for self-storage construction because they don't know the product. However, it's relatively easy to get permits to modify an existing building. All you're doing is gutting the building and putting in your units. However, agencies are strict about fire codes, and all buildings must have sprinklers.

Our sites in Europe are not climate-controlled because it doesn't get hot enough. It gets warm in Southern France, where we have a facility, but we don't cool the building. Since we don't have competition in that area, climate control isn't a marketing advantage. Our facilities in Germany and Holland are heated. The winters are very cold, and without heat, the pipes will burst.

Sites tend to lease up slower if you're the first facility in the market. If there are already five or 10 sites, you'll lease up as quickly as you would in the United States.

Comments From Chiswell

The same problems self-storage developers face in the United States exist in Europe. Just because there aren't a lot of stores in Europe doesn't mean it's any easier to develop, to get approval and to rent up. While I am not yet convinced the market will be as deep as it is in many U.S. metro areas, the number of stores could easily triple during the next five to 10 years.

Obviously, the financial institutions need to accept the industry as U.S. bankers do. The lack of access to capital has contributed significantly to the fact the majority of the established stores are in the hands of large, publicly traded companies. This is just the opposite in the United States, where entrepreneurs own the majority of the industry's stores. This trend will start to balance out as access to capital for this real estate asset type gains wider acceptance by the European and U.K. financial communities.

Right now, five or six companies serve the majority of Great Britain in addition to the U.S. ones. Because many of the storage companies are fairly large, they are publicly traded in Great Britain. It is possible to invest in self-storage in Britain and Europe by purchasing shares of stock instead of finding a local partner. If you have considerable funds to invest, you can ask an established U.S. company about its activities.

Another factor that will further enhance the self-storage industry is a growing trend for residential moves to be carried out as do-it-yourself projects, not by removalists. Removalists currently account for more than 70 percent of the residential moves in the United Kingdom. They obviously want to capture the storage side of any move.

Aggressive marketing by all operators across the United Kingdom and within selected metro areas in Europe benefits all existing and future stores. Customer awareness will further increase demand. The stores in London I visited last year are at the standards of most of the modern U.S. facilities. I am also impressed by the quality of the managers. Clearly, U.K. owners recognize quality customer service must be a hallmark for their stores.

A final factor is the development of an exit strategy. Until there are buyers willing to purchase established stores, the full return on investment cannot be realized. We will begin to quickly see this as the success of the larger companies is recognized with the real estate investment community in United Kingdom and Europe.

Comments From Wilson

About five years ago, I was hired by the Self Storage Association to explain the concept of self-storage to Europeans. We did this the same way we did in Australia--through seminars.

There is concern about oversupply of facilities in the United States. This occurred over the past 30 years when too much construction money was available too quickly and the supply surpassed the demand curve. In Europe and the United Kingdom, people are just learning about self-storage. But it's not going to take them 30 years like is has in the United States. They're going to catch on much faster. The trick is just not to build too much supply too quickly.

Ken Nitzberg is the chairman and CEO of Devon Self Storage Holdings LLC, which he co-founded in 1988. The company manages in excess of $150 million of investor capital in 20 facilities in the United States and eight in Europe. For more information, visit www.devonselfstorage.com.

Jim Chiswell is the president of Chiswell & Associates LLC, which has provided feasibility studies, acquisition due diligence and customized manager training for the self-storage industry since 1990. In addition to contributing regularly to Inside Self-Storage, Mr. Chiswell is a frequent speaker at Inside Self-Storage Expos and various national and state association meetings. For more information, visit www.selfstorageconsulting.com.

Ray Wilson is president of Charles R. Wilson & Associates Inc., an appraisal company that specializes in the valuation of self-storage facilities. He is also owner of Self Storage Data Services Inc., a research company that maintains a database of operating statistics on thousands of facilities across the United States. For more information, visit www.crwilson.com.

With the self-storage industry becoming increasingly competitive, it is vital we develop the ability to overcome customer objections. On the average, customers call four to five stores before making a decision on where to rent. They have more choices than ever and are doing their homework before selecting a location.

As customers conduct a more comprehensive search for self-storage, they become more educated about the product. This is critical to understand, as knowledge provokes customers to ask more questions and challenge self-storage representatives to alleviate their concerns and anticipations. This is a great opportunity to overcome objections and educate prospects on why you are the best choice for their storage needs.

