An ice salesman from Niagara Falls, N.Y., found a loophole in a Canadian city’s election laws so he could run for mayor outside of his home town.

John Beam rented a self-storage unit in St. Catharine’s, Ontario, Canada, which made him eligible to run in the city’s mayoral race. Rather than rent an apartment to establish residency, the 51-year-old decided to rent a self-storage unit for $50 a month.

To qualify as a candidate in a municipal election in St. Catharine’s, a person must be a resident of the municipality, a non-resident landowner or tenant of land. Beam’s rental of a 25-square-foot self-storage unit qualifies him as a tenant.

Beam is also using his storage-unit savings as an election platform, claiming he’s focused on cutting cost and finding innovative ways to fund big projects such as free public transit and a new hockey arena.

Beam will run against incumbent Brian McMullan.

Source:  The Standard,  From Storage Locker to Mayor’s Chair

Related Articles:

Photovoltaic Systems and Self-Storage: Ontario Facility Owners Make Money From Their Rooftops

Self-Storage Real Estate in Western Canada: A Review of 2009, Predictions for 2010

N.Y. Self-Storage Owner Loses Land in Eminent Domain Case

Self-Storage Talk: To Turn Away a Customer, It Would Take ...

Access Self Storage, a Lancaster, Texas-based self-storage operator with six locations, was named Business of the Year by the Lancaster Outreach Center in recognition for its efforts to enrich the community. Access and its principal, Doug Hunt, frequently provide aid to the center.
 
For example, the center’s vehicle once broke down as it was preparing to deliver some food and donations to people in need. Access Self Storage loaned one of its moving trucks to complete the task.
 
Serving the Hutchins, Lancaster and Wilmer, Texas, areas since 1986, the Lancaster Outreach Center offers assistance to area residents in the form of food pantries, counseling services, financial assistance and mortgage assistance, and a charity-driven thrift store. In its ongoing commitment to the community, the center honors one business each year that shares its desire to make a difference in the metroplex.

Related Articles:

Access Self Storage Opens New Facility in Red Oak, Texas

Access Self Storage Receives Consumers’ Choice Award

Access Self Storage Relocates Corporate office

Access Self Storage Helps Raise $56k for Dallas Church Group

The success of any business is a matter of economics. Simply put, it comes down to income vs. expenses. As long as there’s more money coming in than going out, an owner can stay in business and prosper.

Self-storage adheres to this same formula, but there are nuances to our industry that are essential to success. Like any other real estate developer, the self-storage owner is concerned with financing, land availability and acquisition, construction and materials, customer profiling, marketing, and competition.

But the successful owner is also aware of every opportunity to be profitable. This article takes a look at how site layout and unit mix can affect the successful lease-up a new self-storage facility and, ultimately, an operator’s revenue stream.    
 
Efficient Use of Land

Once a self-storage operator has appropriately analyzed his market and optimally located his facility, he must determine the most efficient use of land in terms of site layout. The proper positioning of buildings on the site can be critical to an owner’s success. Poor planning will result in fewer leasable units.

In addition, the proper mix of unit sizes is one of the most important factors in determining whether a facility will prosper or languish. After all, if an owner knows who his customers are and understands their storage needs, his occupancy rates will stay high under normal market conditions.

That said, unit mix is often one those areas that can stand improvement. No one has a crystal ball to predict the perfect mix, particularly at a new facility. If an owner’s occupancy rate is good, he may think he has the problem solved. But there’s a more finite opportunity to increase profitability, particularly when the owner is adding on to an existing facility, because there’s already knowledge of market needs and limitations, thanks to the original feasibility analysis.

When determining the unit mix for an addition, there are three factors to consider: 

• Maximizing the occupancy rate
• Maximizing total square footage
• Maximizing rent per square foot

Rent Per Square Foot vs. Occupancy

Occupancy rate and total square footage are important, but what good are they if rent per square foot is too low? When discussing an addition with an owner, there’s often a good deal of confidence placed in the facility manager regarding unit-mix decisions.

Quite often the owner will ask the manager, “What do you think we need to build?” Of course, managers welcome this question because their bonuses and incentives are sometimes tied directly to occupancy rates, and higher occupancy tends to bring praise from owners.

There’s no question occupancy rates are important, but there may be something equally critical missing from the equation. Wouldn’t the owner be more profitable if he could increase the number of units and earn a higher rent per square foot? Managers often suggest adding larger unit sizes such as 10-by-20s, 10-by-25s and 10-by30s, concluding that these units get a higher rent and are, therefore, more profitable. That’s not necessarily the case.

