By Pamela Alton

I’ve heard it said that performance reviews are like fruitcakes: They usually come around once a year whether you like them or not! But unlike a fruitcake, a performance review for a self-storage manager shouldn't be limited to the end of the year. These evaluations have many benefits, providing a chance to offer constructive feedback, praise and advice for improvement. Ultimately, a review enables an open, frank discussion about the company's goals and employee growth within the organization.

Here’s some advice for self-storage owners or supervisors on preparing for an evaluation, what the meeting should cover, topics to avoid and more.

Choose a Review Type

There are basically two types of performance reviews. One is usually given at the end of the year as a kind of summary. This is generally when your manager expects to hear about a pay raise or a bonus program for the new year. The other type of review is more detailed, discussing a manager’s goals, accomplishments and areas for improvement. You can combine these discussions into a one-time event, or do multiple reviews throughout the year.

For example, you could conduct one review at the end of the year to discuss next year's goals and the time frame for achieving them, as well as to offer the employee an increase in wages and an outline of his new bonus program. You could then conduct another review mid-year or after the completion of a large project, such as a facility expansion. There’s no right or wrong time to give a performance review so long as it happens at least annually. Otherwise, how can you and your manager determine if he’s on target to meet his goals?

Be Prepared

Many supervisors will sit down a few days before a review to begin their notes. This is a mistake. Rather, you should be making notes throughout the year in each employee's file. It might include examples of when a staff member went above and beyond his job duties, such as a demonstrating a willingness to help co-workers or spearheading a major project.

You should also cite any complaints you received from tenants or other employees. Not everyone is perfect all the time, but we tend to forget the negatives. Making note of—and addressing—incidents as they occur will give your manager time to improve and allow him to demonstrate how well he can overcome adversity.

During the review, never surprise an employee with a laundry list of improvement items that weren’t previously discussed. If you bring up information that’s totally new, he might say he was never told about certain company policies, or that he was unaware that he wasn’t reaching his goals. A review is a recap of things that have occurred during the year. If you address a situation when it happens—good or bad—it’ll alleviate tension during the formal performance evaluation.

Write It Down

Human-resources professionals agree an employee review shouldn’t involve only on a face-to-face meeting. It should also include a written component so you there’s a document to which to refer, for all parties. It helps everyone involved to track progress.

A quick note about forms: While it’s good to have a pre-designed performance-review form, be careful about choosing one that isn’t specific to the self-storage industry. Fortunately, even a generic form can usually be tweaked for your purposes. It should specifically address your business policies and procedures.

Be Honest and Comprehensive

One major mistake supervisors often make is writing reviews that are too vague and full of compliments to avoid a confrontation or uncomfortable situation. You need to give an honest, balanced review, providing positive and negative feedback about your manager's job performance. If your reviews are all "fluff," they could be fodder for a lawsuit if the employee is later fired.

Be specific and give examples of what he’s doing well or areas where he excels. James E. Neal Jr.’s book, "Effective Phrases for Performance Appraisals: A Guide to Successful Evaluations," includes five words and phrases that will help highlight an employee's contributions to you and your facility:

• Achievement: For example, incorporate this into a statement such as "achieves optimal levels of occupancy while retaining rentals and reducing delinquency."
• Communication skills: Saying something like, "effectively communicates with the home office staff," or "excels in tenant relations" will go a long way with an employee.
• Creativity: Appreciating employees' creative side can make for happier, more motivated staff. In a performance review, try "seeks creative alternatives, such as [example: designing a new marketing plan] that drove [results: an increase in business rentals]."
• Improvement: Employees like hearing they’re improving and it's being noticed. "Continues to grow and improve" and "is continuously planning for improvement" are two constructive phrases to use in a performance review.
• Management ability: Having leadership skills and the ability to manage others is key for employee success. Incorporating phrases such as "provides support during periods of a manager change at other locations" or "provides team with support through [example]" will carry a lot of weight with your employee.

Also, discuss areas where the employee may need to improve, such as collections, customer service or site maintenance. Ask open-ended questions like the following, which will spark an honest conversation that allows you to each to see the other’s perspective:

• What would you do to improve the situation?
• How do/did you see the situation?
• What is your desired result?

