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Adopting Smart Technologies to Improve Self-Storage Operation and the Customer Experience

Article-Adopting Smart Technologies to Improve Self-Storage Operation and the Customer Experience

The 1960s animated TV series “The Jetsons” showed us a future filled with flying cars and autonomous robots. While today’s technology hasn’t quite reached the level of space-age convenience portrayed in Orbit City, it continues to advance. When implemented effectively, it can help you run a more efficient self-storage operation, improve your customer experience (CX) and increase revenue potential.

Even with all the benefits and the “coolness factor,” many facility operators are reluctant to embrace today’s innovations. But to remain competitive in a tech-centric society, it’s essential to adopt new tools, including smart technologies. Used correctly, they can transform your business, enhancing rather than weakening your “personal touch” with customers. Read on to understand the options available and which could be right for your operation.

Questions to Ask

When considering the implementation of new technology, first ask yourself the following critical questions. When evaluating any of the below innovations for your self-storage operation, consider their ability to satisfy these criteria.

  • Will it improve the CX? Self-storage is a retail business, and customers expect a good (frictionless) experience. How can new technology be used to enhance CX and build customer loyalty?
  • Will it improve operational efficiency? As it becomes more costly to find the right type of employee to manage a self-storage operation, it’s important that new technology can make staff more efficient. This allows managers to concentrate on critical tasks such as renting units and providing great customer service.
  • Will it provide a financial advantage? Can it help you rent more units? Will it reduce staffing costs, or provide data, or enable your revenue-management system to raise rents more often?
  • Has it been proven? Is there data-backed evidence that demonstrates the quality of the product and the advantages to be gained from its use? As new technology emerges, data can take time to accrue. You should also consider the reputation of the provider and its commitment to quality and continuous improvement.

Internet of Everything

One of today’s biggest innovations is IoE, the Internet of Everything, which combines data, people, processes and things (Internet of Things or smart devices) into a single platform. Designed to work seamlessly, IoE can help you proactively run your site, integrate devices and enhance the CX, all while capturing and reporting actionable data to more effectively manage your operation. By integrating these elements, users can derive more value and insight than they would from fragmented or separate platforms.

In the self-storage industry, we juggle many silos of information. Valuable data is stored in a facility’s property-management system, website, access-control system, spreadsheets and other places. This segregation creates gaps, making it difficult to analyze data and make educated business decisions. An IoE platform has several benefits, with the biggest being consolidated data, which allows you to eliminate the silos.

This helps drive the second benefit of IoE: business intelligence, which gives you actionable insight that allows you to make better choices for operations, efficiency and revenue. A third benefit is the ability to monitor and control a smart device remotely, regardless of the manufacturer, allowing you to use the smart device that works best for your operation. The final advantage is the ability to receive alerts when something happens at the property, enabling quick response time, higher quality customer service, and the prevention of maintenance and security issues.

Artificial Intelligence (AI)

Another innovation gaining ground in self-storage is AI. This can be something as simple as an Amazon Alexa device in the office that provides language translation, enables the manager to open the front gate or allows him to check on the status of the property, such as who was the last person to enter.

Another way AI is leveraged in self-storage is through video analytics combined with existing CCTV or camera systems. These devices can evaluate the video image and immediately stream it to a virtual security team who can make a real-time decision on how to respond. Using AI is a proven way to increase efficiency, reduce liability and improve the CX.

Self-Service Tools

Self-service is booming in all kinds of industries, from airlines to hotels to restaurants. Customers not only expect but have begun to demand these alternatives. Self-storage operators large and small are investing in self-service tools to reduce costs and provide a way for customers to do business with them outside of office hours. For example, real estate investment trust Life Storage Inc. has rolled out a product called “Rent Now,” which allows customers to rent directly from its website without the need to stop by the office. In a recent earnings call, it revealed that 10 percent of all its rentals are completed online.

You must consider the potential tenant who shows up with a rental truck at 7 p.m. in need of a unit. He won’t want to wait until the next day to accomplish his move-in. He’ll proceed to the next facility and give his business to one with self-serve options that meets his needs. To capture this renter, many operators have installed kiosks that allow a person to rent a unit any time of day.

Self-service options not only save money and contribute to the bottom line, when combined with the connected environment supported by the IoE, they provide a frictionless CX. What do I mean? Let’s say you’re a long-term customer of a company. You expect it to have your contact information and a record of your transactions instantly accessible. If you contact the company and its representative asks who you are or constantly asks you to provide the same information, that’s frustrating, causing friction.

