Records Storage Lite

By Cary F. McGovern

Can a modest self-storage facility successfully offer records-storage services? Is it possible to provide a set of services that requires little or no additional labor? What is the value to clients and the self-storage operator when minimal services are available? Here are the facts on how records storage lite can be simple and profitable in a small or moderate-size storage facility.

Self-storage operators are faced with several dilemmas. Among them are market saturation, growing competition, product diversification and attracting long-term customers. In an industry with an average customer-turnover rate of less than a year, how does a local operator stabilize his cash flow and revenue base? Lets take a look at one possible strategy. First, let me make a couple of suppositions:

1. Business customers are good for a self-storage business.

2. Operators want to differentiate themselves from competitors without too much investment.

3. A facilitys turnover rate can be used as an advantage.

4. Most operators desire permanent contracts with long-term revenue growth.

If you want to be in the records-storage industry, you should recognize the value of the business customer. Businesses regularly rent space in self-storage facilities to keep their extra supplies and equipment. But in addition to mundane inventory, all companies have to store their business records somewhere. Generally, they keep them in a closet or attic until they run out of space. Records have no intrinsic value until they are needed. The problem business owners often have is not where to store their records but how to find them.

So, how can you take advantage of the self-storage turnover rate to launch a records-storage service? One of the differences between a commercial records center and a self-storage facility is customers regularly come to the storage site. Every year, hundreds of prospects walk into a self-storage facility to rent space. Many of them represent businesses. Offering them a way to store records can be valuable to the owner and customer. It can be offered in addition to commodity storage needs or as an alternative. To shift a prospects interest to a records-storage product, you need a method that makes sense and works.

The Lite Model

There is a difference between the storage and management of records. Records storage is passive, while records management involves active participation with a clients business records. We want to make it very simple to support records management in a self-storage environment. The lite method operates around a minimalist framework that includes:

• A simple selling pitch with multiple levels of training and support. Selling records to your own and your competitors existing business clients, over-the-counter sales, telemarketing and agent sales all work. A single pitch that proves the value of records management can be designed to fit your operation.
• A series of small-business packages, complete with a marketing and pricing strategy. Three or four prepackaged services that may include a specific number of boxes and set number of retrievals make a customers choice easy. The price is low, but the yield is very high per square foot of storage space.
• A software-driven work cycle with little or no exceptions. A simple, well-defined, daily work cycle with few exemptions will enable you to provide records management with no additional manpower. Exceptions are priced to discourage emergency services, so when you have to perform them, they are highly profitable.
• A handful of simplified operating practices, including a permanent lease. Limit your services to box/file storage, retrieval, refilling and indexing (to preset standards).
• Will-call services with an upgrade to courier delivery. Will-call means customers pick up their own records. You perform no delivery for them. You simply provide the means of locating records and validating the handoff to an authorized employee. This model can be easily upgraded to use an outsourced courier.

Why Provide Records Storage?

Using the lite model described here, you can garner several benefits from records storage. First, the contract is long-term, some say permanent. Second, the yield per cubic foot can be extraordinarily high using the small-business package model. Third, you offer a valuable service with very little new cost, one storage unit at a time.

At the end of the day, you will find the single biggest benefit you gain from offering this service is annuity revenue you can sell at any time. Commercial records centers gladly purchase books of business from numerous sources. You have locked customers into long-term contracts with price escalations and withdrawal penalties, and they are assignable and sellable at a multiple of annual revenue if you do it right. There is virtually no downside to records storage lite!

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.

The New Face of Overbuilding

By Michael L. McCune

Over the last 30 years, self-storage overbuilding has been an issue much talked about, even worried about; but so far, it hasnt become a significant problem. The reigning consensus is if there is overbuilding in an area, time will cure the problem, and all will be well again. Many believe that since overbuilding has not yet become a problem, it wont. But the reality is it may indeed become a challenge on a larger scale, and time may not be the cure-all for this difficult situation.

Overbuilding is really an imbalance of supply and demand. If we understand these two elements of our business, we can evaluate the state of overbuilding in a market. However, information on these topics is practically nonexistent in our industry. While some sources purport to know how many total square feet of storage space exist in the United States (supply), many people doubt their validity because the numbers usually rely on assumptions, computations and limited surveys.

The quantifiable numbers relating to demand are equally suspect. For example, demand is usually expressed in number of square feet per capita. But the unresolved issue is why some markets are overbuilt at 4 square feet per person, and other markets thrive at 8 square feet per capita.

In case you didnt know, the Self Storage Association is so concerned about this long-neglected void of information that it has several projects in the works to improve the situation. While this will be helpful in the future, at present, it leaves us with little or no reliable quantitative data through which to understand the all-important balance between supply and demand.

Why the Demand Equation May Have Changed

In the past, the major source of self-storage demand was pent up. That is, in the beginning, no one used storage, though there were a lot of people who needed it. To better understand this concept, think about cell phones. When they first became available, no one had one. Then everybody bought one. Thus, it was easy for the market to grow 50 percent per year. The same story holds true for self-storageit just took longer for people to recognize their need for the product. And, unlike cell phones, self-storage isnt programmed to break every two years.

Also, there isnt much of a replacement market in self-storage. It is clear everyone who wants a storage unit probably lives or works within 5 miles of a facility and has for several years. In addition, some studies indicate as much as 25 percent of the national population is using self-storage at any given time. In the past, this factor was the most significant impetus to growth.

The demand for self-storage was also uneducated in that people didnt know much about various uses for the product. As they started to use it for one purpose, they slowly discovered others. I like to call this the learning-curve factor. No one truly knows the effect this factor has had on total self-storage demand, but common sense tells us it is a lot less today than in the past. Certainly, most people are now familiar with self-storage and its multitude of uses.

Pricing is another issue that has an impact on demand. Early selfstorage projects were constructed economically on relatively inexpensive land. As the industry matured and zoning boards got involved, facilities became more sophisticated. This, of course, cost moresometimes a lot moreand, thus, rental rates had to increase. When prices increase and demand goes down, this is what economists call price elasticity. No one has successfully measured self-storage price elasticity, but we know it is there.

For example, lets say someone decides to throw away the old living-room set he was saving for his kids future apartment when he figures out the total rent on his self-storage unit will actually cost twice what a new set of furniture would. In some markets, a 10-by-10 unit can equal 5 percent of the per capita income (remember, this is pretax income). In light of this, a family may think twice about spending a significant chunk of its budget or, at least, reconsider how long to leave items in storage.

The last issue impacting self-storage demand is the density increase of the market in which a project is built. Many facilities are in partially developed suburban areas. As the area fills in with houses or businesses, demand in that specific market will increase at a much faster rate than for the greater surrounding city. As the area matures and fills, growth will slow, declining until all of the available land is gone, even though the city may still be growing.

This works fine for existing facilities, as long as none of the infill development is competing self-storage. The net result is our industry, like a lot of other real estate, now depends on population increase for most of its net growth. It appears the growth accelerators discussed above are having less impact on the market in general. Clearly, there are areas that will still be very attractive to self-storage developers and continued ownership; but extraordinary growth in demand cannot be guaranteed everywhere, or even in most places.

Supply

Again, actual data on new supply is not very substantial. We have the Dodge Reports, which show some of the new development, but not all; and we dont have a very good idea how much information we are missing. There are, however, several things that indicate supply is likely to increase:

• Loans for development are readily available and cheap, at their lowest rates in 40 years.
• Project sizes are getting biggerin part, to offset high land costs.
• Lots of little projects are also being built.
• There is a huge demand for self-storage investments.
• Everyone thinks they are an expert in self-storage development.

Somewhat offsetting the increase in supply is the lack of available land for development. But even this has a dark side in that if a builder has to accept a sub-par location, he can charge lower rent and compete on price.

Its a Fine Kettle of Fish

Depending on the circumstances of a particular market, many new projects may face slower demand than those developed in the past. As growth slows, lease up of new projects will also; and operators will likely be forced to compete for market share based on lower rents. Unfortunately, overbuilding affects not only a new property, but all existing facilities in an area. New facilities tend to be larger, have all the latest amenities, and be very tough competition in every way, including price.