Next, offer solutions to help the employee achieve better results. If you’re a mid-size to large company, you may want to let him know that if he improves, there could be a chance for a promotion to area or district manager. Always look to promote from within. The manager already knows your company, its philosophy and policies.

A performance review isn’t just a time to give your staff "grades.” There’s nothing worse to your employee than listening to his supervisor run down a form and recite scores. Use this time to sit down in a professional atmosphere and have an open, honest discussion and solve any problems. In the end, this will help him be a better employee and improve the company’s revenue.

Try a Self-Review Session

I did this once with my staff. I gave them each a review sheet and asked them to evaluate their own performance. It wasn’t at all what I expected. They beat themselves up much worse than I ever would have! They were all doing a good job. However, I had a few minor issues, and each one knew exactly what those were; so they came to the meeting with solutions to improve their performance.

If you elect to do this, consider giving your manager a few questions to answer in advance and bring to the review. These might include:

• How was your work performance this year?
• What are your goals for the coming year, and how are you planning to achieve them?
• What can I do to help you build your skills and achieve your goals?

Be Positive

Always end your review on a positive note! Offering encouragement and letting your manager know you appreciate what he does for you, your facility and tenants gives an added boost to a good review or lifts spirits after a less than encouraging one. Positive reinforcement can go a long way in giving your manager the confidence he needs to achieve higher profit-driven results for the next year. Remember, a pat on the back doesn't cost you a dime!

Follow Up

Finally, it’s critical to follow up with your manger after the evaluation. Always give him a copy of the written review and follow up with an e-mail summarizing what was discussed along with any stated goals and improvements. Then, start planning for the next appraisal!

Pamela Alton is the owner of Mini-Management Services, a company that has been placing self-storage managers in positions all over the United States since 1991. She also offers staff training, operational consulting, and facility audits and inspections. For more information, call 321.890.2245; e-mail [email protected]; visit www.mini-management.com.

When property owner Bruce Raskin got pushback from residents and businesses on the initial design for a self-storage facility he wanted to build in the trendy Melrose District of Phoenix, he and his wife took the feedback and created a design contest for the project. The facility is proposed for Turney Avenue, just east of 7th Avenue, in a distinctive area of the city known for its vintage-style buildings, according to the source. The site is also surrounded by historic neighborhoods.

"This community is very interested in creating a sense of place, and so for us, that gave us an opportunity to step back and say, ‘OK, it doesn't have to look like another apartment complex,’” Raskin told the source.

Pamela Pawlowski, president of the Grandview Neighborhood Association, indicated residents wanted a building that would fit aesthetically within the area. "I think now we're looking for maybe something that sports a mural or has a bit of neon, but has that edge so it's a little bit more futuristic but still keeps in mind our retro aspect," she said.

Three firms presented their designs on Wednesday in front of a panel of judges that included community members and property owners. Andrews Design Group Inc. was announced yesterday as the winner. Its design is a mix of modern and retro styling, and includes neon accents atop a large circular portion of the structure, which would serve as the main entrance.

A mixed-use component to the design features an art studio, community office, exhibition space and outdoor seating. A multi-purpose room is designated for lectures, theater events and other gatherings, according to the design submission.

Community members were pleased with the prospective designs and appreciative of being included in the decision process. "It's like doing something with the community instead of to the community, so I think it will be extremely well-received," Pawlowski told the source.

Update 8/18/17 – The Deerfield Planning Board voted unanimously on Monday to recommend the self-storage project proposed by Ideal Movers and Storage. Revised plans from the project engineer to address water-drainage issues were discussed during the meeting. Changes include using larger stone in the driveway than initially proposed to minimize runoff, according to the source.

“That’s what we were talking about last time; it’s going to let a lot more water through,” engineering consultant Sara Campbell told the board. Campbell, who was hired to review the site plans, indicated the proposed stone is about a quarter-inch in size and won’t pack together. The buildings will be constructed on sand and gravel, which will also help to decrease runoff. “Anything that’s brought in is going to be more pervious than what’s already there,” she said.