Managers too often make occupancy rates their first priority since they tends to be the benchmark by which most successful facilities are judged. But just because a facility is 100 percent full doesn’t mean it’s as profitable as it should be. While measuring occupancy is a good formula, there are other ways to determine long-term success.
 
Consider Smaller Sizes

If prospective tenants for small units are being turned away in favor of those requesting larger ones, the manager not only loses rent, he loses the higher price per square foot the renter of the smaller unit would have paid.

If the manager has done his homework, understands the unit mix needed in his market (demand) and has those units available (supply), the formula is working. But by decreasing unit sizes, the manager or owner can increase rental income per square foot and, as a result, net operating income (NOI).

Here’s another advantage of having smaller units: Let’s say a customer requests a 10-by-20 but there are none available. If the manager has smaller units in the inventory, he can offer the customer two 10-by-10s for the same price.

It’s true some markets may not need the smaller units right away, but the difference in the rent per square foot may make up for the temporary lower occupancy rate in the short term. Including smaller units in the mix isn’t intended to negate conventional unit-mix planning; it should be viewed as another method of increasing NOI in the long term.

In the final anaysis, a good unit mix should take into consideration the needs of the market, but also maximize facility revenue. In looking at the bigger picture, there are several factors that impact success in the self-storage business. Unit mix is just one consideration.

After all, the ability of any self-storage facility to experience sustained growth and profitability should be the goal of every manager, owner and investor. Doesn’t it make sense to use every tool at your disposal?
 
Mike Gillikin is a sales consultant for BETCO Inc., a single-source manufacturer of metal self-storage buildings and all-steel components. For more information, call 800.654.7813; e-mail [email protected]; visit www.betcoinc.com.

Related Articles:

Top Five Mistakes Made by New Self-Storage Developers: Know What They Are So You Can Avoid Them

Seven Myths of Self-Storage Development and Operation

Maximizing Profit With the Right Self-Storage Unit Mix

Self-Storage Talk: What Do Customers Look For?

Among my personal treasures from years ago are a bunch of campaign buttons, bumper stickers and signs for various political candidates I helped to get elected. Now I’m declaring a new campaign I’ve been thinking about for almost a decade. The timing is finally right. Unlike any campaign I’ve been a part of in the past, it doesn’t require me to worry about raising contributions, writing speeches, kissing babies, walking in any parades, or debating any opponents.

I’ve nicknamed my crusade “Project Picture Storage.” The goal is to get 5,000 facility pictures (representing approximately 10 percent of all U.S. storage sites) posted on Google Maps by Jan. 1. The goal is achievable, and the purpose is to get our industry―and, in particular, your self-storage facility―more attention nationwide.

I’m calling on every store manager and owner to grab a camera and join the biggest joint marketing effort in our industry’s history. The best part is posting facility photos on Google Maps is completely free. 

Show Off Your Facility

First, let’s talk strategy. We’re all searching for ways to promote our businesses and recover some of the occupancy losses we’ve suffered over the past several years. However, we’ve also been faced with the reality of limited financial resources to crank up the marketing machine.

For years, Google has allowed people to post pictures of locations around the world through its Panoramio program. To check it out, go to Google Maps and take a look your facility. (Make sure you have the photos option checked under the “more” tab.)

If you don’t find your facility’s photo, there are several ways to post one. The easiest is to go directly to Panoramio.com. If you don’t already have one, you’ll need to set up a Google Gmail account, which is free and easy to do. Next, if you haven’t taken any digital photos of your facility recently, take 10 or 15 shots. Download them from your camera, and then pick the best images, including one of the entrance, another of the office, and one inside the facility. Once you have two or three quality pictures, make sure the images are in JPEG format and less than 10 MB each (the maximum size that can be uploaded to Panoramio).

The instructions for uploading are straightforward. On the upload page, you’ll hit “browse” to access the images on your computer’s hard drive and insert the file locations. A couple of clicks later, and your images are on one of Google’s servers. Now the real fun starts. Panoramio allows you to insert captions, search tags and even marketing info about your facility’s features, hours or security. (Note: There’s no spell-checker, so be careful.)

Next, you get to map your actual location directly on Google’s master map. When you upload your images, you’re agreeing to be bound by Google’s terms of service and the Digital Millennium Copyright Act. (You can find details about the legalities on the Google site.) Once approved by Google, your facility photo will appear on Google’s map pages.

Get Noticed

The Picture Storage campaign has a simple objective. The next time someone is searching in your neighborhood on Google maps, your facility photo will be referenced, enabling a potential tenant to view it and your comments. Adding an image of your facility at your exact location just might help to get you a phone call or walk-in, and the opportunity for you to earn a rental.