Let me describe a hypothetical market and show you what can happen to a good market when demand is limited by population growth. Our market has five properties of 50,000 square feet each, and the average occupancy rate is 88 percent. This translates into a total supply of 250,000 square feet and actual demand of 220,000 square feet. A new developer builds an 85,000- square-foot facility in the area. Supply is now up to 335,000 square feet, but demand is still at 220,000, because the builder didnt bring any new renters.

Now, if we have hit the point where demand is no longer exponential but only grows with the population, we have a fairly serious problem on our hands. Lets take a look at how fast population grows in this country. According to appraisal source Integra Realty Resources, top population growth for a metropolitan statistical area (MSA) in 2003 was 3.39 percent (Naples, Fla.). However, the top 10 MSAs only had to grow a minimum of 2.21 percent. The average MSA grew 1.38 percent. If our hypothetical market grows at the highest possible rate, it would still take 10 years for it to return to its previous occupancy level of 88 percent. If our market is just average, that same recovery would take a whopping 23.5 years!

If self-storage demand in a market has slowed to the rate of population growth or even just approach that level, we are in for some strange times in the self-storage business. It may be time to review your building plans and asset-holding decisions.

Michael L. McCune has been actively involved in commercial real estate throughout the United States for more than 20 years. Since 1984, he has been owner and president of Argus Real Estate Inc., a real estate consulting, brokerage and development company based in Denver. In 1994, he created the Argus Self Storage Real Estate Network, now the nations largest network of independent commercial real estate brokers dedicated to buying and selling selfstorage facilities. For more information, call 800.55.STORE or visit www.selfstorage.com.

Remodeling & Conversion Projects
Turning old buildings into profitable investments

By Nicholas Jodhan

In spite of the softening of some real estate markets caused by reckless overbuilding, developers are proving self-storage remains a viable investment. Although new construction is still the most common approach, the ever-evolving storage product has found yet another avenue: the infill conversion. Similarly, remodeling projects transform older storage sites into upscale, state-of-the-art facilities with new amenities and profit-making options.

Having been tapped by developers in the past, this segment of the market is no great secret. However, the opportunity may be broader than originally anticipated. A combination of creative thinking and high-level expertise has proven to be successful in rendering a useless building into a cash-flow producing storage facility. Take a look at the following case studies that prove the point.

South Florida

This 38,000-square-foot, dock-high building in Fort Lauderdale, Fla., had approximately 15 feet clear to the roof line, hardly leaving room for the second floor needed to increase square footage. Among the solutions discussed was the possibility of raising the roof. In some cases, this is not cost prohibitive and can be a good solution. In this instance, however, a more thorough examination of the building produced a better answer.

Destructive analysis revealed the original construction to be at ground level, with the columns sitting on column pads. The interior dock-high floors were actually a retrofit application. This meant removing the interior floor would create more available head height, which would allow for the pouring of a new slab and insertion of a second floor. The additional 40,000 square feet make the project work and the pro forma sing.

Puerto Rico

My partner, John Wilson of Construction Processes International Inc., requested my attention on this project in Puerto Rico. An industrial site with loading docks was being vacated by rental tenants, and its owners were committed to converting the building to self-storage. As the former tenant was a large distributor, the loading docks were a necessary accoutrement to the building. However, the new intended use made the dock configuration obsolete. My first thought was to eliminate the dock and dock-high floor, which would lower the first-floor elevation. This proved to be impossible because, unlike the Fort Lauderdale project, the dock and building floor were totally integrated. If it were even possible to separate the two, it would be entirely too costly a procedure.

So, the dock had to stay. Given its height from the ground elevation, loading through the dock doors was impractical in a self-storage application. The trick was to determine a use for it and integrate it into the design. We met the challenge by doubling the docks width, adding a couple of drive ramps, and constructing a building between them. The new structure would have unit access from the ramp and ground levels. Another of the buildings on site had a clear height of 35 feet, so we immediately added two upper floors, which significantly increased the square footage.

Because the site was very large and we needed to provide as much drive-up storage as possible, we designed additional buildings to be integrated into the overall layout. This project is still under way, but the images shown here represent the complexity of the project and the creative solution that took it from 41,700 to 95,700 square feet of profit-producing storage product.

At first blush, an industrial building with a loading dock may seem an easy conversion to self-storage because of the frequent use of trucks at these facilities by tenants. But the reality is dock-height tractor trailers are seldom used. A more common visitor to a storage facility would be a large wheel-base moving truck, which has a much lower floor. If the dock does not have a leveler, it may be an obstacle to the viability of the conversion. Though some dock configurations may be used as is, most will require some type of modification.

Being conscious of your market, determining the likelihood of a docks use, and assessing the value of keeping vs. the costs of removing it will help extract as many rentable square feet as possible from a site. A little creative thinking augmented with expert advice and innovative design can produce a handsome return on your investment in this niche of the self-storage market.

Nicholas Jodhan has been involved in the development of self-storage for the past seven years, designing and developing self-storage facilities in several major cities. He continues to develop creative ways of addressing the new parameters of the modern self-storage industry. He is the owner of Gemini Plus LLC, a full-service consulting company. Mr. Jodhan can be reached at 941.366.9730; e-mail [email protected].

Maintenance Q & A

By Amy Brown

Preventive maintenance and repair to your storage facility is essential to preserve and enhance the value of your property and reduce your potential for liability claims. Lets look at some commonly asked questions about self-storage maintenance and insurance from facility owners and operators nationwide.

Q: My roofs are leaking, and every dollar estimate I have received from licensed roofing contractors seems high. Why should I pay more when I can do the repairs myself?

A: Storage owners often attempt to hire friends or repair their roofs themselves in hope of saving money. However, if the job is not done correctly, the outcome could cost a lot more than if they hired a professional to do the work. Most nonprofessionals do not know the complete process necessary to prevent roof leakage, one of the most important factors of facility maintenance. Poor repair jobs involve something as insignificant as over tightening screw fasteners to using the wrong sealants. For the time, money and effort it takes an amateur to fix a roof, it is better to hire a professional. It will be well worth the avoided frustration and provide a lot more assurance the job is done right.

Q. We contracted a floor company to tile our leasing office. Days after the tiling was completed, a tenant tripped and fell on a loose tile. She broke her wrist and twisted her knee. The visitor wants us to pay for her medical bills, but isnt the company that installed the tile responsible?

A. The injured party may hold you and your contractor liable on the grounds you allowed dangerous conditions to exist at your facility or hired an incompetent flooring company. Check your insurance policy to see if your business liability includes medical payments, which cover visitors for bodily injury suffered on the premises, without regard for liability. This coverage allows the insurance company to pay small nuisance claims, often avoiding the need for costly legal expenses. Trying to determine who is responsible for the medical bills can be complex. When you hired the contractor, you assumed the work performed would be competent and the supplies of professional quality. Since the visitor slipped on a loose piece of new tile, its safe to assume the work was not performed adequately; and this situation could be considered one of vendor liability.

The best way for self-storage owners to protect themselves from vendor-liability exposure is to take appropriate measures when hiring contractors. Hiring licensed professionals with proof of insurance may drastically reduce your liability (in terms of negligence) in a vendor-exposure claim. Request the contractor 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 coverage for the service being performed. It should have information on the insurer, insurance agency, types of insurance, policy numbers, effective dates, limits, certificate holders and any special provisions. Check to see the vendors policy limits are at least equal if not greater than your facilitys and the policy effective dates are current.

When you hired the flooring company, did you obtain a copy of its insurance certificate to ensure it is adequately insured for the scope of work it provides? Since the tenant slipped on a piece of tile after the job was finished, it would be helpful if you still had the certificate of insurance on file. In fact, you should always keep vendor certificates on file during projects and even years after job completion. This will obviously benefit you most if an incident occurs.