Now, imagine you’re dealing with a company that has effectively implemented technology to provide a seamless user experience. For example, when you call, you hear, “Hi, Jon, how are you today? I see you’ve just bought a new widget. Do you have a question about the widget you just purchased, or is there something else I can help you with today?” It feels more personalized, improving customer satisfaction and, ultimately, loyalty.

Automation

Automated methods of managing self-storage unit access are creating industry buzz, including electronic locks, digital keys, apps and more. You’ll need to evaluate the return on investment for such a system and determine if the efficiency gained outweighs the expense. You can use various combinations of technology to control cost.

For example, you can install a fully automated system with electronic locks on every unit, or integrate an “old-fashioned” disc lock into a smart environment, creating a system that simply provides a manual unlock code when a customer rents or pays online or through a kiosk. If your access-control system is also integrated into the platform, this code could be provided via a text message when a customer enters the property.

Smart technology increases self-storage efficiency, reduces costs and provides a better CX. Though it isn’t yet at the level of the Jetsons, it’s being implemented by facility operators of all sizes to improve operation and increase revenue.

Jon Loftin is vice president and IOE (Internet of Everything) product owner for OpenTech Alliance Inc., a Phoenix-based provider of self-storage kiosks, call-center services and other technology. He has more than 25 years of hands-on experience in the storage industry, specializing in technology advancements, particularly for access control. For more information, call 800.481.7459; e-mail [email protected]; visit www.opentechalliance.com.

ISS Blog

In the Face of COVID-19 Adversity, the Best Self-Storage Business Option Is to Persevere

Article-In the Face of COVID-19 Adversity, the Best Self-Storage Business Option Is to Persevere

When my stepdaughter was 12 and trying out for the U.S. synchronized-swimming national team in her age group for the second time, I gave her three sealed, numbered envelopes with instructions to open them in sequence, one per day. Each contained a primary word across the top, along with supporting quotes that I hoped would inspire her in her quest.

The first was “Believe” because self-doubt is the enemy of success. The second was “Focus” because when you’re not naturally as gifted as other athletes, getting every ounce of your ability and giving attention to detail can help make up the difference. The third was “Persevere” because I knew she wasn’t likely to make it; but I believed that with the right determination, she could one day achieve her goal. I wanted her to return home with a positive outlook even though her initial reaction to the experience was likely to be disappointment.

That third envelope became the most important. Had she been a boy, I probably would have nicknamed her Chumbawamba because she came to embody perseverance throughout her career. She’d get knocked down, and she’d get up again, just like the lyric in the song, “Tubthumping.” Instead, she wore the moniker “small but mighty” with pride. She kept chipping away. Working. Improving. Closing the gap.

In 2015, after five unsuccessful attempts, she was appointed to the U.S. Junior National Team, only to have her competition and training canceled due to some misguided politics and self-interests of others. That’s a tough life lesson for a 17-year-old, but she soldiered on. The following year, she again made the U.S. junior team and competed in Russia at the world championships. On her seventh attempt, she finally got to wear her coveted USA swim parka.

I bring all this up not to brag (well, maybe a little), but because there are parallels with what we’re experiencing right now in the self-storage industry. Though it may seem like an eternity since the coronavirus pandemic turned our lives upside down, it’s barely been more than three months. The fallout on the collective psyche is real. The mind can feel heavy, and it can be difficult to concentrate. Pivoting business processes and planning as circumstances and official guidelines change can be frustrating and tiring. And, yet, as we’ve seen through our coronavirus coverage, self-storage operators nationwide have been resilient and persevered.

Here at Inside Self-Storage, COVID-19 initially forced us to postpone our annual ISS World Expo from April to July, and then ultimately cancel and augment it into a virtual event. I’ve had a sneak peek at the platform we’ll be using, and the show promises to be excellent. We’re still finalizing all the details but look forward to announcing dates very soon. Despite the challenges this health crisis has triggered, we will persevere and deliver an event that meets the high standards for which we’re known.

The pandemic and economic crises have affected every corner of the industry. If you’re struggling with strategic decisions related to facility operation, financing, development or risk management, we’ve got several outstanding resources that can help put things in perspective. Key pieces include:

Industry Overviews

Facility Operation

Risk Management

Development and Finance

There are dozens more. Together, these resources offer expert insight to how operators and investors can continue to push forward in the face of adversity. Things don’t always work out as planned, and new challenges are certain to surface. Remaining pragmatic, flexible and adaptable are paramount to sustained success.

