Security can be a fantastic selling point at a self-storage facility, regardless of its location; but installing a security system in an already established site can be problematic. Retrofitting a site with security creates different concerns than with a newly constructed facility.

In new construction, conduit can be laid before there is asphalta luxury existing sites do not have. An operational site has active tenants on the property as well as locked units. There are structures that may not have easy access for adding conduit and wiring. Retrofitting requires working with what is there, such as cabinets and access through walls. It requires a well-laid plan.

There are several things to consider when thinking about retrofit security, such as:

• Site plans
• Hours of operation
• Cash-handling .
• Expense
• Installation

Site Plans

To start, lets take a look at the property. Its a good idea to get a copy of the site plans to determine points of security and devise a method of defense for the site. Your contractor can supply these. If necessary, draw the site on a piece of paper. Make notations regarding traffic flow, access points and areas of concern. Identifying the weak spots makes it easier to secure those areas.

Access points are places of entry to the site. How do tenants get in? This is largely determined by the site layout. Access points can be drive-thru gates, doors to inside units, elevators to multiple floors, or anywhere tenants can enter the site. If you can control access, you gain a level of security. Knowing who is on site and when can be a valuable tool. After identifying access points, you can formulate a plan to control access only authorized tenants can use.

Site layout is a large factor in determining what kind of security to use. Are the facilitys units inside or outside? What is around the site (buildings, railroad tracks, streets)? Are there open spaces around the site or places where someone could jump the fence? What is the street access to the site? How will moving trucks enter and leave the site? If the site has inside units, how many entrance doors are there? How many lobbies and elevators are there? Are there outdoor vehicle spaces?

Hours of Operation

Hours of operation also have an effect on security. Are tenants allowed access to their units after the manager has gone home? Does the manager live on the property? If there are gates, how late do they stay open? Does anyone have 24-hour access? How late does the office stay open? The hours of operation may have to be adjusted to meet security needs. This has to be balanced with convenience to tenants and their needs.

Cash-Handling

Cash-handling is another important aspect of security. Are you going to take cash? How and when will bank deposits be made? Where will the cash be kept, and how will you account for it? Will there be petty cash at the site? If so, where will it be kept?

Thieves are always looking for easy targets, so you should know exactly how you are going to handle cash at all times. Poor cash handling practices leads to lost revenue. Know how much cash you have on site, and do not keep all the money together. For example, petty cash and sales should be kept separate with a log for each.

Money should never be handled in sight of a customer. Petty cash and change should be kept in a locked safe. There should be frequent money drops and bank deposits. Encourage your tenants to pay by credit card or check. There are new products that allow payment by credit card in the office without the managers attention, such as a self-serve kiosk. Limiting what people can steal is cheaper than protecting what there is to steal.

Expense

What is your security budget? Security should be factored into the budget from the beginning of the project; and there are ways to minimize your security costs. Reducing access points and how they are controlled will factor greatly into the expense. Take care of your actual needs first and enhance the property next. You could spend thousands of dollars on a great video-surveillance system and be left with nothing to control access. You would just end up with pictures of thieves stealing from you or your tenants.

Installation

Installation adds to the expense of the security system and disruption of the property. Some systems require access to each unit or necessitate digging up asphalt to lay conduit. This could limit or block all entrance to the site. Dust and debris from the installation could affect your tenants. Some systems require new computer systems and office hardware. Ask what is involved with the installation of any proposed project. Even a new brick wall would mean cement trucks coming on the property and loads of bricks stacked somewhere.

Controlling Access

Now that we have surveyed the property, lets make a plan to add the retrofit security system. Access points are critical and should allow entrance to only tenants and authorized staff. If there are multiple driveways, some can be exit or entrance only. Gates should be added to driveways to control access.

Walls or fencing can restrict access to the perimeter of the site. Controlling the perimeter is your first layer of security. Your tenants will feel more secure knowing they are the only ones on site.