If you’re successful with posting your facility images, please drop me an e-mail so I can keep track and report on the campaign as we move toward our Jan. 1 deadline.

Jim Chiswell is the owner of Chiswell & Associates LLC. Since 1990, his firm has provided feasibility studies, acquisition due diligence and customized manager training for the self-storage industry. He has served for a number of years on the Inside Self-Storage Editorial Advisory Board, is a moderator on the SelfStorageTalk.com online community, and is an instructor of the Self-Storage Training Institute. He can be reached at 434.589.4446 or [email protected]. For more information, visit www.selfstorageconsulting.com.

Related Articles:

Three Ways for Self-Storage Operators to Boost Their Online Presence

Building and Enhancing a Self-Storage Website: Factors to Consider

Building and Marketing a Successful Self-Storage Website

Self-Storage Talk: Webmasters Unite

The Florida Self Storage Association has announced Robert Bret as its new executive director, replacing Caite Corripio. 
 
Bret has more than 12 years of human-resources field experience, including the formulation of employee policies and procedures and the development of employee training and seminars. His background includes organizational development, recruitment, testing, placement, orientation, benefits, and labor relations for local and national organizations. He has designed, edited and directed the development of training programs, curricula and testing for thousands of internal and external employees and managers, and been responsible for the development of programs aimed at working professionals who wish to enhance their existing or develop new careers. Bret has degrees in psychology, human-resources management and organizational leadership.
 
“I personally think Robert is a perfect fit for this position; he is goal-oriented and is looking forward to the continued success of the FSSA,” Corripio said.
 
Bret will take the reins of the FSSA beginning July 12. He can be reached at 877.222.9441 or [email protected].

Related Articles:

Florida Self-Storage Operators Thwarted in Effort to Improve Lien Law

Florida Self Storage Association Hosts Legal Seminar, May 5

Florida Self Storage Association Introduces New Board Members

Janus International, a supplier of rolling-doors and components for the self-storage, commercial and industrial markets, has introduced a new portable-storage unit called MASS (Movable Additional Storage Structure) New Generation. This new unit includes many upgrades to the company’s standard MASS unit, including lighter weight, no sharp edges, easier and quicker installation time, and a sleek new design. MASS New Generation is ideal for increasing self-storage facility units, and can also be used for home or retail applications. The unit is available with insulation, shelving and a variety of door colors. In addition, all Janus portable-storage units have leasing options, making them a cost-effective avenue for increasing rental space.
 
Headquartered in Temple, Ga., Janus manufactures sheet doors, self-storage doors and building components, rolling steel doors, and grilles.

Related Articles:

Janus International Adds to Its Commercial/Rolling-Steel Sales Team

Janus International Adds Three to Self-Storage Staff

New Portable-Storage Containers: By Janus International

Janus International Sponsors Wounded Warrior Outdoors Charity

Janus Enters Joint Venture to Form Mexico-Based Door Firm

Ye Olde Storage Inn, a 50,220-square-foot facility in St. Joseph, Mich., sold for $1.2 million.

Morry Greener of the Pogoda Cos. represented both the buyer, Cedar Creek LLC, and the sellers, Midwest Storage Systems Limited Partnership, in the transaction, which closed in May.

Opened in 1979, Ye Olde Storage Inn includes eight buildings with 313 units and 18 RV- and boat-storage spaces on 3 acres. The asking price for the property was $1.2 million. The new owners intend to continue to operate the facility as a storage property in conjunction with another property they own nearby.

Founded in 1987, Pogoda Cos. provides brokerage, management, investment and consulting services to the self-storage and manufactured housing industries through its Pogoda Group Inc. and Pogoda Management Co. divisions.

Related Articles:

Michigan Self-Storage Businesses Benefit From Small Tax Victory

Argus Affiliates Broker Three Self-Storage Facility Sales

Bancap Brokers Sale of Five Star Storage in Solano County, CA

Self-Storage Talk: New Boat and RV Storage

New self-storage construction has been down for nearly two years, but we’re now seeing improvements in occupancies and net income per project. As builders and entrepreneurs see demand exists, they’ll pull the trigger on new facilities. The huge opportunity created by the current economic climate is you can get a self-storage project approved in an area where it would’ve been deemed impossible just a few years ago.

If you’re ready to make this leap, don’t make the same mistakes other developers have made in the past. To be successful, you must start by doing your homework. The great land opportunity you discovered might have a willing planning board that leaves you feeling good about your prospects for approval, but there could be pitfalls ahead. 
 