The primary building marked for demolition was built in 1921, the source reported. Its value was assessed at $170,400, though the entire Greenfield Road property is valued at $311,400.

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7/25/17 – Ideal Movers and Storage, which operates a self-storage facility in Hadley, Mass., is seeking approval to open a second site in Deerfield, Mass. The plans were recently presented to the planning board by Henry Cropsey, the attorney representing storage owner Brent Banas, during a public hearing, according to the source.

If the project is approved, an existing structure on the 3-acre property at 247 Greenfield Road would be removed, as would a replica of a lighthouse near the road. In their place would be built four large buildings containing 300 storage units. The facility will also include a two-story, 2,400-square-foot office. The project will be similar in design to the 600-unit Hadley location, which opened in 1998.

Following the presentation, the planning board requested the project undergo a peer review due to its complexities. The development must also meet town requirements for storm-water drainage and lighting regulations. An engineer on the project said it does, the source reported.

While a few attendees inquired about wetlands on the property, planning-board members asked Cropsey why Banas chose that particular site. Although the parcel is zoned commercial, some residents might have concerns about U.S. Routes 5 and 10 becoming a non-country road, said board member John Waite. “That lighthouse building has been there for a long time, so we’re probably going to get some questions about that.”

Cropsey noted the area has a cluster of commercial uses along the highway. “Yes, this has been taken into consideration. Part of the reason it’s being proposed for this location is because it fits into the neighborhood,” he said.

If approved, the development could break ground this fall. “It’s a fairly complicated project, and we don’t want to be in the middle of it when winter hits,” Cropsey said.

The existing structure was built in 1921 and was most recently assessed at $170,400. The property in its entirety is valued at $311,400, the source reported.

A Conservation Commission meeting is scheduled for July 27. The public hearing will be continued on Aug. 7.

Ideal Movers and Storage is family-owned and -operated. The company was formed in 1993 with a pickup truck, a trailer and a single ad in the “Daily Hampshire Gazette,” according to its website. The storage facility at 10 Mill Valley Road in Hadley was built in 1998.

 

NSA Property Holdings LLC, an affiliate of real estate investment trust National Storage Affiliates Trust (NSAT), has acquired a 74,101-square-foot self-storage facility in Lexington Park, Md. Built between 2013 and 2015, the 9.8-acre property includes 791 units, six vehicle-storage spaces and 920 square feet of parking. It has been managed by self-storage real estate investment trust and third-party management firm Extra Space Storage and branded under its name.

The seller, Willows Road Business Park LLC, was represented in the transaction by Ryan Clark, director of investment sales at SkyView Advisors, a Tampa-Fla.-based boutique firm specializing in self-storage acquisition, development, facility expansion and renovation, refinancing and sales.

Last month, NSA purchased the three-property Tri-State Self Storage portfolio in Castle County, Del., from Tri-State Realty Associates L.P. The facilities comprise 264,237 rentable square feet of storage space in 2,428 units, 568 of which are climate-controlled.

Headquartered in Greenwood, Colo., NSAT is a self-administered and -managed REIT focused on the acquisition, operation and ownership of self-storage properties within the top 100 U.S. Metropolitan Statistical Areas throughout the United States. The company has ownership interest in 456 storage facilities in 23 states. Its portfolio comprises approximately 28 million net rentable square feet. It's owned by its affiliate operators, who are contributing their interests in their self-storage assets over the next few years as their current mortgage debt matures.

Headquartered in Salt Lake City, Extra Space Storage Inc. is a real estate investment trust that owns or operates 1,470 self-storage properties in 38 states; Washington, D.C.; and Puerto Rico. The company’s properties comprise approximately 1 million units and 111 million square feet of rentable space.

Self-storage owners Greg and Shari Belyea opened a mixed-use property last week in Stirling, Ontario, Canada, that includes drive-through a self-storage facility and an auto-detailing shop. Excess Storage and Extreme Clean Detailing at 2472 Stirling-Marmora Road celebrated its grand opening on Aug. 12. Stirling Mayor Rodney Cooney cut the ribbon during the event, according to the source.

The facility was converted from a former Irwin Cabinet Works Ltd., which the husband and wife team purchased in April. The project was built by Engel Construction Inc.  