Keypads at the entrance gategenerally near the office and computer systemsare a cost-effective way to control gate activity. They can also be used at access doors. Try to reduce the number of doors required to reach inside areas. Some should be designated as emergency exits only. These can have wireless door sensors to easily monitor access.

Keypads are typically hardwired back to the office. This is a big consideration in retrofitting a property. Wiring can be expensive and time-consuming. Installing a gate requires trenching the driveway. Check with your contractor about how best to proceed.

Wireless door sensors can be placed on each unit to indicate when doors are opened or closed. These eliminate the need for any conduit or hard wire. Some brands can be mounted without opening the unit doors. This is convenient when units are rented and locked. Wireless door sensors are also a good visual crime deterrent. Also consider placing locks on all the vacant units to keep anyonetenants or trespassersfrom using them.

Surveillance

Video surveillance adds eyes to your property. Video systems can be comprised of wired and wireless cameras leading back to the office. Outside wiring should be inside conduit unless near or inside the office. Check with your local building department for your requirements.

Cameras in the office will provide a view of who is in the office and the money-handling practices of the managers. A camera overlooking the entrance gate will show who is coming on site. Remember, cameras in or near the office are easier to install than those in remote areas of the property.

There are many different camera systems from which to choose. Digital-video systems have the best picture quality and record directly to a hard drive instead of a VCR tape. Digital systems can be viewed remotely and recorded off-site.

Retrofitting a security system to an existing site can be challenging and expensive. First, secure your perimeter walls, fencing and gates, and reduce the number of access points. Second, control who has access to the regions of your site using vacant-unit locks, keypads and wireless door alarms. Third, monitor site activity with video surveillance, good cash-handling practices, competent security software, access keypads and attentive managers.

If building improvements are in your business plan, include your security upgrade. You will save time and money, and brings tremendous marketing value to your business.

Rod Davis is an installation specialist for QuikStor, a California-based company specializing in access control, management software, digital video surveillance and corporate products for the selfstorage industry. For more information, visit www.quikstor.com; call 800.321.1987.

The first generation of selfstorage facilities set a low standard for an emerging industry. Early building styles included poorly coated, corrugated metal roofing with screws that rusted and stained. Door colors were selected to make a bold statement and left a sour taste. Without landscape plans, early facilities looked like cemeteries. Many used signage on rooftops and buildings, making an unmistakable impression on the look of the community. The general appearance of the pioneering facilities left planning boards across America on defense when development continued to push into commercial and residential areas.

Self-storage facilities have evolved as the level of consumer awareness has grown. National television and radio advertisements have brought self-storage to mainstream America, making it a part of our lives whether we need it or not. As self-storage competes for shrinking markets, developers are looking outside industrial parks and zones for more convenient locations closer to homes and businesses.

As self-storage blends into residential and rural areas, facilities have been able to improve their ability to assimilate by adding traditional building attributes. The pole-barn style construction is very popular in the agricultural industry and gives a barn look. Facilities in rural areas can use a high-profile color roof, lending the storage buildings a country look. Earth-tone colors provide the appearance of self-storage without the intrusive contrast of opposing bold colors. Adding copulas, dormers and windows with shutters can break up the box look of a storage building. Ornamental gates and landscaping improves security and buffers the view of the doors.

The suburban facilities gaining approval in commercial and residential markets today are planned to look more like the surrounding community than self-storage. Developers are required to combine steel buildings with attractive faÁade materials like stucco, Dryvit, brick, split block and glass to break away from the historical metal-building design. Offices become a focal point to the facility and can be accented with high-profile color roofing with hips and valleys and mansards. Extensive landscape designs promote healthy-looking curb appeal that detracts from the impervious areas achieved by storage buildings and pavement. Color selections seem to reflect the surroundings and complement the landscaping. Signage is usually restricted to small, carved wood signs and are not found on the structures themselves.