My daughter’s experience in persevering has helped her handle the last few months. It hasn’t been an entirely smooth ride, but I’ve been proud of how she’s coped with having her swimming career cut short without a final chance to compete for a national collegiate title, being moved off campus to complete her senior year online, and missing out on all the deserved ceremonies and traditions of graduation. As a topper, she now faces a gutted job market that had looked so promising just a few short weeks ago.

Though the days feel long and daunting, every morning brings a new dawn. I’ve been encouraged by the collective mindset that’s promulgated our industry. There’s comfort in commiserating and common purpose. Lean on your colleagues and coworkers. Dive into insightful industry resources. Together, we’ll continue to persevere.

Preparation and Patience: Successfully Developing Self-Storage During COVID-19

Article-Preparation and Patience: Successfully Developing Self-Storage During COVID-19

Developing a self-storage facility is a process that can include hiccups even in the best of times. For those of us going through it today, the coronavirus pandemic adds an extra layer of mystery and stress. Let’s look at some ways COVID-19 could impact your next project and how to move forward successfully.

Planning

The self-storage planning phase typically takes a long time, normally months to years. If you’re just starting, the pandemic will hopefully be over by the time you break ground, or by the time you open. But what if it isn’t? Designing a more conservative project to be built in smaller phases is one way to reduce exposure in case your rent-up projections don’t match reality.

The most immediate impact of the coronavirus on project planning is it can be more time-consuming to get through government approvals, particularly those that require an open public meeting. Municipalities are struggling with how to balance these meetings with social-distancing requirements, though this is becoming less of a problem with each passing week.

Land and Structures

The pandemic has been especially brutal on land-intensive industries such as brick-and-mortar retail and hospitality. If you’ve been looking at land or vacant structures for expansion, there are deals to be had.

Prior to the outbreak, major retailers were shuttering big-box stores at a rapid clip, creating plenty of opportunities for self-storage conversions at a steep discount. Major operators have historically targeted larger markets, though they’ve ventured into smaller mid-markets in recent years. As an independent investor, you may see that you can replicate their success if you spot the right building in an area with demand.

Financing

How COVID-19 affects your financing will depend on where you are in the development process, the type of financing you seek and the strength of your project. While the pandemic has already resulted in tremendously high unemployment, lending hasn’t imploded like it did during the Great Recession.

Before the coronavirus, some markets were already experiencing saturation and declining self-storage rental rates. Lending standards were becoming stricter as a result, but there doesn’t appear to be a tightening due to the pandemic. Low interest rates are still making it an attractive time to borrow.

Lenders continue to issue Small Business Administration (SBA) loans, too. For those who already had SBA financing in place or will close on a loan soon, there’s major relief available as part of the CARES (Coronavirus Aid, Relief, and Economic Security) Act. It will pay six months of principal and interest, even for new borrowers, so long as they close their loans by Sept. 27. Unfortunately, it would be impossible to start a ground-up development now and meet that deadline, but there may still a chance to purchase an existing site.

Supplies and Services

Once construction begins on your self-storage project, not much should change. Thankfully, most stay-in-place orders excluded the construction trades. You’ll likely still have trouble getting your subcontractors to return your calls, as the shortage of skilled labor remains. Tradesmen who are good at what they do are keeping busy.

Ordering supplies and accessories may be another story. I’ve experienced delays in receiving gates and security hardware, for example. Contact your vendors early to request all items you’ll need for your property.

On my current project, the installation of high-speed Internet became a problem. The cable company refused to schedule the install until the property had a mailing address with the U.S. Post Office, which became a fight. Once we had the issue resolved, the company was months out in its fieldwork schedule. Our temporary solution is a cellular modem which was, of course, back-ordered due to high demand.

Technology

The trend toward automated self-storage rentals was strong before the pandemic, but this year’s events will likely make them a permanent consumer demand. The additional interest in contract-free rentals has inspired industry kiosk, software and security vendors to offer more options than ever. They’re working hard to come up with better, more affordable ways to operate storage properties.

When you budget and design your self-storage project, it’s important to plan for technology, even if it won’t be installed as part of your initial phase. Popular items include self-serve kiosks, smart locks, remote video surveillance, access mobile apps and others. An onsite presence may still be necessary at your site, but technology can buy you a lot of flexibility—and safety, in this case, for customers and employees.

Market Conditions

Pandemic or no, it’ll always be important to look closely at local factors when developing a self-storage facility. Is the competition full? Are there other projects in the pipeline? Are there increasing numbers of households in the area?

