By Cary F. McGovern

The survey, or client-needs assessment (CNA), is the most important component of consultative selling for records-management services. Many of my customers have asked me to develop a list of questions to be asked during the interview phase of the survey process, which is comprised of three steps: the questionnaire, the client interview and the walkabout. Each is an essential component.

The questionnaire should be designed to draw out issues to discuss in the client- interview and walkabout phases. It represents a way to generate more meaningful questions during the survey. For more information on this step, see "Questionnaires in Records Management" from the July 1999 issue of Inside Self-Storage. The article may be accessed online through the ISS article archive or at www.fileman.com.

The client-interview questions should always include these basic inquiries: who, what, when, where, how much, how often and why. Some suggested questions are listed below for your use.

During the walkabout, you are primarily interested in validating the answers received in the questionnaire and the interview components of the survey. This is where you check reality. The principal question in this segment of course is, "Why?" It is the "why" question that draws out the differences between perception and reality in any business process.

Interview Questions

I have designed the client-interview questions in a building-block approach. We begin with the basic element of the box (or storage unit) and build the questions through the client's records-management program.

The Box (Records-Storage Unit)

1. What kind of box do you use for records storage?
2. Is there a "standard" storage box? If so, is there a policy regarding use of the standard box?
3. Why did you choose that particular sort of box?

The Box Index (Contents)

1. Who in your operation is responsible for indexing (labeling) a records- storage box?
2. What are your standards for indexing a records-storage box?
3. At which point is a box indexed prior to transfer to off-site storage?

The Transfer to Storage

1. Who is responsible for the transfer of boxes to storage?
2. What events trigger files to be purged from filing units?
3. . How many boxes per day/week/ month/year do you transfer?
4. How often are boxes transferred to storage?
5. Is there someone who maintains a control or inventory list of transferred boxes?
6. Are the files identified or listed within the box? If so, how is that done? Is there a database?
7. What is the form of the database (Microsoft Access, Excel, other)?

The Storage Location

1. Do you use a commercial records-storage vendor? If so, which one?
2. Are you pleased with its service, price and dependability?
3. Are your records self-managed? If so, what is the location of the storage?
4. Can we visit all storage locations?
5. Are the records secure and confidentially managed?
6. Does the storage area provide clean and safe working conditions?
7. What is the cost of storage?

Retrieval and Re-Files

1. Who retrieves items from storage?
2. Do you retrieve files or only boxes from storage?
3. How are files or boxes controlled when out of storage? How are they noted to be returned to storage?
4. Who is responsible for ensuring files or boxes are returned to storage?
5. How often are files retrieved per day/week/month/year?
6. How often are files are boxes returned to storage per day/week/month/year?
7. How do you measure your retrieval and re-file costs? If there is no measurement, then how do you manage the cost?
8. How much does a file or box retrieval cost you? Consider employee time (salary, benefits and overhead) and transportation (vehicle, mileage or fuel).
9. How much does a file or box re-file cost you? Consider employee time (salary, benefits and overhead) and transportation (vehicle, mileage or fuel).

Records-Retention Policy

1. What is your records-retention policy? If there is an existing document, may we have a copy to review?
2. Do you have a records-retention schedule? If so, may we have a copy to review?
3. Who is responsible for retention policy? If it is a records-management committee, may we meet the members?
4. Who maintains the accuracy of your retention policy and schedule? If someone is assigned that responsibility, how does this person maintain accuracy?

Records Destruction

1. Is there a records-destruction policy? If there is a document, may we have a copy for our review?
2. Who is responsible for initiating the destruction or migration (transfer to digital form) policy?
3. Who approves the destruction of records from storage?
4. What method is used for destruction?
5. Do you use a commercial destruction service? If so, who is the resource?
6. Do you create a destruction certificate for each record series that is destroyed? If so, who maintains the certificates?

Other Records-Management Issues

1. Are missing or lost files a problem in your organization? If so, how long do you search for missing files before giving up?
2. Have you ever not been able to locate a file? If so, please tell us about the circumstances.
3. What was the longest time or largest effort you spent to locate a missing file?
4. Are there any benchmarks or standards of performance in your records-management program?
5. What is the cost of your records- management program? If you don't know, how do you manage the program?

There is no such thing as a complete list of questions for any client-needs assessment. In many cases, one answer leads to another question. Be aware of the issues you uncover. Remember that issues are the crux of revenue opportunities for you in your records- management business.

Regular columnist Cary McGovern, CRM, is the principal of FileMan and FIRMS (FileMan Internet Records Management Services). If you have questions about the survey process or how to develop a commercial records-management business as part of a self-storage operation, call 877.FILEMAN or e-mail [email protected].

During college, I spent a semester living in the walled medieval city of Siena, Italy, a sleepy, traditional town just an hour-long train ride from Florence. From our fifth-floor palazzo apartment, nestled on Via San Martino, my flatmates and I would look out over the rolling hillsides and terracotta rooftops, which were radiant with sun. Mornings would find us buying fresh-baked bread in the panateria just doorways from our own. Afternoons meant basking in the Piazza del Campo (the town center) with friends. And in the evenings, our tables were spread with fresh-rolled gnocchi, olive oil and wine.

Ah, the wine.

At the time, I wasn't perhaps sophisticated enough to appreciate a fine Amarone. Nor did I realize Siena is the home of the Enoteca Italiana, the only national institution dedicated to showcasing the fine wines of Italy. The wine cellars of the Enoteca are found within the subterranean chambers of the Fortezza Medicea, an imposing fortress built in 1561 at the orders of Cosimo I dei Medici, Grand Duke of Tuscany. Today, in the Enoteca's lounge area, visitors enjoy samplings from the country's best vineyards.

While a storage facility is no 16th-century citadel, there are operators reaping the benefits of wine storage and its accompanying camaraderie. Facilities in areas with a wine market are obviously the best candidates, though other locales can be successful with the right clientele and marketing strategy. This niche can be rewarding for storage operators not only because of the per-square-foot return, but because the upscale image associated with wine distinguishes a facility from others. On page 28, read about the benefits and challenges of this specialized business, and the marketing advantages it can produce. For some, it's a venture ripe for picking.