In urban areas, the demand for self-storage has driven the search for land toward the sky. Multilevel conversions of old warehouses provide low-cost construction, but yield a challenging rental scenario. Multilevel facilities must rely on freight elevators, lifts or ramps, and all of the space is accessed through a series of hallways. The addition of windows and glass cut-aways promotes visibility in an otherwise unseen product while adding natural light for the hallways. Climate control has become the popular trade-off benefit for the lack of accessibility. Urban facilities are allowed more signage opportunity and find ample wall-surface area to promote their product day or night.

As developers continue to upgrade their market selections, the look of facilities continues to improve. The appearance of modern facilities has become integral to success during the application process and ultimately the success of the facility itself.

Louis Gilmore is sales manager for Flourtown, Pa.-based Miller Building Systems Inc., where he has worked for 15 years assisting with site layouts, attending planning and zoning hearings, and delivering and installing selfstorage buildings. Miller designs, supplies and installs a full line of pre-engineered metal buildings, including single-story and multistory, climate-controlled self-storage, relocatable modular buildings and rigid-frame structures. The company has specialized in East Coast construction since 1976. For more information, call 800.323.6464; e-mail [email protected]; visit www.millerbldgs.com.

Since the real estate crash of the late 80s or early 90s, conversion of real estate from an absolute use to one of renewed activity has been a challenge to all owners. Whether it is an old mill building in the Northeast, a discount store in the South, an office building in the Southwest or a manufacturing plant in the West, finding a new use for an unoccupied structure can be problematic. However, some developers have overcome the obstacles and been rewarded by converting old buildings to self-storage.

When a conversion of a former use building to self-storage is successful, the new use makes the building profitable again. If done right, city officials are happy with the new appearance. Finally, the new use offers local residents a well-located and convenient place to store their valuables.

Self-storage conversions are often profitable and dont cost a lot to accomplish; but there will be challenges. In some cases, access is difficult or security is not well planned. Other times, the office layout or unit mix is poor. In my travels, I often pass self-storage conversions, but seldom do I see one that has captured the true essence of what the process is all about. This article is about one of the best self-storage conversions I have ever encountered.