Mistake No. 1: Not Recognizing Potential Problems

You may have your site approved, but the question to ask yourself is: “What problems exist that I don’t yet know about?” This is a loaded question with many potential answers. Some of the issues you may need to address include: 

• The city gives you approval, but with so many strings attached that your cost spirals and your breakeven point is way too high.
• You run into problems with grading/drainage issues that “torpedo” your site.
• The planning board limits your available land so you can’t get enough square footage to make the project feasible. 

To avoid as many of these problems as possible, it’s best to think of all potential obstacles and get a feel for if there could be anything wrong with the site up front. Address all dilemmas as soon as you discover them. Too many developers assume problems will just work themselves out. In reality, they don’t, and they can cost you a lot of time and money.
 
Mistake No. 2: Not Maximizing Your Site

This doesn’t refer to getting the maximum square footage out of your land, it refers to creating the most square feet of rentable space. Some developers squish as much storage space as possible on the site and fail to consider who would actually want to rent such a unit or size.

For example, in some markets, tenants may not be interested in lugging stuff upstairs or into wide, single buildings, instead preferring drive-up units. In other markets, customers have no qualms about accessing units on upper floors. You may need to re-evaluate your site plan and determine potential income based on what you can actually rent, not theoretically rent. This may mean your gross potential is lower, but your project’s rentability is higher.
 
Mistake  No. 3: Not Securing Financing

Failing to come up with enough money to fully finance your facility is a huge error. In today’s market, lack of financing kills many projects. You need money to get into this industry. If you can’t get it on your own, consider entering a limited partnership.

Many business owners might shy from investors or partnerships; however, if you’re sitting around waiting for the 85 percent loan-to-value ratio the industry touted a few years ago, it’s going to be awhile. In a perfect world, it’s best to minimize partnerships; but in this environment, you may have no choice.

   
This facility in Brookfield, Wis., owned by Rod Barnett and Thomas Ferber, is a good example of a self-storage site done right.  Photos courtesy of Trachte Building Systems Inc.

Mistake No. 4: Not Phasing the Development

Here’s another mistake many first-time developers make: building the entire site at one time. In the last 10 years, more owners have opted to build their entire site at one time. Why? Common answers included, “I can get the money, so why not now?” or  “My pro forma looks better.” And for those who struggled through the city-approval process: “I never want to talk to the city ever again.”

Today, we’re seeing the consequences of all these 60,000-square-foot or more facilities built at one time. They take a long time to rent up, particularly if there’s plenty of nearby competition.

Owners often forget self-storage facilities only rent 1,500 to 2,500 square feet per month even in a good economy. These owners were delusional about how fast their facilities would fill.

Phasing a site minimizes the downside (loan amount) and offers the greatest flexibility to fix mistake No. 2—building the wrong size units for the marketplace. Each market is different, but later phases are your opportunity to fine tune your unit mix and build what customers need.
 
Mistake No. 5: Not Being Ready for Business

The last mistake often made by many new self-storage operators is not being 100 percent ready on opening day. You should begin preparing to rent units long before you actually pull your occupancy permit. The list of items that should be addressed is plentiful and includes: 
 
Website. Have your facility website up and running early. Look at all your options for driving people to your website or get connected to one of the many companies specializing in getting you leads.
Software. Pick out a software system early, know how to use it, and start reserving spaces as soon as it’s operating.
Advertising. Secure your ad in the Yellow Pages before you start construction. You should also consider online advertising opportunities, as more customers are turning to the Internet to find self-storage.
Phone sales. Answer the phone before your facility opens. While tenants cannot move in today, they can reserve a unit, or ask about pricing, unit sizes and amenities.
 
By avoiding the common mistakes above, you’ll attract more tenants, and be successful in developing a quality self-storage facility that will have minimal problems.
 
Jamie Lindau is the national sales manager for Trachte Building Systems in Sun Prairie, Wis. Lindau has crisscrossed the United States and Canada for 23 years helping people plan, develop, build and profit from self-storage. Drawing from his own experiences as a former self-storage owner, he has also led more than 200 Trachte seminars since 1988. For more information, call 800.356.5824; visit www.trachte.com.

Related Articles:

Self-Storage Development Trends: Conversions and Multi-Story Building Lead the Way

Insight for the First-Time Self-Storage Developer: What You Need to Know About Feasibility, Financing, Construction and More

Seven Myths of Self-Storage Development and Operation

Maximizing Profit With the Right Self-Storage Unit Mix

Self-Storage Talk: Finding Better Sites