Also, look carefully at the types of storage being built. Larger players often build projects that are heavy on smaller and climate-controlled units, because those tend to yield higher rent per square foot. But consumers do appreciate the convenience of drive-up units. Margins are slimmer in large boat/RV-storage projects, but there may be more demand for them.

We don’t know what the future holds. As I write this in late May, states are beginning to open up and life is starting to inch toward normal. I hope this continues, and that treatment and prevention comes through to help us get past this. But for all I know, we could slip back. A vaccine may never be found, more jobs could be lost, and financing could collapse. Each developer will need to assess his personal tolerance for risk, the stability of his day job if applicable, and the steadiness of his own local economy. Good luck with your next self-storage project, and stay safe!

Steve Hajewski is the marketing manager at Trachte Building Systems, which designs, manufactures and erects a full line of pre-engineered and customized steel self-storage systems, including single- and multi-story, portable storage, interior partition and corridor, and canopy boat/RV. He also owns a self-storage facility in Wisconsin and is a frequent contributor on Self-Storage Talk, the industry's largest online community. For more information, call 800.356.5824; visit www.trachte.com.

1784 Capital Holdings Faces Renewed Opposition to Bethesda, MD, Self-Storage Project

Article-1784 Capital Holdings Faces Renewed Opposition to Bethesda, MD, Self-Storage Project

Update 6/11/20 – Though their project began more than three years ago and has faced community disapproval throughout its progress, 1784 Capital Holdings and Bethesda Self Storage Partners are seeing renewed opposition to their development on River Road in response to current events. On Monday, protesters gathered at Macedonia Baptist Church and then moved to the self-storage construction site. Its proximity to a historical black cemetery has come under rekindled fire as citizens worldwide demonstrate against racial injustice spurred by the recent police killing of African-American George Floyd, according to the source.

The self-storage site has remained controversial, even though the adjacent Westwood Tower apartment building and parking lot are the actual burial-ground location. During the demonstration, protesters called attention to Finan Berhe, Emmanuel Okutuga and Robert White, three black men who were killed by police in Montgomery County, the source reported.

The apartment property was acquired by the Montgomery County Housing Opportunities Commission in December 2017, though it has no specific or near-term development plans for the site. A 1.8 million-square-foot project had been proposed for another site across the street, but plans were scaled down significantly in 2018, according to the source. It wasn’t clear from the report if that project is expected to continue.


12/18/17 – The Montgomery County Planning Board has approved the 1784 Capital Holdings and Bethesda Self Storage Partners project on River Road, but opposition to the development continues. Members of the Macedonia Baptist Church plan to boycott the facility because they believe a portion of it encroaches the Moses African Cemetery, a historical burial site for members of a community built by freed slaves, according to the source.

A parking-garage project next to the self-storage site has been suspended indefinitely due to pending legal action. Plans called for the structure to be built on an existing parking lot laid in the 1950s, but historians say the lot covers the cemetery, which dates to the early 1900s. The self-storage developers maintain that the piece of land in dispute is within a portion they already gave back to the county, the source reported.

"Hopefully wounds will be healed and [the church members] will be receptive to it because we want them to be a part of it," McKone said. "We are doing the benches and the display cases to celebrate the history of the black community and all the history of Bethesda and the River Road community."

Church members protested the project during last week’s meeting, carrying signs that read, “Black Lives Matter.” The planning board instructed them to turn the signs backward, which prompted some to claim their First Amendment rights were violated. The board has a posted policy indicating that any signs larger than a standard piece of paper aren’t permitted in the chamber, according to the source.


12/11/17 – 1784 Capital Holdings and Bethesda Self Storage Partners LLC are facing opposition in their quest to build a multi-story facility, due to the site’s proximity to a stream and future greenway corridor. The facility in the Westbard neighborhood is along the stream-valley buffer for the Willett Branch Creek. The plans include four levels below ground and five above, comprising 195,527 square feet of storage space, according to the source.

The developer has agreed to offer the parks system .39 acres of land that will feature grass and trees. The dedication would be the first section of the greenway, which city officials and advocates hope will one day border the stream.

Still, local environmental groups and some community members claim the developer’s actions are inadequate and have asked for adjustments. In a letter to the county’s planning staff last month, Sarah Morse, executive director for Little Falls Watershed Alliance, expressed the opinion that existing plans won’t do enough to revitalize the stream. “How the storm water is managed, how the buffer is treated, how the landscaping is done, and how the park is accessed will all have a huge impact on the success of the new park and restoration of the Willett Branch,” she wrote.  