The Details

• Location: Located in the small town of Houma, La., West Park Climate Controlled Self-Storage was a former Wal-Mart that had been closed for five years. It is on West Park Ave., a one-way, two-lane street along an old, backwater bayou. West Park is the main road between downtown Houma and the citys main shopping area.
• Development and Operations: Stirling Properties Inc., a New Orleans-based regional real estate company, chose Fitzpatrick & Associates, also of New Orleans, as co-developer to oversee the redevelopment of the building as well as management of the ongoing storage operations of the facility.
• Design: The 10,000-square-foot, all indoor facility was designed to be a warm, friendly destination for tenants. Carlton Parker of CBP Architects put together the plan package, while Lisa Roth of Montgomery Roth Parker developed the color selections. Interior colors and finishes were chosen to provide a comfortable environment in which sales counselors and prospects can interact.
• Building Entrance: The front vestibule of the building was reconfigured as the office and retail-sales area. A 40-by-40-foot covered unloading area was added to the front of the vestibule to provide all-weather access. A stamped overlay simulating historic slate covers the main unloading area and front office space.
• Doors: High-security, automatic doors by Automatic Access were used to secure the main entrance to the storage area while providing easy access to the interior of the building. The Janus 650 door and hallway system was chosen for unit access.
• Gates and Fencing: Additional land next to the building was fenced and gated, creating 120 spaces for boat and RV storage. A beautiful, historic, New Orleans-style gate and fence was recreated for the entrance to the storage yard. Active Solutions of New Orleans supplied and installed the Digitech International Inc. keypads and access-control system, as well as the new dual-motor Elite gate operator.
• Parking: Limestone over a synthetic weed-barrier fabric makes up the parking surface.
• Signage: OPA Graphics produced the signage, including a stunning, 20-foot replica of an oak tree. OPA employed a special technique, using a sprayed poly-urea coating over carved styrofoam, creating a lightweight but extremely durable sign. (The companys work can be seen in places such as the Cincinnati, Ft. Worth and New Orleans Audubon zoos.)
• Coatings and Energy Savings: As heat gain is a major consideration in the deep South, Insultek Inc. applied a Nationwide Coatings ceramic-impregnated elastomeric coating on the roof and outer walls of the building. This provides waterproofing and tremendous heat reflectivity, as well as an excellent warranty on flat roofing systems.
  The coating prices were so competitive with conventional paints, Nationwide products were also chosen for the inside walls and ceiling tiles. The interior coating also serves to retain heat during the winter. Preliminary numbers on the energy savings have surpassed expectations.
  Additional energy savings were included with the use of instant-on hot-water heaters. Developed under a NASA patent, these devices remain dormant until hot water is needed. When the faucet is opened, they can supply steaming hot water indefinitely.
• Building Automation: Active Solutions worked closely with Home Automation Inc. to develop fully integrated building automation, including climate control, and burglar and fire-alarm systems. The fully operational system monitors HVAC run times and coordinates start times of the compressors to reduce peak-load factors that drive up energy rates. It also monitors temperature differentials on all of the buildings 17 HVAC units and alerts management of any decrease in efficiency.
  The automation system controls outdoor lighting, adjusting on/off times for changes in daylight hours throughout the year. The system also controls all interior lighting, only energizing rows of lights where tenants are visiting. It even triggers the automated watering system for the facilitys exquisite landscaping.
  In addition to the extensive burglar and fire-alarm functions, the automated system is also used to monitor watch stations at all points of entry into the building as well as the restrooms. The manager makes rounds twice a day to inspect these points and push the watch-station buttons. Reports of these rounds are maintained, as well as reports of alarm conditions in case a round is interrupted. All openings and closings are logged by the system. Unusual activities automatically cause the appropriate person to be paged and e-mailed.
• Video Surveillance: Alarms Plus handled installation of the state-of-the-art video-surveillance system by Active Solutions. Thirty-two cameras cover every point of entry as well as key locations throughout the facility and RV storage yard. The cameras are capable of extremely lowlight operation. They also change from color during daylight to black and white at night for better imaging.
  The outdoor cameras are so waterproof that they are submersible, eliminating a significant maintenance issue. They also require only one wire for hook-up, saving on labor and materials. Some of the cameras can pan tilt and zoom in on unusual activity, and others are hidden for covert surveillance. The entire system is recorded digitally and uses no videotapes. All of the cameras can be securely accessed through the Internet, including the ability to play back activity at each camera.
  Unlike new construction, redevelopment requires much closer scrutiny of each step of the process. The video-surveillance system played a critical part during the construction process. Because of its secure Internet accessibility, the developers and contractors were able to monitor every phase of construction, often making small changes throughout the process that would have required large corrections if allowed to continue.
• Management Software: The SiteLink package from SMD Software is used for management and operations. It features an easy-to-use interface combined with extensive reporting and home-office capabilities. It also interfaces seamlessly to Digitechs DigiGate access-control system.
• Controls: The building automation, video surveillance, alarms and facility operations were integrated into two ergonomic command centers. At one, a touch-screen display allows total control over buildings, lighting, automation, HVAC and security systems. At the other, the management team has access to storage operations and video surveillance. Two large LCD, wallmounted displays present all surveillancecamera images for staff and clients to view.
• Emergency System: To reduce hazardous wastes and the labor involved with replacing lead/acid batteries in all of the emergency lighting fixtures typically required in this scale of building, a naturalgas powered emergency generator was installed. The generator supplies power to all of the emergency lighting and exit signs, as well as providing enough power to keep the office and gate systems fully operational. Services at West Park include a full line of packing, shopping and storing materials from Pack Rite. The facility also offers tenant insurance as well as an extensive line of products from MiniCo Inc.
• Management: The management team is friendly, knowledgeable and eager to please. It managed to exceed 17 percent occupancy in less than 45 days after opening.
  Fitzpatrick & Associates and Stirling Properties feel they have created the most technologically advanced, user-friendly self-storage facility in the region. Visitors are encouraged to stop and experience West Parks Cajun charm and hospitality. For more information, visit www.westparkstorage.com. 