The storage portion of the property contains 49 interior units on two levels and 11 exterior units. Customer amenities include 24-hour access and climate control, which is unique to the area, Greg Belyea told the source. “Outside of Stirling-Rawdon, there are other options; but in Stirling-Rawdon, we are the only one.”

The auto-detailing business is operated by Steve Wilder. Services include interior and exterior wash as well as vacuuming and waxing.

 

The Americans With Disabilities Act (ADA) was enacted in 1990. At the time, no one in the self-storage industry thought the ADA applied much to their facilities, except under Title III of the Act, which deals with public accommodations. If you built a storage facility after 1990, it would need an office that was accessible to those with all disabilities. This includes wheelchair access.

In 2010, the U.S. Department of Justice began floating around modifications to the ADA, which included new and specific design and building requirements. Again, no one was certain if these requirements applied to our industry because most of what constitutes a storage facility isn’t an area of “public accommodation.”

When the standards went out for public comment, without pressing too hard, storage-industry leaders began to inquire whether the Justice Department believed these design standards would apply to self-storage properties. If so, how many years back would the obligation go before a facility was “grandfathered” out of the requirement? It’s my understanding that an exact answer was never determined for various reasons.

For the purposes of this article, assume ADA requirements apply to your facility, especially if it was built or issued a Certificate of Occupancy, or you added new buildings, since March 15, 2012. These requirements deal with scoping and dispersion. Let’s take a look at what each means and how you can ensure your property is compliant.

Scoping and Dispersion

Scoping relates to the number of units you’re required to have that are accessible to customers with disabilities. If your property has 200 units or fewer, 5 percent of the units must comply. If the site has more than 200 units, the number jumps to 10 units plus 2 percent.

The dispersion requirement means you must have spread the required units among your various unit types and styles. If your property has all 10-by-10, non-temperature-controlled units, that’s easy. However, if you have 15 different unit sizes, some temperature-controlled and some not, then you’d have to do your best to spread the required number of units across these kinds.

That doesn’t mean you must make more units accessible than is required under scoping. You don’t have to build additional disability-accessible units to have one of every type and style. Even if you have many varieties, you still only have to hit the number required under scoping.

Accessibility

The problem is that making a unit accessible is trickier in self-storage than in other types of businesses. When we talk about accessibility, we’re not simply discussing the ability to lift a door and have the resistance meet the ADA requirements for pressure or weight. The entire path to the unit must be accessible. This includes the amount of slope permitted in the drive aisles. The requirement is 1 inch per foot of rise or fall. Many storage facilities have sloped drive aisles to move water away from the buildings, which may violate the ADA.

Also, there’s the accessibility of the gate keypad, which must be a regulated height, as well as accessibility to the latch, and the ability and ease of opening and closing the unit door. Your management office as well as any restrooms must also be ADA-compliant.

The Dangers of Advocacy

An important danger of which you should be aware is advocacy groups that conduct “drive-by” ADA shops at various businesses, including self-storage facilities. While many of these groups do great work for the people they serve, unfortunately, there are some whose mission isn’t quite so noble.

These organizations operate under many names and appear to be working for people with disabilities. They’ll drive by your facility, notice what they perceive to be a deficiency, pretend to be interested in renting a unit, and take measurements. If they find a defect, rather than asking you to correct it, they’ll bring an ADA lawsuit against you. This could happen even if no disabled person is attempting to rent with you or having trouble accessing your facility or his storage unit.

Many operators rent units to disabled people who have no trouble getting over the rain lip in front of their unit or traveling the drive aisle, even if it has a little more slope than permitted. That doesn’t matter to these groups. They’re simply looking for lockstep compliance and a payout. To fulfill their mission, they actively seek violations and quickly make claims. They don’t need to have an injured party to do so. They bring the lawsuit against you for ADA violations and seek large sums in damages as well as correction.

While there’s nothing we can do to stop these groups, even those that are less than legitimate, forewarned is forearmed. If you have questions about whether your property is disability-accessible—or even if it should be—it’s worth investing time and money for a review by an access specialist or architect. This way, if an agency or advocacy group does a drive-by and decides to target you, you’re ready to defend yourself instead of simply becoming the next unwitting shakedown victim.