Price Objections

If you know how you stack-up against the competition in your marketplace, this will give you an advantage in effectively overcoming customer objections. For example, if a customer said, "You are $8 higher on a 10-by-15 than everyone else I talked to," what would you say? If you know your competition, it would be wise to ask the customer whom they called. If they mention a specific competitor, ask him if he had had a chance to visit the location. More than likely, he will say, "No, I am calling from the Yellow Pages and checking around for prices."

If you have a thorough understanding of the competition, this is a great opportunity to build value and educate the customer on the differences between your store and the specific competitor he mentioned. It is important not to bash the competition--this will turn off the customer. Instead, point out the differences in what you offer and why they are important.

Your presentation will be even more effective if you never give out your price until you have built the value of your store in the customer's eyes. In other words, if "What is your price on a 10-by-15?" is the first question a customer asks, it is important to refrain from giving the price until after you have provided the most important features and benefits that pertain to his specific needs. This will minimize any pricing objections, as the customer will understand the value of storing with you.

One way of overcoming a pricing question might be, "Are you sure you need something that large? What will you be storing?" You have now taken control of the conversation and can steer the sales presentation to your advantage. This becomes even more vital if you are the price leader in the marketplace. By knowing the competition, you have given yourself the ability to overcome objections.

Know Your Advantages

It is also useful to understand the advantages you offer over your competition, as they give you a greater ability to overcome customer objections. For example, if you are the only store in the market that offers an on-site manager, insulated units, truck rental and moving supplies, it is imperative you educate customers on the benefits of these wonderful features. The value of these benefits might overcome a customer having to call any other stores when he realizes your features cannot be found anywhere else. In other words, you have made the choice easy for him.

For example, explain to the customer he can take care of all his moving needs in one place by renting a storage unit and truck, and purchasing all his moving supplies at your store. This added value can make a difference because the customer likes convenience. This will also help in overcoming pricing objections, as the customer will pay extra for this additional savings of time.

If you are the only store in the market that offers invoicing and 24-hour access to commercial customers, this can become a tremendous advantage if communicated properly. These features can help entice a small business owner to drive a bit farther if you are the only store to offer these conveniences. If you know and understand how to use your unique advantages, it will help tremendously in surmounting customer objections.

Mystery Shopping and Role-Playing

Another method of drive back customer objections is through proper employee training and development. It has always been said, "Practice makes perfect." Mystery-shopping services and role-playing are great approaches to consider for perfecting your staff's sales presentation.

A professional service is an excellent way to learn how to overcome objections. Most of these services will phone-shop a storage representative as often as you like. It is recommended each person involved in the selling effort be shopped on a monthly basis to develop consistency in the overall sales program. In most cases, the mystery-calling service will provide an audiotape and evaluation with each call. This is a great opportunity for the person being shopped to evaluate how he articulated the sales presentation and how he could have overcame any objections that occurred during the call. This will provide excellent feedback and give the representative the ability to continually improve how he overcomes objections from customers. This is also a great tool for owners to identify areas in the sales program that need improvement.

In addition to mystery calls, role-playing the sales presentation with other storage representatives can be very effective in learning to repel objections. It gives everyone the opportunity to learn from one another and discuss areas for further development. It also gives employees the ability to practice and make necessary changes to their presentation. Always remember, "To grow any organization, we must grow the people within it."

Brad North is founder of Advantage Business Consulting and specializes in sales and marketing training to the self-storage industry. He has produced two live videos along with a workbook called "Maximizing your Sales and Marketing Program." This invaluable resource will help managers take their sales and marketing programs to a higher level. Mr. North also offers comprehensive on-site sales, marketing, feasibility and operational training to the self-storage industry. For more information, call 513.229.0400 or visit www.advantagebusinessconsulting.com.

Licensed vendors and professional contractors are hired to provide materials, equipment, supplies and services. Vendors contribute to the daily operation of every facility. For example, trash collectors properly dispose of garbage. A lawn service may be used to cut grass and maintain landscaping. Pest control rids units of pesky rodents and insects. Roofers ensure tenants' stored property is protected from leaks, and mechanics fix malfunctioning gate controls. Are you adding a new building to your grounds? If so, you most likely hired a builder to do the job for you. These are just a few services used to keep your facility running and well-maintained.

