Some might argue security systems have changed more than anything else in the self-storage business. The evolution has been good for customers, the industrys image and insurance companies.

Brief History

Basic security features appeared on the scene fairly early. Open access to units and the flimsiness of low-quality locks soon drove many facilities to install fences and gates, and promote high-security locks to tenants.

Improvements in door latches and locks prevented many storage burglaries. Crime dwindled even more with the advent of hardened-case disc locks, high-security cylinder lock and latch systems. Further, outdoor lighting eliminated the cloak of darkness that criminals relish. These passive, simple solutions removed facilities from the list of easy targets for many thieves.

Big Bucks

These days, security focuses on high-tech developments such as alarm and surveillance systems, access control, tenant screening, and management software integrated with security devices. A good management software system, coupled with active and passive security features, indicates when tenants come and go, which units are entered with permitted access, and where forced entry occurs.

Savvy operators use security to their marketing advantage by increasing its visibility and promoting features to customers. Consumers value security and will often decide to store at the facility they perceive as safest.

As an insurance underwriter, Ive watched security steadily improve over the decades; however, I never fully understood the investment aspect until I spoke with Tom Litton of Litton Property Management Inc. According to Litton, a new facility may spend $100,000 to $150,000 for features such as access control, alarm systems and surveillance equipment. Self-storage owners likely invest more in security than a typical bank does, excluding vault costs.

Insurance Rates

If youve already made a substantial investment in security or are planning one for a new facility, Randy Tipton of Universal Insurance Facilities suggests informing your insurance agent. The insurance industry has responded favorably to the heightened security at facilities across the country. Properties with advanced security systems are far more desirable and attractive, and win favorable rate credits. Check with your agent for guidance.

Criminal activity has decreased over the years, but break-ins still occur and drug trafficking remains a risk. Effective security will always require vigilance. Advanced security features are great, but they cant take the place of a diligent managers watchful eyes.

Inspections

Managers should conduct periodic reviews of gate logs for suspicious activity. Business tenants may need to visit storage units often, but homeowners rarely make numerous visits and their time onsite is usually short.

Criminals may stay longer and observe what is being stored in other units, all the while planning a future break-in. Long, recurrent visits following a move-in may indicate a tenant is conducting a business from his unit. Frequent late-night activity could be a sign of illegal goings-on.

Insurance claims show more homeless people are living in facilities, increasing the likelihood of fires from cooking or heating. Also, such occupancies are illegalanother liability.

If thieves arent caught, they will sometimes burglarize units over a period of days, weeks or months at one facility. Should a break-in occur, Litton suggests consulting gate logs and calling customers who were on premises the day of the burglary, alerting them and asking if they noticed suspicious activity. In doing so, you will likely shake the perpetrators confidence, possibly halting repeated crimes.

Unless you have individual unit-door alarms, the most effective method of noticing a break-in is through personal inspections. Thieves may avoid early detection by replacing broken locks with new ones. Some facilities use break-away colored stickers on locks, making it easy to spot replacements.

Daily walk-throughs help identify break-ins, lighting problems and other hazardous conditions. Observant managers may spot tenants unloading large drums of unknown substances, or notice strange odors associated with malicious activitysomething no security system can do. The mere presence of resident managers deters crime; potential thieves know a witness is waiting in the wings.

A Note on Guard Dogs

While there is little doubt guard dogs have intimidated criminals and prevented break-ins, their bites can be worse than their barks. The trade off for heightened security is they increase your liability exposure. Once again, a managers vigilance provides the greatest peace of mind when it comes to self-storage security. 

Scott Lancaster started his insurance career in 1976 as a licensed insurance agent and broker in California. He is now the regulatory compliance officer for Deans & Homer, where he was hired as a commercial lines property and casualty underwriter in 1985 and has worked in the self-storage division since 1993. Deans & Homer has provided insurance products designed to respond to the unique risks of the self-storage industry since 1974. For more information, call 800.847.9999; visit www.self-storage-insurance.com.  

For more information about self-storage security, check out "Security: Choosing Tools, Protecting Your Investment," a 32-page e-book available through the Self-Storage Training Insititute. Click here for more info!

 

On a quiet Sunday morning, a pickup full of explosives is driven to the local courthouse and detonated. Where did the truck and explosives come from? Perhaps your storage facility. From a terrorists point of view, a 10-by-40 self-storage unit offers easy access and plenty of space for contraband and illegal munitions. The units are large enough to house a truck or trailer full of explosives and can be accessed almost anytime.

Fortunately, self-storage operators can eliminate or significantly reduce such threats with smart thinking and technology: Sensors detect explosives, activate locking devices and prevent criminals from accessing the pickup; software notifies the manager and law enforcement that explosives have been detected and the unit is in a lockdown status.

Enormous sums have been spent in research and development to address the storage security problem. Technology is improving and costs for equipment deployment are decreasing. Facility owners wishing to build new or retrofit old security systems can apply to the Homeland Security Fund for financing in either tax credits or government grants.

Criminal Mind

Examine your own facility and imagine a terrorist wanting to use it as a staging area for creating panic and economic chaos in your city. What steps would he use? First, he would probably send a non-threatening person to rent a 10-by-30 as far away from the office and cameras as possible. This customer would ask about security, where the cameras are, how often the manager performs inspections and inquire about hours of operation, including weekend and after-hours access. Perhaps hell mention he may move in a cargo trailer with his late grandmothers fine china inside. That fine china is a bomb or the ingredients to make one.

Another concern is that of methamphetamine production in your facility. This is a Homeland Security and a health issue. Meth use is closely tied to violent crimes and property crimes. Fumes from the production of this drug pose a health hazard to anyone inside the building. In fact, a complete building may be contaminated and may have to be closed, torn down and the soil excavated. The cost could be in the hundreds of thousands of dollars for repairs.