Another specialty embraced by this industry is the storage of boats, RVs and other vehicles. In this issue, you'll find several articles addressing the possibilities for this ancillary service, as well as cautions to observe. Read tips on incorporating vehicle storage into an existing facility as well as advice on amending lease agreements to accommodate this faction of renters. You'll also find information on dry-stack boat storage--lately becoming a popular option--and construction and land requirements for carport storage.

Making more money is good, but making a name for your facility is stellar. Niche services allow for otherwise elusive marketing and profit-building opportunities. If wine storage is for you, consider hosting wine tastings at your facility to drum up exposure. Like the Enoteca, provide a lounge area for wine tenants to relax and share their wares. If you store vehicles, consider the addition of some perks, such as car-washing or maintenance services. Like a fine wine, self-storage is only getting better with age.

Salute,

Teri L. Lanza
Editor
[email protected]

By RK Kliebenstein

What does it really mean to be No. 1? That your facilities comprise the most square feet? The most units? The most land? The most employees? Are any of these important enough to make you No. 1?

I was recently asked to prepare a speech to present to the Texas Mini Storage Association. As the president-elect for the national Self Storage Association, Kevin Langley, was explaining to me the message he wanted delivered to the group, we discussed a phrase that really means something to me: "best in class." As I travel around the country and throughout Europe, I am constantly bombarded by the message "Business 'X' is No. 1!" In self- storage, Public Storage is regarded as No. 1 based on shear numbers--square footage, number of units, employees and revenues. Many would argue, however, this is not the case. I urge you to shop any of the top 20 operators and ask yourself, is this what it really means to be the best?

Focus on Quality, Not Quantity

I have always believed the No. 1 owner-operator in almost any market is the one who is active in the day-to-day operations of his self-storage property. This usually means the facility is new, because there is a growing trend of owner-operators becoming very complacent--even lazy--after lease-up. The slothful approach to management is not intentional, but migrates into the daily routine as the store produces a steady cash flow.

In the early days of an operation, the owner is at the store checking occupancy, making sure everything looks new and clean, and is really involved. He checks the deposits and marvels at each percentage-point gain in occupancy. If you have a store that is more than five years old, ask yourself: Did you call the store today to see how many spaces were rented? Did you check the move-in/move-out report and congratulate your team on a job well done? Did you ask what you can do to correct a declining occupancy trend? When was the last time you took your manager to lunch and had an in-depth conversation about what sets your store apart from the competition? Are you reviewing the mystery-shopping reports with your sales counselors every month, striving for higher scores and better closing ratios? Are your traffic reports consistently producing data by which you can manage revenues?

Driven by Excellence, Not Obsolescence

When was the last time you walked the property and looked in every vacant unit? Were they spotless? Were the doors lubricated and adjusted? Are there new rubber sweeps on the bottoms of the doors? What about new pull handles? When did you last drive through the property at night to make certain every bulb was shining brightly? Have you replaced the sir filters in the A/C building as a part of routine maintenance or because the unit was not cooling as well as it used to? Is there a sticker on the HVAC unit indicating the date of the last filter change? If you have left these items up to your manager, they may not be getting done as regularly as you would like.

What does your restroom look like? Mobil Oil had an entire advertising campaign built around the cleanliness of its gas-station restrooms. Is yours well-stocked? Is the sink spotless? What about the floor? Is the tile clean? Are there black marks or water stains on the floor? How does it smell? If you think these things are not important, maybe you are not interested in "best in class" status.

Is Bigger Really Better?

The answer to this question is no! To be more exact, heck no! I recently visited the No. 1 store in a particular market--No. 1 in customer service, cleanliness and, most important, occupancy. The store was also the oldest in town, the smallest and had the least number of employees. This was truly a "best in class" store.

The facility's sign was not the largest in town, but it was well-located; and against the white background, green and blue letters proudly displayed the facility's name. The reader board simply said "great value, friendly faces." The entry drive was wide and clean, with well- maintained grass on either side. I pulled into a wide parking spot clearly marked "Parking for Our Future Friends." I walked just a few steps to the front door where the pleasant smell from a room freshener and a smiling face greeted me.

"Good morning, my name is Gary, and thanks for stopping in. How may we help?" I announced my need to store a car that would probably require a 10-by-20 unit. I noticed Gary record my visit on a clipboard along with the time of day. "Just for the record, how did you hear about us?" he asked. I replied and my answer was also noted on the clipboard. I was then taken through the sales process. Gary asked for my name and used it twice. I was informed about the facility's wide aisles, security cameras, newly installed individual door alarms and hours of operation. Most important, Gary listened to my questions and answers and acknowledged they were important to selecting the right space.

He informed me he did not have a 10-by-20 unit available that day, and asked about the make and model of the car to be stored. After asking if I had a moment to spare, Gary went to his computer, looked my car up in a database, and informed me the car was 14 feet, 6 inches long and would fit nicely in a 10-by-15 space. He asked if I would be storing other items, and offered to show me a 10-by-25 and a 10-by-15. He then said he would give me a free lock if I would take one of the alternate spaces, and offered to put me on a transfer list to a 10-by-20 if that was the size I really wanted.

We took a property tour as we went to look at spaces. I was offered a cup of coffee or bottle of cold water. The golf cart we traveled in was clean and neat. On the seat was a brochure and an envelope with "Free Gift" written across it, both of which were for me. Gary pointed out the gate operation, security cameras, location of the climate-controlled building (just in case I needed a "special" space later on). He was never pushy, but informative, and we shared the usual chitchat. But I knew I was at No. 1 when Gary said, "RK, I have only one of these 10-by-15s and only one 10-by-25 unit left for rent. I want to have you as a neighbor," (he lives on the property), "and I would like to hold either space for you. Which one is best for you, and would you be reserving the space with a credit card or a deposit check?"

Well, it was time to tell Gary he was being "shopped." He was just as enthusiastic, and said he was glad I chose to stop by. When we returned to the office, two more people were at the door. He politely asked if I would understand if he assisted some potential renters. As I returned to my car, I noticed the absence of litter and cigarette butts and the presence of flowers on the property. On my way out, there was a sign that read, "Glad You Stopped By."

I opened the envelope marked "Free Gift." Inside were a couple of coupons for neighboring businesses and another envelope marked "Let me buy you a drink," which included a coupon for a free soft drink at the local deli. Gary's card was inside with a handwritten "thank you" on the front. There was also a coupon for a free disk lock with a new unit rental and a referral coupon for 10 percent off the first month's rent for a friend and 10 percent off my rent for the referral. Pretty slick!