The facility’s design wouldn’t allow for enough rainwater to filter into the ground, which is a critical element to improving the area’s water quality, Morse added. She also noted that the building would be too large for the site, and asked the developer to reduce the footprint to create more open space and a wider path into the park from River Road. The alliance also requested that the building’s façade facing the park blend with the natural environment via the addition of a plant-covered wall.

Patricia Kolesar, a member of Save Westbard, also hopes the developer will revisit the overall design for the project. In an e-mail to 1784 Capital Holdings and the city’s planning staff, she wrote, “Please know that even if the Westbard Self-Storage plans meet all necessary county requirements and regulations (we presume that they do), the residents’ collective opinion of your project will not change, and we have no power in this situation other than to refuse to patronize Westbard Self-Storage.”

In addition, an online petition asking for plan changes had gathered more than 40 signatures as of last week, the source reported.

Timothy Dugan, an attorney representing the developer, noted the proposal “fully addresses” the county’s environmental design requirements and “meets or exceeds the applicable development standards.” The developer has been receptive to the requests and adjusted the building plans. The facility will stand outside the stream buffer, and will include a green roof and planter boxes. In addition, the wall façade facing the park has been redesigned to allow the parks system to erect art along a large area of the building’s pathway-facing side, according to the source.

The Montgomery County Planning Board will review the project on Dec. 14. The planning staff has recommended approval of the preliminary and site plans with conditions.


1/6/2017 –  1784 Capital Holdings LLC intends to develop a self-storage facility on 1.5 acres in Bethesda, Md. The company acquired the property at 5204 River Road for $11 million. It will redevelop the site, which currently houses an automotive body shop, according to Bryn Merrey, senior vice president and division manager of the firm’s mid-Atlantic and Southeast offices.

“The Bethesda area has extraordinary demographics and extraordinary market fundamentals,” Shane Albers, chairman and CEO of 1784 Capital Holdings, said in a press release. “It is a significantly undersupplied market with three times the national average for rent. We chose the site because it’s one of the last zoned and developable parcels of land for self-storage in Bethesda. We have allocated $250 million for the development of class-A, institutional-quality self-storage as we continue to expand our national portfolio under the direction of executive vice president Kelly McKone.”

The local market is described as an affluent, “high barrier-to-entry community,” with “historically high occupancies and rental rates,” by The Mele Storage Group of Marcus & Millichap, the commercial real estate firm that brokered the deal. “Very rarely does a development opportunity of this quality come to market,” Robert Bloch, an investment associate in the company’s Washington, D.C., office, said in the release. “The unprecedented price per acre is a testament to the nature of the opportunity, and the buyer had a clear vision that enabled [it] to compress [its] due diligence and win the deal in a very competitive process.”

Michael Mele, senior vice president of investments in the Marcus & Millichap Tampa, Fla., office assisted Bloch in representing the seller, a “single-asset corporation,” and securing 1784 Capital as the buyer.

Founded in 1971, Marcus & Millichap is a commercial-property investment firm with more than 1,500 investment professionals in offices throughout Canada and the United States. The firm closed more than 8,700 transactions in 2015 with a value of approximately $37.8 billion.

Founded in 2013 and based in Scottsdale, Ariz., 1784 Capital acquires, develops, constructs and owns self-storage facilities. Its subsidiary, 1784 Solar LLC, provides short-term construction financing for solar projects in Canada and the United States.

Sources:
BisNow, Protesters Oppose Construction Near Historic Black Cemetery In Bethesda
Bethesda Magazine, Westbard Self-Storage Plans Rile Some in Bethesda
Commercial Property Executive, Self-Storage Development Site Sells for $11M
Fox 5, Another Battle Between Bethesda Church and Developers Over Historic Black Cemetery

Understanding What to Do and Expect During the Self-Storage Insurance-Claim Filing Process

Article-Understanding What to Do and Expect During the Self-Storage Insurance-Claim Filing Process

It’s happened—that thing you thought would never occur. Disaster has struck! Whether it’s a fire, flooded units, building damage or something else, the unexpected is why you buy insurance to protect your self-storage business.

When an incident occurs and you need to file a claim under your policy, you might be confused or worried about the process. Understanding in advance how it works can keep the experience from becoming traumatic. Below are some things you should know, including how to prepare, keep things moving smoothly and achieve a better outcome. The goal for you and your insurance company is to get your business up and running again.