OK, now you are so concerned that you only rent to your in-laws, pastor and local law enforcement people. Dont despair. Technology can reduce much of the risk by detecting suspicious customers and immediately notifying the manager and police.

Get Involved

The self-storage community needs to get active. Start an e-mail campaign to your local municipal officials to inform them of the risks everyone faces in this war on terrorism and drugs. Its all about money and where its spent to do the most good to protect peoples safety.

News articles primarily address the shipping-container and port-security issues. Because of this, facility owners must make a unified stand to educate Homeland Security and politicians that an equal or greater threat is coming from criminals and terrorists using self-storage sites as their base of operations. Although security companies are engaged in developing this awareness, the storage industry needs the political support of its members to get money to make security measures available for all facilities. 

Clark Stave is co-owner of EZ Management Software LLC. He has been involved in Homeland Security new product development for three years. For more information, call 800.544.0852; visit www.ezmanagementsoftware.com.

For more information about self-storage security, check out "Security: Choosing Tools, Protecting Your Investment," a 32-page e-book available through the Self-Storage Training Insititute. Click here for more info!

 

Wireless has so many flavors and uses, its a bit dizzying: wireless handsets for our phones; Wi-Fi networks for laptops and PCs; cell phones; keyless entry for cars and offices; door alarms, garage-door openers, motion detectors, TV and radio.

In self-storage, wireless technology is mainly focused on security solutions for door alarms, remote-site connectivity and emerging solutions for keypads and card readers.

After years of relying on wires, the multitude of wireless choices can be overwhelming. But, with a little education, its easy to see how wireless is a useful solution to self-storage security.

Door Alarms

The most prevalent application of wireless technology in our industry is wireless door alarms. Generally, we use them:

• To update an older site that has no door alarms and is fully occupied, making it impossible to access each unit to wire an alarm.
• For new sites where security is the top priority regardless of installation costs.
• For special needs related to RVs where motion detectors can be placed inside the RV to prevent theft.
• In areas that would otherwise be prone to lightning damage.

Retrofit and Site Upgrades

Self-storage operators often consider security upgrades when local competitors have high-tech systems that may lure away prospective tenants. Wireless door alarms are a great way to compete in a stiff market. They are easily and quickly installed on doors, with repeaters placed in key positions around the site. Most site installations can be completed in one to two weeks.

Wireless technology costs more than hard-wired solutions in the beginning, but over the long run, they require more maintenance and repair. Wire and door contacts are subject to wear and tear; little nicks in a wire can cause shorts; conduits between buildings crack and can retain water after rain; door contacts are broken or pulled loose by customers, and as time passes, costs add up.

Recreational Vehicles

RVs can be protected from theft by placing a motion detector in the cab. Like a door alarm, when the owner comes through the gate, the alarm is disabled. If a thief breaks into an RV, the wireless motion detector sounds an alarmmaking wireless technology a great friend for RV storage sites.

Lightning

For those in the lightning belt, each season brings costly threats of getting zapped by lightning. A direct hit burns electrical equipment linked to power, including security devices connected by low-voltage wires.

Most security systems have lightning-dampening circuitry to help reduce damage, and surge protection is also helpful. Still, if lightning scores a direct hit, no power-protection investment can prevent all damage. One preventative measure is to take the wire out of the equation. Wireless door alarmsas well as other wireless solutionsare a perfect solution for warding off lightning disasters.

Techie Talk

Two basic technologies are used for self-storage wireless door alarms. In the simplest terms, one sends a single message from the door alarm, while the second sends several messages on several frequencies. In other words, one technology sends a message on channel 4, whereas the second sends messages on multiple channels, maybe 4 through 12. The first solution provides no way to recover the message if its not heard by the wireless receiver. The alternative technology sends a variety of messages on many channels, guaranteeing the message will be received. In business terms, solution one is adequate, working most of the time, but solution two covers all bases.

What Lies Ahead

Todays wireless solutions are one-way, sending a message to a receiver. This system is a perfect for alarming doors and monitoring RVs. In the very near future, two-way wireless will allow for smarter devices to be wireless. For instance, keypads will send access information to the security controller, which decides if the user can enter. The controller then sends a message to open a door or gate. Keypads, card readers, door multiplexers, relay boardsjust about any hardware for securitywill be able to be connected to the sites wireless network.

This will be a huge boon for owners retrofitting their sites. For older sites, where wire is suspect and conduit runs retain water, using wireless keypads can reduce costs and make it easier to switch to technology such as custom messaging and credit card payments at the keypad.

Whether you are retrofitting a site or building a new one, investigate the options of wireless technology. Many of the solutions coming to market will make sense for your business. 

Tom Lewellen is the commercial business development manager for Scottsdale, Ariz.- based PTI Integrated Systems, offering a complete line of integrated management software and access-control systems for self-storage facilities worldwide. For more information, call 800.331.6224; visit Click here for more info!

 

We have increasingly become a wireless world. Small high-powered transmitters change the way we do many things in day-to-day activities, including the many management activities at your self-storage. Some devices use infrared light to carry information, similar to your TV remote; others, like your portable telephone, use a radio transmitter. Regardless, you can have information and data moving from one place to another without using a wire.

Wireless devices have been used in the industry for several years. New application of discrete technology has improved its efficiency and convenience in the industry environment.

Your computer may use a wireless mouse. The site graphics display that helps managers keep up with activity from the access-control and alarm systems may be controlled with a remote controller. Your office or managers apartment may even have a wireless computer network, something like the neighborhood cyber cafe. Cameras, alarms and other security components may also take advantage of wireless transmission methods.

Linked Facilities

An owner in Little Rock, Ark., acquired a property, and shortly after purchased a second facility across the street. His security installer provided and installed a short-haul wireless modem to connect the two facilities so they could be run as a single site from one office. Though they require line-of-sight transmission and reception, the signals can travel efficiently for as much as two miles, solving some challenges in operating more than one location in a small area.