I know these words are harsh, but to be on the receiving side of one of these claims when there’s no actual harmed party will shake your beliefs and cause you to question your faith in our legal system. Rather than finding yourself in that situation, be prepared and compliant (if necessary), and avoid this rather nasty surprise that many self-storage operators nationwide have received.

This column is for the purpose of providing general legal insight into the self-storage field and should not be substituted for the advice of your own attorney.

Jeffrey Greenberger is a partner in the Cincinnati law firm of Greenberger & Brewer LLP. Licensed to practice in Kentucky and Ohio, he focuses primarily on representing the owners and operators of commercial real estate, including self-storage owners and operators. His website, www.selfstoragelegal.com, contains legal opinions and insights as well as an article archive. To reach him, call 513.698.9350; e-mail [email protected].

Several New York self-storage operators have joined an initiative from Monolith Solar Associates LLC in which the company will lease their rooftops as a way to reduce the ecological footprint of its solar farms. Boat N RV Condos, Luther Road Self Storage Inc. and Metro Movers Inc. are three businesses participating in the program.

Boat N RV added solar panels this year to the rooftops at its two facilities in Glens Falls and Saratoga Springs. The operator is renting its roof space to Monolith on a 20-year lease. Under the agreement, the solar company supplies, installs and maintains the solar system, while the storage facility receives free electricity. Whatever energy isn’t used on the property is sold by Monolith back to the grid, according to a source.

The Glens Falls project was completed in February, while the Saratoga Springs system was installed in July. The self-storage operator is affiliated with Concord Pools in Latham, which has had rooftop solar panels for 10 years, the source reported. Company principal Michael Giavanone called the solar initiative a “socially responsible approach” to leveraging unused space. “We want to do everything we can to improve the environment,” he said.

In East Greenbush, Luther Road Self Storage installed a 200,000-watt solar array that will be part of an 8-megawatt portfolio to benefit Rensselaer County, a source reported. County officials joined Monolith founders Steve Erby and Mark Fobare for a ribbon-cutting ceremony at the storage facility on Monday. Solar panels have been placed on all five buildings on the property.

Last month, the Guilderland Planning Board voted to recommend a Monolith application to install solar panels on two self-storage buildings at the Metro Movers facility at 2703 Curry Road. The project would comprise 160,000 watts, with a 91,000-watt array placed on one structure and 70,000 watts designated for the other building, according to a source. The project was sent to the zoning board of appeals for approval.

Recent changes to the state’s net-metering process and other financial and regulatory conditions have resulted in an increase in solar projects across New York, a source reported.

Founded in 2008, Monolith works primarily with commercial and municipal customers. Its installed more than 21.6 megawatts of solar power, according to its website. Its solar farms stretch across New York, from east of Albany to west of Buffalo.

Update 8/17/17 – Seattle officials are discussing a joint request from West Coast and Nucor Corp., a steel manufacturer, to vacate rights of way (ROWs) owned by the Port of Seattle, better align adjacent land parcels and accommodate West Coast’s proposal. Changing the ROW would essentially remove unused portions of two streets from the city’s formal street grid. The storage operator is under contract to purchase parcels at 3252 and 3310 Harbor Ave. with the intent to build a 103,000-square-foot facility with 850 storage units, up from an original estimate of 650.

If the city agrees to vacate the ROW on portions of 29th Avenue and City View Street, West Coast would be able to combine both properties into a single building site, according to the proposal. The self-storage operator and Nucor, which owns adjacent property also affected by the ROW issue, have agreed to adjust the lot line “to what is already the functional boundary between the two [parcels].”

The combined areas targeted for altering the ROW comprise 27,204 square feet, with Nucor owning an affected parcel on the east side of 29th Avenue. It currently leases use of the ROW. West Coast is interested in 2,029 square feet of the ROW on City View. The steel company supports self-storage as a compatible use next to its operation, the proposal states.