Dan Curtis is president of Storage Consulting & Marketing in Atlanta, which specializes in market studies, feasibility, site layout and design, marketing, conversions and climate control. He is also vice president of Janus International Corp., of Temple, Ga. Janus manufactures self-storage doors, hallways and partition systems. For more information, call 770.432.2417 or 404.427.9559; e-mail [email protected].

If Forrest Gump was in the self-storage business, he would say site design and unit mix are like peas and carrotsThey always go together. this is very true if you think about how many seminars and roundtable discussions at self-storage conventions combine these two into a single topic. Even though i find myself writing about them together here, they are separate processes you must go through to design a successful storage property. But one gets quite a bit more attention than the other.

Far more people ask what percentage of climate control to include at their facilities or how many 10-by-10s they need as opposed to where to place a fire hydrant. While site design deals more directly with initial construction costs, unit mix affects the ongoing financial performance of the store because it is tied directly to monthly rents. Unit mix is a living, breathing facet of your business. If done correctly, it offers flexibility and is the cornerstone to the financial success of your store. Nevertheless, site design is equally important. If a site is built incorrectly, in most cases, it is unchangeable.

Site Design

Site design is the first of the two steps. Also called site layout, it involves arranging your office, buildings, drives and infrastructure on your property. The objective is to get as much coverage (net rentable space) as possible while ensuring the ease of use for the facility and keeping costs down. Control of costs is achieved by making the best use of your site and the existing utilities. This is where you find out just how much your land costs will be as they relate to the bottom line. The true cost for your site equals the purchase price plus the cost of improvements required to make your site usable for self-storage.

There are two quick measuring sticks to evaluate how your site is shaping up. When working with site coverage, examine the ratio of gross building area to total site area. For example, 68,000 square feet of building area on a 4-acre site will give you a coverage ratio of 39 percent. When working with the cost of site improvements, look at the ratio of costs to total coverage. For example, if you spend $408,000 on water, sewer, storm drainage, excavation, retaining walls and pavement for the same 68,000-square-foot facility, your ratio of site improvement costs will be $6 per square foot.

Before you start designing your site, you will need a handful of tools from your development due diligence. First, youll need the recorded plat and/or legal description showing boundaries of the site, including easements and setbacks. If the site is not platted, you will need a boundary survey and have to gather the information on easements and setbacks from the city and county. You will also need a topographic survey, tree survey, geotechnical report and environmental report for the site. Your objective is to take your total site, determine the useable area and identify any significant issues that present a design challenge and/or significant site-improvement cost. Think of this process as defining your three-dimensional playing field.

This process is multidimensional because you not only need to know how much of your total site you can use, but what is on the surface and what lies beneath. Your plat will give the total area of the site, as well as the setbacks and easements determining where the sidelines are. What is usable area is in bounds, while the setbacks and easements are out of bounds.

Your topographic survey will show you the lay of the land and help you determine how to align the buildings and streets. The information on the tree survey is obvious, but not to be taken for granted. Placing a zigzag on your playing field to save some large trees can potentially save you considerable landscaping costs and win favor with the city. The environmental report can alert you to any costly clean-up requirements onand possibly belowthe surface. The geotechnical report, sometimes called the soils report, will show the characteristics of the soils, rock and water conditions below the surface. This information is crucial as it will give you an indication on what to expect for excavation costs.

Now that you have the tools required to plan your site, you need to hire an experienced self-storage designer. This can be a general contractor, architect or civil engineer. Chances are you have already used a civil engineer to produce some of the reports and surveys you gathered during due diligence.