Q. I am planning to acquire another storage facility. However, it is in an area exposed to brush fires. How can I repair and maintain the facility to ensure my insurance company will provide coverage for my new location?

A. Your insurance agent can determine the eligibility of this location through careful underwriting procedures. Though I cannot guarantee your insurance company will provide coverage, I can give you some maintenance and prevention tips to properly secure and maintain your facility.

If they are not already in place, have automatic fire sprinklers and smoke alarms installed in every building, and maintain them in working condition. You should have a fire alarm that connects to a central station or the local fire department. Any windows (i.e., in the office) should be treated with fire retardant chemicals. Cover any exterior vents and openings with metal-mesh screens. If your area does fall victim to a brush fire, the screens will keep cinders from blowing in.

The surrounding area should be well watered to provide protection against approaching fires. Clear away dry or dead brush, trees, grass and other debris. Rake away dead leaves, plants, twigs, branches and rubbish from under trees, decks and stairs, and do not allow vines to grow on fences, buildings or units. Hire a professional tree service to safely maintain trees, concentrating on removing limbs, branches and shrubs so they dont touch or rub against electrical wires. In addition, if you contact your power company, they will remove branches near any power lines.

Finally, keep in mind emergency vehicles should be able to reach your property and have room to turn around and get out. Check with your local fire department to see how much room it needs in the way of slope, road width, overhead clearance and turning radius. If the facility is gated, make sure the gates open inward and are wide enough to accommodate fire-fighting equipment.

Universal Insurance Facilities Ltd. offers a comprehensive package of coverages specifically designed to meet the needs of the selfstorage industry. For more information, or to get a quick, no-obligation quote, call 800.844.2101; e-mail [email protected]; visit www.vpico.com/universal.

Reliable Roof Maintenance
Preserve your building and your bottom line

By Rick Dodge

Roof maintenance is one of the most overlooked aspects of self-storage building preservation, yet it is simple to perform. To increase the life of your roofs, as with any other major purchase, check-ups and periodic upkeep are required. When was the last time you inspected the tops of your storage buildings?

Whether your have a built-up system consisting of tar and gravel or a metal roof, inspections are important to increasing the life of your building. The fact is, most property owners or managers do not properly maintain their roofs, causing accelerated deterioration and a state of disrepair. The roofs wear out before their time. Following are lists of simple items to look for during a regular roof inspection and maintenance program, categorized by roof type.

Built-Up Roofs

• Bubbles in the asphalt topping
• Cracks in the asphalt topping
• Water-ponding
• Loose flashing attachments
• Exposed sealants with cracks and/or bubbles
• Loose or damaged gutters and downspouts

Thru-Fastener Metal Roofs (With Screw-Down Panels)

• Missing screws
• Screws that pop up
• Deteriorating rubber washers
• Separating lap joints
• Loose flashing fasteners
• Exposed sealants with cracks and/or bubbles
• Loose or damaged gutters and downspouts

Standing-Seam Metal Roofs

• Separating panel laps
• Loose flashing fasteners
• Exposed sealants with cracks and/or bubbles
• Loose or damaged gutters and downspouts

Regardless what type of roof your facility has, the most commonly overlooked problem areas are the gutters and downspouts. Manmade debris that gets thrown onto the roof and natural refuse, such as twigs and leaves, are the biggest causes of water-drainage restrictions. Downspout exits become blocked, and the water backs upmost often into the buildingat the eaves.

Roof Repair

For older roofs in need of major repair, retrofit roofing may provide a solution. The process involves installing a new roof over the existing one, which can save money and time as well as enhance the facilitys appearance. Retrofit roof systems are generally lightweight and add very little dead load to your existing structure. They also add positive drainage, which can minimize further deterioration to old roof structures and erosion to your building.

Some other advantages are:

• No expense for disposal of old roof materials.
• No disruption of normal business operation.
• Additional insulation can be added to increase thermal efficiencies.
• The speed of completion.

Retrofit roofing most commonly uses standing-seam metal-roof panels, which are installed using hidden fastener clips, eliminating the need for exposed attachments. Standing-seam roofs are standard for most commercial and industrial facilities and increase a sites value.

Retrofit roofing is affordable and can be phased into a project over time. Since most self-storage projects have multiple buildings, retrofitting one or two at a time can help defray costs rather than absorbing them at once. This also allows the owner to prioritize his roof problems and resolve the most serious ones first.

Basic metal re-roofing costs start at just under $3 per square foot. This provides for a new slope of at least 1/4:12, with light-gauge framing members attached to the existing building; a Galvalume, standing-seam roof-panel system; and pre-painted flashings such as gutters, downspouts and gable trim. Other considerations must be made for parapets, roof steps and roof penetrations, such as HVAC units, firewalls and vent pipes. Insulation can be added to increase the efficiencies of mechanical systems. Product warranties are generally for 20 years, and installation warranties vary by vendor.

Dont wait for your roof to be a problem. Inspect it periodically and develop a program for maintenance. This will increase your project life expectancy and provide the high rewards you expected.

Rick Dodge is vice president of sales and operations for Rib Roof Metals Inc., a Rossville, Tenn.- based manufacturer of metal-roofing systems, retrofit-roofing systems and light-gauge building systems for the self-storage industry. The companys services include design, engineering and nationwide installation. For more information, call 800.876.9062; visit www.ribroof.com.

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Roof Glossary

Source: Cudahy Roofing (http://my.execpc.com/~cudahyrf/roof.html)

AsphaltA dark brown to black, highly viscous, hydrocarbon produces from the residue left after the distillation of petroleum, used as a waterproofing agent.

Built-Up Roof (BUR)A roof consisting minimally of a BUR membrane but may also include insulation, vapor retarders and other components.

Built-Up Roof MembraneA built-up roof consisting of plies or layers of roofing felt bonded together on site with bitumen, either tar or asphalt.

Dead LoadThe constant designed weight of a roof and any permanent fixtures attached above or below.

DownspoutThe metal pipe used to drain water from a roof.

FastenersA general term covering a wide variety of screws and nails that may be used for mechanically securing various components of a building.

FlashingConnecting devices that seal membrane joints at expansion joints, walls, drains, gravel stops, and other places where the membrane is interrupted or terminated.

GableThe end of a building as distinguished from the front or rear side. The triangular end of and exterior wall from the level of the eaves to the ridge of a double sloped roof.

GutterMetal trough at the eaves of a roof to carry rain water from the roof to the downspout.

InsulationMaterial that slows down or retards the flow or transfer of heat.

LapTo extend one material partially over another; the distance so extended.

MembraneA generic term relating to a variety of sheet goods used for certain built-up roofing repairs and applications.

PondingA condition where water stands on a roof for prolonged periods due to poor drainage and/or deflection of the deck.

RoofThe assembly of interacting components designed to weatherproof and, normally, insulate a buildings surface, separated from adjacent assemblies by walls or changes in elevation.

Roof SystemGeneral term referring to the waterproof covering, roof insulation, vapor barrier (if used) and roof deck as an entity.

SlopeIncline or pitch of roof surface.

Standing SeamA type of joint often used on metal roofs.

Vapor Retarder (Barrier)A membrane placed between the insulation and roof deck to retard water vapor in the building from entering the insulation and condensing into liquid water.

The Big Box Project
U.S. Storage Depot conceives industry-first shopping/storage center

By Kimberly Hundley

Storage Depot CEO Ronald Hagen may have accomplished a worldwide first in the self-storage industry. The designer/builder has blended national retail with climate-controlled self-storage and mini-offices in a mammoth shopping complex. Created through a joint venture with Schonsheck Inc., Willow Creek Center spans 22 acres in Canton Township, Mich. The complex contains two out parcels and 10,000 square feet for national restaurants, 200,000 square feet of commercial retail space, and 70,000 square feet of business self-storage. It already boasts such big-name retailers as Pier 1 Imports, Michaels and PETsMART.