When it comes to protecting yourself against liability for property damage and bodily harm, it is necessary to keep your storage facility in top physical condition and proper working order. Hiring vendors is a convenient, economical and usually appropriate way to repair and maintain areas of a facility. Keeping up on a facility's maintenance not only increases the quality of appearance but reduces your risk of liability as well.

When hiring a licensed professional contractor or vendor, you assume the work performed will be competent and the supplies used of professional quality. In most cases, this is true; however, bad fortune or coincidence can happen to anyone, even the most reputable companies. Accidents involving vendors that result in property damage or injury to tenants, employees or even the general public are known to happen. Hiring contractors that have proper insurance coverage is a good way to protect your facility from such vendor-liability exposures.

Vendor liabilities can be complicated and expensive if not handled properly. For example, let's say you hire a painter to paint the doors of your facility and he knocks over a ladder that happens to fall on a tenant walking by. The tenant, who was injured by the ladder whose clothes were ruined by paint, now wants you to pay for her medical expenses and a new outfit. Trying to determine who is responsible for the damages is complex. In this case, the tenant may hold you and your contractor liable on the grounds that you allowed dangerous conditions to exist at your facility or that you hired an incompetent vendor.

The best way for self-storage owners to protect themselves from vendor-liability exposure is to take appropriate measures when hiring professionals. Seek out reputable vendors and contractors who are licensed, bonded and insured. You should be able to get references from business associates or friends who have had good experiences with various companies. Also, request the vendor for hire to provide you a certificate of general liability and workers' compensation insurance.

A certificate of insurance is evidence the vendor is insured by a financially stable company and carries adequate amounts of insurance for the type of service being performed. The certificate should have information on the insurer, insurance agency, types of insurance, policy numbers, effective dates, limits, certificate holders and any special provisions it may have. Check to see the policy limits of the vendor's policy are at least equal if not greater than your facility's policy limits and that the policy effective dates are current. Hiring licensed professionals with proof of insurance may drastically reduce your liability (in terms of negligence) in a vendor-exposure claim.

Keep vendor certificates of insurance on file during projects and even years after project completion. This will benefit you most if an incident should arise after a project is completed. For example, you hired a roofer to replace parts of your roof and it turns out he used defective materials. Because of this, the roof caved in and damaged many of your tenants' stored property. If you have the certificate of insurance on file, you prove yourself to be non-negligent in the situation. You can forward the insurance information to your tenants so they can seek reimbursement for damaged property.

If you have vendors and contractors who provide services on a fairly regular basis, you may want to require them to name your storage facility as an additional insured on their liability policies. A huge benefit for being an additional insured is it provides your facility additional coverage. In addition, you will be notified if the coverage is cancelled for any reason.

In today's world, it is best to exercise caution when outsourcing services to vendors and contractors. Recognizing the risks associated with contracting professionals whether property damage, personal injury or negligence is an absolute step towards protecting your storage facility.

Universal Insurance Facilities Ltd. offers a comprehensive package of coverages specifically designed to meet the needs of the self-storage industry. For more information, or to get a quick, no-obligation quote, write P.O. Box 40079, Phoenix, AZ 85067-0079; call 800.844.2101; fax 480.970.6240; e-mail [email protected]; visit www.vpico.com/universal.

A high-quality roof-coating system includes a biodegradable cleaner to prepare the surface metal, industrial grade caulk for repairs at seams and protrusions, and an elastomeric coating made from 100 percent acrylic resins. The added benefit of an acrylic roof coating is it will remain permanently flexible, allowing the metal to expand and contract with fluctuations in temperature. White or light-colored coatings also reflect UV heat from the sun from the building surface, significantly reducing interior temperatures.

The following is an overview for the proper application of a liquid-applied, acrylic roof coating over metal roofing. The use of this type of acrylic coating system is tax deductible as a maintenance expense and, with proper maintenance and occasional recoating, it will last for the life of the building.

The Surface Inspection

• Roof surfaces should be clean, dry, structurally sound, stable and well-secured.
• The roof surface should be free of excessive ponding water. Roof surfaces that pond water 48 hours after a rain are considered unacceptable. All water shall be allowed positive drainage from the roof.
• Inspect the condition of flashing details adjacent to protrusions, penetrations, roof-mounted equipment, curbs, walls, parapets, drains and the roof edge to ensure they are acceptable and will maintain a weather-tight installation after being properly reinforced and coated.

