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Illinois Self Storage Association Hosts Webinar on New State Lien Law

Article-Illinois Self Storage Association Hosts Webinar on New State Lien Law

The Illinois Self Storage Association and industry legal expert Jeffrey Greenberger will present a one-hour webinar on the new Illinois self-storage lien law on Sept. 21, 10 a.m. EST. The online event will address the recent amendments to the Illinois Self Service Storage Facility Act and how the new law will impact self-storage facility operators.

Two weeks ago, Illinois Governor Pat Quinn signed Senate Bill 1394 (SB1394), now published as Public Act 097-0599, into law. The legislation, which includes several improvements for the states self-storage businesses, went into immediate effect.

More about the recent Illinois lien-law changes can be read at www.insideselfstorage.com/news/2011/09/illinois-governor-signs-new-selfstorage-lien-law.aspx.

Those who wish to register for the ISSA webinar should download the registration form at www.illinoisselfstorage.org/images/upload/WebinarflyerNewLaw.pdf and return it to the association office by fax or mail. The registration deadline is Sept. 19. The cost to attend the webinar is $33 per workstation/phone line for ISSA members and $53 for non-members.

Greenberger practices with the law firm of Katz, Greenberger & Norton LLP in Cincinnati, which represents owners and operators of commercial real estate, including self-storage. He counsels several state storage associations, including those for Kentucky and Ohio. He is also the owner of an online resource for facility owners at www.selfstoragelegal.com.

Vans Stolen From Self-Storage Facilities, Police Investigate Possible 9/11 Anniversary Threat

Article-Vans Stolen From Self-Storage Facilities, Police Investigate Possible 9/11 Anniversary Threat

The theft of two vans from New Jersey-area self-storage facilities is being investigated by police concerned about 9/11 anniversary threats. The thefts were not connected to any specific plot, but had unusual circumstances, police said.

A white Econoline van with Oklahoma license plates was stolen from Liberty Storage in Jersey City on Aug. 21. The theft involved cut phone lines and alarms and stolen surveillance video.

On Sept. 1, a second van owned by Tully Construction was taken from the entrance ramp to the Long Island Expressway in Queens. The driver was not in the vehicle. Police said the van was driven the following night to a storage facility used by Tully Construction. At least three people broke into storage units and stole about $70,000 worth of tools, and another Tully Construction van from the facility.

The Tully Construction vans are green with a red stripe and a yellow turret light. Tully Construction is one of the contractors involved with recovery work at the World Trade Center.

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Derrels Mini Storage Owner Ready to File Lawsuit Against City in CA Self-Storage Eminent Domain Case

Article-Derrels Mini Storage Owner Ready to File Lawsuit Against City in CA Self-Storage Eminent Domain Case

A self-storage developer in Visalia, Calif., has given the city one last chance to come to an agreement about a property dispute before he takes legal action.

Derrel Ridenour wants to build Derrels Mini Storage on about 10 acres of a 20-acre plot of land on the west side of Demaree Avenue. Ridenour, who owns more than 50 self-storage facilities across California, has owned the property for about a decade.

The dispute revolves around a 12 1/2-foot-deep piece of land in which the property owner refuses to agree to street improvements. Ridenour has asked the city to forcibly take the land by eminent domain, but the city has so far refused, telling Ridenour he must figure out how to meet the rezoning conditions and resolve the conflict with the property owner.

The Visalia City Council approved a parcel zoning change in 2009, paving the way for the self-storage development. However, theres a conditional zoning agreement which requires the owners of all the properties located on the west side of Demaree to widen and improve Demaree Avenue along the proposed development. Ridenour agreed to cover the $1.4 million project which includes widening the street, adding gutters and a sidewalk. All of the residents agreed, but one, Rose Ann Walker, later changed her mind. Since then, the property has come under control in a partnership with her sons.

Ridenours attorney, Jim McKelvey, said the city drafted the conditional zoning agreement and its their responsibility to enforce it. Derrels parent company, Cotdale Limited Partnership, initiated a breach of contract lawsuit against Walker. The sons were not named in the lawsuit because they were not involved in the original agreement. The company plans to continue with the lawsuit and has altered the breach of contract lawsuit to include them. The Walker family did not file a response to the lawsuit within the allotted time frame. McKelvey will now seek a default judgment.