In its previous life, Willow Creek was a real estate albatrossa vacant big box off the interstate. Though highly visible, the gargantuan building had zero appeal in todays penny-pinching business climate. U.S. Storage Depots conversion thoroughly revitalized the property, attracting shops, small businesses, and commercial and residential storage.

The mixed-use concept for self-storage construction is Hagens brainchild, and he believes it holds the power to salvage abandoned real estate across the country. Many communities, especially in the Midwest, are struggling to find viable uses for their empty big boxes, he says. This strategy could be the solution for those buildings currently standing vacant in many desirable high-visibility areas.

Although Saline, Mich.-based U.S. Storage Depot played the white knight to Canton Townships property in distress, the community was not initially receptive. Getting the enterprise off the ground was a tremendous challenge, says Hagen, whose team spent more than two years convincing city officials to approve the unique project. The area wasnt even zoned for self-storage.

We first had to educate and gain the understanding of the community, tenants and builders on how we would blend everyones requirements into a unified, coordinated design, Hagen says. Combining business self-storage with retail is a mutually beneficial relationship. The retail enjoys maximum use of the frontage, while the storage utilizes what, in most situations, is a disadvantage: the rear of the complex. In our case, weve been so successful, our retail tenants are starting to wrap around us. They took the sides and the front of the building.

Parking is another happy trade off. Willow Creeks design requires self-storage tenants to drive inside the complex, leaving coveted parking spaces for retailers. The internal loading and unloading set-up also enhances security, convenience and privacy for storage tenants. Plus, storage activity occurs behind the scenes, away from retail clientele.

One-Stop Shop for Businesses

Willow Creeks self-storage portion, located in the core of the building, is designed primarily for business rather than residential users. Tenants have the option of small offices with a bathroom, phone and fax. Interior storage walls are adjustable so customers can rent only the space they need in 200-square-foot increments; if a tenants storage needs grow, the space is easily expanded. A business center in the lobby, which operates much like a Kinkos, provides support services such as private mailboxes, copy machines, UPS drop stations and Internet access. Other amenities include racks, shelving and palate jacks, provided free for tenants use.

Were set up to be a one-stop shop for business people, Hagen says. However, we dont discriminate against residential usewe encourage it. And tenants still get all the perks, like loading inside. They never have to worry about rain, snow, wind and dust.

U.S. Storage Depot has begun incorporating small-business incubator units into all its newer facilities. Hagen calls the approach the next generation of self-storage, fulfilling a growing need in the modern business environment. More and more people are starting small businesses at home, he explains. If they want to move out of the home, we are the next step. Current tenants include manufacturing reps, a silk-flower producer and a mail-order catalog business. Office rental fees are a little below market, Hagen reports, but higher than income off self-storage.

Big-Box conversions renderings of Willow Creek Center, due to open in August.

Crucial Advantages

U.S. Storage Depots focus on the business customer could be an important new direction for self-storage, according to Hagen. Today, everyone in this industry is designing their facilities, advertising and marketing programs for the residential user, he says. Were doing a lot of unique things to adapt to the changing needs of businesses and our society. We want to be innovative and service those people. Thats what our mission is, and what makes us a little different.

Diversification allows U.S. Storage Depot to combat a persistent self-storage handicap as well: the winter seasonal slump. Offices are let under annual or bi-yearly leases, leveling off the occupancy rate. But the real advantages, according to Hager, are security and financing.

A combined-use project gives you different sources of income, helps increase profits, and makes earnings more secure because you dont put all your eggs in one basket, Hagen says. Banks love us now. It gives them greater security in their investment.

Some predict the nations self-storage market is reaching saturation. To remain viable, Hager advises developers to look for new ways to draw customers and secure financing. The beauty of the U.S. Storage Depot concept is its adaptable and can efficiently use big boxes, regardless of the size or configuration of the building and land.

The model also follows a national trend in city planning in which retail and residential developments are integrated for safer, more efficient land use. Big-box conversion allows developers to penetrate prime retail locations for self-storage. Willow Creeks storage business, for example, has no competition in the area, because zoning simply doesnt allow for a single-use storage facility.

U.S. Storage Depot has several other projects on the go, including an innovative selfstorage facility under construction near Ann Arbor, Mich. Blueprints include a climate-controlled, three-story building; an outdoor single-story structure; and a building designed especially for contractors, with 14- foot ceilings and 10-by-10 doors. When completed, the facility will be 160,000 square feet, making it the largest self-storage shop in the state.

The Future

Hagen is proud of his teams accomplishments and eager to share the big-box concept. Ive known a lot of people in the industry for many years, and a lot of developers out there are hurting. Id like to give them some insight. We all learn from new ideas someone pioneers an area and other people will modify it and possibly improve upon it. U.S. Storage Depot is in negotiations to develop a similar big-box conversion in the Chicago area, while seeking other ideal sites across the country. Hagen says every community is different and needs to be dealt with on a case-by-case basis. But experience should make the process easier next time.

We have assembled a team that is expert in working with cities and contractors, he says. It takes a lot of negotiations when youre introducing something unfamiliar and untried. People are a little reluctant and nervous. I started on the Willow Creek Center three and a half years ago, and its just now being completed. Even with the builders and engineers, the first thing you hear is, Well, we havent done this before. Climate-controlled self-storage takes a certain kind of engineering that is different than a shopping center, so you have to blend the two together.

Hagen says big-box conversion with multiple uses is an idea whose time has come. Developers of the future will have a whopping head start, too. When selling retailers and zoning boards on the concept, they can point to Willow Creek Center as a living example of property once thought dead.

U.S. Storage Depot has more than 22 years experience in the self-storage industry, designing and building award-winning facilities. For information, call 734.944.1803.

By Elaine Foxwell

Whether the culprit is UV light, the corrosive effects of climatic pollution, or oxidation from snow and rain, self-storage buildings degenerate over time from exposure, resulting in a loss of value. To literally shield your investment, experts recommend a vital maintenance plan involving the use of sealants and coatings.

In a report on the North American sealants market by Frost & Sullivan, a global market-research company, a sealant is defined as a liquid, paste or foam material that, when applied to a joint or orifice, forms a tight seal against liquids or gases. The report identifies nine major and nine sub-classified sealants. Each has its own composition and properties and is effective for different applications.

With so many types of sealants, facility owners may be at a loss to decide which is best for particular repairs. Storage buildings, most of which are metal, expand and contract. To be effective, sealants need to be elastomeric as well as have structural strength. But why and how do sealants fail?

Water ingress will undoubtedly be the major cause of structural degradation of a building, not to mention the No. 1 cause of consequential damage claims for ruined contents of occupied spaces, says Lester Hensley, president of Emseal Joint Systems Ltd. in Westborough, Mass. Emseal supplies preformed foam and mechanical expansion joints.

Roof-Coating Systems

The majority of existing commercial roofs are metal, built-up, single-ply membranes and polyurethane foam. There are different methods of repairing and maintaining these substrates, and it is important building owners consult someone experienced with their specific roof, says Dave Kessler, director of operations for Uniflex Roofing Systems LLC. The Medina, Ohio-based company manufactures a complete line of roof coatings and accessory items designed to waterproof existing buildings.

Aluminum and elastomeric are the two primary coating systems specified for metal. Facility owners should ask the contractor or manufacturer for references specific to their substrates, as larger problems can be created if incorrect materials and methods are used for repair. Whoever works on the roof should have the proper insurance, equipment and experience in the installation of materials. The product is only as good as the application. If the prep work is not done properly, a roof failure is imminent, Kessler says.

Roof-coating systems range in cost from $1 to $2 per square foot, depending on the existing condition of the roof and amount of work needed. Before hiring an applicator, building owners should do some basic research. Kessler says to consider how long a company has been in business; its history of experience and references with your type of roof substrate; whether it has proper insurance with a rated insurance carrier; estimated length of project time; and type of warranty, if offered.

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, says Clint Whitsett of United Coatings, a Greenacres, Wash.-based manufacturer of water-based, 100 percent acrylic elastomer. The added benefit of an acrylic roof coating is it will remain flexible, allowing the metal to expand and contract with fluctuations in temperature.