A local civil engineer who knows the current zoning regulations and other jurisdictional approval requirements can save you time in getting your site plan approved. However, if the engineer you choose does not have the experience of more than a few self-storage projects, you will need to hire an architect or general contractor with self-storage planning experience. This design team will be able to maximize the coverage on your site while minimizing the costs for site improvements and be able to guide you through the approval process.

Unit Mix

With your preliminary site plan completed, you can now start filling in the blank building footprints with the different sizes of units you wish to rent. The objective is to design a unit mix that will maximize income and lease up quickly.

Be careful balancing these two parts of your goal. A common mistake is to load your unit mix with too many larger units because they tend to lease faster than smaller ones. This is true if you consider it takes one customer to rent a 10-by-30 unit and six to rent an equal amount in 5-by-10s. While it takes longer to rent the six smaller units, your income on the same 300 square feet is more than double than on the single large one. You can keep tabs on unit mix vs. income by comparing the average unit size of your project to the average rent per square foot. As the average unit size increases, the average rent per square foot will decrease.

As with the site-design process, you will need some of the tools you gathered during development due diligence. For unit-mix design, you will need a market study, competition information and demographics. A market study will provide information about traffic counts, major employers, what causes people to drive by your location, and levels of commercial and industrial activity.

Competitor information should include the number of competitors, facility sizes, numbers and types of units, percentages of climate control vs. regular storage, occupancy levels, unit prices, overall appearance/ condition of the facilities, and comments about the managers and employees of the stores. Demographic information should include population make-up, income levels, and the ratios of renter- vs. owner-occupied housing.

These tools are used to build a unit mix tailored for your specific market. Again, this is where you want to have an experienced selfstorage operator, property manager or consultant who has managed facilities in different types of markets. Someone who has collected data about their customers and leasing activity for stores in a variety of markets can establish a baseline unit mix for a certain market. This mix can then be adjusted according to the differences in your market.

For example, if your site is located in an area with high humidity, you would adjust the baseline mix by adding climate-controlled units. If your target market included a large college, you adjust the baseline by adding smaller units. Making these comparisons and the necessary adjustments for each category will result in a mix designed for your market.

The Two Become One

At this point, your unit mix is nearly complete and ready to be applied to the preliminary site plan. Until this point, neither should be finalized. As you begin filling each building footprint with the unit sizes and quantities to match your unit mix, you will find you may have to adjust the building shapes to get the best fit. Likewise, you may have to adjust your unit mix to accommodate the buildings on the site plan.

Further adjustments to the plan will probably come as you go through the approval process with local jurisdiction. Throughout this process, monitor how the changes affect ratios for coverage and site-improvement costs, as well as the averages for unit size and rental income. The end result will be an approved site plan with unit mix that will maximize your return on investment. You have designed your facility with the most economical site-improvement costs and the best potential income stream.

Victor Lopez is president of NDS Construction, a design/build firm in Bulverde, Texas. NDS specializes in selfstorage, office facilities and commercial construction projects. For more information, call 888.980.8250; e-mail [email protected];

visit www.ndsinc.com.

In part I of this article (Inside Self-Storage, July 2003), we looked at the following questions:

We answered the first two questions by studying a ficititious facility. What we learned was that, by giving away 8.62 percent of its rental income in monthly discounts, the facility was only gaining a 4.32 percent increase in its length of tenant occupancy. Until we did our math analysis, we could only guess at the true value of offering rental discounts. Several of you sent me the results from your storage facilities. Most of you were quite surprised by your findings.

Now lets analyze another popular promotion, the first-month $1 move-in special. As before, we will start with an exported report from our management software and keep only three columns: street rent rates (column A), actual rent being paid (column B) and the tenants move-in date (column C). (If you want a refresher on how to do this in Microsoft Excel, refer back to the July issue.) Here is a short sample output representing our small facility:

Is a $1 first-month move-in special more profitable than offering rental discounts?

Lets assume the tenants currently paying a discounted rent had instead been given their first months rent for a $1. As before, we will place our formulas in the empty D column and explain their meaning in column E. For consistency with part I of this article, the listed answers will presume today is 6/1/03.

