A1 Heated Storage, a self-storage facility in Sedro-Woolley, Wash., will have its request to allow tenants to grow medical marijuana on the premises heard a second time by the city council. The request received new life after a Skagit County Superior Court judge last week ruled city officials acted improperly when denying facility owner Thomas Swetts request nearly a year ago.

Swett applied for a conditional-use permit in December 2011 to convert several self-storage units into spaces appropriate for hydroponic gardening. The council denied the permit, but a hearing examiner approved it on appeal. The council then overturned the examiners decision.

Swett sued the city for not giving him due process and failing to follow municipal law. The judge sent the case back to the city after ruling on Aug. 13 that the council made procedural errors in reversing the examiners approval and denied Swett due process.

The council is scheduled to hold an appeal hearing on Sept. 26 behind closed doors. No public comments or new testimony will be considered.

Previous news reports said Swett was allowing tenants to store and grow dozens of legal pot plants in 26 units with access to water and artificial light. He sought a permit to add 14 more units for cultivating medical marijuana, arguing the self-storage facility was a safer and more secure environment than homes for legal growers.

Some residents objected to the facility expansion, citing traffic and safety issues.

Sedro-Woolley is a small town of about 10,000 people. It lies 70 miles north of Seattle and 50 miles south of the Canadian border.

By Michael OBrien

The self-storage industry is going through an unprecedented level of publicity and public scrutiny. The show Storage Wars is one of the most popular reality shows on television, and the Internet is full of rumors of whether its real, legal or either.

State self-storage associations have been busy facing or preparing to face the examination of state legislators and consumer-protection advocates, attending committee meetings, public debates and other tools of the legislative process. The good news is the timing couldnt be better to revisit self-storage legislation. States are looking at the first major revisions since the late 70s or early 80s. At least 15 states have recently updated their self-storage statutes, providing strong precedent for associations looking to move forward on this important process.

For example, 2012 saw the passage of a number of important bills, including a major victory in Florida with the passage of Senate Bill 646/House Bill 715. The new legislation allows a tenant to provide a change of address to the facility using First Class Mail or e-mail. It also enables operators to send a Notification of Default to a tenant via First Class Mail with a Certificate of Mailing or e-mail, provided receipt of the e-mail by the tenant is verified, and requires self-storage rental contracts or applications ask whether a person is in the military. The changes in the law may save Florida self-storage businesses up to $6 million annually.

Although lien improvement was successful in Florida, similar bills died in state legislatures in Connecticut, Georgia and South Carolina. These important provisions are expected to be revived in 2013 and, if passed, will help protect businesses and save self-storage operators money.

Other proposed legislation, such as Georgias House Bill 463, may introduce changes to the insurance provisions that enable self-storage owners to sell insurance policies to their tenants, much like car-rental companies sell policies to their customers. These new provisions allow owners to upsell their customers and provide additional revenue streams for their businesses.

In 2013, at least seven states are considering significant changes to their self-storage statutes, pushed primarily by state associations and industry leaders. These changes will ease the rules and regulations on liens and foreclosures, lower the risk and cost of doing business, or provide opportunities to add lines of business and revenue streams.

Its important self-storage leaders get involved in the legislative process, not just for the success of their own businesses, but also for the overall good of the industry. Sending e-mails or calling legislators is an easy way to get involved. Knowing the state and local officials who represent your self-storage business is now becoming as essential as advertising. Attending industry advocacy days at your state capitol, and supporting your state and national association should be high on your priority list.

Michael OBrien is a business-development consultant for LegiNation, an online source for information on state-level legislation, and founder and principal of MOB Advocacy, a multi-state government-relations firm. O'Brien has more than 10 years of experience in state and local government relations, working with corporations, national trade associations and nonprofit organizations on issues related to healthcare, education, agriculture and the environment. For more information, e-mail [email protected]; visit www.billtrack50.com .

The Illinois Self Storage Association (ISSA) will hold its 2012 Downstate Summit on Nov. 1. The half-day event will focus on self-storage legal issues and includes industry attorney Jeffrey Greenberger as the featured speaker. There will also be exhibits from industry suppliers.

The event will be held 11 a.m. to 4:30 p.m. at the Eastland Suites Hotel in Bloomington, Ill. The summit includes three sessions about self-storage legal issues: The 3 Ds of Self-Storage (Death, Divorce and Disappearance), Whats Wrong With My Rental-Payment Clause?, and Common Lien-Sale Problems.

Greenberger is a partner in the Cincinnati law firm of Katz, Greenberger & Norton LLP, where he focuses his practice on commercial real estate, with a concentration in self-storage. Greenberger assists operators around the nation in the design and implementation of legal policies and procedures, as well as other operational issues, with a focus on litigation avoidance and liability reduction.