The Right Policy

Being prepared to file a claim starts with having the right insurance in the first place. There are many options for covering your storage business, and it’s vital to work with a reputable company. Your agent can guide you through the process of evaluating your property and business needs to determine the policy that’s right for you. It might include:

  • Adequate coverage to replace owned property
  • Loss-of-income coverage for incurred expenses and loss of rent
  • Liability coverage to defend against claims of negligence
  • Customer’s goods legal liability and sale and disposal liability to protect you from negligence claims from tenants

You might consider additional coverages depending on your business size and location. Your insurance agent can help you determine what’s best. Once you have a policy, review it regularly so you understand what’s covered and your deductible. If you have questions, ask your agent.

The Claims Process

The claim process begins as soon as you’re aware of an incident. Call your insurance agent immediately and discuss what happened. Be prepared with information about the who, what, where and when of the claim. This includes details about any injured parties or witnesses including names, addresses and phone numbers. Your agent will ask you additional questions and document evidence to share with your insurance company.

It’s important to be prompt because most insurance policies state a timeframe in which claims must be filed. Your policy also requires that you cooperate during the process.

Once you file, your insurance company will verify the incident occurred during your policy term and whether it’s covered. Next, it might assign an adjuster to work with you on your claim. Your best hope of achieving a successful outcome is to develop a good working relationship with your adjuster and keep an open line of communication. Here are some other things you should do to assist this person:

Think about safety. First, take steps to prevent further damage or injury, if possible; but don’t put yourself in harm’s way. For example, if a door is broken, cordon it off so no one can access it. If necessary, turn off the power, water supply or gas.

Document what happened. Take pictures and create an inventory of damaged items. Nothing tells a story like photos, so take them as soon as it’s practical. They can show the extent of harm and any steps you’ve taken to protect your property and liability exposures.

Call the police. If theft or vandalism has occurred, call the police. Once they’ve completed their report, obtain a copy for yourself and your insurance company. Keep all this information organized and be ready to share it with your agent and adjuster.

Provide records. You may need business reports and documentation to support your case. For example, if your claim includes loss of rent, you’ll be asked to provide historical income records. (If you have seasonal fluctuations in rental revenue, you may need to produce records going back more than a year.) In the case of liability claims, you may need to provide records showing maintenance, lien procedures and other operational practices. A claim against you by a tenant will require a review of his lease and any signed addendums. If his claim involves a lien sale, you’ll need to share documentation leading up to the auction.

Record of your costs. Invoices for repairs and other related expenses are required to process your claim. Make copies and keep these in a separate file. You want the insurance company to pay you full value for your insured loss. The adjuster’s job is to make sure the amounts paid by the company are in line with your policy.

By taking these steps and knowing what to do when an incident occurs, the claim process will run more smoothly. You should be back up to speed before you know it!

Kay Schaefer is a self-storage program underwriter for Deans & Homer, an insurance-managing underwriter providing specialized coverage for the self-storage industry since 1974. For more information, call 800.847.9999; visit www.deanshomer.com.

England Self-Storage Operator The Space Program Shows ‘Out of This World’ Empathy During COVID-19

Video-England Self-Storage Operator The Space Program Shows ‘Out of This World’ Empathy During COVID-19

Compassion has been a critical trait for many businesses during the coronavirus pandemic, self-storage included; but this display by England facility operator The Space Program is pretty out of this world. In her heartfelt message, managing director Hazel Edwards explains how the company has adopted a contact-free rental solution to help customers during the health crisis and keep employees and tenants safe. Storage operators everywhere could benefit from emulating her palpable concern and message of hope. As the container-based storage company likes to say, “It isn’t rocket science.”

Big Yellow Self Storage Announces Financial Results for 2020 Fiscal Year, Ended March 31

Article-Big Yellow Self Storage Announces Financial Results for 2020 Fiscal Year, Ended March 31

U.K. self-storage operator Big Yellow Group PLC released financial results for its 2020 fiscal year, which ended March 31. The company reported same-store revenue of £128.2 million, up 3.8 percent year over year. Total revenue for the period was £129.3 million, a 3.1 percent increase from 2019. Same-store occupancy was 81.3 percent, down from 82.4 percent. Average rent per square foot was £27.86, up 2.7 percent.

The numbers were positive despite operational adjustments and government orders in reaction to the spread of the coronavirus, which began to affect Big Yellow markets in mid-March. The company is also optimistic about future performance despite continuing uncertainty from the health crisis and its economic impact.