When I got home, Gary had left a voice-mail message that he was glad I stopped by, and even though I was just shopping him, he would appreciate any referrals I might be able to offer. He asked me if I could think of anyone who needed storage and offered to send that person the referral coupon. A few days later, the owner, too, left me a voice mail that he was glad I stopped by, he was sorry I was not on the list of "Gary's new neighbors," and I should call him personally if there was anything he could do to help me with my storage needs.

That, my friends, is a store that is No.1.

RK Kliebenstein is the team leader at Coast-To-Coast Storage, which offers consulting services for the self-storage industry. Specializing in feasibility studies and financing, Mr. Kliebenstein is a frequent speaker at industry tradeshows and author of articles regarding the industry. For more information, call 561.367.9241; e-mail [email protected].

By Jim Tallia

Aesthetic requirements for a self-storage project led to the choice of a stone-finish aggregate panel.

The town of East Fishkill, N.Y., is a fast-growing community within commuting distance of New York City. People are finding the area attractive to live in, and property values are rising. The town just celebrated its 150th birthday. On the Fourth of July, the American flags are all out and waving. The community has a lot of civic pride.

As the community grows, so does the need for other facilities, including self-storage centers like the one built recently by Guardian Self-Storage. But when Guardian came to East Fishkill with its plans, the company encountered a town bylaw that states "no more metal buildings." And it isn't the only town imposing architectural restrictions on self-storage construction. The solution? Stenni^TM lightweight, attractive architectural-facade panels that combine the look of stone with the convenience of a panel system. The supplier? United Composites of Mount Bethel, Pa., and Inglewood, Ontario.

No More Metal?

Bob Klein is the chairman of the Architectural Review Board for the town of East Fishkill. He recognizes architectural aesthetics can be very subjective. "We've made a decision that, in our community, there will be no more metal buildings in certain areas," states Klein. "But that doesn't mean we won't look at alternatives."

The Architectural Review Board was established in the early 1980s to assist in ensuring an aesthetic-quality standard be maintained in the town. In the last four years, it has been given the power by the Town Council to exercise its mandate. No commercial or industrial building gets the go-ahead before the review board approves it.

The board's job is to review applications for construction. People bring forward their ideas and know up front what the town won't accept, so they come with aesthetically pleasing approaches. "Just as people are concerned about the environment, they realize part of the environment is the architecture," says Klein, a resident of East Fishkill for more than 25 years. "It's much nicer to live and shop in an attractive place than in an ugly one."

While originally seen as a restriction, the board's approval process is now appreciated by people attempting to build in the area, says Klein. "It's more of a collective activity. Everyone realizes these guidelines help to make our community more attractive--and more valuable. We're happy if people want to show us how their alternatives can work," says Klein. "The cladding is certainly a significant improvement over steel siding, aesthetically."

An Owner's Perspective

Kelley Redl-Hardisty is a partner and co-owner of Guardian's East Fishkill facility, which operates as a family-run business. Guardian, based in Poughkeepsie, N.Y., built a number of self-storage facilities that traditionally use metal siding. Redl-Hardisty chose an aggregate panel for the facade of the Fishkill project precisely because of the town's bylaw prohibiting the use of metal buildings.

She knew she would have to come up with a design that would please the town's board. Working with an architect and her contractor, she looked at different scenarios for the color and texture of available siding materials. In the end, they chose an aggregate panel that would fit the project's budget and design criteria. "The Stenni aggregate panel was recommended by our contractor," explains Redl-Hardisty. "Obviously, we considered cost, as well as the durability of the panel and its maintenance." She says that while they had not worked with this kind of panel before, the contractor was knowledgeable of the product. The material arrived on time and the project proceeded smoothly.

"The quality is great," says Redl-Hardisty. "We're very happy with the project. We think Stenni is a very attractive alternative to our regular metal buildings. We will definitely consider it for other self-storage projects in the future," she says.

About the Panel

Stenni aggregate panels are one of a series of architectural and industrial cladding products manufactured by United Composites. The company's other products include Stennex, a smooth aggregate panel; Excelclad (formerly Chemclad), a corrosion-resistant industrial siding; Exceliner, a moisture-proof protective panel; and Excelite, a translucent daylighting sheeting.

Stenni aggregate panels combine the attractiveness of natural stone with the convenience and low cost of a panel system. Natural stone aggregate is embedded in a reinforced polymer to produce a composite panel of tremendous durability and versatility. This particular type of architectural facade panel is lightweight, fire-resistant and durable, and can be easily installed over wood or metal framing, concrete, masonry units or even existing construction.

Panels are cut to length to minimize waste and field labor; however, they can be field cut if needed using a carbide or diamond-tip saw blade. They are attached to the building with special color-matched fasteners so the screws become almost invisible. Aggregate panels come in different textures and colors, offering a wide variety of options, and they are adaptable for building interiors and exteriors.

Jody Clayton is vice-president of operations for Kearney, Mo.-based CTI Building Systems Inc., the contractor for the Guardian project. The company constructs self-storage facilities nationwide, and Clayton, who has been working with aggregate panel since 1995, is very familiar with Stenni. He says it was a natural fit for the Guardian project in East Fishkill. "This is an excellent alternative to metal siding," says Clayton. "We didn't have to change our footing design. It adapted to the framing easily."

Clayton sees zoning boards increasing their pressure for storage facilities to conform to aesthetic guidelines. "They want to see brick, stone and EIFS [exterior insulation and finish system]," says Clayton. He acknowledges there are lots of alternatives. "But Stenni is one of the best ones we've seen."

He says the aggregate panel method costs more than steel but is more cost-effective than EIFS--and a lot more durable. "It's a good-looking product that really holds up. We did a project a few years ago in Kansas City with this panel and it looks as good today as when we put it up," Clayton says.

Because of the way the panel is made--using high-quality raw materials in a continuous manufacturing process--it is impervious to attack from chemicals, mold or fungus and can be installed below grade. The reinforced composite structure of the panel gives it high-impact strength and abrasion resistance.