Application. Prior to the application of a coating, the roof must be thoroughly cleaned, all mechanical fasteners checked for integrity; and rust removed, says Whitsett. The elastomeric basecoat should be applied at a minimum of 1 gallon per 100 square feet. After the basecoat is dry, a topcoat is applied, also at a minimum of 1 gallon per 100 square feet.

The coating should be applied by airless spray, using a multipass technique to ensure even application to all sides of the metal-panel corrugation. It is important to apply coating into crimped or pre-sealed vertical (side-lap) seams that have not been detailed. The minimum basecoat/topcoat dry-film thickness required at any location is 15 mils, generally for a five-year product warranty. For extended coverage periods, additional coats and heavier film builds will be required, Whitsett says.

A good roof coating will cover an average of 60 to 100 square feet per gallon for the first coat and 100 to 150 square feet per gallon for the second. Walls and doors with good pigmented direct-to-metal (DTM) latex will average 250 to 350 square feet per gallon. Some surfaces may need two coats for complete coverage. Good roof sealants should last five to eight years; exceptional-quality products can last as long as 15 years. Good-quality DTM paint will last three to five years.

Maintenance and Inspections. Rick Dodge, vice president of sales and operations for Rib-Roof Metals Inc., a Rossville, Tenn.-based manufacturer of roofing and building systems for the self-storage industry, suggests regularly inspecting roofs for cracks and bubbles in the sealants, particularly in exposed areas. Though Galvalume-coated steel has become the major material used in metal roofing, roofs still sustain damage from the elements. Regular maintenance is required to keep them functional and attractive.

William Rice, president and CEO of Vivilon Coatings Inc. in Miami, Fla., a manufacturer of surface-restoration and protection coatings, advises implementing a bimonthly inspection program for signs of early paint aging, and correcting those areas by proper reapplication of the appropriate coating. Coating and sealant touch-ups are simple and can be done by in-house staff, though a paint contractor can be retained to do the work.

Dirt is one of the most overlooked enemies of paint, Rice says. It cant be overemphasized that a monthly surface washing can easily double the life expectancy of almost any quality product. Brushing with a good neutral-pH cleaner and rinse would be preferable; but even a quick hose down would greatly increase the durability of any paint. Nothing can be done about UV radiation, or extremes of hot or cold; but cleaning off surface grime is quick, easy and inexpensive, he says.

In addition to regular maintenance inspections in the spring and fall, it would be in the owners best interest to inspect roofs after storms or heavy winds to make sure there is no weather-related damage, advises Kessler.

Heavy snow loads and ice removal can cause damage such as gouged or split panels, loose fasteners, split seams, etc., warns Rick Thomas, marketing manager for Binghamton, N.Y.-based, Insulating Coatings Corp., a manufacturer of roof-coating systems for metal roofs. If rust or corrosion is present, a rust primer should be applied prior to the waterproofing and after the roof is completely power-washed, he says.

Floor Coatings

Storage owners may ask, Why should I seal my concrete floors? Concrete is a porous and unique building material. In its unsealed state, concrete absorbs moisture and liquid spills as well as collects dust in its pores, which reside below the surface, says Don Crawford, president of Chemisol Resources Group Inc. in Glendale, Ariz. The company specializes in sealing and maintenance of concrete surfaces and manufactures a water-based acrylic sealant.

As the self-storage industry has evolved, it has increased its level of services and sophistication. Customers are attracted to clean, bright, well-maintained facilities, Crawford says. A clean floor reduces dust and helps maintain this image. Sweeping and mopping helps, but is extremely difficult to do on an unsealed concrete floor because of the drag created by the surface texture.

A quality sealant may average three to six months between applications, depending on wear and level of floor maintenance, Crawford says. Wear is determined by a number of factors, such as facility traffic, performance of intermittent sweeping and damp mopping, and destructive use, such as scratches and scrapes. Crawford recommends using a regular cleaning service, with the frequency determined by the type of flooring, facility traffic and desired level of appearance. Owners should use a service that specializes in the sealing and maintenance of concrete surfaces. Between services, owners can use a pH-neutral cleaner for daily maintenance.

Protecting Doors and Buildings

Teresa Sedmak, president of Everbrite Inc., a Reno, Nev.-based manufacturer of a protective coating that refinishes faded and dull metal buildings, advises owners to check metal surfaces for fading, oxidation and corrosion at least once a year. An easy way to check the degree of fading and loss of gloss is to observe an area that is wet, she says. Use a wet finger, cloth or sponge to touch the area. If there is a noticeable difference in color or gloss, the metal should be sealed and protected before it gets worse. Once fading begins, deterioration will accelerate rapidly and become more labor-intensive and expensive to fix.

Check for salt corrosion by running your hand over the top ribs of a roll-up door on the north or east side of the facility, where the moist salt air sits for a longer time before it dries, Sedmak says. If there is corrosion, the surface will be rough or bumpy. In this instance, application of a coating will fix the problem. On the other hand, acidrain damage can only be prevented by sealing the metal. Once acid rain etches a surface, there is nothing that can be done to refinish it.

Application. To refinish and protect a metal surface, first remove all chalk, grime, alkaline salts or any other contaminants. Purchase a coating that can be sprayed or wiped on and can be repaired if a mistake is made, Sedmak says. If care is taken to follow all directions, properly prepare the surface and apply the coating, self-application can have good results. She does, however, suggest using a professional applicator, as it will be experienced with storage facilities, and know how to keep water out of the units and solve the variety of cleaning and application challenges roll-up doors can present.

A gallon of quality clear coating should cover about 20 to 24 large roll-up doors (roughly 1,200 square feet). Owners considering repainting vs. coating surfaces should consider cost on a per-square-foot basis, says Sedmak. While a gallon of paint is less expensive than a quality clear coating, the cost per square foot may be much higher because of coverage. Paint will also start to fade in a year, but a clear coat should not fade for many years. A good cost for materials is about 15 to 20 cents per square foot, Sedmak says.

Upkeep. A clear-coat finish can be renewed every five to 10 years. Make sure the coating is self-annealing and will self-blend so the first coat does not need to be stripped off, Sedmak says. Also look for a coating that will expand and contract with the metal so it will not crack and peel. Avoid thick or very hard coatings like lacquer or paint, which are not flexible. Once buildings are sealed and protected, they can be simply washed with water. In the case of more difficult stains, a mild, neutral-pH soap solution can be used.

Final Words

Most industries underestimate the importance of sealants in the lifetime performance of their structures, Hensley says. While it is possible to ensure long-term waterproofing for as little as .5 percent of the average cost of a building, owners and builders tend to consider sealants an accessory to be purchased for the lowest possible cost. Consequently, the best cure is an ounce of prevention. In other words, the costs of remediation of failed sealants will significantly outweigh the costs of using a high-performance sealant up front, he concludes.

Last year, China used 55 percent of the worlds cement and 36 percent of its steel, according to an April article in The Independent, a U.K. newspaper. This consumption has resulted in skyrocketing prices for steel materials, including self-storage building components. Now more than ever, maintenance of your metal structures makes more economic sense than replacing them.

Keeping a well-maintained self-storage facility involves sundry tasks, the least pleasant of which involves the eradication of nasty critters that make any building unappealing. Rats, mice, pigeons, cockroaches, ants, termites, stray animals and other pests will not only chase away tenants, they will make a business distasteful to the employees who operate it.

Dealing with pests in a place of business is different than confronting them in a residence. Homeowners have the luxury of deciding their particular comfort levels when it comes to multi-legged invaders. Some people see a couple of ants in the kitchen and shrug them off as a fact of life. Others see an ant crossing the driveway 100 feet from the house and call the National Guard. Business owners don’t share the same advantage. An inch-long cockroach standing guard at your lobby entrance isn’t the best way to start a relationship with a potential tenant. While a complete pest-control compendium would be impossible in the scope of one article, the following will provide sound advice in some of the areas storage operators find most daunting.