Greenberger serves as legal adviser to several state self-storage associations and has been a featured speaker at national and state self-storage conferences, including the Inside Self-Storage World Expo. He is a regular contributor to Inside Self-Storage (ISS) magazine, where he serves as a member of the editorial advisory board, and an instructor of the Self-Storage Training Institute, which is operated by ISS. Copies of several Greenberger presentations, including video of seminars from the ISS Expo and recordings of webinars in the ISS Legal Learning Series, can be purchased via the ISS Store at www.insideselfstoragestore.com.

ISSA provides members government advocacy, education and business services, including a legal-information service and credit card processing.

Long Beach Security Storage in Long Beach, Calif., recently sold to a local partnership for $1.8 million. Located on Anaheim St., the property was constructed in 1923 and converted to self-storage in 1999. The building is a seven-story concrete with 513 units, 30,000 net rentable square feet, and three cell-phone antennas on the roof.  Its on a highly trafficked thoroughfare in a redevelopment area of Long Beach.

Roberto Munoz, an associate in the West Los Angeles office of Marcus & Millichap Real Estate Investment Services, had the exclusive listing to market the property on behalf of the seller, Monopoly Properties Group LLC, a limited liability company in Los Angeles. The company has owned the property since 1999. The buyer is a local partnership that  owns apartments and offices in the Long Beach area.

This is clearly an indication that the market is coming back and buyers have re-entered the market looking for opportunities, Munoz said.

Marcus & Millichap has more than 1,000 investment professionals in offices nationwide and closed more than 5,000 transactions last year.

PhoneSmart, an off-site sales and reservation center for the self-storage industry, raised more than $1,500 for Kure It Cancer Research in August as part of a month-long donation drive. The company donated 25 cents for each of the 6,315 self-storage reservations it booked last month, making a total of $1,578.75 that went to the cause.

Kure It is a nonprofit dedicated to funding kidney and other cancer research. The organization was launched by Barry Hoeven, who was diagnosed with kidney cancer in 1998. In April 2007, Hoeven partnered with cancer center City of Hope to create the Kure It! Kidney Cancer Research Fund, which raised more than $400,000. Kure It Inc. was established in January 2010. Its goal is to be the leader in granting funds to cancer researchers investigating progressive treatments and cures. To date the organization has raised more than $1 million for the cause.

PhoneSmart has historically led the way for the self-storage industrys support of Kure It, said Hoeven. They never miss an opportunity to promote our mission to their clients and colleagues, and the donation drive is another example of their commitment to giving back. By raising over $1,500, one quarter at a time, they have demonstrated that every penny counts in the fight against cancer.

PhoneSmart was founded in 2000 to serve its parent company, StorageMart, and offer off-site sales support and call-center services to other companies in the self-storage and property-management industries. The company answers rental inquiries for more than 100 client companies and 800 individual properties in the United States, Canada and Mexico.

By James Fawcett

Your self-storage manager may be a Jack of all trades, but would you rather have Jack trying to repair roll-up doors or handling the tasks of facility marketing, sales, collections and others that actually drive revenue for your facility?

A third-party maintenance company can and should add value to your self-storage facilitys bottom line and reduce liability risks that go along with Jack climbing ladders to fix gutters or paint the building. Jack may not even have the necessary skills to handle some maintenance issues, like setting tension on an overhead roll-up door or programming the access-control system. And, hopefully, Jack is too busy dealing with paying customers to handle the day-to-day repairs.

The Benefits

Beyond avoiding liabilities and keeping Jack free to actually manage the facility, economies of scale on the supply side is another cost-saving benefit of working with maintenance companies. Thats because you dont have to stock parts, such as door hasps. Firms that specialize in self-storage keep many common parts in stock.

If you try to handle your maintenance in-house, youll have to keep the right equipment on hand and either stock the supplies you need or pay individually for parts as the need arises. That can be an expensive investment either way. Third-party companies buy parts in bulk and pass that savings on to you.

For example, if you buy light bulbs for your wall packs at The Home Depot, you could pay $24 to $28 each. If you hire a third-party maintenance company, youll pay about $30 for the bulb and the installation altogetherand Jack doesnt miss a customer while hes at store or create a liability risk on the ladder. Third-party maintenance companies carry the required insurance and remove the liability from your self-storage operation.

The best maintenance companies also help you identify potential problems at your facility before they become major issues. Firms that specialize in self-storage have employees who are trained to spot the first signs of safety risks or failing parts so they can be corrected immediately. Catching a small leak with some mildew behind a wall is much less costly to repair than a bad leak that has flooded a unit and left behind mold.