Ross Litteral, operations manager at CTI and the overseer of the East Fishkill project, says he liked the way his team could work with the panels on-site, and that it took his installers little time to get used to installing the panels. They ordered the panels from the manufacturer bundled "per building," which saved time when working on the installation of the self-storage complex.

Because Stenni does not use a wet application system, installers could work during the cold weather. Litteral explains that although they were cutting and installing the panels in February, their workers had no difficulty handling the material. "It attaches well, and the stone gives it an attractive appearance," he says. CTI has plans to use the product again on a nearby project.

Durability and good looks are definitely factors in what tenants seek in a self-storage facility. "The stone panel not only has a nice look," says CTI's Clayton, "it gives the whole facility a look of solid security." If a self-storage project calls for a solution that's attractive enough to meet the town's needs and secure enough to meet the needs of self-storage tenants, United Composite's aggregate panels provide a winning combination.

Jim Tallia is general manager of United Composites, manufacturer of Stenni^TM and Stennex^TM aggregate panels for architectural facades and siding. For more information, call 800.933.8700; visit www.unitedcomposites.com; or contact Mr. Tallia directly at [email protected].

By Doug Carner

This is part one of a special two-part TechTalk. It is a must-keep column for you to share with everyone you know who owns a personal computer running Windows software.

It seems as though we read about a new "killer" computer virus nearly every month. Each threat stirs a new wave of virus-protection software updates. While anti-virus programs are quick to react, they are often merely the cure to the illness your computer suffers, not a preventive measure. On some computers, anti-virus software can keep your business programs from operating correctly--especially those with automatic serial-port communications, such as self-storage software that processes overnight gate access or rent collections by credit card.

For the virus writers, it is a game of cat and mouse with your valuable computer files caught in the precarious balance. There are some amazingly simple steps you can take that will prevent most viruses from ever entering your computer. In this case, more than ever, an once of prevention is worth a pound of cure. But first, it would be helpful to understand how a computer virus works.

Every known virus is a set of instructions designed to carry out a malicious task on a specific date or event. Some viruses pass script commands to naive sections of the Windows operating system. The default Windows settings permit script viruses to penetrate deep into your computer while you innocently read an infected e-mail. Other viruses are completely self-contained programs that rely solely on their internal components. These viruses mask as harmless e-mail attachments that beg for you to double-click and install.

This is part one of a two-part series on PC safety. You can execute a few simple steps to safeguard your precious business files. You will instantly be vaccinated against all known script viruses and have reasonable protection from most program viruses. These tips are applicable to Windows 98 operating systems. Not all of these steps will be available in other versions of Windows.

Scripting

Give yourself immediate protection against the most common script viruses, such the infamous Melissa virus that took the nation by storm in March 1999. Melissa was a macro virus for Microsoft Word 97 and 2000 that used Microsoft Outlook to send itself to lots of people very quickly without detection. The virus spread like wildfire in company e-mail systems and across the Internet, causing havoc in places such as the home offices of Microsoft Corp. and Intel Corp., among many others. Here are some steps to protect your system from similar viruses:

• Once you've turned on your computer and you're at the desktop, click on the START button (usually located in the lower left-hand corner of the desktop). Select the SETTINGS option and then select the CONTROL PANEL option.
• Double-click on the ADD/REMOVE PROGRAMS option.
• Click on the tab for WINDOWS SETUP.
• Highlight the item marked ACCESSORIES and then click on the DETAILS button. A sub-list will appear.
• Move down through the list of choices and remove the check mark next to WINDOWS SCRIPTING HOST.
• Click OK to save your changes and then click OK to close the ADD/REMOVE PROGRAMS window.
• Close the CONTROL PANEL.

Sharing

You can also add a barrier of protection by requiring a password before any outside program can access your files. Here's how:

• Double-click on the desktop icon called MY COMPUTER. A list of mapped computer drives will appear.
• Right-click once on the "C:" drive and a new menu will appear.
• Click on the SHARING option, and a new screen will appear. If you do not see this option, you already have SHARING protection and should skip ahead to the last step.
• Select SHARED AS and provide a shared name (typically the letter "C").
• Click in the check box next to DEPENDS ON PASSWORD so a check mark appears.
• Enter a common office password in the box labeled FULL ACCESS.
• Click on OK to save your changes.

Repeat the above steps for each hard drive you want to protect.

Do you work on a network of computers that need to share each other's files? If not, why give the Internet world the right to share your computer files?

• Right click on the desktop icon labeled NETWORK NEIGHBORHOOD and a small menu will appear.
• Within that new menu, click on the PROPERTIES option and a new NETWORK screen will appear.
• Click on the FILE AND PRINT SHARING tab to open the sub-window.
• Remove the check mark next to the option that reads "I want to give others access to my files."
• Click on OK to save your changes and click on OK to close the NETWORK window.
• If Windows asks for permission to restart your computer, let it do so now.

Macros

Here's how to stop unauthorized Macros (embedded scripts) from running when you load a document:

• Open Microsoft Word.
• Select the TOOLS menu. Then select MACRO, then the SECURITY option.
• Change the setting to HIGH. Click OK and then exit the program.
• Repeat these steps for every program that supports this option. Outlook, Excel, and PowerPoint are the most common Microsoft programs that have Macro security options.

In next month's column, I will continue with part two of "Protect Your PC" and offer steps toward protecting your computer against the deadliest of viruses and communicating via the Internet.

Doug Carner is the vice president of marketing for QuikStor Security & Software, a Sherman Oaks, Calif.-based company specializing in security, software and management for the self-storage industry. For more information, call 800.321.1987; e-mail [email protected]; visit www.quikstor.com.

By Fred Gleeck

One of the three biggest mistakes I see made by self-storage operators is not having a comprehensive marketing plan. Over the past several issues, I've shared information about specific marketing techniques. But in addition to individual techniques, you should have a plan in place for their implementation.

As a self-storage operator, you fall into one of three categories: a) you are considering opening a storage facility; b) you are already building a self-storage facility; or c) you are an existing owner of a storage facility. No matter which category you belong to, you need a marketing plan for your facility. Those considering getting into the business should create one to see if they are willing to do the work. Those who are building should do so to ensure they open the doors and have people flock to them. Exisitng owners should have a marketing plan to move occupancy rates in the right direction or keep them steady.