While improvements in technology help us do a better job, the basics stay the same. You want to make sure you have absolute access control, alarms to signal intruders, video surveillance to keep a record of activities, and contact with your customers with intercoms and good sound systems.

Unit-Door Alarms

The most popular use of wireless in self-storage is individual unit door alarms. The concept of arming a monitoring and alert device for each door is simple, but the engineering and execution can prove intimidating to most engineers, especially when operators are not willing to absorb high costs.

Unit door alarms consist of a contact mounted at each door location, a way to communicate the state change of the contact, either open or closed, and a device that receives and decodes the location information of the sensor responding. Vendors use a variety of components to accomplish the task.

Going beyond high-security locks, wireless-alarm transmitters for each rental unit door can help owners achieve a high level of security, which makes a positive impression on prospects and gives tenants the warm fuzzy feeling that a particular property is better protected. We all want to feel safe. While security systems used in the self-storage industry are not specifically designed to protect persons, they do an excellent job at deterring crime and protecting property.

Return on Investment

Because people have become so security conscious, the return on investing in the added protection of individual door alarms is excellent. Industry figures show that facilities with security measures can command rents up to 35 percent higher than those without.

In some circles, unit-door alarms have been criticized because of a misperception they dont perform well. The truth is most systems will work extremely well when installed properly. To ensure proper performance, vendors go to great lengths to confirm chosen installers are competent and knowledgeable.

Operators most frequent question is, How much does it cost to add door alarms to my system? The answer isnt simple. Cost depends on whether the facility is planned, under construction or existing. It may also be affected by materials used in your building construction, location and topography of the site, and if you opt for a hard-wired or wireless system.

There have been some problems adapting equipment designed for residential and light-commercial applications for use in the self-storage environment. The difficulty has been trying to take off-the-shelf parts and make them work for a use where they were not intended. Ive tried similar equipment at my home that didnt perform that well, so I would never expect it to work at my facilities, says one owner. The lesson learned: Work with a self-storage-specific vendor to avoid these pitfalls.

When planning for door alarms, make sure every door is armed, even the vacant units. This way, the manager knows not only who is coming and going, but also whether or not tenants are actually going to their own units.

Customer Appreciation

Regardless of the technology used, customers appreciate the assurance that the unit they rent has the additional protection. When I was in college, I rented a locker for the summer in a place that looked nice and was well-fenced, says Wendy Earley, a typical storage customer. Somebody apparently jumped the fence, even though there was an automatic gate and all. My parents and I had to replace a microwave, a toaster oven, and everything else that seemed to have much value. The next summer, we stored in a place that had better alarms.

Inventors, engineers and security experts will continue to incorporate new avenues to use wireless methods to improve equipment and systems. Many of those will find their way into your storage facility, making management easier and improving customer service. 

Steve Cooper is a member of the marketing team of Digitech International Inc., providing security solutions for more than two decades. For more information, call 800.523.9504; visit www.digitech-intl.com. 

For more information about self-storage security, check out "Security: Choosing Tools, Protecting Your Investment," a 32-page e-book available through the Self-Storage Training Insititute. Click here for more info!

 

In recent years the buzz has been about incorporating the Internet with management tools, adding call centers to increase store traffic and utilizing kiosks. These all add value to the business either by slimming the accounting and record-keeping functions, increasing occupancy and adding customer conveniences.

Many owners have turned to technology to keep their sites safe and sound for round-the-clock business. Integrated electronic door locks and kiosks reducesometimes eliminatethe need for a manned office. These two technologies offer huge yield potential for self-storage.

Lets review how the system works: The tenant enters a PIN at the gate-entry keypad. If the tenant is current, the gate opens and the tenants unit(s) are unlocked. If, on the other hand, the tenant is past due, the keypad will not open the gate, but will display a message instructing him to pay at the kiosk to gain immediate access to units. Once paid, the electronic lock automatically removes the overlock.

Its important to note that this system doesnt create a bailment, because the electronic lock is not the primary lock. The unit is still secured by the tenants lock and key, relieving management of liability.

Jumping Hurdles

Security offers many challenges, but a well-planned system can overcome many of them. For example, customers often prefer convenient services, 24 hours a day. Its not practical to man your facility 24/7, but the electronic lock system teamed with a kiosk can perform many management duties:

• Rent units 
• Collect fees 
• Over lock units 
• Remove overlocks when rent is paid 

Security systems today can help resolve the problems faced when land is scarce and prices are high. Sites may be manned by the new technology, eliminating the need for office and living space. Non-traditional sites can be designed to stand alone or as part of a satellite system of facilities. Other benefits include:

• Electronic door locks keep vacant units locked until rented 
• Normal operations are easily monitored.
• If the gate fails to open, managers are alerted.
• Battery back-up options keep systems operating even if there is a power outage.
• Customers gain 24-hour convenience.

The Satellite Concept

Some owners are incorporating the electronic door locks and kiosk combination in sort of a spoke-and-hub design. A super site is constructed of approximately 80,000 feet including a first-class retail area and apartment. Surrounding this super site about 2 to 5 miles away are significantly smaller sites about 100 to 200 units in size. These satellites are equipped with electronic door locks and kiosks for normal operation. As part of regular job responsibilities, the managers of the super site clean and maintain the satellite sites.

A combination of products is recommended to up the level of security at facilities: well-placed cameras, excellent lighting, commonsense construction and building design, individual door alarms and keypad access gate control.

In addition, the electronic door locking system can provide an active system to continually monitor the site. It monitors the door status (open/closed) as well as the condition of locks, gate position and its own system status. The results of this monitoring may be sent to the security systems provider.

Abnormal results can be managed by one of the technicians remotely, or if the conditions warrant, a service provider can be dispatched to the location to correct the problem. Kiosks work similarly.

The technology is here. As the use of electronic locks and kiosks grows, so too will the methods of lowering human-resource costs, maximizing land use and extracting the most profit from future self-storage locations. 

