To operate a successful self-storage facility, you need a security plan, including features to attract customers and deter criminals. A good security program broadcasts those features. Gates, fences, lights and cameras can make a facility look secure to a renter or crook.

But none of those features will keep out the thief who rents a unit to gain access to your site. To stop that bandit, you need a lock—and not just any lock, a security lock.

It’s time to face up to the real world of self-storage—no more “your lock, your key.” Your tenant is a transient. He has no long-term interest in your business and its security. He doesn’t even know much, if anything, about security. He shouldn’t be choosing a lock. Do you put your own lock on your car or hotel room? If you let your renters set the level of security at your site, you can be sure of one thing: There won’t be any security.

You’ve made all the other decisions about your business. Now, at the most vulnerable spot, don’t turn over the reins to a casual person off the street. It’s his property, you say, but it’s your business. If you require renters to have tenant insurance, as you should, your renter can recoup his loss if his unit is robbed. You are the one who will lose … your reputation, sales and investment. Bad security will cost you, so act accordingly. Require an appropriate level of security for your market.

The Padlock: An Invitation to Steal?

The most basic self-storage lock is the padlock. It has pin tumblers, 500 to 1,000 key combinations, and a hardened steel shackle. This lock is easily broken with a bolt-cutter. It’s also relatively easy to pick. If you Google the phrase “bump key,” you’ll see how even an amateur can open this lock and remain undetected until the renter returns—and blames you. You see these locks at self-storage facilities, but this type belongs on a yard shed, not a storage unit.

The Disk Lock: Moving Up, But Don’t Ignore the Keyway

The disk lock is a significant upgrade over the padlock. The shackle is “hidden” inside the round shape, making the lock virtually invulnerable to a bolt-cutter. It takes some time and noise to break a disk lock. But if it’s built around the same pin-tumbler mechanism as the standard padlock, it’s just a “round” padlock. It can’t be cut, but it can be picked or “bumped.” Picking takes time and some skill. Bumping can make anyone an expert. Don’t know what “lock bumping” is? Just Google the phrase and get alarmed.

Fortunately, a number of disk locks on the market feature dimple-type keyways, with dimples and grooves cut into the side of the key. They can also be bumped, but with much more difficulty.

Even with a secure pick-resistant keyway, the disk lock still hangs on a latch, and some clever thieves have discovered you can cut the slide bolt around the latch about as easily as you can cut the shackle of a padlock.

The Cylinder Lock: Are We at Last in the 21st Century?

The cylinder lock solves that problem. It inserts right into the door. The cylinder-lock system has been around for nearly 30 years, but at last it appears to making its mark. One version is built around a push-in cylinder, which provides convenience as well as security. We all know tenants might ask about security, but what they really want is convenience.

A second kind of cylinder system provides an additional hasp for a tenant padlock. In this version, the cylinder provides security, but the tenant can still attach his padlock as a seal to protect against undetected intrusion.

Mounted inside the door with no shackle or latch to cut, the cylinder-latch system can be paired with a lock-out option that allows the operator to lock the unit without needing another lock. The tubular key version usually has more than 20,000 usable key codes and is pickable by only a skilled criminal, the kind who usually goes after vending machines and other more valuable targets.

The high-security cylinder lock is virtually pick- and drill-proof, and a powerful marketing tool for any facility, particularly one in a high-crime area. Now the double-hasp option allows an operator to provide renters peace of mind along with a master-key system.

The cylinder system adds to its security features by ensuring every unit on a site looks the same. A thief is faced with 200 to 400 or more possible targets, not just some vulnerable ones with inviting locks.

Electronic Locks: Part of an Automated Facility

I called the cylinder-latch system a 21^st-century device, but it’s still mechanical. Self-storage is now also seeing the rollout of electronic locks, often tied to 24-hour kiosks that dispense rental agreements along with door codes that can move a new tenant in without human intervention.

This wireless system is battery-powered and provides individual unit security and access control. It typically integrates with a facility's access-control system, allowing locks to automatically engage and disengage when a tenant gains access at the gate keypad. In addition, the locks can be secured by the operator via the software, automating the overlock process if a tenant is in default.

Make the Investment

All these products can be explored and evaluated online. Google a few key words like “self-storage cylinder locks,” “self-storage electronic locks,” and “self-storage security,” and you’ll be driven to stories, specs and testimonials. There’s no excuse to settle for mass-produced locks that a teenager can cut, pick or bump.