Last week, city council members again refused to meet with McKelvey and Paul Ridenour, who manages the self-storage company for his semi-retired father. City attorney Alex Peltzer said Ridenour must first settle the lawsuit with Walker and meet the conditions of the rezoning. McKelvey has requested another meeting with city council members. If the city refuses, the company is prepared to file an $11 million lawsuit against the city within the next few weeks.

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5 Fresh Ideas to Empower Self-Storage Print Advertising

Article-5 Fresh Ideas to Empower Self-Storage Print Advertising

By Efrain Ayala

In an age where advertisements can appear in print and online as well as through television, radio, social networks and mobile devices, golden opportunities to grow your self-storage business can get lost in a delirium of unending choices. Just like any project, advertising needs research, planning and top-notch execution. Here are five ideas and tips to strengthen your print marketing strategies.

Advertising in Code

Did you know magazine ads are the leading medium for prompting Web searches across all age demographics? Youve probably seen quick-response (QR) codes popping up in your favorite journals. Theyre black and white squares with a random arrangement of tiny bar shapes. With a quick scan of a QR code (which is free and easy to create) on your ads, additional information about your business is delivered directly to the scanners mobile device.

You can attract a highly targeted audience to your online content by adding QR codes to your next print ad campaign, but avoid these three QR-code faux pas:

  • Using a landing page thats not mobile-friendly
  • Directing users to online content thats irrelevant to the scanned item
  • Using a false promise

Plays From the Print Playbook

According to a survey by Deloitte, a global firm providing audit, consulting, financial-advisory, risk-management and tax services, 72 percent of respondents prefer to read information in a magazine. Research shows newspaper and magazine ad messages with Web addresses triple website traffic compared to those without.

According to Affinitys VISTA Print Effectiveness Rating Service, which measures the performance of ads in major consumer and business publications, actions inspired from magazine advertising have increased 10 percent over the past year. Therefore, selecting targeted and niche publications can be a great way to attract new, pre-qualified leads.

Dont be discouraged if you dont have a graphic designer or the skill set to create a wonderful print ad. Many times magazines and other media outlets have a creative staff willing to help you develop your print advertisements.

Fascinate With Photos

Think creatively when choosing photos for your advertising efforts. High-quality photography can spring prospects into action. In addition to pictures of your facilitys beautiful landscaping or sharp-looking office, stand out above the rest by spotlighting the positive impact your business has made in your community. Use your photos to tell an intriguing story prospects will notice.

Resolution is important to your photo quality. If you plan to post photos on the Internet, be sure the dots per inch (DPI) of the photo is no lower than 72. For photos that will be printed for collateral or in an advertisement, make sure the DPI is 300 or higher.

Words That Inspire Action

What good is an advertisement if it doesnt inspire your prospects and target audience to action? Even with the best photography and captivating design, a strong call to action is an essential element for success. Always use active words like call, rent or visit to clearly identify what you want prospects to do. To create a sense of urgency, consider including phrases like for a short time only or call now for your discount.

Deals, freebies and specials are a phenomenal way to inspire action. Be sure to make the most of these new prospects and use lead-generation forms to collect valuable information and create fruitful connections.

Cooperative Collateral

If you were to put all of the brochures, catalogs and fliers youve used to promote your self-storage business on a table, could you tell they all promote the same company? Always display your companys logo in a prominent position, and brand your print promotions similarly.

Not sure if your collateral is consistent and cohesive? Cover up your logos, put all your marketing pieces on a table, and see if the brochures, pamphlets, fliers and business cards look as if they belong to the same company.

Use a consistent voice in your marketing copy that best represents your business core values to increase brand awareness. A consistent look and feel will streamline your marketing efforts for maximum impact.

Before initiating any marketing piece or initiative, its important to understand your target audience and its behaviors. Use these time-tested and innovative tips to supercharge your next advertising campaign.

