Put yourself in the shoes of a potential renter. Would you want to store your valuables at an ill-maintained facility? What kind of message do damaged panels, rusted doors, broken fences or scattered garbage send to a prospective customer? The typical renter has already rented a self-storage unit before, and he may have experienced pest problems, condensation or mold on his valuables, even a break-in to the unit. To convince this already jaded customer, it’s imperative you give him a good first impression.

When first built, your self-storage facility was inherently shiny, new and attractive. As time goes by, you will need to put a little money and effort into maintaining that original appeal. Your customers are the source of your livelihood, but can also be the source of your maintenance issues. The most common maintenance issues include damage to your building caused by careless customers who back into a door or cut a corner a little too tight. Even though you can minimize damages from occurring, you undoubtedly will experience issues such as these.

Know Your Building and Product Supplier

If you’re looking to purchase your first phase of buildings or add on to your existing site, an important aspect to consider when choosing suppliers is how their products will stand up to the test of time, and how easy it will be to replace building parts if damaged. First and foremost, find out the quality of the materials and strength of the parts. You can prevent a variety of maintenance issues by building a facility that uses the most advanced and durable components available in the industry today.

Understand how common building components are installed or replaced. Most companies have customer service departments to assist with the replacement or repair of building components, not only by getting the correct parts sent to your site, but also by providing technical support if needed. The last thing you want is to try to replace a door jamb 10 years later only to find it is no longer available.

Also, ask about the supplier’s procedures for ordering replacement parts. How much do parts cost and how difficult are they to install? Thinking ahead can save you time and money in the event your building is damaged. If damage is difficult to repair because your supplier does not offer easy-to-install replacement parts, you may need to hire an erector, which can be costly.

Finally, ask your supplier for information on how to keep your buildings looking like new. Over time, the paint finish on building panels and doors will deteriorate from dirt, salt and other airborne contaminants. Your supplier should be able to provide tips or products to restore sun-faded building panels and doors. Some products can be applied directly to your steel components, which is less expensive than repainting.

If your facility is fairly new, take preventive steps to thwart fading. Regularly wash your steel building components with soap and water to dramatically increase their life span. A rule of thumb when washing building components is any type of product you can use to clean your car can be used on your building.

Devise a Maintenance Routine

Conducting a regularly scheduled maintenance routine can help prolong the life of your building and its aesthetic appeal. Your building’s roof, in particular, requires regular maintenance since weather elements can damage the panels. If you notice damage at the eave or end of the roof panel, the entire panel may not need to be replaced. Depending on the type of roof, you might be able to purchase a repair panel. The damaged panel is cut back to the first purlin in from the eave, then the new panel slides in underneath. With a little caulk tape and some screws, the eave line is back to new again.

Repair panels reduce material, labor and freight costs, and also minimize the disruption to your business because the repair can be done quickly and, in most cases, will not require you to move a tenant out of the unit. If you should need to replace an entire roof sheet, freight costs may become an issue since the length of the roof panels could require the material to be shipped on a flat-bed truck.

Door Upkeep

Maintaining your roll-up doors is also important to running an efficient, well-kept facility. Customers do not want to struggle when opening doors to access their units. While a unit is vacant, take some time to perform a few simple routine maintenance tasks to ensure optimal performance of the doors. Apply a silicone spray to slide locks and door guides to keep door operation smooth and quiet. Spray the door springs with a light lubricant to reduce friction on the coils and prevent moisture from accumulating on the spring; friction and moisture can cause the spring to rust and possibly break.

You must replace a spring if it breaks, which is costly for you and inconvenient for your customer. Today, doors feature advanced spring technology that virtually eliminates this kind of required maintenance.

Going the Extra Mile

Not only will regular maintenance of your facility help prolong its longevity and value, but it will also help bring new customers to your site, even as your market becomes more competitive. The curb appeal of your facility can be impacted by trash left from customers or from neighboring businesses. Make sure that trash or unsightly materials are disposed of promptly. Clean any windows, install bollard covers, fix broken fences, and keep up with your landscaping to ensure your site remains inviting and appealing to prospective customers.

People will typically be willing to pay higher rents, or travel a little farther to rent a unit in a facility that is well maintained, secure and visually pleasing.

Jeff Bouchard is the regional sales manager for the north central region for Trachte Building Systems, which designs, manufactures and erects a full line of durable, pre-engineered and customized steel self-storage systems, including single- and multi-story, portable storage, interior partitions and corridors, and canopy boat/RV. Mr. Bouchard can be reached at 800.356.5824 or [email protected]. For more information, visit www.trachte.com.