You say you have a marketing plan in your head? That's not enough. You must have a written plan. The plan should list actions that should be taken daily, weekly, monthly, quarterly and yearly. Let's look at each time period.

Here is a list of things you should be doing on a daily basis:

1. Track all incoming calls to determine their sources. Without accurate measurement, you have no idea what's going on in your business. Keep track of the total number of calls, sources of the calls and the percentage of calls that turned into visits.

2. Speak with your manager once a day to see if he needs any help. Support your manager. I met a CEO on a plane not long ago, and I asked him what he felt his primary mission was. He said, "To be a broom. I'm here to sweep problems out of the way for people who report to me."

3. Make at least five to 10 outbound calls each day to drum up business from commercial accounts. All managers should have a quota of outbound calls to make. If they don't like the idea, they are in the wrong business. This is a sales job, not a caretaker job.

4. Send out postcards to those people who called during off hours. Use a caller ID device to record the phone numbers of people who call when the office is closed. Use an online reverse directory to get their addresses. Then mail them a postcard with a time-sensitive offer. Calling those people back might be perceived as intrusive. A postcard is not.

On a weekly basis, you should:

1. Call all the "centers of influence" in town to remind them you exist. Call the real estate offices, truck-rental places and all of the other folks who have the potential to send you business. The key is "non-pushy" persistence. If you keep reminding people you're there, they are less apt to forget you.

2. Call your own facility and disguise your voice to hear how your employees really handle themselves when they talk with customers. I'm amazed at how few owners call their own facilities. This is such a simple but important thing to do. I got one owner to call his facility, and he was appalled at what he heard. It was only then he understood why occupancy was down.

3. Look for opportunities to get coverage by the local media. There are countless opportunities to piggy-back storage onto a current-events news story. Find one angle each week and send out a press release. It's not that difficult, and if you get coverage, it's well worth it.

4. Consider running specials to rent slow-moving units. Look at those units that aren't moving and make weekly adjustments if necessary. Waiting until the end of the month may not give you enough time to properly react to your competition or the changing market in your area.

On a monthly basis you should:

1. Call and/or visit your competition to see what they're up to. You say you have done this? How many times? This is an activity that needs to be done at least once a month. To defeat your "enemy," you must know him. If you're uncertain, read Sun Tsu's The Art of War.

2. Conduct regular training sessions with your managers to keep them up-to-date. Conducting monthly meetings for your managers and other employees makes a lot of sense. Most managers are willing to learn, but most owners claim they don't have the time to teach. Make time for this activity and you'll make more money in the long run.

3. Read industry trade magazines to keep abreast of current issues. Owners and managers must be committed to staying up-to-date with the latest industry information. If a manager isn't willing to read and discuss the trade publications, you have a problem.

4. Schedule a monthly coaching session by phone with an outside self-storage expert. Managers will listen to experts above owners. Using an outside expert to give basic feedback is a great idea. Doing this over the phone takes an hour each month and pays off in spades.

5. Go to monthly networking events, such as at the chamber of commerce. Managers and owners should make an effort to get out into the community to network, but most networking is done incorrectly. There should be a purpose. Networking should be done to get business, not just schmooz people.

6. Review occupancy rates by unit size to make necessary price adjustments. Most people tend to look only at the overall occupancy rates and adjust prices upward or downward on that basis. That is misguided. Instead, look at your occupancy rates specifically by unit size, then adjust accordingly.

7. Hold a contest for your managers, and vary them from month to month. Yes, your managers are already getting paid a salary, but you need to keep them motivated. Give them some realisitc goals to shoot for and then reward them for meeting those goals. This strategy is inexpensive and effective.

On a quarterly basis, you should:

1. Hold unannounced, random events for your customers to thank them for their business. There is no better way to get a buzz going about your facility than to do some random act of kindness for customers. For example, wash the car of each one of your tenants who comes into the facility on a given day.

2. Create seasonal fliers. Fliers are inexpensive and effective. You can create them for any and all services at your facility. In addition to handing them out off-site, you can design ones you put under people's unit doors to announce various promotions

3. Test a piece of direct mail on a targeted group within five miles of your facility. Direct mail and Value-Pak mailers can be effective. Make sure to constantly test new offers. I've seen promotions that pulled nothing and I've seen those that pulled a 7:1 return on the dollar. You won't know until you test.

4. Find an additional item to sell at the office based on customer feedback. If you aren't selling retail items in your storage office, you're losing a lot of potential revenue. You've established a relationship with your renters, now sell them something. Listen to customers and test the items on a limited basis to start.

5. Work at your own facility one day each quarter to find out how things really work. Owners sometimes never even see their storage facilities. Working at your own facility is the single most-effective means I've seen for owners to understand what really goes on in their businesses.

Once each year, you should:

1. Go to the annual self-storage conference and expo in Las Vegas and bring your manager. Not only is it the best convention of the year, there are great educational seminars. The trip can serve as an information-gathering event as well as a thank you for your manager's efforts throughout the year.

2. Have a qualified consultant do an external marketing audit of your facility. Looking at your business yourself is a worthwhile endeavor. But nothing can beat having an outside expert visit your facility and provide feedback. An expert can usually discover some hidden profits. One word of caution: Be sure to hire someone with a valid reputation.

3. Review your numbers with a qualified expert to see what areas of your business can be improved. You'll be surprised what a well-trained pair of eyes can find.

If you think this is a lot to do, you're right. But if you have a marketing plan soundly in place, you'll keep your occupancy rates high and experience less of the yo-yo cycle so many operators encounter. You don't just need marketing when times are tough, you need it when things are going smoothly. This will help keep occupancy and profitability high.

Fred Gleeck is a self-storage profit- maximization consultant. He helps storage owners before and after they get into the business. His is the author of Secrets of Self Storage Marketing Success--Revealed! and numerous other training items for self-storage operators. To get regular tips on self-storage, send Mr. Gleeck an e-mail at [email protected]; call 800.345.3325.

By Jeffrey Greenberger

This article provides general legal insight into the self-storage field and should not be substituted for the advice of your own attorney.

Some of you reading this article are already in the business of offering outdoor or covered vehicle and boat storage. Others are considering it. If you are using, or plan to use, a self-storage lease with no modifications to accomodate this service, you are taking a risk. I hope this article will encourage you to consider some additional provisions in your existing lease. These suggestions will help protect you against the problems that tend to occur with vehicle and boat storage.