Tim Seyfarth is president of Phoenix-based Global Electronics Ltd., which provides gate-access controllers, alarm systems, electronic locks and Windows-based access/alarm-system software. For more information, call 602.437.8005; e-mail [email protected]; visit www.global-electronics.com. 

For more information about self-storage security, check out "Security: Choosing Tools, Protecting Your Investment," a 32-page e-book available through the Self-Storage Training Insititute. Click here for more info!

 

When planning for self-storage security, the options go far beyond flashing lights and guard dogs. Each property has its own unique challenges that may be approached in a variety of ways.

Security systems should serve three main purposes: 1) Protect your investment. 2) Provide a high level of comfort for customers storing their belongings. 3) Assure the safety of your managers.

Concepts to have in mind when planning your project range from building layout to electronic security devices you intend to install. Making educated decisions in the design phase will save you money and time down the road.

Building Layout

The first consideration should be the projects overall layout. According to Buster Owens, of Rabco Corp., the facilitys perimeter should be designed in a fortress style with the buildings acting as the barrier. This design allows the perimeter to be secured without the additional cost of a fence and you get the added benefit of having double loading driveways on the entire property, explains Owens. Inside the fortress, all buildings should run parallel to the longest dimension of the property, he adds.

Make sure to design adequate turning room at the ends of buildings. Too often facilities are positioned so tightly it makes it difficult for trucks to navigate. Many moving trucks are rented by people with little truck-driving experience. Limited turning space leads to damaged trucks and buildings.

Access-control systems should be considered early in the layout phase. Virtually every facility these days has a plan for an automatic gate system. How will tenants enter and exit the site? While a single entry point may be adequate, multiple exit points may be necessary, depending on the projects layout. Exiting convenience is a priority; if its hard for customers to use an exit keypad, they may try to bypass the access system and tailgate out, damaging property in the process.

Lighting

Figure out your lighting needs in advance, especially if you plan to offer customers 24-hour access. Proper illumination is definitely a factor in the overall security of your facility, but its typically overlooked in the grand scheme of things.

Project lighting is often improperly calculated, according to John Vowells, an electrician and lighting-control specialist. If you have to go in after a project is completed to correct the problem, its both expensive and inconvenient. Vowells recommends balancing lighting between both sides of the driveway to achieve the ultimate goal in lighting: No dark spots at night!

For climate control, where corridors dont need to be lit 24 hours a day, many facilities rely on automated lighting systems. Motion detectors and timers are not always practical, judging from the ongoing problem of tenants being left in the dark, literally. Todays automated offerings integrate into access-control systems and turn on specific lights for tenants going to their units.

Modern lighting systems can be customized for tenants either by time- or activity-related functions. They cost more initially but pay for themselves over time, especially given the recent rise in electricity costs.

Individual Door Alarms

The market has proven that individually alarmed units command a higher price. Facilities with door alarms should promote the added security feature in all marketing efforts.

The time to think about installing individual door alarms is at the beginning of the project. Economical, reliable systems involve wiring and require conduit runs be implemented in the electrical blueprints. Make sure conduit runs are big enough to accommodate the system and are directed to the correct units. A rule of thumb in calculating the size of conduit needed is to double it. It may cost a tad more, but its less expensive if you ever have to run additional wires down the line. Since the majority of individual door alarm systems for self-storage are low voltage, they must run in separate sleeves from the regular AC voltage serving each building.

Door-alarm systems also integrate into access-control systems. Customers key in entry codes to disarm their units. When they key out and exit, units are re-armed. If the door is open without proper coding, the alarm sounds, usually sending off sirens and strobes. At most sites, the signal is sent to an alarm panel in the main office. The system can be configured to relay the alarm in the yard as well, in case the manager is not in the office.

CCTV

Camera systems have been around for years and are a longtime friend to self-storage. Because equipment prices have dropped, some operators like to cover every square inch of the facility with video surveillance.

Incorporating monitors into the office should be a primary concern when designing a new site. Most modern facilities have monitors grouped behind the rental counter providing a visual display for tenants and walk-ins. Couple this with a color-coded map identifying each units activity in real time and you have a dynamic and impressive display that sends the message that security is a high priority at your site.

At the very least, you should have cameras covering high-traffic areasdriveways and, in the case of a climate-controlled building, the entry doors. Make sure you have a clear view of the gate and license plates. A camera should also watch the office counter at all times.

The Nesting Instinct

The trend in security is toward nesting, in which some areas of the facility are secured with additional safety features. Nesting requires installation of double devices, such as keypads for gate entry and door alarms on individual units. Another option is to install a keypad and card-reader combination, which will require a valid code and card to enter these designated areas. Many tenants will pay a premium for double security, so the added features may pay for themselves quickly.

Access-control systems should always be considered in a projects planning phase especially since they often become the only line of tenant communication. Many modern systems are integrated with management software allowing customized messages to be sent from the front office to tenants entering and exiting the property. You can choose your general greeting as well as send tenant-specific messages about account balances, due dates and special sales promotions.

With all security plans, its important to design and budget far in advance. And never let security be the sacrificial lamb of the project if there are cost overruns. Budget for a tight security system and stick to it. If you dont, youll regret it. 

Joe Burt is international sales manager at Sentinel Systems Corp. of Lakewood, Colo., which has manufactured self-storage software and security systems since 1975. Mr. Burt has more than 16 years of self-storage experience. For more information, call 800.456.9955; e-mail [email protected]; visit www.sentinelsystems.com. 

For more information about self-storage security, check out "Security: Choosing Tools, Protecting Your Investment," a 32-page e-book available through the Self-Storage Training Insititute. Click here for more info!

 

In my 17 years of doing security systems, I see one prevailing problem: People decide to cut corners during installation. Security requirements are no different than any other electrical systemfail to follow the basic rules and the results could be shocking.