Efrain Ayala is the new media manager at Walt Denny Inc., a full-service public-relations, advertising and marketing agency specializing in the home-products arena, digital marketing and social media. For more information, visit www.waltdenny.com.

2011 Self-Storage Construction and Development Report

Gallery-2011 Self-Storage Construction and Development Report


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ISS Blog

9/11 and Self-Storage Security: Whats Changed?

Article-9/11 and Self-Storage Security: Whats Changed?

A few weeks after the Sept. 11 tragedy, I was working on a state of the industry report. I spoke with a number of self-storage industry builders, operators and other professionals about new development, a possible recession and improving operations. But every single phone conversation began the same waythoughts about 9/11.

One of those conversations really stuck with me. Jim Chiswell, an industry veteran and owner of Chiswell and Associates, was with a client that morning. From the second floor of a building in New Jersey, Chiswell and his client saw the second plane hit one of the Twin Towers. "And I thought about my granddaughter. Her America and her world changed forever, he told me then.

Were all aware of the many things that have changes since that fateful day. Weve become accustomed to increased airport security and terrorist alert levels. Most of us changed our perceptions about personal and national security. And businesses, too, began to put new security measures into place, including self-storage operators.

The industry had already had brushes with terrorism, as units were used to store items used in the bombing of the Alfred P. Murrah Federal Building in Oklahoma City, and the first bombing of the World Trade Center in 1993. The 9/11 terrorist attack once again reiterated the need for self-storage operator vigilance.

We became very much more cognizant of who was standing at the front of the counter, said Bob Taylor, manager of Blue Ridge Self Storage in Cashiers, N.C. Requesting and copying photo identification became a standard at most facilities after 9/11. Many managers were also trained how to spot fake IDs, and some facilities even requested more than one form of identification.

While Gina Six Kudo, manager of Cochrane Road Self Storage in Morgan Hill, Calif., said shes always been cautious of who she rents to, 9/11 did have an impact on the way she scrutinizes potential tenants. The money in the register or someones intent to use our site for illegal activity isnt worth the risk to the safety or lives of our staff and my family, she said. You can call it womens intuition, your gut sense or a sixth sense, but whatever you call it, Ive learned over my lifetime to trust it implicitly.

The threat at self-storage facilities remain very real today. ISS has posted countless news items over the past year about bombs, guns, hazardous materials and other illegal items found by operators in storage units.

Just two years ago, the national Self Storage Association and Department of Homeland Security sent a written alert to thousands of self-storage companies nationwide about the potential for illegal use of self-storage in connection with terrorism. Authorities requested that anyone suspecting terrorist, suspicious or illegal activity immediately contact the Joint Terrorism Task Force in their area, the FBI or local law enforcement. A few self-storage operators report having been visited by federal agents. You can read about their experiences on this Self-Storage Talk thread.

Many of the security measures we openly discuss now can be attributed to the heightened security levels across the country at facilities, Kudo said. Coupled with the fact that the Department of Homeland Security suddenly became aware of self-storage and started sending officers out across the nation to make us aware of suspect behavior 9/11 definitely impacted our industry. But Kudo fears that as time passes, self-storage operators will become lax on security measures and procedures. 9/11 is a day in our history that we cant forget, but also one we shouldnt be complacent about. Too many Americans lost their lives that day and in the wars waged since that time to protect us.

Jim Chiswell has the same concerns. He said the recessions affect on occupancy and rental rates may put pressure on operators to overlook security measures in lieu of generating revenue. Training in the detection of counterfeit drivers licenses or other forms of identification, for example, should be a priority, but often isnt. I have been in many facilities that dont even require government-issued identification, he said. However, Chiswell noted there are also many owners and managers who are doing an outstanding job in customer screening.