What Can Happen

A client of mine recently had the following dilemma: A person stored an RV at his facility. The renter stated she was a friend of the family that owned the RV and claimed the owners were too ill to store the vehicle themselves. My client completed the rental agreement with the owners' names and the name of the person storing the vehicle, but the friend was the only person who signed the lease. She made several rent payments; however, other payments were made by the RV's actual owners. Thus, everyone in this story had some type of contractual claim to the RV in storage. There were, in essence, three lessees.

The couple who owned the vehicle divorced, and the woman who stored the vehicle for them wound up dating the ex- husband owner. The ex-wife and the woman who originally signed the rental agreement both made claim to the vehicle. Both wanted the gate code changed to exclude the other from removing the RV from the premises. Since the friend who stored the vehicle was now dating the ex-husband owner, she also had some claim via title to the RV.

Outdoor vehicle/boat storage is particularly complicated because there are titles involved, yet your rental agreement may not be with the titled owner. The self-storage manager is stuck trying to figure out which claimant has right to the vehicle. In this situation, given that both parties made rental payments, the facility could not change the code on either party's request. We resolved the situation by ordering the vehicle off the property. The facility then offered to allow either party to enter into a new rental agreement after the RV was removed.

Fortunately, the situation was corrected, but it could have gotten much more complicated. It just goes to show that you can get into trouble by not paying attention to outdoor-storage issues in advance. I have always preferred my clients not allow more than one person to sign the lease, and the name of the lessee and the name on the vehicle title are the same. This will help avoid scenarios like the one described above.

Lease Considerations

It is difficult to define outdoor storage spaces, especially when the area where you permit such storage is not paved and striped. It is even more difficult to prevent a tenant from parking in the wrong spot or "crossing the line" between spaces. It is, therefore, important to have some sort of language in your lease that describes the space rented, but not so closely you would be in violation of the lease if another tenant accidently parked in part of it. Consider using the following language in your lease:

The foregoing description of the premises/space is for identification purposes only. There shall be no adjustment in the rent payable hereunder and the agreement shall remain in full force and effect if the premises actually contains more or less square feet than set forth herein or if the premises is not the same one as identified.

In case you need to locate the owner in the event of an emergency or default, consider obtaining the following information on your rental agreement: the year, color, make and model of the vehicle or boat; the license-plate number and state; and the vehicle's VIN or other identification number. You should also obtain a copy of the vehicle or boat registration. Institute a policy, stated clearly on your rental agreement, that if the person listed on the registration is not the person signing the agreement, the lessee must submit a notarized statement, signed by the owner, indicating it is acceptable to store the vehicle/boat in the owner's name. This is important for several reasons: First you want to make certain you are not storing a stolen vehicle. Second, without such a statement, you can run into difficulties if there are ever problems between the titled owner of the vehicle and your tenant.

The next consideration is what to do with vehicles in the event Mother Nature or an emergency presents a reason to move a vehicle. While our buildings may be able to withstand excessive heat, drought, or heavy rain or snow, there are issues involving climatic conditions when storing vehicles or boats out-of-doors. If you do not provide in your lease the right for you to move or remove outside-storage vehicles when necessary, you could be creating a problem. This will come in the form of a claim for conversion or breach of lease in the event you need to move stored vehicles. Emergency moves as well as those related to routine facility maintenance (painting carports, repaving, etc.) must be provided for in your lease. Consider a provision that contains the following:

A Lessor specifically reserves the right to move or remove the stored vehicle from the leased space at any time, and without notice to Lessee in the event of an emergency. For the purpose of this section, "emergency" shall be defined as any event which jeopardizes the health, safety and/or well-being of the self- storage facility or any of the buildings or land appurtenant to the buildings or any property or chattel stored at the self-storage facility. The Lessor shall exercise reasonable caution in removing the vehicle(s) and will endeavor to notify Lessee of the new location of the vehicle or return the vehicle to the Lessee's space after the maintenance or emergency has concluded. Reasonable notice shall be provided to Lessee before Lessor removes the vehicle for any non-emergency purpose.

All self-storage owners should be concerned about hazardous waste. RV and boat storage present a special problem because they contain hazardous waste just waiting to spill or explode onto the property in the form of gasoline, lubricants, battery acid, tires, sanitary-toilet chemicals, etc. Given the volume of liquids and lubricants stored in an RV, a leak or spill could create a serious environmental hazard on your property. To make matters worse, some tenants try to store extra gas, chemicals, tires, etc., in their stored vehicles.

Without certain limiting language in your lease, you could create an event of default under your mortgage by failing to prevent hazardous waste from being brought in and used on your property. Failure to properly limit the amount of hazardous waste could also cause you to waive certain coverage in your insurance policy. It is appropriate to check with your insurance agent or read your policy to determine whether storing vehicles with any amount of gas and oil in the tanks or operating parts is permissible. If not, it is necessary to find a policy that does permit this use. In the meantime, you should have rules and regulations limiting the amount of gas and oil that can be stored in the leased space and requiring a drip pan be placed under each vehicle. Consider adding the following language to your lease:

Lessee covenants and agrees to use and occupy the leased space solely for the purpose of storage of the vehicle identified herein, and specifically agrees that Lessee shall not use the premises for the storage of any gasoline or other fuel, oil, grease or other lubricant, tires or batteries, or any other accessories except for such gas, oil, grease, or other lubricant as may be contained in the operating parts of the vehicle stored at the facility, and in no case may the stored vehicle contain more than one-quarter of a tank of fuel. All sanitary toilets and collection tanks shall be appropriately drained before storing the vehicle at the leased space and, if appropriate, the stored vehicle shall be properly winterized prior to the month of ______ each year. Lessee shall at all times maintain a drip pan under all tanks and operating parts of the stored vehicle sufficient to retain all fluids maintained in the stored vehicle.

Finally, assuming you have a default clause in your lease, make certain one of the remedies under that clause permits you to terminate the gate-access code of the stored vehicle. For example, if the tenant removes his vehicle for the weekend and has not paid his rent, you can prohibit him from returning the vehicle until rent is brought current. Further, if the state in which your facility is located permits removal of the vehicle by towing to an impoundment lot as a remedy to default, give yourself that right in your lease and post whatever necessary signage is required in your state. Once you have the vehicle towed off the property, you can also turn off the gate code and prohibit re-entry. In some states, you can consider the tenant a trespasser if he tries to re-enter the facility. Consider the following language:

In the event of a default, once the vehicle is removed by the request of Lessor or is voluntarily removed by Lessee, then Lessee shall lose any status as licencee to enter the self-storage facility or the leased space and may be considered trespassing on the land in which the facility is located.