“We, together with every other business, have experienced two seismic external shocks in 12 years. As was the case with the global financial crisis, the COVID-19 pandemic will most likely accelerate and accentuate pre-existing structural trends, challenges and opportunities, and no doubt catalyze some that are currently unforeseen,” said Nicholas Vetch, executive chairman. “For this business, there will be some negatives but a good deal of positives, which we believe give us grounds for reasonable optimism. It will take time for those competing forces to play out and some clarity to emerge, which will become evident in the performance of the business over the next few years.”

Vetch indicated it’s impossible for businesses to confidently predict the timing of “momentous events” like worldwide economic and health crises, and stressed the need for Big Yellow to carry a modest amount of debt. “Although it has only been a couple of months, the business has so far proved to be relatively resilient through the initial lockdown phase; but as always, we caution that we have limited visibility as to future trading patterns,” he said.

Despite the cautionary approach to its capital structure, Big Yellow will continue to pursue growth opportunities, particularly in Greater London, Vetch said. During the year, the company acquired three sites, bringing its development pipeline to 13 projects comprising about 880,000 square feet. It’s received approvals for six of those developments.

Big Yellow Group operates 100 self-storage locations in the United Kingdom under the Big Yellow Self Storage and Armadillo brand names, with most concentrated in Greater London and Southeast England. Its total portfolio comprises 5.8 million square feet.

Source:
Big Yellow, Results for the Year Ended 31 March 2020

Pulling in the Same Direction: 5 Ways to Be an Amazing Self-Storage Team Player

Article-Pulling in the Same Direction: 5 Ways to Be an Amazing Self-Storage Team Player

To achieve success in self-storage management, it helps to be part of a high-functioning team. Together, we can go farther and faster than we can ever go alone. With a strong team, we can move forward and meet our professional, financial, educational and other goals.

However, being a productive team member means bringing certain skills and a particular mindset to the table. To become a most valuable player (MVP) at your self-storage facility, you need patience, excellent communication, plus other traits and abilities. Let’s see what’s required to achieve MVP status.

Find the Win

A great player recognizes all members on the team. In self-storage, a facility’s team includes the manager, sure, but also the owner, any regional or district managers, the investors, and even the customers. Every decision should be made for the good of the company, and all team members must pull in that same direction. A manager with team spirit recognizes that his day-to-day decisions and actions affect the bottom line and, therefore, all his teammates.

For example, if you have a customer in your office who’s angry about a late fee, you can decide to waive the fee or resolve the situation in a different way that doesn’t cost the company money but still keeps the customer happy. Knowing the company’s ultimate goals will help you make the right decision in every situation.

Customer service is always important, but in the increasingly competitive world of self-storage, investor returns can’t be ignored. Working to create wins for everyone on your team will help you stand apart as an MVP. Find the win for the storage customer, your supervisor, the property owner and the investor.

Communicate Openly

Clear, open communication is vital to a strong, healthy team. It means asking questions when you don’t understand the project, expected outcome or process. Having a curious mind and seeking to understand makes an MVP, while constantly questioning authority and asking the same questions over and over does not.

Having open communication means speaking up when you think there’s a better way to do something but not taking it personally if you learn there isn’t. As the first line and face of the store, managers see the rules and processes from a customer perspective, which is invaluable information. Being able to clearly communicate with customers and smooth over issues will help you move forward and excel at your job.

Channel the Right Mindset

Having an open and supportive mindset is also part of being a good team player. It involves thinking about the bigger picture, knowing your career goals, and actively looking for ways to increase your own value as well as that of the business. The best managers constantly look for ways compensate for weaknesses, improve the property and understand the perspective of their supervisors. The worst ones have a victim mentality, expect raises because they warmed the chair for a certain period, constantly question the wrong things, and demand attention just for doing their job.

The role of self-storage manager has changed from caretaker to so much more. It’s no longer enough to be in the office waiting for the phone to ring. Having a deep understanding of the company’s goals and working every day to do everything possible to accomplish them is how a manager goes from average to amazing. Understanding that the job is much more dynamic than in the past and the market is getting more competitive will help managers develop good work habits that push their career forward.

Have a Plan

Managing a self-storage property is very active. There are always calls to return, leads to follow, maintenance work to do and things to check off the list. It’s quite common to help a customer the moment you walk in the office and immediately get caught up in work so you never even clock in. So, you need a daily plan. Having one is important no matter your job title. It keeps you on track and shows your team that you’re focused.