You’re responsible for the security of your business, which is much more valuable than any tenant’s property. Protect your investment by using a cost-effective lock system that meets your business needs.

You need a security plan, and your local market impacts your security choices. You may be compelled to meet your competition with all the bells and whistles of gate pads, cameras and door alarms, but consider the cost per unit of these features, and then balance that cost per door with your locks. You’d probably prefer to rent units based on features, not price. Why not offer tenants a free lock that sets every unit at your facility to the security level you require? You’ll set yourself above your competition and protect your investment at the same time.

Rich Morahan of Richard Morahan Associates writes frequently on security and marketing for the self-storage, information-destruction and restaurant industries. To reach him, call 617.240.0372, e-mail [email protected]; visit www.rmorahan.com.

Select Capital Corp. (SCC), the dealer manager for private offerings and the public, non-traded self-storage real estate investment trusts (REITs) sponsored by Strategic Storage Holdings LLC (SSH), has hired Christine Nguyen as director of national accounts. Nguyen will be responsible for building the selling group for SSH offerings and developing strategic partnerships with broker-dealers, according to a press release issued by SCC.

SCC is currently the dealer manager for Strategic Storage Trust II Inc., a public, non-traded REIT targeting the self-storage market and sponsored by SSH. Strategic Storage Trust II is a related but separate entity from Strategic Storage Trust Inc., a publicly registered, non-traded REIT that operates self-storage properties. Both REITs rebrand their storage acquisitions under the SmartStop Self Storage trade name. H. Michael Schwartz serves as president and CEO of both companies.

Nguyen will be based out of the Strategic Storage Trust II office in Ladera Ranch, Calif. "I've had the opportunity to work with and learn from the top sponsors in the space," she said. "My goal at the end of this year is for broker-dealers to not only think we've delivered a great product that meets the needs of their advisers, but to think of us as a true strategic partner that has helped them grow their business."

Nguyen has a decade of experience working in compliance and sales of alternative investments. She previously was the lead platform manager of alternative investments at LPL Financial, an organization of independent financial advisers. She also was an alternative investment sales executive at First Allied Securities Inc. and a senior risk-management officer at investor services firm T.D. Waterhouse.

"Christine is a great addition to the team as she brings a vast amount of understanding of the broker-dealer industry," said Brian D. Buehler, national sales director at SSH. "Given her background working with sponsors in her past due-diligence roles with LPL and First Allied, she was a clear choice. Broker-dealers are responding positively."

Update 6/4/14 – Pirates Cove Self Storage in Pinckney, Mich., received site-plan approval this week to add a new office, manager’s residence, four additional self-storage buildings and other site improvements. The planning commission postponed a decision last month after members raised concerns about the project.

The existing facility at 1241 E. M-36 currently has several single-story buildings and offers indoor RV and boat storage.

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4/10/14 – The preliminary site plan to add five new buildings to Pirate’s Cove Self Storage in Pinckney, Mich., was tabled on Monday by the city’s planning commission after members raised concerns about the project.

The development proposal includes the construction of a new office, manager’s residence, four additional self-storage buildings and other site improvements. The facility at 1241 E. M-36 currently has several single-story buildings and offers indoor RV and boat storage.

The planning commission’s next meeting is May 5. However, it has not yet been determined if the facility’s site plan will be on the agenda, according to the source.

Pirate’s Cove Self Storage has a second location in Ann Arbor, Mich., which also offers shelving units for rental or purchase. Amenities at the two facilities include climate-controlled storage, drive-up units, and packing and moving supplies.

The professional cycling team sponsored by SmartStop Self Storage, the retail brand for Strategic Storage Trust Inc., finished first and second at the USA Pro Road Race National Championships on May 26 in Chattanooga, Tenn., winning the national championship. Eric Marcotte of Team SmartStop placed first, while teammates Travis McCabe and Julian Kyar took second and fifth, respectively.

“This is a huge accomplishment for our sponsored cycling team,” said H. Michael Schwartz, chairman and CEO of Strategic Storage Trust Inc., a publicly registered, non-traded real estate investment trust. “We believe we’re going to see even bigger and better things happen for this team and everyone involved in it.”

Marcotte and Kyar started their attack on the first lap and stayed in a 10-man break for the majority of the race. “All of a sudden, there were 10 of us, and we were rolling,” Kyar said. “When I went with the move I had a voice in my head that said ‘go,’ and I rolled up there.”