The most important moments in the relationship between self-storage manager and tenant are the initial meeting and the moment when the rental agreement is presented and signed. These constitute, for lack of a better term, a "honeymoon" period. The tenant should be willing to provide you the information you need and sign the documents necessary to protect you in the event of a problem or default, and rent himself a space. If you wait until after the rental to ask for a copy of the vehicle title or the VIN, there is no reason for the tenant to surrender this information. Therefore, make certain you have all of the information you need and the rental agreement is fully and correctly completed and signed by the titled owner of the vehicle being stored in the very beginning.

Jeffrey Greenberger practices with the law firm of Katz Greenberger & Norton LLP in Cincinnati, which primarily represents owners and operators of commercial real estate, including self-storage. Mr. Greenberger is licensed to practice in the states of Ohio and Kentucky, and is the legal counsel for the Ohio Self Storage Owners Society and the Kentucky Self Storage Association. He is a regular contributor to Inside Self-Storage magazine and the tradeshows it sponsors. For more information, Mr. Greenberger can be contacted at Katz Greenberger & Norton LLP, 105 E. Fourth St., Suite 400, Cincinnati, OH 45202, or by calling 513.721.5151.

By Pamela Alton

The summer holidays and graduations have all passed, students are getting ready to return to school and the weather is getting cooler--all sure signs that summer is coming to an end. That rush of rentals you experienced in early spring may be ending also. Homes bought this summer are closing escrow, tenants are moving into new apartments and college students are back on campus. They don't need storage anymore, so it seems they're moving out in droves while new rentals seem to be declining.

Your owner or supervisor is wondering what happened to the income and what caused the drop in occupancy. The pressure is on you, the manager. What are you going to do? Throw your body in front of the rental truck and stop your tenants from vacating? Now, that is not something I would recommend to any manager, regardless of how much your occupancy drops. But there are some ways you might be able to put the brakes on that downhill slide you may be experiencing.

Marketing

If you haven't already been out laying a solid marketing foundation, now is the time to start. Make up fliers and hit the local businesses in your area. Stop by the apartment complexes down the street and talk to the managers about referrals. Call other storage managers in your area. Find out what unit sizes they have available that you don't and vice versa--negotiate a referral program. Look in your local newspaper for handymen, carpenters, gardeners, electricians--any small-business owners who could use storage. Call and tell them the advantages of storing with you.

Always carry your business cards with you and be prepared to give them out wherever you are: standing in line at the grocery store, a restaurant, the doctor's office, a gas station or bank. Put on your thinking cap. To whom can you market and earn rentals that will last all year?

Downsizing Those Vacating Tenants

When your tenants come to vacate those larger units, point out to them the advantages of keeping a smaller unit to store seasonal items, excess garage items, and business or personal items. If your tenants are students who are now back from summer break, let them know you have some smaller units available to keep the personal items they don't want a roommate to get into. Asking a tenant why he is vacating gives you clues as to how to approach him about staying on board with you.

Ask for Referrals

Each time a tenant vacates, always ask him to remember you when he needs storage. Give him a discount card for the next time he rents a unit. Ask for referrals. Does he know anyone who needs storage--a family member, friend or coworker? What about his company? Does it have excess records or office furniture or supplies that could be stored? If you don't have a sign on your counter or exit gate reminding tenants to "tell a friend," you should invest in one.

Be Clean, Friendly, Service-Oriented and Professional

People will remember you and your facility and want to store with you again if you offer superior customer service. Always keep the hallways, driveways and units swept clean and locked. Your office should be inviting, professional-looking, uncluttered and clean. You should always be dressed professionally, well-groomed and ready to greet your public once those doors open in the morning. Don't forget about your relief managers--they need to be taught about marketing and how to keep those vacating tenants. Be friendly, helpful and professional and you will always be a winner in the self-storage game.

Pamela Alton is the owner of Mini-Management^®, a nationwide manager-placement service. Mini-Management also offers full-service and "operations-only" facility management, training manuals, inspections and audits, feasibility studies, consulting and training seminars. For more information, call (800) 646-4648.

By Ken Buchinger

Years ago, installing metal roofs on self-storage facilities was relatively easy. Most buildings were narrow and simple rectangular shapes, and a through- fastened panel such as an "R" panel was used. But times have definitely changed.

Today, self-storage owners are building facilities in or near residential areas, and the need for aesthetic considerations has skyrocketed. Facilities are much more architectural in nature, which usually results in a more complicated roof design. Plus, the industry has switched to standing seam roof systems that require more design consideration and greater skill to install than the "R"-panel roof.

Since Galvalume standing seam roofs typically carry a 20-year perforation warranty, the goal should be to provide the building owner with a roof that will last a minimum of 20 years with minimal maintenance. To accomplish this worthy goal, everyone involved must be committed, including the design professional, roof manufacturer, roofing contractor and owner.

Most multistory facilities are being designed with architectural features such as high side and rake parapets, multilevel roofs and irregular roof surfaces. While these various features add aesthetic value to the project, they also make the roof much more complicated to install. In addition, the design professional should give consideration to the manner in which the roof system will interface with other materials and appurtenances.