Throughout most of the United States, no uniform code enforcement or inspection of self-storage security systems is required. But general practices need to be followed to ensure owning a system that works with minimal problems. For the most part, these procedures are the same as the National Electrical Code with the exception that the security industry deals with low-voltage connections. Low voltage is defined as being below 50 volts. Security systems are usually either 12 volts or 24 volts. Following is a list of rules to follow when installing a security system.

Rule No. 1: From the Ground

All underground electrical wiring, including low voltage, should be installed only in PVC conduit. Electrical conduit is gray and can be bought at most hardware stores. Electrical fittings ensure the wire is not damaged during installation. Underground conduit runs should be buried at least 12 inches below grade, and all joints attached with PVC glue. Dont cut corners. Saving a few hundred dollars on a large project is pennies compared to the overall cost of the project, and will only set you up for later problems.

In most cases your electrician is digging his trenches to the same places your conduit needs to go. You can share his trench or even have him install your underground conduits. As a general rule, we have the electrician do the job for two reasons: Its more cost effective for the customer, and it keeps us (and them) from cutting other conduit runs. If opting to share a trench, remember to separate the conduit runs by 12 inches. This eliminates the bleed through between high and low voltages that can cause noise in your data runs. Skip this step, and the problem wont be correctable without separating the lines after the fact. Not a good problem to have.

Rule No. 2: Conduit Concerns

Above-ground conduit should be metal. PVC should extend between 6 and 12 inches above the ground before changing from plastic to metal. Never install a PVC-to-metal fitting at or below ground level. Doing so will allow water to seep into the conduit and hinder repairs. In some cases, larger sizes of conduit (2 inches and greater) can be run if placed at least one foot above grade. Check your local codes before doing this.

Metal-conduit fittings are designed as outdoor and indoor types. While outdoor fittings can be used inside, dont expose the inside variety to the elements, or water could enter the conduit runs. Not only does this increase the danger of shorts, it can compromise your system. Wires exposed to water will deteriorate and require replacement. Water exposure can also affect hardware and add to repair costs. The same is true for junction boxes. Only use outdoor-rated boxes outside. Install a pull or junction box every 150 feet on long runs to prevent overstressing wires when pulled longer distances. Overstressed wires may perform poorly.

Metal conduit should be fastened and supported. When possible, position it to eliminate the risk of damage from vehicles. Be sure to select the correct metal conduit. The two types are EMT and rigid. EMT can be used in most cases but sometimes rigid conduit is required, such as when vehicle traffic is a hazard. Flex conduit or connectors are required when connecting to moving or vibrating items like gate operators. Use a bender for turns rather than 90-degree fittings. This permits faster installation and lowers stress on the wire.

Rule No. 3: Size Matters

Undersized conduit runs and junction boxes will only make the job harder if not impossible. There are National Electric Code requirements for the number of conductors and the allowable size of conduit. The guidelines are to ensure enough heat dissipates when installing high-voltage lines. While this is not generally a problem with low-voltage lines, sizing the conduit is still a concern. I recommend 2-inch conduit runs between office, buildings and gate operator. From the gate operator to the keypads, it should be no less than 3/4 inch. This size will meet the installation needs of most systems, including cameras, alarms and intercoms. If you have a large site or plan to expand, two 2- inch conduits are suggested. If youre not installing a security system now, install the conduit anyway. Its cheaper to do it during construction, remodeling or driveway repairs than any other time.

Be sure to cap all conduits during construction. Unused runs should remain capped until needed. Leaving a conduit exposed to the elements for only a short time can render it useless. Dirt, water, rocks, concrete, mortar, etc., will find their way into an unprotected conduit. Always use a proper cap.

Rule No. 4: No, Really, Size Does Matter

Wire is the lifeline of a security system, allowing devices to connect and talk with each other and us to communicate with the system. Use the wrong kind of wire for the wrong application and your system wont perform correctly, if at all.

There are thousands of wire types, sizes and designations, governed by complex guidelines. Wire size determines how much electricity can flow from your power supply to the devices. This is called resistance, and the longer the wire run, the more resistance and lower voltage at the other end. To compensate for this drop in voltage, we increase wire size from the power supply to the devices.

Wire sizes are measured in numbers or gauges such as 8, 12, 14, 18, 22, etc. The bigger the wire size, the lower the number. For instance No. 14, or 14 gauge, is about 3/16 inch in diameter, while No. 6, or 6 gauge, is about 3/8 inches in diameter. The larger the wire, the less resistance and lower drop in voltage. Most systems can be installed using No. 14 or smaller wire.

Security wires or cables are designated using two numbers. The first number is the size. The second is the number of conductors or wires inside the cable. A cable marked 18/4 would be No. 18 (18 gauge) with four separate conductors. You need to know the total number of conductors required for your system to determine the correct wire.

Generally, one wire cant be run for all applications at your site. For a typical access system, a separate wire is needed for the keypad data, intercom, camera, power and to trigger the gate. In some cases, combinations of wires in one cable can be used, but combining the wrong applications can cause operational problems or void your equipment warranty.

Rule No. 5: Get Wired

There are also different wire types. Some wire is shielded with a foil wrap between the conductors and the outer jacket of the cable. This adds to the reduction of noise (see No. 1) that may plague data lines. This doesnt eliminate the necessity to separate high- and low-voltage lines. Shielding only helps reduce other noise problems. Some equipment requires shielded wire while others take non-shielded.

Camera systems require RG-59 cable, not RG-6. You can tell the difference by looking at the shield or braid. If the braid is aluminum, the wire is RG-6. If the braid is copper then the cable is RG-59. Using RG-6 on a camera system can result in ghosting on your monitor. RG-6 is used for cable TV.

Cameras also require a power cable. Use the correct gauge wire for this because too small of a wire will overload the power supply, sparking power outages and camera failure.