What to Do About Rascally Rodents

Here are a few things you probably didn’t know about rodents:

• An average-size rat can squeeze through a gap about the width of your pinky finger, an adult mouse through a gap the thickness of this magazine.

• A healthy female rat can give birth to six litters per year, with as many as 20 baby rats per litter. Each new female is ready to breed at about three months of age.

• Many fire investigators say one quarter of all structure fires of “undetermined origin” are caused by rodents gnawing on electrical wire.

• Even today, rats can transmit the bubonic plague to humans.

• Groups of rats are called packs. (You thought Sinatra just made that up off the top of his head?)

• Rats and mice aren’t all that fond of cheese.

Unless you consider simply embracing the presence of rodents at your self-storage facility as some form of enlightened social consciousness, there are four basic steps to a rodent-control program. To be effective, all four steps must be taken in the order described here.

Step One: The Inspection. Short of seeing a live rat or smelling a dead one, the most obvious sign of these non-rent-paying creatures is their droppings. Rodent droppings vary in size, from one-eighth of an inch to a half-inch. They are about the same shape and texture of a popular rice breakfast cereal (the lawyers for which would probably take exception to my using the brand name to make the comparison.) Other less obvious indications are gnaw marks in electrical or PVC conduits, rips or holes on the coverings to heating and cooling ducts, and open burrows filled with nesting materials. A pest-control professional may use a black light in a darkened area to detect the presence of urine trails or special powders to track little footprints.

Step Two: Sanitation. This generally tends to be less of an issue in self-storage facilities. No doubt you have rules as to what your tenants can and cannot store in their spaces. Obviously, food for human or animal consumption should be strictly regulated if not completely prohibited. Tenants should be required to dispose unwanted items and trash off-site. The facility dumpster or trash containers should be secure to prohibit use by tenants—of both the two- and four-legged variety.

Step Three: Exclusion. There is no more important issue in rodent control than a tight building. The same measures you should take to keep your energy costs down will help keep rodents out of your buildings. Always use the strongest, most durable materials to seal your doors and utility openings. While it will not always be cost-effective to completely seal off the structure, and rodents are particularly persistent and adept at exploiting structural weaknesses, the harder you make them work, the better the chances they won’t get in.

Here are a few tips on rodent-proofing a building:

• Trim vegetation away from the structure. Never allow overhanging tree branches to contact the building or roof.

• Expanding foam is just a quick fix—always use heavy-gauge hardware cloth or flashing to cover holes and gaps.

• In wooden roof structures, check for water damage or soft spots. (See comment above about rodents exploiting structural weaknesses.)

• Employ self-closing exterior doors wherever possible.

• Maintain screens on all windows that can be opened.

Step Four: Elimination. One hundred and fifty years ago, it took two months to deliver a document from New York City to San Francisco. Today it takes two seconds. One hundred and fifty years ago, it took six weeks to travel from New York City to London. Today it takes less than six hours. One hundred and fifty years ago, the best way to kill a rat was a spring-loaded metal trap mounted on a scrap of wood. Today, well, the best way to kill a rat is a spring-loaded metal trap mounted on a piece of wood! OK, “best” might not be the right word for those not inclined toward handling dead rodents. It remains, however, the most effective method to quickly eliminate an established population. It also requires the least expertise and expense.

The most efficient way to set snap traps is to place them where you and the rodent can easily access them. Rodents normally travel the same path consistently to move about their surroundings, so if you see droppings, chances are your little friend will be back soon. Simply coat the business end of the trap with a small amount of chunky-style peanut butter and place it on a flat surface. DO NOT arm the trap until you are ready to place it. (I have armed a trap before I was sure where I wanted to put it, and I have the X-rays to prove it!)

Ideally, you will place the trap perpendicular to a wall, with the business end facing inward. In warmer weather, check the traps daily; otherwise, check them every other day. Be patient. Rodents are sensitive to new objects in their environment, and it may take them a few days to get used to the traps, even if they smell yummy. If you are successful, simply dispose of the dearly departed and the trap together. Keep at it until the traps collect dust quicker than they collect rats. There are a number of live-catch options available to the general public; however, these devices tend to be expensive and require some expertise. The larger the target rodent, the less effective these things are.

Another option is sticky trap or glue board. Basically, it is a piece of plastic or cardboard coated with a glue like substance. This is placed much like snap traps. Sticky traps tend to be ineffective against larger rodents, as even professional-grade sticky stuff isn’t strong enough to mire any rat with some sense of self preservation. It generally will hold a mouse or young rat. Just be prepared to deal with a very unhappy little camper if it’s still alive.

No primer on rodent control is complete without a word about electronic devices. Sometimes called ultrasonic or electromagnetic pest repellers, they tout high-frequency sound waves or eltromagnetic pulses as a means of controlling rodents, insects and a variety of other unwanted wildlife. They all have one thing in common: They don’t work.

In a number of cases, manufacturers of these devices have been prosecuted by the federal government for making false claims and fraud. Consider this bit of wisdom taken from official Department of Defense policy: “Electromagnetic exclusion or control devices, ultrasonic repellent or control devices ... will not be procured or maintained with public funds, and personnel should discourage the use of such devices by pointing out their relative ineffectiveness.” Now, go unplug them, put them in a bag, and hide them at the bottom of your dumpster, and no one will be any the wiser!

Sorry, Mickey, but the best way to control a rodent population is to kill as much of it as you can. This brings us to the subject of controlling pests with poison. There are a number of products available for use by the general public (e.g., De-Con). I can’t stress strongly enough that toxic substances to control pests, sold for use by John Q. Public, should never be used in a commercial environment.

If it isn’t illegal where you do business, just ask your insurance carrier what it thinks about the idea. If you are considering using either poison baits or fumigants at your self-storage facility, the limiting factor is not expertise or legality but liability. Poison baits and fumigants are a highly effective means of eliminating rodent populations but should only be applied by a licensed, insured professional.

Ants and Termites: Eating Away at Profits

Wood-destroying insects and organisms present a particular problem to anyone who earns a living off real estate. When we discuss insects in this context, the culprit is almost always termites and less frequently Carpenter Ants. (In the interest of brevity and a show of good faith that I’m not trying to pad my word count, wood destroying insects and organisms will hereafter be referred to as WDI/O.)

No real estate transaction should ever be undertaken without a comprehensive WDI/O inspection. It is unlikely any reputable lender or broker would allow a real estate transfer to close without certification that the structure is free of WDI/O. A realtor once asked me how much faith he should have in the WDI/O inspection report he was given on a property he was considering for purchase. My answer was, “not much.” The issue wasn’t the contents of the report, the company performing it, or even the results. The concern is the prospective buyer was not the final arbiter in the hiring of the company performing the inspection.

Unfortunately, there are a lot of unqualified businesses and individuals in the building- inspection industry. No doubt the majority of people in this business are competent, ethical professionals. The problem is, in most states and provinces, the industry is grossly under-regulated. The individual who comes to inspect your structure could have gotten the job simply by watching a one-hour video on WDI/O and taking a self-evaluated exam.

You, as the buyer, should take steps to ensure you are getting a quality report on the condition of your potential investment. This is normally the part where I give you a bulleted list of information related to the topic. Unfortunately, laws and regulations vary so greatly from place to place, this article would need to be several hundred pages long. In conducting my research, I tried to gather info by checking Internet resources on a state-by-state basis. Working in alphabetical order, I finally threw in the towel at California. However, there are a few bits of advice I can give that will cover a lot of ground:

• First, seek qualified legal advice from a lawyer with no connection to any of the parties involved in the real estate transaction. Given the size of your investment, and the ramifications of a bad WDI/O report, hiring a lawyer who specializes in real estate is money well spent.

• Second, if you are comfortable with your knowledge of the rules of the game, hire an inspector who has no financial interest in the outcome of the examination— except if he screws it up!

• There is actually a third piece of advice that can guarantee you will not have a termite problem in your building: Buy it in Alaska. It is the only state where termites have not been detected.