Team SmartStop’s new director, Michael Creed, a decorated U.S. amateur rider, played a crucial role in the win, according to a SmartStop press release. “I thought winning the national championship was possible, but a lot of things had to go our way,” Creed said. “By no way did I think it was a pipe dream, but I never would have thought that we would go first and second. But we came up with a plan, and it literally went exactly as we said. The only difference was that McCabe changed roles with Marcotte.”

Launched in 2008, Strategic Storage Trust operates a portfolio of 126 self-storage facilities in 17 states and Canada. Branded as SmartStop Self Storage, the properties comprise approximately 80,000 units and 10.5 million rentable square feet of storage space.

K.C. Steel Systems LLC, a supplier of steel buildings for the self-storage industry, closed its doors on June 1, effective with the retirement of owner Cletus Frank.

“Over the last 21 years, we have had the opportunity to meet some great people and work on hundreds of projects, many of which are in the Phoenix area,” Frank said in a released statement. “[To] all of our customers, we thank you very much, but now is the time to move on [and] spend more time with family.”

Based in Phoenix, the company offered complete self-storage building packages with project layout, engineering, building structures, roll-up doors, RV buildings and interior partitions.

Self Storage Group Inc. (SSG), an investment-management company with interests in self-storage, has announced a quarterly dividend distribution of $0.065 per share. The dividend is payable on June 30 to shareholders of record as of June 16.

The dividend comes after SSG adopted a stockholder rights plan in April. The move was another step in the company's decision last year to change from an investment company to an operating company with interest in developing and operating self-storage properties. SSG is also working to maintain its qualification as a real estate investment trust (REIT) for federal tax purposes.

The company previously operated as Global Income Fund. SSG owns seven self-storage properties under the Global Self Storage brand in Illinois, Indiana, New York, Pennsylvania and South Carolina through its wholly owned subsidiaries. Those assets comprise more than 80 percent of its net assets, according to company officials. As part of its new business plan, SSG also has invested in REITs, including Extra Space Storage Inc., Public Storage Inc. and Sovran Self Storage Inc.

SSG is a non-diversified, closed-end, investment-management firm whose common stock is traded over the counter under the ticker symbol “SELF.” The primary investment objective of the company has been to provide a high level of income, with capital appreciation as a secondary objective.

All Canadian Self-Storage is hosting a fundraiser on June 4 to benefit Médecins Sans Frontière (Doctors Without Borders), a 501 (C) (3) tax-exempt organization that delivers independent emergency medical care to victims of armed conflict, provides relief in the aftermath of natural or man-made disasters, and fights deadly epidemics in more than 70 countries. The event will take place 4-9 p.m. at the company’s facility at 1 Laird Drive in Leaside, a neighborhood in Toronto, Ontario, Canada.For a suggested donation of $25, attendees will be served hotdogs, hamburgers, beer and soft drinks. Those who donate $50 will be offered beef tenderloin, leg of lamb, martinis, fine wine and cigars in a VIP area. Children under six receive free admission. All proceeds will benefit the charity.

All Canadian Self-Storage plans to host seven fundraisers this year at its seven locations across Greater Toronto. The events will support the Willow Breast & Hereditary Cancer Support, the Toronto Wildlife Centre, and Camp Bucko, a summer camp for children who’ve suffered burn injuries.

“We want to be a part of the community and be a good neighbor,” facility owner Hal Spradling, told the source. “Our policy is the door is always open for any charity event.”

Founded in 1997, All Canadian Self-Storage operates seven facilities in Ontario. The company also offers mobile-storage services, truck rental, and a full line of moving and packing supplies at each of its locations.

The board of trustees for self-storage real estate investment trust CubeSmart has declared a quarterly dividend of $0.13 per common share for the period ending June 30. This is a match to the dividend of the two previous quarters. The dividend is payable on July 15 to common shareholders of record on July 1.

The board of trustees also declared a quarterly dividend of $0.484375 for the 7.75 percent Series A Cumulative Redeemable Preferred Shares payable on July 15 to holders of record on July 1.

CubeSmart recently released financial statements for the quarter that ended March 31. The company reported funds from operations per share of $0.25, a 25 percent year-over-year increase. Same-storage net operating income at its 346 facilities grew 9 percent year over year. The company attributed this to 7 percent growth in overall revenue and a 3.5 percent increase in property operating expenses. Read more about the company’s financial statement here.

CubeSmart owns or manages 545 self-storage facilities across the United States and operates the CubeSmart Network, which consists of more than 800 additional self-storage facilities.