Organize your day so you accomplish your most important tasks in the morning. Arriving on time and ready is crucial and shows good time management. Too often, having a property open at 9 a.m. actually means the manager arrives at 9:03 and rushes to get in the door, clock in and take care of customers. Being a superior manager means arriving a few minutes early so you can get set up and start your day on the right foot—and on time.

Doing the right things at the right time is the best way to improve your storage property. If you only have 20 minutes, is it a better to make your follow-up calls or sweep the floor? Which will make the company money?

Show Grit

Grit is passion and perseverance for long-term, meaningful goals. It’s one thing that separates successful people from those who aren’t. Inevitably, plans will get off track, goals are harder than we think and, some days, we just don’t “feel it.” Grit is the ability to move past all that and keep doing what you know will move the needle forward. It’s what gets us out of the office to overlock units when the property is covered in snow or it’s blazing hot. It keeps us focused on goals for the business and our own career.

Anyone can work to increase their grit. It isn’t something you’re born with; it’s a choice you make every day. Doing the right things at the right time will help you accomplish goals for your property and move your career forward.

The role of self-storage manager is dynamic and changing. You’re expected to clearly communicate with customers and other team members, solve problems with the good of the customer and company in mind, and stay focused on the day-to-day needs of the facility. Master these habits and you’ll definitely be an MVP!

Magen Smith is a co-founder of Atomic Storage Group, a boutique self-storage management company, and owner of Magen Smith CPA, an outsourced accounting firm specializing in self-storage. She’s also a partner in Safe Space Development, which builds self-storage properties. Magen started in the industry as a facility manager and has held nearly every operational role. She has a passion for the industry, helping owners improve their businesses, teaching asset management and conducting self-storage audits. To reach her, e-mail [email protected].

Self Storage Association of the United Kingdom Announces Annual Award Winners

Article-Self Storage Association of the United Kingdom Announces Annual Award Winners

The Self Storage Association of the United Kingdom (SSA-UK) announced the winners of its 2020 industry awards this week. The annual program highlights the achievements of self-storage individuals and companies, according to a press release.

Shannon Duncan, manager of MyStore Self Storage in Oxfordshire, England, was named “Manager of the Year.” In addition to her role as a property manager, Duncan oversees the facility’s digital marketing and developed an in-house staff-training program. “My main goal as MyStore’s store manager is to make sure the team and customers are happy and well looked after. This ultimately is how the business will grow and develop,” she said. The award was sponsored by DeSeM Lifts.

The “Independent Operator Facility” award, sponsored by Universal Storage Containers, was also given to MyStore Self Storage. The purpose-built facility has garnered a 23 percent year-over-year increase in revenue performance and continued occupancy growth, the release stated.

Shurgard - City Airport received the “Major Operator Facility,” award, sponsored by Rooks Rider Solicitors LLP. Opened in 2007, the facility doubled in size last year to 80,000 square feet. During the addition, Shurgard improved the site’s green credentials under the Building Research Establishment Environmental Assessment Method, a sustainability-assessment method. The company was able to return store occupancy to more than 80 percent in 12 months.

Twenty4 Secure Storage won the “Container Operator Facility” award, sponsored by Portable Space. The facility offers 24-hour manned security, new containers on concrete roads, an attractive entrance, and a welcoming professional and modern reception.

The SSA-UK is the principal trade association representing self-storage operators and industry supplier members’ interests in the U.K. It has approximately 440 members.

Source:
Self Storage Association of the United Kingdom, FEDESSA & SSA UK Awards

Self-Storage Talk Featured Thread: Face-Mask Contest and Coronavirus Survival Kit!

Article-Self-Storage Talk Featured Thread: Face-Mask Contest and Coronavirus Survival Kit!

The past few months have been exhausting and anxiety-ridden, so we want to do something fun with our SST community members. Self-storage operators are now wearing masks at work, and we want to see them!

We’ve launched a contest so you can show off your most creative face coverings. Everyone who shares a photo of their mask (modeled or not, it’s up to you) on this thread by July 1 will be entered to win our Coronavirus Survival Kit, which includes goodies like toilet paper, disinfectant wipes and other virus-fighting necessities, plus some free ISS stuff. You can read all the juicy details on the thread. So, come on … Show us! What’s on your face? Is it a company logo? Kittens riding donuts? Darth Vader’s mouthpiece? Angelina Jolie’s magnificent maw? The options are nearly endless these days, so post up your pic and grab a chance to win!