For those who arent, theres no excuse. Unfortunately, self-storage units can be the perfect place to store objects for nefarious crimes. Guns and ammo, hazardous chemicals, the makings for a bomb, even money or fake documents and identifications can easily be stored and accessed. The goal is to not let it happen. As owners and managers, youre on the front line. Be proactive by stopping it at your front door. Here are some potential red flags from the Department of Homeland Security:

  • Cash customers
  • Requests for 24-hour access or any unusual off-hour access
  • Long-term prepayment
  • Suspicious behavior in proximity to any employees or security personnel
  • Abandonment of unused, suspicious items after leaving the facility
  • Suspicious identification
  • Unverified telephone or address information
  • Physical damage on the person, i.e., burns and scars with irrational or non-credible explanations about injuries

While turning down a rental will never be easy, it may be the right thing to do. As a whole, weve turned down more people to rent than before 9/11. Are we too cautious? Almost certainly, Taylor said. Weve learned that vigilance is very important. Caution is critical.

How has 9/11 affected security at your facility? Post a comment below or join the discussion at Self-Storage Talk.

 

 

Hotel Discounts Expire Soon for Inside Self-Storage World Expo in Tacoma

Article-Hotel Discounts Expire Soon for Inside Self-Storage World Expo in Tacoma

Hotel discounts for the Inside Self-Storage World Expo in Tacoma, Wash., Oct. 4-6, expire next week. Until Sept. 16, expo guests can book at a special rate of $159 per night for single/double occupancy at Hotel Murano. After that time, prevailing room rates will apply.

The discount is applicable to stays during Oct. 2-7. Reservations can be made by calling 888.862.3255 and mentioning the ISS Expo. Hotel details and amenities can be viewed at www.hotelmuranotacoma.com.

The ISS Expo in Tacoma will feature 38 seminars, four workshops, two days of product and service exhibits, and multiple networking events. The show will take place at Greater Tacoma Convention & Trade Center, adjacent to the hotel.

Self-storage owners, managers, developers and investors will have access to five comprehensive education tracks covering the industrys hottest topics including online marketing, collections and lien sales, manager incentives, facility design, and much more. The expos four add-on workshops delve deeper into the critical areas of online marketing, legal issues, development and site operation. The exhibit hall will feature more than 50 of the self-storage industrys top suppliers representing a highly diverse range of products and services.

Details about the conference and tradeshow can be found at www.insideselfstorageworldexpo.com. Registration can be completed online or by calling 800.230.2311.

Storage Post Hires Giannola as Director of Self-Storage Acquisitions

Article-Storage Post Hires Giannola as Director of Self-Storage Acquisitions

Self-storage operator Storage Post has hired Jack Giannola, an experienced real estate professional, as its new director of acquisitions. Giannola will lead the companys acquisitions ventures from the northeast regional office in New York, working to increase acquisition opportunities and evaluate facilities from within available portfolios and single properties.

Giannola's duties include actively pursuing self-storage real estate for sale, providing property valuation of potential sale property, and working with each seller's individual needs. With more than 24 years of self-storage real estate experience, including knowledge of current market trends and acquisitions best practices, Giannola will further Storage Post's expansion goals while assisting sellers in navigating value pricing.

Headquartered in Atlanta, Storage Post has locations throughout the East Coast and is actively pursuing acquisitions. In particular, the company is interested in class-A facilities of more than 35,000 square feet within dense submarkets.

WA Self-Storage Owner Moonlights as Medical-Care Pilot

Article-WA Self-Storage Owner Moonlights as Medical-Care Pilot

A self-storage owner in Orcas Island, Wash., is not just your average flying enthusiast. Pilot Pat Muffett, owner of Eastsound Mini Storage and Eastsound Excavating, flies people to and from the island to the mainland for medical appointments and emergencies.

Muffet is a pilot for Mercy Flight, an organization administrated through Orcas Aviation Association in which nine pilots make around 60 flights each year to transport patients from Orcas Island to hospitals and medical facilities in Washington.

The short flight rather than a long ferry ride is an attraction for people looking at weekly or monthly treatments. The flight from Orcas Island to Bellingham can be made in just 10 minutes. Pilots are volunteers, but are reimbursed for fuel.

Muffet, who moved to Orcas 12 years ago from mainland, earned his pilots license at 17. Hes been a pilot for the Mercy Flight program for five years.