N14 Self Storage in Johannesburg, South Africa, is the first of five new facilities being built throughout the country this year by SA Self Storage Investments (SASSI), eProp.co.za reported. Opened in June, the project is part of an estimated ZAR 125 million ($16.6 million) being spent on development over the next 12 to 18 months. The total value of the new store roll-out will be closer to ZAR 160 million ($21.3 million). Nearly 30,000 square meters of space—roughly 2,850 storage units—will be built.

The South African self-storage industry ranks fifth in the world in terms of the number of operating facilities, according to SASSI. Based in Cape Town, the company promotes the development of and investment in institutional-quality self-storage assets throughout South Africa. For more information, visit www.saselfstorageinvestments.com.

Fresh paint, safe and secure storage areas, attractive landscaping ... smart business owners know that both small and large capital expenditures can go a long way toward improving their self- storage facilities’ cash flow and resale value.

So the question is not if you should renovate, but how to finance the project. This article reviews the four major sources of financing available.

Construction Loans

A construction loan is the best way to finance significant improvements. If you plan to add more buildings, for example, a construction loan will provide funds underwritten to the future value of your property.

The benefits:

• Future value. The loan amount will be based on the “as completed” value.
• Interest reserve. The loan will be issued with an interest reserve in the loan so that payments do not need to be made during the course of construction and lease-up.
• Due diligence. The lender will underwrite the budget and perform due diligence on your builder, including the appraiser’s opinion on the future value of your facility.

The drawbacks:

• Fees. The fees and interest reserve will increase the loan amount.
• Paperwork. The construction loan process is a time-consuming and document intensive one with many moving parts.
• Time. Consider this loan process may take 60 days or longer to close.

Construction-Loan Case Study: A new owner acquired a self storage property with 10,000 net rentable square feet for $1.3 million. The site had land to build another 50,000 square feet. The construction costs were $2.1 million against a future value of $7.2 million. The bank loan covered 85 percent of the total cost of the project and carried a three-year interest reserve during the build and lease-up phase.

Refinance and Pull Cash Out

Refinancing your property (or another property in your portfolio) can be the smartest way to pay for the cost of improvements if your rehab is significant but not transformational in nature.

The benefits:

• Maximum leverage. If the bank is willing to lend you a large amount of money based upon the value of your property—take it! You are unlocking your equity.
• Safety. The bank-ordered appraisal will provide you with valuable up-to-date information about your market and competitors. Bank due diligence will reveal if you are spending more on rehab than the property will generate.

The drawbacks:

• Costs. Most borrowers are charged a percentage of the total amount of the loan, including broker fees, bank fees and closing costs, and third-party fees for title, escrow and appraisal.
• Paperwork. You should have three years of your property income/expense reports in good shape and all of your tax returns filed and in good standing before approaching a lender or broker to move forward with your loan request.
• Time. Refinancing is a process that could easily take up to 45 days or longer.

Refinancing Case Study: A property built in the ’80s valued at $4.6 million required $350,000 in upgrades. The mortgage was $1.9 million at 7.5 percent due in four years. The owners refinanced at a lender-friendly 50 percent LTV and got cash out to complete the rehab. The new loan on their facility is a non-recourse, $2.3 million with an interest rate of 6 percent and a five-year term.

Leaning on a Second Lien

A second lien (a smaller, junior debt piece placed behind the larger first lien) is best for minor improvements such as cosmetic upgrades and site enhancements.

The benefits:

• Low documentation. Unlike a complete refinance, many seconds can be placed with just a few forms.
• Relatively quick. If time is of the essence, many seconds can close within 30 days.
• Keep your first lien. Placing a second lets you keep your first lien in place. If you have a great rate on your first or face a high prepayment penalty for refinancing, consider a second.
• Line of credit. Commercial seconds are sometimes offered as a line of credit, the same as on your home where you pay interest only on the amount drawn.

The drawbacks:

• Interest rates. Seconds are a higher-risk loan; therefore, money is priced as such.
• Limited lenders. Placing seconds on commercial properties is a niche in the lending industry; your choices will be limited. Also, your first lien holder may not allow a second to be placed, so check before considering this option.
• Exit strategy. The LTV of the property must allow for sufficient leverage to take this cash out, and there should be a clear exit strategy to pay down the second.

Second Lien Case Study: The owner of a 5-year-old property wanted to address his competition by enlarging the office/retail space and improving signage. The cost to complete was $120,000. The owner placed a second lien, which maxed out at 65 percent LTV. He repaid the line of credit with revenue from increased occupancy and retail sales.

Cash Out of Pocket

If the costs of rehab are extremely small and you have a low interest rate on your current loan (and the cash to spare), then cash is a viable option.