When installing an intercom system, be especially careful of what wire you use, where you place it and what is in the general area. Intercoms pick up more interference or noise than any other device. High-line wire across the street can cause static in the intercom. The same is true for lights in hallways. Some vendors suggest using shielded wire to compensate for this; however, its sometimes impossible to eliminate all static from the system. Use every precaution and be sure to consult your supplier for recommendations.

When making wire connections, depend on the proper items. Use wire nuts to join wires. Installing a wire under a screw on a terminal strip? Select wire connectors, such as spade connectors. These ensure the connection remains tight and no whiskers (small strands of wire) can come in contact with other wires, causing a short.

Rule No. 6: Simple Little Things

That old saying, If its worth doing, its worth doing right, perfectly applies to installing a security system. Many times, I have driven hundreds of miles to spend a few minutes fixing a system that needed a couple connectors or wire nuts. The owner could have avoided a hefty bill on the service call.

When dealing with electricity, you have to be proactive. You cant see it, smell it or hear it until its too latefar too late, in most cases. While you probably wont get hurt dealing with 12- and 24-volt systems, you can make a major hole in your bank account by simply not taking the time to use the right parts and equipment for the job. 

Chester A. Gilliam works for Centennial, Colo.-based Wizard Works Security Systems Inc. and has been involved with self-storage security systems for the past 19 years. For more information, call 303.798.5337; e-mail [email protected]. 

For more information about self-storage security, check out "Security: Choosing Tools, Protecting Your Investment," a 32-page e-book available through the Self-Storage Training Insititute. Click here for more info!

 

With the rising trend in interest rates, what are the concerns of buyers and sellers in your market and how have attitudes changed?

Bahrmasel

: The interest of first-time buyers has cooled somewhat. However, owners still have a good appetite for acquisitions. Sellers have pulled back from listing and seem to want to hold onto properties. Some owners were prompted to sell because of low interest and cap rates (5.5 percent and 7.5 percent, respectively), but now they are listing property for more traditional reasons.

Goldman

: The rise in rates has brought a sense of urgency to the market. I think the industry is in a shake-out period of prospective sellers who are concerned about stagnant or declining performance and now want to sell before interest rates climb too high.

Hitler

: Were seeing a slight increase in the number of people selling. I think sellers are realizing we have left the top of the mountain and interest rates are slowly going up, reflecting a lower selling price.

Off

: As interest rates increase so do capitalization rates, which means prices decline. This is particularly true in non-institutional properties. Owners were slow to catch on to the situation but seem to be focusing now. They may be a bit late, but there is still time.

Svenvold

: I see more non-metro facilities listed for sale. I think some sellers are listing now before rates climb higher. I still see prices that dont make sense, most of which stay on the market without selling, indicating few sellers have changed their attitude.

Whitehead

: Buyers still want lower loan rates, but its harder to find them. Lenders have started to tighten lending requirements. Sellers attitudes are unchanged, but theyll likely react with higher asking cap rates.

Cite an example of overbuilding in your area and describe the repercussions.

Bahrmasel: An interesting example occurred in a suburban location where a nice facility came into a saturated market. Owners in the area were able to beat the new facilitys prices, making lease-up difficult. The owner was forced to sell his project long before he could stabilize it. He sold about six months ago, when low interest rates still made his project attractive to investorsa scenario that wouldnt occur today.

Goldman:

Over the past eight years, Ive seen a herd mentality of facility building and expansion, triggered by periods when demand catches up with supply. The end result is declining occupancies. Unsophisticated owners may drop rental rates, indefinitely depressing the entire submarket over the long term. Savvy owners generally will give concessions with time frames, limiting the damage to long-term performance. Regardless, the outcome is lower revenues.

Hitler:

Overbuilding hasnt been a problem in Wisconsin, with a few minor exceptions. Occupancies are down a bit but still robust at 85 percent and higher.

Off: About a year ago, I got a call from an owner who built a facility but realized self-storage was more of a business challenge than hed bargained for. I suggested he try to sell for the amount invested or possibly take a small loss. He chose to continue leasing, hoping to increase his NOI and value. A few months ago, he called to report a new competitor had just opened down the street. Our conversation was not about a possible sale, but rather how he could stay above water while the competition cut prices and caused havoc in his market. I think he wishes he had sold and took a small loss. As they say, Often your first loss is your least expensive loss.

Svenvold:

There has been some overbuilding north of Twin Cities and two facilities have been taken back by the lender. The properties are in areas that had a strong supply of storage space but poor highway access. The impact has left an ultra-soft market.

Whitehead:

There hasnt been much overbuilding in Iowa, but we are starting to see many new facilities in areas such as Des Moines that are high growth or have the potential to be. Some owners are concerned overbuilding could factor in the near future, but feel they have the prime location for success. If interest rates continue to rise, new construction will slow, and areas with overbuilding will stabilize.

A new project will always cause existing owners to redefine strategies and business plans. We have developed a survey outline (www.selfstorage.com/argus/toolbox/checkup.htm) to help you better understand your market when competition threatens. The survey assists in determining a long-term strategy and short-term tactical approach.

How is the economy in your area faring and how does it affect self-storage?

Bahrmasel:

Owners are reporting strong occupancies and lease-up activity. Our economy remains vibrant; as long as owners dont saturate an area with new projects, the outlook is good.

Goldman:

Southwest Missouri is seeing strong overall economic growth accompanied by strong absorption of new space. Kansas City is holding its own with more limited growth and slower absorption in a generally overbuilt market.

Hitler:

Wisconsins economy is good. Were not experiencing a boom, but unemployment is low. There are vacancies in the office/warehouse market and industrial buildings. Occupancy in self-storage is strong.

Off:

The Midwest, particularly in Ohio, is suffering a loss of jobs and consequentially the population is shrinking. This creates an environment where buyers are cautious and sellers often disappointed. Facilities are still being bought and sold, but a professional marketing campaign is almost essential for success.