Finally, just because you are dealing with buildings made of steel and concrete, doesn’t mean WDI/O is not an issue. While your structure may be impervious to such things, the contents aren’t. A termite doesn’t care if it’s eating a 2-by-4, a cardboard box full of financial documents or an antique dresser. Your liability for the condition of the contents introduced to and stored in your facility is likely quite limited, but your reputation is at risk.

Now, on to the topic of ant control. The common theme of most questions I receive regarding this issue involve ants invading a structure and not going away, even though the outside source of the ants is located and thoroughly treated. This is a dilemma for amateurs and professionals alike. Even if you managed to kill all the ants outside, you have to deal with the ones inside.

Most pesticides in use to control ants are classified as Pyrethrins and Pyrethroids. Pyrethrins are a naturally occurring chemical derived from the Chrysanthemum plant. Pyrethroids are man-made versions of the same. While they are an effective pesticide, they also act as a repellent. Since ants live outdoors, what you’ve done when you use the repellent outside is block their exit. When you spray the ants inside, all you are doing is killing the ones you can see. You end up chasing ants around your building for days on end, killing a few at a time and contaminating your environment.

Baits are the preferred method of treatment when dealing with ants close to a structure. Baiting gives the ants no reason to go inside in the first place, and while a little slower acting than pesticides, it is more efficient. If you decide to have a pest-control professional handle the situation—which I recommend—choose one that uses bait as his main weapon of choice against insects.

Aviary Annoyances

A lot of storage operators ask my advice on the topic of pigeon and/or bird control, as these pests love to roost at places like storage facilities, which see relatively little human traffic. As a rule, visual devices like plastic birds of prey (owls), foil streamers, etc., that many people will try offer brief relief at best. It doesn’t take pigeons long to figure out whatever you are trying to scare them off with won’t actually eat them. Sometimes, just to show us who really runs this planet, they will cake the fake owl with poop and leave the surrounding area spotless. OK, maybe it’s a stretch to assume they are doing it to mock us, but after a day or so, the plastic bird is just another thing to sit on.

The same holds true for just about any device you might use to chase pigeons off. A number of large airports spent a pile of money on “noise cannons,” literally large gun-like devices that emit a loud boom-type noise to scare away pigeons and seagulls. After a few days, the birds would merely jump a few feet at the sound of the cannon firing. Soon, birds that frequented the area learned to ignore the sound. Worse yet are those so-called ultrasonic devices. The only chance of gaining any control using ultrasonic bird repellants is if the pigeon laughs itself to death.

As with many pests, the best way to keep pigeons away is to eliminate nesting places and roosting spots. Eaves and gables can be relatively easily covered with some sort of netting. Anti-roosting devices come in several forms, the most popular being a spike strip that can be attached to any surface a bird might sit on. Spike strips can be easily installed by the property owner and cost roughly 45 cents per linear foot.

Finally, controlling birds with chemicals or poison should be done only as a last resort and is best left to someone who is licensed. In many places, it is illegal for an unlicensed person to use poison in the control of nuisance birds.

The Stray Cats

Feral cats are very much a pest-control problem. While they may have some minor value as a method of rodent control, they will introduce more pests than they will consume. In addition to carrying diseases that can be transmitted to domestic pets, they carry parasites, like ticks and fleas, which can transmit disease to humans. In addition, there is undoubtedly a percentage of your customer base that is allergic to cats.

Your best bet is to use live-catch traps. These devices are cage-like traps baited with cat food, with a spring loaded door that closes behind the animal when it enters to take the bait. While you can purchase them, many animal-rescue organizations will let you borrow them at little or no cost, and take the cats off your hands for a small fee. With a little luck and a lot of patience, you should be able to handle this situation without shelling out a pile of money. In the interim, make sure they don’t have any alternative food sources like open dumpsters or trash cans.

Choosing a Pest-Control Company

When it comes to the business of banishing pests from your facility, you have the option of dealing with our little friends personally; but there are a few things you should understand. Rule No. 1: Potential liability, not personal knowledge, is the first consideration in deciding whether you are going to solve the problem on your own. In many states, it is illegal to use pesticides labeled for residential use in a commercial setting. In counties and states with less stringent statutes on such matters, the Occupational Safety & Health Administration and the Environmental Protection Agency have a stack of regulations that cost the lives of thousands of innocent trees to print.

I’m not telling you to toss the Raid and Black Flag into the dumpster, but if you don’t already have a pest-control company on your Rolodex, it’s time to look at the big picture. A pest-control service means one less thing for you to handle. Once you find the right company for the job, the problems become the company’s, not yours. Equally important, much of the liability resulting from pest-control measures becomes the company’s as well. Of course, there is the new entry in the accounts-payable column, but the benefits almost always outweigh the costs. The revenue you lost from those two renters who saw the rodent droppings in their units would have covered the cost of a regular pest-control service.

For most people searching for a pest-control service, the first impulse is to go to the good old Yellow Pages (or whatever they call those big books with all the phone numbers and information on what to do in case of your most prevalent disaster). Resist the urge. Your first inquiry should be to other businesspeople. This is a good time to put those networking skills into action.

Your best bet is to contact the local chamber of commerce or similar network of local business interests. If you choose the phone book, check out the Better Business Bureau issue. If you end up using other phone books or advertising sources, ignore any company that goes by AAAAAAA Pest or AAAAaron Exterminators. Actually, they may be totally competent pest-control providers, but we should all do our part to discourage this lame marketing strategy. (Please, don’t let there be any AAAAAAA Self Storage Centers out there).

If nothing else, look for companies that use the same basic advertising tools you do. If you share similar marketing strategies, chances are you share similar business philosophies, creating a greater likelihood of a mutually beneficial working relationship. Here are a few other things to keep in mind:

• Bigger isn’t necessarily better. A smaller company is more likely able to tailor a program to your specific needs. Larger companies tend to have a “one size fits all” philosophy, particularly when it comes to commercial accounts. Do, however, keep in mind that some of the big pest-control brand names have independently owned and operated franchises that are worth a look.

• Older isn’t necessarily wiser. Newer companies tend to emphasize customer service as a major selling point. Word-of-mouth is everything to newer businesses, and they want your mouth to say nice things about them. When dealing with a company with a shorter track record, checking references is a must. When considering any pest-control company, check insurance and licensing documentation diligently.

• Is the person selling you the work the same person who will be performing it? That’s a big plus. Too many pest services use salespeople who have never spent a day in the field doing actual pest control. If you are inquiring about a regular service and have to go through a sales rep, insist on meeting the person who will actually perform the work before making any deals.

• Price isn’t everything. In the pest-control business, the adage, “You get what you pay for” rings true. If a company’s main selling point is its low rates, it’s probably just that—a low-rate company.

• Any service agreement you are offered should be in plain English, short and to the point, and should contain no tiny letters or Latin words. Lack of a written service agreement is no deal-breaker. Personally, when I offer a potential customer an agreement, it’s in the form of a handshake.

• Does the company emphasize Integrated Pest Management (IPM)? IPM is the use of a broad variety of techniques and strategies to control pests, as opposed to plain old chemical warfare. IPM might consist of such measures as trapping, baiting, exclusion, landscape modification and the use of moderated amounts of pesticides. IPM is the weapon of choice for today’s pest-control professional.

• Last but not least, trust your instincts. Gut feelings are almost always a parameter in a good business decision.

 

The Giving That Bounces Back
DBCI raises morale and shares in community effort

By Kimberly Hundley

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Giving back” has a boomerang effect. That’s what Atlanta-based door manufacturer DBCI (Doors & Building Components Inc.) has found over the years. The payoff may not be monetary, but helping the community makes employees feel good and strengthens their sense of corporate family. It’s hard to put a price on that.

“The community supports us, and we want to support them in return,” says Julie Doss, human-resources manager. “Especially in these economic times with all the layoffs, we’re thankful to have our jobs and want to help those who may be less fortunate.”