The benefits:

• Easiest. No forms. No banks. No fees.
• Fastest. See above!
• You are in charge.

The drawbacks:

• Spending reserves. The worst situation of all is when borrowers run out of money before the project is completed and then have no cash reserves when they go to refinance at a bank.
• Going over budget. You will be overseeing all aspects of the project, so plan for contingency. Unlike a bank loan, there are no protections in place.

Cash Case Study: The owner of a 10-year-old property wanted to install a new gate and secured entry system, which cost $35,000. She took $20,000 out of the property’s reserve account and $15,000 out of her personal savings to fund the improvements. The job was completed in one week and she replaced the funds on a monthly schedule of repayments.

No matter how you do it, the budget for your upgrades should be completed in detail by a qualified self-storage builder who can suggest the most current trends in the look/feel of self-storage properties, and the best use of your funds for a return on investment.

Georgia Ragsdale is CEO of Los Angeles-based Watermark Financial Inc., a boutique commercial brokerage firm placing construction loans and financing self-storage properties nationwide. To reach her, e-mail [email protected]; visit www.watermarkfinancialgroup.com.

Paint is often one of the first considerations of maintenance plans. But did you know annual losses attributed to improper paint maintenance runs into the billions of dollar? Read on to learn how you can save, instead of lose, on your paint upkeep.

One of the most important aspects of paint maintenance is regularly inspecting the paint and taking care of any problems before they become worse. Semi-annual inspections are recommended to identify and solve issues as they occur.

Your paint inspection should include checking for weathered areas, chalking, cracks, loose paint, nail stains, dirt or mildew. Surfaces expand and contract as temperatures change from season to season, causing minor defects such as cracks in caulking or mortar. Keeping up with repairs keeps maintenance costs to a minimum.

As a general rule, you should recoat or repaint when the previous application is just beginning to show signs of deterioration, before it loses its ability to protect the building. The original, baked-on paint can last eight to 10 years on metal before it needs refinishing, but paint on wood, stucco or block may need to be repainted after three to five years.

Exterior Paint Maintenance

A self-storage door with restored paint (right).

For metal doors or buildings, check the paint finish by wetting a small area with a wet cloth or sponge to see if the color changes. If it does, the protective finish is gone. A quality, clear protective coating can be applied to protect the paint before it chalks and oxidizes. Once the paint loses its protective finish, chalking will accelerate. Customers won’t appreciate the mess on their clothes; business customers will likely be upset because white chalk on navy suit is not pretty.

If your facility is within 10 miles of the coast (or even Salt Lake), check for salt corrosion by running your hand over the upper ribs of doors on the north or east side of the building where moist salt air takes longer to dry. Salt corrosion is rough and bumpy. If you use salt for ice or snow control, check the bottoms of doors or metal buildings for corrosion. A quality, clear protective coating with resins that are salt-resistant can protect doors and buildings from further corrosion.

Acid rain can also damage your paint. Even if you’re miles from refineries, factories or power plants, acid rain can etch and ruin metal surfaces. Telltale signs of acid rain are dark-streaked, permanent etchings. Acid-rain damage can’t be reversed but can be prevented. Also, bird droppings are corrosive and should be cleaned off painted surfaces immediately.

Keeping paint free of dirt will extend its life. Don’t use harsh chemicals that can harm the paint. Use mild soap and water and a soft bristled brush to wash doors and exteriors. Rinse without using a hard spray to avoid getting water in units. To avoid water spots, don’t wash metal in direct sun. If your water is extremely hard, consider getting an inexpensive in-hose filter available at an RV-supply store.

If paint is peeling or bare aluminum is showing through, the metal should be painted. As with any coating or painting project, preparation is critical. The metal must be completely cleaned prior to paint application. If you paint over chalk or metal without removing contaminants, the paint will fail. Quality paint is recommended; quality prep is essential.

Check stucco or block surfaces for cracking or peeling paint, repainting surfaces that show damage. Moisture can get into the block and lift paint. Moisture also causes damage and unsightly efflorescence, a white powder that stains the surface. If water infiltration continues, mortar can eventually deteriorate and cause costly damage.

Wood not protected by paint or stain swells and shrinks, resulting in cracking and possible water damage. If wood remains wet, it will rot.

Interior Paint Maintenance

Even though inside doors, hallway panels and other interior metal won’t chalk from exposure to U.V. rays, they still can get grimy handprints (those who rent to mechanics know what I mean), marks and grunge. Facilities close to freeways or railroads accumulate greasy, stubborn dirt on doors.