Svenvold:

Minnesotas economy is doing well. Housing starts are forecast to be near or slightly under last year, and single-family home sales are off to a good start, which should be beneficial for the storage industry.

Whitehead:

The economy is soft and some owners are seeing higher vacancy rates than last year. Tenants may be able to be choosier about facility choices if owners begin offering incentives to keep occupancies high.

Are valuations the same in terms of cap rates? Are you seeing as many buyers right now?

Bahrmasel:

Prices for projects are coming down based on todays interest rates. New sellers will probably have to adjust their values to reflect the current interest-rate climate.

Goldman:

Valuations in Kansas and Missouri are still robust as there are far more buyers than sellers. Buyers range from existing storage owners looking to expand portfolios, to 1031 buyers aiming to get out of other properties and into self-storage, which is less management intensive.

Hitler:

We see as many buyers in the market as last year, but theyre not willing to pay as high a cap rate. Facilities with a marginal location have dropped up to 50 basis points. We think this will be an excellent year for storage sales.

Off:

Cap rates are becoming muddled as vacancies increase, expenses grow and individual markets are stressed from competition. This creates a situation where a facilitys value is more often based on future potential income and the underlying asset value of the land and buildings. Gone are the days of simply capitalizing the NOI by some market cap rate formula. Preparing a proper valuation is an art form and best performed by someone with experience and market knowledge.

Whitehead:

Cap rates have increased slightly, ranging from 8.75 percent to 10 percent on Class A facilities, 10 percent to 11 percent on Class B facilities, and 11 percent and up on Class C facilities. There are still many buyers for all facility types. This will continue as more people look at self-storage as an investment vehicle.

According to most of our brokers, cap rates are increasing and prices are softening; however, the biggest variance is still the regional spread in rates. Buyers should take a look at deals in coastal regions. The economies are mostly solid and stable. If you can buy a property on a 9 percent or 10 percent cap rate (as opposed to 7 percent), net income increases by 29 percent or 43 percent, respectively. Thats on the same dollar of investment. See you in Iowa! 

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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 self-storage facilities. For more information, call 800.55.STORE;visit www.selfstorage.com. 

In the early days, self-storage security relied on chain-link fences and padlocks. Management software was limited to a pad of paper and pencil. How things have changed!

Todays facilities run high-end computer systems to process tenant information, payments, reports, invoices, and yes, even security. The evolution of management software and securityand the seamless integration of the twohas forever changed the face of self-storage.

The personal computer revolution started in the 80s, facilitating the use of software for managing tenant information and property access. Early DOS programs pioneered time-saving features, enabling managers to perform simultaneous tasks overnight such as posting rental and late charges, printing late notices and invoices, and automatically denying delinquent tenants gate access.

Microsoft Windows debuted in the early 90s, prompting many companies to migrate from DOS management software. The new point-and-click functionality permitted many new features. Manager training became smoother and quicker, allowing for better customer service and more time for facility maintenance.

As the 90s progressed, software and security systems matured. In the past, managers had entered tenant information and gate codes separately, often making mistakes and upsetting tenants. Now, companies could seamlessly integrate the two solutions, minimizing errors and streamlining the overall experience for property managers and tenants.

New Millennium of Management Software

Having survived Y2K and the new millennium, we are seeing previously unimaginable technology. Advanced Windows management software, coupled with tightly integrated security packages, controls gate access, elevator restriction, wireless door-alarm systems and more. Add a digital video-surveillance system and you have a hi-tech storage facility.

Management software has many new twists:

• Automatic credit card and bank account processing: Tenants are automatically charged on the same date each month, a favorite feature among operators. Funds are deposited directly into your account. The function reduces postal fees, processing time, delinquencies and loss of rentable units during the default process. Plus, it requires no equipment rental.
• Gate activity: This allows for on-screen, real-time, tenant gate activity without having to switch to a different gate software program, controller or security computer. It is an at-a-glance feature integrated into the main screen of management software.
• Tenant photos: Higher-end management systems allow you to keep a visual record. Capture multiple digital color photos of tenants and their unit contents to keep on file.
• Driver license move-in: If your state driver licenses have magnetic strips on the back, they may be swiped during move-in, providing tenants full addresses. This cuts down on data entry and ensures information is entered correctly.
• Automatic rental-fee changes: Let your software raise or lower scheduled rents based on number or percentage of vacant units.
• E-mail: Automatically e-mail tenant correspondences, notices, receipts and invoicessaving time and money.
• Home office: Set up daily backups and important reports to be automatically sent to an offsite e-mail address without manager interaction.
• Word processing: Powerful, built-in word processors let you customize important documents such as notices and leases to tenants.
• Tenant insurance: This option enables insurance invoices to be paid with rent.
• Choose your business model: Do you prefer to bill strictly at the first of the month or anniversary of move-in date? Or are you partial to partial-payment business models?
• User restrictions: Customized user setup allows you to decide what the manager can and cannot access.

One Step Beyond

Now that weve covered management software, lets take a peek at other attractive options:

• Pay-at-the-gate (PATG): Tenants are always amazed by a PATG demonstration. When a delinquent renter enters a code at the gate, intelligent feedback on a large, brightly illuminated keypad offers him the option to pay his balance via credit card. Once swiped, the credit card is processed by the management software. If approved, the tenant may enter the facility; the software automatically e-mails him a receipt.
• 3-D site graphics: An interactive 3-D site map with real-time tenant status can indicate delinquencies, vacancies, gate entries and exits. Wireless door alarms allow you to immediately see when a door is opened or closed. User-defined setup provides custom tailoring of displays with side-to-side panning, static images or orbital modes. To really impress tenants, install site graphics on a large LCD or plasma screen behind the management counter.
• Wireless door alarms: Wireless systems have improved greatly. The battery life of door-alarm sensors now lasts 20 years; built-in tamper switches are a standard feature; and sensors have on-board intelligence for optimum performance. Further, wireless is not limited to stationary units: Imagine providing RV and boat tenants with the same high-level security as self-storage renters.
• Digital video surveillance: No more time-lapse VCR tapes! A digital video recorder (DVR) records events directly onto a hard drive. Better DVR systems include a built-in CD/DVD recorder. In the event of a break-in, a disk can be handed over to police, while the original recording remains in the system. DVRs provide an excellent security feature.
• Elevator restriction: Now you can restrict tenants access to floors other than their own. Coupled with wireless door alarms and digital-video surveillance, elevator restriction means you can effectively lock down your facility and provide the safest storage solution for tenants.
• Gate restriction: Similar to elevator restriction, this feature limits tenant access to specified areas. For example, certain renters may gain access to a climate-controlled building but not RVstorage areas.