To connect staff with outreach opportunities, managers look for existing charities that are a good match for the company’s resources. DCBI’s corporate office plays the role of director, letting employees know about each charitable program and making it easier for them to participate. For example, during the holiday season, the human-resources department spearheads a division-wide effort to support Toys for Tots, an organization sponsored by the U.S. Marine Corp. “We average about $350 worth of toys each year. It’s one of the main charity events we do,” Doss says. “Sometimes, people give money and I get to go shopping at Toys “R” Us, which is always fun. We deliver the toys to the drop-off site.”

DBCI employees in Douglasville, Ga., help local children enjoy the holidays through a Secret Santa program operated by Douglas County Child Services. “We get a list of kids with their ages and sizes and a wish list,” Doss explains. “I find those who are interested in being a sponsor, and they spend about $40 per child. We’ve adopted as many as 20 kids.”

DBCI is owned by NCI Building Systems and has three manufacturing facilities outside Atlanta. Each plant gets to decide how to participate locally. Doss facilitates by sending information on how to donate or get involved. Working to enhance the lives of others transforms the workplace, Doss says. “You can tell the employees are very excited. It’s kind of a kid-like atmosphere when they are doing this. It really helps raise morale in the office to know we are helping others who are less fortunate than ourselves. It helps us appreciate what we have at home; and at work, we consider ourselves a family.”

Philanthropy can have a powerful place close to home, as it did for DBCI last December. A young family important to the company was facing a lean holiday due to unfortunate circumstances. The managers rallied, providing a literal truckload of goodies for the family’s four children. “Gifts included bicycles, Sony Playstations, Discovery learning toys, board games, paint projects, clothing, gift cards, action figures and skateboards,” says Franklin Young, sales manager. “It was a huge group effort. We filled the back of a Ford F150 truck. The family had a great Christmas.”

DBCI also has had success with Lee National Denim Day, the world’s largest single-day fundraiser for breast cancer. For a $5 donation, employees get a pink ribbon and the right to wear jeans to work for a designated Friday each October. Lee Jeans sponsors the event. “We usually raise $300 to $500, with about 60 employees taking part at our locations,” Doss said. “Sometimes, we have donation warfare between departments, with people bidding extra to raise more money.”

Participation in the annual Susan G. Komen Race for the Cure, another breast-cancer fundraiser, is also encouraged. Doss again makes sure information on the 5K event is flowing to employees via e-mail or fliers. She also coordinates enrollment so those who sign up can walk the 5K together as a team.

Patti Long, DBCI’s general manager, says companies can show their support of such events by matching employees’ involvement in terms of time and money. “For instance, DBCI will pay for any employee who can’t afford the entry fee for Race for the Cure; and management walks with all staff members in a show of support for fighting breast cancer,” she says. “As a company, we take pride in the quality and workmanship of our products and services. We think it’s important to share the same amount of pride in our community. These activities also educate the community about our company and our staff. It shows people we are making an effort to be a good corporate citizen.”

Regardless of a company’s economic constraints, Doss is a believer in launching the goodwill boomerang. “I try to incorporate it into our culture,” says Doss. “I write it in our e-mail and fliers: Remember to give back to your community and help others.”

For more information on how your company can get involved in some of the charities discussed here, visit www.denimday.com, www.komen.org and www.toysfortots.org. For more information on DBCI, a major manufacturer of roll-up curtain doors and selfstorage components, call 800.542.0501; visit www.dbci.com.

The Free Report

By Fred Gleeck

As a promotions strategy, self-storage marketers frequently recommend operators use a giveaway item they can distribute to key influential people in their areas, such as apartment-complex managers. The idea is to visit these folks personally and leave them something that will help them remember the facility. Most of the time, the item is candy or some other consumable, usually in a coffee mug printed with the facility name. Then, the operator or manager goes back to these individuals on a regular basis to refill the cup or whatever else he brought them.

This is a great marketing idea, but there is an even better one. Why not give business owners and other influencers something they can, in turn, distribute to their own customers, something with real value? My suggestion is a free, informational report about self-storage. Free reports arent the same as brochures, as they are generally longer and a lot more detailed. A brochure is general, a report is specific.

The purpose of the free report is to provide valuable information on specific storage-related topics to groups who may have an interest in the product. Walk into any chiropractors office, and you will see great examples of the free-report concept. If you ask for a brochure from the same practice, you will get a more general piece that advertises its specific services. A free report first informs, then sells. This is crucial for every storage owner to understand.

Your facility brochure and your free report both have their place in the operation of your business. The brochure is cheaper to produce and, therefore, should be given to just about anyone who asks. The free report is more expensive and should be given out more selectively. It can be produced in smaller quantities as needed.

The free report, like your facility brochure, should not be too slick, nor should it look cheap. I prefer to have it saddle-stitched (stapled two or three times down the middle), with card stock used for the cover. The report should be a minimum of 16 pages, but you can make it as long as you wantthe longer the better. I have seen some as long as 48 pages, packed with just about everything you could possibly think of as it relates to storage.

The free report must also have a price printed on its cover, even though you give it out for free. People are more apt to hold onto items to which there is an assigned value. If you print free report on the cover, people will be more likely to throw the report away. The goal is longevity, so when people require storage, they will look to your materials and, hopefully, contact you.

The Content

The report should address a specific target group or a storage-related question. It should be highly informational and start with a story that illustrates how a particular market segment uses the self-storage product. This will provide readers real-life examples of the value of storage.

You can gather the content for your report from anywhere: the Internet, industry publications, self-storage associations, even your competitors. Include any and all information that relates to storage, such as tips on what and what not to store, how to pack specific household items, how to determine how much can fit to a particular size unit, etc. Dont hold backthe more information you include, the more credibility the report will have with readers.

Make sure the report provides the phone numbers of any available information hotlinesparticularly the one for your own facility. The report should pull people into your marketing system in a variety of ways. After all, some readers will be convinced to store with you after reading the report; others will need more convincing. If they call your personal hotline for more information about storage, they will be looped back into your marketing efforts. Similarly, you can refer callers to your hotline or facility phone to your free reportthey all work to support each other.

Of course, the report will also include your facilitys pertinent details: name, phone numbers, mailing address, web address, etc. Place these subtly toward the back of the piece, remembering you want people to distribute the report as an educational item, not advertising. Finally, include a coded coupon for your facility so you can track the marketing success of the piece.

Be a Specialist, Not a Generalist

If you are handling your marketing right, you are carving up your market into bit-sized piecesin other words, niche marketing. In doing this, you are not selling to everyone; you are selling your services to a few very definable groups. For example, residential renters can be further broken down into apartment renters vs. and homeowners. You can then break them down into even smaller categories if you so desire.

The reason niche marketing makes sense can be illustrated with a story. Lets say a pharmaceutical rep walks into your facility. He is looking for storage space and visiting several facilities to determine which one he will use. You happen to rent to a number of pharmaceutical reps and have designed a report that specifically targets that group. The prospect will likely rent from you, because you have demonstrated specific knowledge of his profession and its use of storage. You have targeted his unique needs.

Consider this: When you have a heart problem, do you go to a general practitioner? Of course notyou go to a cardiologist because he is the specialist in the field you require. It is possible for you, as a storage operator, to specialize in more than one niche market? Absolutely. With this in mind, you should produce multiple reports to distribute to the niches you serve, such as boat/RV storage renters, commercial renters, residential renters, wine-storage renters, etc.

Its great to have freebies to give directly to potential customers or to those who may have contact with your prospects. Why not come up with something much more powerful than candy or some other valueless item? Why not create a free report, which has low cost, high perceived value and market credibility?

Fred Gleeck is a self-storage consultant who helps owners/operators during all phases of the business, from the feasibility study to the creation of an ongoing marketing plan. He is the author of Secrets of Self Storage Marketing SuccessRevealed!, available for purchase at www.selfstoragesuccess.com, as well as the producer of professional training videos on self-storage marketing. To receive a copy of his Seven-Day Self-Storage Marketing Course and storage marketing tips, send an e-mail to [email protected]. For more information, call 800.FGLEECK; e-mail [email protected].