Lets start by highlighting cell D1 and typing =SUM(IF(C1:C9999=,0,IF(A1:A9999>B1 :B9999,A1:A9999*DAYS360(C1:C9999, TODAY()),0))/30).

Hold down the SHIFT and CTRL keys while you press ENTER. This last step instructs Excel that you are using data sets. Curly brackets are automatically applied to the ends of the formula as confirmation. Move to cell E1 and fill in what this new number represents: Gross Potential Rent on Discounted Units.

Now move to cell D2 and type =SUM (IF(C1:C9999=,0,IF(A1:A9999>B1:B9999 ,A1:A9999-1,0))). Again hold down the SHIFT and CTRL keys while pressing ENTER. In cell E2, type Net Loss With $1 First- Month Move-In Discount. Finally, move to cell D3 and type =100*D2/D1. This time, just press ENTER, move to cell E3, and type Percent of Lost Revenue on Units With Discounted Rent.

For our example, the value in cell D3 is 19.12 percent. This is an extreme loss in income just to achieve a 4.32 percent increase in our length of occupancy. It is even worse than the 8.62 percent loss that resulted from rental discounts. As before, try these formulas with your site data, as it may produce very different results.

Does offering automatic rent collection make financial sense?

Do you mail a tenant statement prior to rent payment being due? If so, your tenant will review the merits of his monthly rent expense before sending each payment. He may decide to vacate the unit and save his money. But what if you could diminish this risk and reduce postage expenses for you and your tenant?

Automatic rent collection eliminates the need to pre-inform your tenants of each rental payment. The tenants signatureon- file allows you to automatically debit rental funds from his checking or savings account (the banking term for this is ACH). Without monthly invoice reminders, most tenants will stay longer. I have found 60 percent of tenants will choose automatic ACH debiting, and 70 percent of those will remain renters for one additional month.

Your ACH-merchant bank fees are set by the management software you use, and those rates can vary dramatically. Some software companies charge as low as 20 cents per transaction while others tack on profit-sharing and raise your fee to 1.3 percent of every transaction. Again, we will use our oversimplified sample site to perform some calculations.

First, we need to know how many tenants we have at our site. Lets start at cell D4 and type =SUM(IF(C1:C9999=,0,1)). Hold down the SHIFT and CTRL keys while you press ENTER. Now move to cell E4 and type Occupied Units.

Now lets calculate the average retail-rack (nondiscounted) rate for our site. In cell D5, type =SUM(IF(C1:C9999=,0,A1:A9999))/ D4. Hold down the SHIFT and CTRL keys while pressing ENTER. Now move to cell E5 and type Average Rack Rate of Occupied Units.

Here comes our formula to calculate the average length of occupancy for all tenants who pay the street rate. In cell D6, type=SUM(IF(C1:C9999=,0,IF(A1:A9999=B1:B9999,DAYS360(C 1:C9999,06/01/03),0)))/(30*(SUM(IF(B1:B9999>0,IF(A1:A9999= B1:B9999,1,0)),0))). Hold down the SHIFT and CTRL keys and press ENTER. Move to cell E6 and type Months of Occupancy For Nondiscounted Units.

Finally, lets combine all the above values to determine our monthly gain from implementing ACH rent collection. We will assume the merchant fee is 20 cents per transaction and remove those fees from our total. As noted above, 60 percent of our tenants will choose this ACH service, and 70 percent of those people will stay for an extra month. In cell D7, type =.6*.7*D4*D5/D6-.6*D4*0.20. Press ENTER and move to cell E7 to type Net Monthly Increase From ACH Rent Collection. To turn these these dollars back into a percentage, go to cell D8 and type =100*D7/D4/D5. Press ENTER, move to cell E8, and type Percent Income Increase From Automatic Rent Collection. Your spreadsheet should now look like this:

From our table, we see that offering automatic rent collection is increasing our income by nearly 8 percent without giving anything away. This increase far exceeds the gain we achieved when we tried rental discounts and the $1 move-in special. This savings has encouraged hundreds of storage facilities to switch to ACH. The added income can pay for your door alarms, e-commerce, a kiosk station or video surveillance. In turn, these items will make your facility more valuable. Talk to your current vendor about which of these products/ services it offers.