As you can see, we are long past the days of chain links, padlocks, pencil and paper. The evolution of management software and security systems has served the self-storage industry in ways never imagined. Take advantage of the offerings. 

Randy Fountain is an account representative and Tony Gardner is a licensed contractor/ installation manager for QuikStor, a provider of self-storage security and software since 1987. For more information, visit www.quikstor.com. 

For more information about self-storage security, check out "Security: Choosing Tools, Protecting Your Investment," a 32-page e-book available through the Self-Storage Training Insititute. Click here for more info!

 

Every moment a U.S. merchant is robbed via electronic payment systemstotaling $3 billion per week. Whats a merchant to do? First, we must define and understand the problem.

Three types of fraud afflict merchants using electronic payment systems:

1. Internal fraud, or employee theft 
2. External fraud, in which a third party is involved 
3. Friendly fraud, indicating an authorized cardholder bends the rules of the payment system 

Last fall, the U.S. Chamber of Commerce released results of a study indicating one in three employees steal, making internal fraud a prevalent problem. Most commonly, employees steal customers identity information to gain access to accounts and withdraw funds.

The Payment Card Industry (PCI) strives to eliminate internal and external fraud through 12 steps designed to protect physical and electronic security. Its a common misconception that PCI only refers to e-commerce merchants. By definition, any merchant handling merchant service information is required to report. Compliance with these regulations is driven by the number of transactions conducted each year.

Security Steps

Regardless of fraud type, merchants should become familiar with several security measures: background checks, division of responsibility, audits and monitoring of statements.

Background checks are essential. Check the histories of employees and potential hires to see if they pose a risk. Employees who lie on applications should never be hired. Non-verifiable references should raise an eyebrow as should any applicants refusal to allow criminal and financial background checks.

Once employees are hired, check their records as frequently as you feel appropriate. Never assume anyone who passed a background check will remain loyal and not cause your business harm. Life circumstances change and can influence peoples mindsets radically.

Divide responsibilities as much as possible. Even at small self-storage facilities, its a mistake to give one employee control of all finance functions. If you cant divide, then rotate responsibilities.

Audit frequently and erratically. Most employee thefts occur soon after an audit. Employees dont expect management to audit immediately after an audit. Always do unannounced and random audits, making it impossible for employees to predict the timing. This significantly reduces the likelihood of internal theft.

Monitor your expected results. Establish benchmarks for predicted monthly outcomes adjusted for seasonal or other influences. If numbers arent adding up, make sure you rule out fraud. And remember, while a change in the number of charge-backs can indicate equipment malfunction or other operational concerns, its also an early indicator of fraud.

Investigative Reporting

When you are accepting merchant services look for the following:

• Excessive credits 
• Change in downgrade patterns 
• Increased number of chargebacks 
• Increase in voids 
• Increase in returns

Its highly likely youve been robbed in the last year. Not the kind of robbery where youre hit over the head and dragged into a dark alley, but a subtler and potentially more damaging approach.

When you are accepting electronic checks (ACH) look for the following:

• Changes in credit patterns 
• Changes in debit patterns 
• Reconciliation failure 
• Missing bank statements 

Your best defense is to monitor everything: employees, cash flow, bank statements and merchant-service statements. On that note, do you really understand the latter? No two processors use the same layout, language or charges for services. Request a detailed written line-by-line explanation for all those you receive. Dont assume anything!

Once you can interpret statements, track critical components and ratios. Review the plan summary, number of card types accepted, transactions of each card type, and number and type of charge-backs, downgrades and voids. For voids, take a step-by-step approach and log all of the following:

1. Reason for the void 
2. Time, date and operator who entered it 
3. All associated receipts 
4. Customer signature 
5. Reason for the void 

Confirm data with the customer, and accumulate voids to see if a pattern emerges. For example, is one operator tallying more voids then others? Do voids occur at a specific time? Are one or several related cards receiving an unusual number of voids?

Compare this information with your previously identified benchmarks, reviewing the statements from the last 12 months at least and calculating the critical ratios discussed above. This provides a reference of the expected number and type of issues you should expect.

Weve seen a number of examples of fraud being perpetrated for many years. Unknowingly, management incorporated fraudulent activities into regular datamonth after monthso benchmarks may have been similar while theft was prevalent. Third-party benchmarking would have been a valuable resource in each case, perhaps uncovering the inaccuracies long ago. It may protect your facility from fraud as well. You can never be too careful. Remember there is no such thing as too much security or a bulletproof organization.

Ross Federgreen is a co-founder of CSRSI, which provides an integrated approach to the analysis, design, implementation, deployment and management of electronic transaction services and systems. Since 1999, the company has helped more than 350 public and private institutions reduce the cost of acquiring money and minimize the liability exposure related to payment transactions and customer data. Its products include the Credit Card Analysis System. For more information, call 866.462.7774, ext. 23; e-mail [email protected] ; visit www.csrsi.com .

For more information about self-storage security, check out "Security: Choosing Tools, Protecting Your Investment," a 32-page e-book available through the Self-Storage Training Insititute. Click here for more info!