Surface Preparation

• Metal surfaces to be coated should be clean, dry, sound, and free of dirt, grease, oil and any other contaminants that might interfere with the adhesion of the elastomeric acrylic coating.
• All mechanical fasteners should be checked for integrity. Retighten or replace them as necessary. "Stripped out" fasteners should be replaced using a fastener with a larger diameter.
• Unsound rust should be wire-brushed, sandblasted or mechanically abraded. Metal panels deteriorated to the point that their structural integrity is compromised should be replaced.
• Remove excessive amounts of asphaltic-based or other deteriorated patching/flashing materials, if present.
• Check all seams to ensure they are tight and flush. Excessive gaps or deflection between panels should be eliminated by installing additional screws or rivets as necessary to restrict deflection to 1/4-inch or less.
• All metal surfaces, new or existing, should be cleaned using a biodegradable cleaning product as specified by the coating manufacturer.
• All existing sound but rusted areas should be primed with the appropriate metal primer as recommended by the coating manufacturer.
• Fill gaps between 1/4-inch and 1/2-inch at panel seams, joints and protrusions with the recommended caulk. Fill gaps larger than 1/2-inch, such as at the ridge cap, roof edge and/or interface of dissimilar materials, using polyethylene backer rod or spray-applied polyurethane foam.
• Reinforce all horizontal (end-lap) and vertical (side-lap) seams that have not been factory crimped or presealed; roof terminations and flashings around drains, scuppers and skylights; the base of all vents, conduits, HVAC equipment and other protrusions; and the interface of any metal with a dissimilar material using one or more of the following methods:

1. Apply acrylic coating liberally, using a brush or roller, along the area to be detailed. While the acrylic is still wet, embed a strip of reinforcement mesh centered over the seam, joint or interface. Work the mesh into the acrylic, applying additional material as necessary to totally encapsulate the reinforcing fabric.

2. Cut a length of butyl-backed, woven reinforcing tape to the desired length. Peel off the release backing, center the strip over the detail area and press it firmly into place, removing all wrinkles and bubbles. A wallpaper-seam roller is helpful in securing the tape to the metal deck.

3. Apply a butter-grade sealant, using a brush, roller or airless spray, to a thickness of 60 to 80 dry mils over the detail area. Extend the sealant a minimum of 1 inch on either side of seams, joints and interfaces.

All mechanical fastener heads should be treated using one of the following methods:

1. Apply a butter-grade sealant to completely encapsulate the screw head, and seal the base of the fastener to the metal deck.

2. Apply a butyl-backed, foil-faced reinforcing patch by centering the cap over the fastener head and pressing it firmly in place to seal the cap flush around the base.

Elastomeric Coating Application

All roof-preparation materials must be allowed to dry prior to application of the acrylic coating. Immediately prior to application of the coating, all dust, dirt and other contaminants should be blown off the roof surfaces using high-pressure, compressed air. Cover the entire roof substrate as follows:

1. Apply the basecoat at a minimum rate of 1 gallon per 100 square feet.

2. After allowing the basecoat to dry, apply the topcoat at a minimum rate of 1 gallon per 100 square feet. Apply the elastomeric coating by airless spray, using a multipass spray technique to ensure even coating application to all sides of the metal-panel corrugation. Make a conscious effort to apply coating into crimped or presealed vertical (side-lap) seams that have not been detailed.

3. The total basecoat/topcoat minimum dry-film thickness required at any location is 15 mils. This is generally considered the minimum coating thickness for a five-year product warranty. For extended coverage periods, additional coats and heavier film builds will be required.

Cleanup

Maintain work and work areas in a clean, safe condition at all times during coating installation. Remove excess materials, trash and debris from the job site daily. At the completion of the project, clean the area of any spills and containers, and clean up all roofing debris, leaving the job site in a clean, orderly condition.

Clint Whitsett works for United Coatings, a Greenacres, Wash.-based manufacturer of Roof Mate, a water-based, 100 percent acrylic elastomer designed to extend the life of existing roofs by forming a permanently flexible, reflective membrane. For more information, call 509.926.7143 or visit www.unitedcoatings.com.