On a personal note, I would like to thank the hundreds of readers who have sent me their suggestions and questions over the last two years. This is my final TechTalk column. I will, however, continue to reply to all reader inquiries.

Doug Carner is on the Western-region board of directors for the Self Storage Association. He is also the vice president of QuikStor Security & Software, a California-based company specializing in access control, management software, digital video surveillance and corporate products for the self-storage industry. For more information, call 800.321.1987; e-mail [email protected]; visit www.quikstor.com.

The European self-storage market is moving full-steam ahead. This expansion has been highly anticipated for years. Offering superior security creates a strong, competitive marketing advantage. It’s a lesson the European self-storage industry can learn from the U.S. experience.

Most self-storage facilities built in the United States and Europe are geared for every type of occupant. The customers range from short-term transitional renters to long-term commercial clients, and to even people like me, who need an extra garage or closet to store their valuables for an extended time. When I needed a place to store my custom motorcycle, I looked for a facility that has all available modern security features and a management team that was attentive to all aspects of their site.

Most operators in the United States have discovered the detriments of a shoddy security program. Although it is a renter’s responsibility to secure his belongings, it is the facility owner’s responsibility to provide safe and secure surroundings.

Security features can create a marketing advantage that separates you from your competition. The long-term customers who store their business tools or prized possessions look for extra security features. These customers are looking for additional security measures and are willing to pay a little more for it.

The extra security features begin at the entrance of your facility. The site should have a welcoming appearance but still have visual signs of security in place. Access-control points are key for controlling unauthorized vehicles from entering your site.

The first step in security is keypadcontrolled access linked to your propertymanagement system. By linking access to your system, you can record trips for each renter. If you install surveillance cameras, make sure you have at least one to scan and record vehicle license plates. A second camera could scan the driver. Since recording the duration of visits is important for security purposes, you should have a separate keypadactivated exit gate. In addition, delinquent renters can be locked out at the gate.

The management office is the next critical security point. Most facilities market their security measures by displaying monitors showing the cameras scanning the site. Be sure one monitor allows your manager to view the site while facing customers. It’s a good idea to scan the front office also.

Not all of your security features involve hardware or software. Security procedures can go a long way in creating a safe atmosphere for renters. Be upfront. Ask customers for identification, phone numbers and addresses. Let renters know that is your practice for keeping the “bad guys” out.

At the unit, door alarms tied to your property- management system add a layer of protection. Just make sure your installers are experienced and accountable for their work.

The last line of your security, and a key marketing advantage, is your lock system. Some operators make the mistake of lumping locks with boxes, tape and other ancillary products to sell for a profit. Locks are not an ancillary product. You cannot market or provide security without a high-security lock system. This is not an option to leave up to the renter any more than door alarms or security cameras.

A cheap padlock, whether you sell it or the renter provides it, indicates you are not serious about security. The minimum step is to sell or provide disk locks, which have a hidden shackle that can slow a thief. Better yet, invest in a cylinder-latch system, which buries the lock mechanism inside the door and presents a uniform face to a potential thief. With a deposit and administrative fee, you can recoup the price of the system over a few rentals and ensure that every link in your security chain is secure.

One of the most valuable tools the European self-storage market has is knowledge gained from the U.S. industry. With the number of facilities operating in the United States, the level of competition creates a wide variety of marketing and operational ideas. The features and services you provide will unquestionably determine the customer base you attract.

Christopher Shope is vice president of sales and marketing for Lock America Inc. (L.A.I. Group). For more information, call 704.824.8363; e-mail [email protected]; visit www.laigroup.com.