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New to Self-Storage Ownership? A First-Time Investors Guide to Getting Loan Money

Article-New to Self-Storage Ownership? A First-Time Investors Guide to Getting Loan Money

By Joseph Cacciapaglia

"How do I buy my first self-storage property if I need industry experience to qualify for a loan? I frequently hear this question from would-be self-storage owners. Lenders know that owning and operating self-storage is very different from owning other commercial real estate investments. Leases are shorter, and operations more closely resemble a retail business than a passive real estate investment. For this reason, and especially in this tough credit environment, lenders only make loans to experienced borrowers.

Im going to hire an experienced property manager. Isnt that enough?  This is the question that usually comes next. While its often helpful to add a professional self-storage management company to your team, it usually isnt sufficient to quell the lenders fears. The problem is the property manager is not the one on the hook for the mortgage payment each month. Additionally, if the borrower isnt experienced, he may not be able to properly manage his manager.

So how does anyone get into this business? There are several answers to this question. You can buy a property with all cash; you can partner with an experienced owner; you can inherit a self-storage facility; or you can convince your lender youre an experienced borrower despite never having owned a self-storage property. Many lenders will not accept anything other than actual self-storage ownership experience. However, some can be swayed by presenting the experience you do have in the right way.

Give Your Lender Confidence

What lenders really want to know is youre going to be able to repay the loan. Thats it. (Well, sometimes they also want to know theyll be able to sell your loan, but those arent the lenders were discussing right now.) All underwriting criteria is designed with repayment in mind. Understanding this point makes it possible to persuade your bank to lend you the money for your first self-storage purchase. There are a number of ways to give your lender the confidence that youll be able to repay your loan. Heres how.

Hire a third-party management company. If you dont have any experience on the operations side of the self-storage business, this is a crucial first step. This makes the lender a little more confident the business will be run professionally. But, as mentioned above, it doesnt completely solve the problem.

Highlight your real estate ownership experience. Hopefully, youve owned other real estate in the past. If this self-storage property is your first investment, you may be out of luck. If you have other experience, let the lender know.

For example, I know several apartment investors who have made the switch to self-storage. In each case, it was critical to show the lenders this experience and explain how it relates to self-storage. For extremely experienced real estate investors, this might be all that is necessary. However, in most cases, the lender will still want to see someone on your team with self-storage experience, even if its just the third-party management company mentioned above.

Highlight your retail experience. Self-storage is very close to being a retail business. Most lenders will quickly see the value of a borrower with a deep level of retail-operations experience, but it has to be more than just a summer at Burger King during high school. One investor I know spent several years building and running a well-known retail chain, and lenders were happy to have him as a borrower.

Strengthen other parts of the loan application. Having a strong application in other areas can often minimize the experience requirement. For example, one lender recently made a loan on a self-storage property to a doctor whose only experience involved single-family rental housing. However, the doctor had significant assets and income and a fantastic credit score. He was also hiring an experienced manager.

Knowing this borrower could pay back the loan even if the self-storage operation failed allowed the lender to make this loan despite the borrowers relative inexperience. Making a larger down payment or pledging additional collateral will also strengthen your application.

Show lenders youre knowledgeable. This doesnt mean telling them about the books youve read or the real estate guru boot camps youve attended. It means coming to them fully prepared. Presenting lenders with a complete and professional loan package up front reassures them that you know what youre doing.

Your package should include a detailed market study, pro forma and business plan. It should also include your résumé that highlights whatever experience you do have, and the résumé or brochure for the third-party management company youll hire. If youre planning to make any changes or rehab the property, you need to include a budget and description of what youre planning to do and why.

Bring in an experienced partner. If youve presented all of the information above and your lender is still not satisfied with your experience, you can always bring in an experienced partner. If youve found a good deal and youre putting up most of the equity, you shouldnt have trouble finding an experienced operator to join your investment.

Its important to paint the entire picture for your lender. Dont try to hide your inexperience; acknowledge it, and then quickly present your case using the points above. While this strategy wont work with every lender, it gives you the best shot at obtaining a loan on your first self-storage investment.

Joseph Cacciapaglia is a commercial loan officer at BMC Capital. He arranges financing for self-storage owners and investors throughout the United States. To reach him, call 979.218.2286, or read his blog at www.usstoragenews.com .

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