In exchange for relinquishing the ROW, the city requires a public benefit. As part of its proposal, West Coast would make improvements to the curb and sidewalk fronting its property as well as portions of the Alki Trail. Benefits include landscaping, trail lighting, bollard removal and the relocation of power poles. The exterior of the self-storage structure facing Harbor Avenue S.W. would feature a series of artistic steel panels called “Motion,” depicting silhouetted people and bicycles moving toward Alki Trail.

Since Nucor isn’t proposing any new development, the company isn’t proposing its own public benefit but would contribute funds toward the property-frontage improvements, according to the proposal. The total cost of the West Coast public-benefit package is estimated at $305,000.

On Tuesday, the city council’s sustainability and transportation committee voted unanimously in favor of the joint proposal, according to the source. The full council is expected to vote on the issue in September.

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5/22/17 – West Coast Self-Storage Group (WCSSG), which operates 36 managed and owned facilities in California, Oregon and Washington, has filed an application with the city to develop a new project in Seattle. The plan for the four-story facility at 3252 Harbor Ave. S.W. would include 600 to 650 storage units in varying sizes. The site would also contain 38 vehicle-parking spaces. An existing building on the property would need to be demolished, according to the source.

The facility will be designed by Magellan Architects, which previously designed two West Coast facilities—one in Seattle and another in Vancouver, Wash., according to the company’s website.

West Coast recently opened a new property in Auburn, Wash. The facility at 4424 A St. S.E. comprises 69,800 rentable square feet of storage space in 733 climate-controlled and drive-up units. It also includes 22 vehicle-parking spaces, a covered loading and unloading area, a retail store that sells moving and packing supplies, and security features. The site was built in a partnership with a company operating as WCSS Lakeland Hills A St Storage LLC.

WCSSG is a self-storage acquisition, development and property-management company headquartered in Mill Creek, Wash. Its portfolio of managed and owned properties includes 23 sites in Washington, seven in Oregon and six in California.

Based in Redmond, Wash., Magellan Architects offers architectural, interior design, planning and project management for commercial, educational, office, religious and residential developments.

 

JHM Hotels, an independent hotel developer and operator primarily in the Southeast, has launched TD Self Storage Enterprise LLC to develop and acquire storage assets in the region. The company has already built five self-storage facilities in Florida and South Carolina, with a sixth planned for Greenville, S.C., according to the source. TD will initially concentrate on opportunities in the Midwest and Southeast, with eventual expansion to California, Texas and other U.S. markets. Its goal is to amass an owned portfolio of more than 100 storage properties.

JHM decided to launch the self-storage venture to diversify its portfolio. “It’s not recession-proof, but it’s as close as you can get to being recession-proof,” Roger Burgin, TD’s senior vice president of business development and acquisitions, told the source.

The company will focus on major metropolitan markets “that warrant new development” as well as opportunities to purchase “cash-flowing properties with expansion and/or other value-added opportunities,” company officials said in a press release. “In either case, we devote our energy and focus to properties we believe offer significant cash flow, revenue growth and long-term capital-appreciation opportunities.”

The TD strategy is to find property or existing assets with 50,000 people living within three miles, 150,000 people residing within five miles and a rental market comprising 30 percent apartments, Burgin told the source. The company requires an area with an annual median household income of at least $50,000, and its ideal markets will have fewer than 8 square feet of self-storage per capita.

TD will look to acquire either class-A climate-controlled facilities or underperforming assets that offer room for expansion as well as opportunities to increase revenue and occupancy while reducing expenses, the release stated. Its ground-up developments will focus on “multi-story, climate-controlled properties designed to be respectful of the local architecture and viewed as an amenity to the community.”

Its design philosophy will also integrate hotel and hospitality sensibilities, including children’s play areas, food and beverage kiosks, hotel-inspired lobbies, private office spaces, comfortable waiting rooms, and WiFi, Burgin said.

The company has selected CubeSmart, a self-storage real estate investment trust and third-party management firm, to operate its portfolio, the source reported.

Based in Greenville, S.C., JHM Hotels has acquired and developed hotels throughout the United States for 44 years. The company currently owns and operates 38 hotels in seven states, according to its website. Its brands include Hilton, Hyatt, Marriott and Westin. The company’s affiliate, JHM Restaurant Group, owns several high-end restaurants.