Using water in interior hallways is dangerous. People often store cardboard boxes on the floor, and if any water is accidentally spilled in the hallway, water can seep under the metal panels and damage belongings. A quality one-step waterless wash and wax can be used for easy removal of grimy handprints or for general cleaning. Some waterless wash and waxes can even remove permanent-marker graffiti. Waterless cleaners are not expensive and make the maintenance of interior metal much easier. Microfiber cloths make cleaning much easier, are inexpensive and readily available.

Don’t overlook paint in the office and bathroom. First impressions are critical. Cracked paint or dirty walls give the impression that the entire facility is dirty or not well maintained. Any cracks should be fixed, then painted.

Bathrooms should be painted with a quality, washable paint that can be wiped down periodically with mild soap and water. For high-moisture environments, moisture- and mildew-resistant paints are available.

If office walls are dingy, apply a fresh coat of paint. Low- or no-VOC paints nearly eliminate the lingering smell you expect from other paints. Marks, fingerprints or dirt are easily erased with a new type of cleaning pad made by Mr. Clean or Scotch-Brite, available in most grocery or hardware stores. These pads can erase black scuff marks on floors, too.

If you take care of your paint—both inside and out—your paint maintenance will pay off with a well-kept property that has better curb appeal, happier customers and a more profitable bottom line.

Teresa Sedmak is president of Everbrite Inc., which manufactures Everbrite Protective Coating and ProtectaClear as well as building cleaners. She is also a licensed painting contractor with extensive experience and knowledge of protective coatings. For more information, call 800.304.0566; e-mail [email protected]; visit www.renewstorage.com.

If you offer portable-storage service, you should have a regular maintenance routine to ensure years of reliable delivery and storage. The manufacturer of your containers can provide a specific checklist. In addition, here are some common maintenance tasks to keep your containers looking new and lasting longer.

Wash It

Because they come in contact with road salt and debris, portable-storage containers are exposed to a harsher life than your typical self-storage building. A thorough washing can prolong the life of the container. In absence of any specific manufacturer recommendation, use a mild detergent such as RV or carwash soap and rinse well. Since your containers likely have your name and logo, it’s even more important to maintain a clean appearance when they are dropped in front of your customers’ homes or businesses.

Inspect It

As long as you’ve got the hose out, take a minute to ensure your containers don’t have any leaks. After a good soaking, inspect the interior and confirm there is no water inside. Butyl caulk can be used to seal any minor leaks in wall joints. Be careful with pressure washers around graphics and joints in walls.

Touch It Up

When the containers are clean, you have a perfect opportunity to touch up any scratches. Touch-up paint may be available from the manufacturer in a nail polish-style applicator. For bigger problems (such as graffiti that can’t be removed), you may need to have the paint custom-matched. Some hardware or paint stores can provide custom-matched spray paint. Test any new cleansers or paints in a small, inconspicuous area first to ensure compatibility with your containers.

Logos and Decals

Your containers also serve as mobile billboards, and weathered or damaged signage reflects poorly on your business. The decals or signage looked great when first applied to the containers, but how are they holding up? If the answer is “not well,” consider if it’s worth the effort and expense to replace the signage. Inside the container, most operators provide various warning or loading instruction decals. Check to make sure they are also in good condition and not defaced.

Doors

If your containers feature roll-up doors, maintenance is essentially identical to the roll-ups on a self-storage building. If the door doesn’t operate smoothly, a lubricant may be applied to the rubber portion of the door guides. If the door is hard to open or close, the spring tension may need adjustment. Some door springs may also need lubrication unless they feature a permanent coating. If your containers have swing doors, check the seals for weather-tightness.

Wheels

For containers with wheels or rollers, check the mounts for signs of damage or weakness. Caster-type wheels may be prone to damage, but are typically replaceable. Steel rollers may have grease fittings on the axles: a few shots with a grease gun once a year should keep the wheels spinning freely.

Fasteners

If your containers feature bolt-together construction, inspect the fasteners periodically for tightness. If a fastener must be replaced for any reason, contact the manufacturer for a replacement. Fasteners used on containers may be a specific grade, or feature corrosion-protection for harsh environments. Additionally, fasteners may be designed to withstand the rattling and motion of transport without becoming loose. Using the wrong type of fasteners could result in rust streaks on your containers, or worse, parts rattling off in transport.

Accessories

Part of the portable-storage business involves securing the containers to your truck or trailer. Make it part of your scheduled maintenance to take an extra close look at your chains, straps, wheel chocks, blocks and other loading equipment periodically. Repair or replace any damaged items.

Heavy Equipment

It is imperative to have a procedure in place, with one person held accountable to ensure all vehicle maintenance (such as an oil change) is performed and documented on schedule. Check the owner’s manual of all trucks, lifts, etc., for details. In a small business, especially one that has recently added new equipment, it can be too easy for everyone to think that someone else is taking care of it.