Here is a list of items to pay particular attention to when considering a standing seam roof system on a self-storage project:

• Special attention should be given to anything that interrupts the flow of water off the roof, such as roof hatches, air-conditioning units, and especially elevator or stairwell penthouses. In addition, thermal movement must be considered on wider roofs. The panels and the trim must be capable of handling this movement.
• Manufacturer's installation details should be available for standard conditions such as the ridge, hip, valley, eave and rake. The manufacturer should also be able to help with details on special conditions and provide needed information on approved curbs, pipe flashings and other roof-related appurtenances. To help eliminate the potential for problems, comprehensive details for each special condition on the roof should be approved by the roof manufacturer, submitted to the design professional for review, and included in the erection package for the roofing contractor to follow. No detail should be left for the roofing contractor to install as he pleases.
• Never allow the roof panels or trim to come into direct contact with or receive water runoff from lead or copper, as this will cause galvanic corrosion and void the Galvalume perforation warranty. This includes condensate from roof-top air-conditioning units. If masonry or parapet walls are to be installed adjacent to the roof, provide protection to prevent these materials from being dropped onto the roof, which may cause corrosion of the Galvalume metal.
• The roofing contractor must not cut panels with an abrasive blade, as this melts the Galvalume coating and leads to edge rusting. Do not allow a cutoff saw to be used on or near the roof to prevent metal filings from being scattered across the roof. These filings, while hot, will melt into the Galvalume coating and begin rusting.
• The best way to ensure the above recommendations are met is to address them in the project specifications. Specifications should cover: 1) who is to install the specific items (the roofing contractor should be responsible for the installation of items such as curbs, pipe-penetration flashings and crickets); 2) the type of materials to be used; 3) roof manufacturer's approvals; and 4) warranty requirements for the roof and accessory items. If the specifications are thorough, the roofing contractor will have all the information he needs to properly bid the project, the roof installation process will be more efficient and leak problems can be avoided.
• Finally, the owner should be supplied with a maintenance manual to assist him in caring for his roof. Standing seam roofs are "low maintenance" but they are not "no maintenance." In general, the owner should plan to inspect the roof at least twice a year to remove objects thrown on the roof. Steel objects allowed to remain on the roof can cause the roof to rust through. Also, leaves and other debris should be periodically cleaned out of the gutters and off the roof.

Installing a standing seam roof on a building with many architectural features can indeed be challenging. However, with cooperation from each of the parties involved, it can be successfully accomplished, and we all wind up with a successful project and a satisfied owner.

Ken Buchinger is general manager of product development and product installation for Houston-based MBCI, where he is responsible for product testing, improvements and development. He is in charge of the company's Erector Certification Program, which trains erectors in the proper installation techniques of MBCI's metal roofing systems. He is also in charge of inspecting and approving projects for Weathertightness Warranties. MBCI, part of NCI Building Systems, is a manufacturer of metal roofs, walls, soffits and fascias. For more information, visit www.ncilp.com.

Cricket installed by contractor on project with no details.

Roof curb made from sheet metal.

Properly installed cricket at same location.

Roof curb fabricated from aluminum with welded corners.

Air-conditioning condensation causing corrosion to Galvalume roof panel.

Residue dropped on roof during wall installation.

Cutting panels with abrasive blades leads to edge rusting.

By Dan Curtis

Profit is, of course, the ultimate goal of any self-storage project. Profit is the best return with the least risk--the least risk for the owner, but also for lenders or the owner's available cash. It is in this context that phasing makes good sense.

In the early stages of project planning, the best and most efficient layout needs to be established. The plan that best fits the property will take the following factors into consideration:

• Entrances and exits
• Setbacks and easements
• Utilities
• Construction costs
• Generated income
• Competition
• Available capital
• Types of buildings

It is during the early stages of planning that phasing should be considered. In general, phasing delays the final decisions of unit mix and construction, allowing for them to be based on actual events and not just estimates. There are several types of self- storage projects that may need to be phased:

• Conventional
• Climate-controlled
• Multistory
• Conversions
• Combinations of the above

Conventional Storage

In order to phase conventional storage, land must be left available on the site for additional buildings. Extra land should be a strong consideration from the initial search for the property. Many times, larger tracts of land can be purchased for a more reasonable price.

One good idea is to move ahead and pour the concrete slabs for all phases during phase one. Then, when occupancy on phase one hits 60 percent, the construction process can begin again on phase two, which should require about half the time it took to build the first phase. More of the costs will be during the first phase, as the building with doors and partitions is about all that is required in the second. Electricity will probably be needed for lighting, but most of the planning will involve first-phase costs. The second phase will take advantage of construction changes and building innovations.

Climate Control

Climate-controlled space is handled similarly to conventional space when phasing. Many times, the complete building will be constructed with the heating and air-conditioning systems already in place. The hallways, doors and some of the partitions can be omitted. By leaving the doors, hallways and partitions out of the first phase, the unit mix can be adjusted to whatever is renting most successfully. This ability to change the unit mix will keep the project on track, allowing the owner to have units to suit all needs.

Multistory Buildings

Multistory buildings will need to be built out with the exception of doors, hallways and partitions. One recent four-story project left one floor for conventional units only (no HVAC). This was done to offer climate- and non-climate-controlled spaces at the outset. The eventual goal was to convert the entire project to climate control, thus increasing revenue.

Multistory buildings are usually 60,000 to 100,000 square feet or more. Most often, the first half of the project is built with phasing in mind. Usually, it will require seven months or less to complete a project, and a 50 percent lease-up should occur within one year. At that time, second-phase work should start. Completion should be expected about four months later. Of the total cost, about two-thirds will be in the first phase with the balance being in the second phase.

Improved Financial Statements

The impact of phasing on the financial statement is shown in two or three different ways. Rent-up percentages are higher. This is a confidence builder for the lender. High mortgage payments are not being made early on, but are delayed until a time when the project has more operating income. In fact, some projects will have cash flowing by the time the second phase is completed. The impact on reduced negative cash flow is very positive and lender confidence will be improved. Since phase two will have a unit mix based on actual units rented, income will be improved. If the market wants improved security or any other features, these needs can be accommodated in phase two. Again, income will be improved.

Adjusting to Competition

Not only will phase two correct unit mix and construction problems, but it will allow an owner to adjust to a new competitor just down the street. If this new competitor has a different type of storage, which might be considered an improvement over what was built during phase one, it is possible to make adjustments. Many times, projects are completed without climate control. If competition swings toward offering this feature, the already completed project is out of the market. Attempting to add climate control to an already completed project is very difficult because insulation, doors and electrical systems are not conducive to making the necessary changes.

Phasing is a process well-known to the large operators in the industry. It offers flexibility to market changes. It minimizes capital exposure and reduces risk. Phasing needs to be seriously considered on every project, even conversions.

Dan Curtis is president of Atlanta-based Storage Consulting & Marketing, which specializes in market studies, feasibility, site layout and design, marketing, conversions and climate control. For more information, call 770.432.2417; e-mail [email protected].