Performing routine maintenance tasks will go a long way toward extending the life of your containers, improving your customers’ experience and ensuring the safety of the transportation of your containers. Ideally, you’ll head off any problems before they become major, and reduce the chances that any repairs will be needed in the field.

Steve Hajewski is product manager at Trachte Building Systems. He has been with the company since 2005, leading research and development for Trachte’s portable-storage program. He has more than 10 years of business-to-business sales and marketing experience. For more information, call 800.356.5824, ext. 3208; e-mail [email protected]; visit www.trachte.com.

Manufacturers of building products for the self-storage industry will be under greater pressure in the coming years to report the sustainable attributes of its products to developers and building teams. Until now, green building projects have only represented about 10 percent of the construction market, but several factors will ensure growth in this market segment.

More local, state and federal governments are mandating sustainable designed, built and maintained facilities within their jurisdictions. Many of these regulations have included adopting outright the once-voluntary green building-rating systems developed by one of several non-governmental organizations (NGOs), such as the U.S. Green Building Council (USGBC) or The Green Building Initiative (GBI).

In 2000, the USGBC introduced the leading national benchmark for sustainable buildings, the LEED (Leadership for Energy and Environmental Design) Green Building Rating System. Several years later, the GBI followed with the Green Globes program.

Manufacturers that target the self-storage community can no longer ignore these rating systems. LEED has been required for all new construction within several U.S. cities, and Canada now requires all buildings be LEED-certified, including self-storage facilities. To design for the largest landlord in the country, the U.S. General Services Administration, project teams are required to produce a LEED Silver Certified federal building, or any government storage facility that falls under the agency’s responsibility.

The Point System

LEED and Green Globes represent third-party verification of the sustainable performance of a building. Each rating system has a point system with categories representing the major element of a building project, with a performance measurement tool within each of those categories. Points toward certification are gained within each category.

LEED has six categories:

• Sustainable Sites
• Energy and Atmosphere
• Water Efficiency
• Materials and Resources
• Indoor Environmental Quality
• Innovation and Design Process

Green Globes has seven areas of assessment. Five are similar to USGBC’s program, but two additional areas are covered under this program, including Project Management and Emissions.

Because these systems do not rate products but instead measure a building team’s performance in each of these categories, it can be difficult for manufacturers to figure out how its products fit into this program. The general rule is to report how the product performs within the appropriate categories of LEED or Green Globes.

Some areas relevant to the self-storage industry could include the product’s contributions to the overall recycled content of the building, the ways in which the product assists with energy efficiency, or hard-scaped areas, such as the parking areas and driveways, are pervious.

Typically, there are consultants who perform the assessment of a product’s sustainable attributes, or the manufacturer has its technical director handle the task. Any claims resulting from an assessment must be verifiable by a third-party testing lab or separate certifying organization.

Whole support industries have sprouted up to assist with this endeavor. In addition to the rise of green building-rating tools, there are additional developments that should lead everyone to the conclusion that green building is coming to self-storage. Standard 189, an important initiative from the American Society of Heating, Refrigerating and Air-Conditioning Engineers and several industry partners, is attempting to create a translation of LEED into building code, which can then be used as a model for codes across the country.

This initiative, along with the momentum generated by the NGOs green building-rating tools and government regulators, signals that the tipping point has come. There will come a time in the near future when sustainable building will be standard practice for self-storage.

Paul Nutcher, CSI CDT, LEED AP, is president of Green Apple Group and the communications director for the Central Florida Chapter of the U.S. Green Building Council. To reach him, call 407.517.4748; e-mail [email protected]; visit www.greenappleconsult.com.

On July 10, AirShip Self Storage of Manchester, N.J., received a visit from Christie Rampone (formerly Pearce), captain of the United States Women's National Soccer Team and a partner of the storage business. The meeting included a photo shoot for a national business weekly that will feature Rampone in an upcoming issue, The Manchester Times reported.

During her college years, Rampone volunteered as a soccer and basketball coach in Manchester schools, where her father was a teacher. She received her degree in special education from Monmouth University and an honorary doctorate in public services. Rampone represented the United States at the 1999, 2003 and 2007 FIFA Women's World Cup finals, and at the 2000 and 2004 Olympic games.

AirShip Self Storage is managed by Access Self Storage, which has locations throughout New Jersey and New York. For more information, visit www.accessselfstorage.com.

From left to right: AirShip Self Storage Manager Jane Becker with owners Christie Rampone, Carmine Villani and Greg Foster.