Myths and Misconceptions

With benefits like these, why doesnt every self-storage operator work with a maintenance company? There are myths and misconceptions in the industry. One of them is the notion of saving money by doing it yourself. Changing a light bulb or painting a wall is certainly something Jack could handle, but when the maintenance becomes more specialized and time-consuming, wisdom begs letting Jack stick to what he knows bestdriving revenue to the facilityand calling in the experts. In other words, Jack should focus on the business of self-storage rather than the business of self-storage maintenance.

Theres also the unfortunate reality that not all contractors are honest. Over the years, some operators have hired bad apples who gave the maintenance business a bad name. But the majority of companies are legitimate and do solid work, not fly-by-night contractors asking to be paid in cash under the table.

Another misconception is its less expensive to add a maintenance man to the staff and call him as needed. But these arrangements often lead to employees who take three times as long as necessary to complete a maintenance task just so they can clock more hours. Even if you hire an in-house maintenance person to service several facilities, youre still faced with stocking costly parts, along with liability insurance and workers compensation insurance, which drive up the overall cost.

Knowledge and Experience

When evaluating a maintenance company, look for knowledge and experience. Ask for referrals and get references. During the interview, ask what types of supplies the company keeps on hand and if it's staff is familiar with your type of doors, gate-access system and roof. 

If you want 24-hour service, ask if the company provides it. Ask about the turnaround time for a maintenance call. Does the firm do emergency calls? If so, what's the wait time? Smaller firms may get backlogs of service requests. Also ask if the firm hires its own employees or subcontracts the work. Firms with in-house employees have more control over how the work is performed and may offer better service and pricing.

Finally, experience in the self-storage industry is vital. Although many maintenance companies could perform most of the tasks you need, those experienced with the unique needs of storage facilities are a safer choice.

James Fawcett is the president of Accent Building Restoration (ABR), which offers a full range of property and building services including cosmetic construction, painting, maintenance and other repairs. For more information, call 866.498.7391; e-mail [email protected]; visit www.abrusa.com .

The Missouri Self Storage Owners Association (MSSOA) will make a new model rental agreement available to its members on Oct. 1. The model was unveiled in August during MSSOAs annual conference and was prepared by Stan Masters, the associations legal counsel. The current model agreement has been in use for 10 years.

The new model is organized into four parts, including the rental agreement and addenda for military personnel, vehicles and trailers, and marine property.

Although the new rental agreement keeps all of the provisions from the current model, it also enables operators to capture more information about tenants, helping them to determine if a customer is eligible for a Servicemembers Civil Relief Act (SCRA) waiver or whether the facility will need to obtain a title before having a lien sale. SCRA replaced the Soldiers and Sailors Civil Relief Act and is intended to postpone or suspend certain civil obligations to service members called to active duty or being deployed.

Additional changes to the model agreement offer operators greater protection against liability for inadvertent disclosure of a tenants confidential information, clearer rules for handling and using security deposits, an expanded definition of abandonment, and other improvements, according to the MSSOA September 2012 newsletter.

The association said it will also offer tools to help member facilities apply the new model rental agreement terms to current tenants as well as new customers.

MSSOA has a membership of 250 self-storage owners in Missouri.

A self-storage entrepreneur whos active in the Hawaiian real estate market recently purchased prime oceanfront property on The Island of Hawaii (Big Island) for $7.7 million. Edmund C. Olson, chairman of A-American Self Storage, plans to use the Hilo, Hawaii, property build a destination location for weddings, business meetings and other events.

The property, Wainaku Executive Center, was purchased from the estate of John W.A. Doc Buyers, CEO of C. Brewer and Co. Olson plans to renovate the existing 12,000-square-foot, two-story building into a high-end restaurant, coffee shop and art gallery. Future plans include creating a convention center on the property and a small boutique hotel with 12 to 18 rooms.

Last year Olson, a Ka`u, Hawaii, landowner, donated $500,000 to The Nature Conservancy to support forest conservation on Hawaiis Big Island. The gift was specifically targeted at protecting the native forests of Ka`u and South Kona.

The Nature Conservancy is conservation organization working around the world to protect ecologically important lands and waters for nature and people. Information can be found at Nature.org.

In 2010, Olson moved to protect more than 2,000 acres of Hawaii agricultural land from development by reaching a conservation easement deal with the Hawaiian Islands Land Trust. The land included more than 1,200 acres on the slopes of the Waianae mountains on Oahu and more than 900 acres in Ka`u.

A-American Storage Management is a family-owned self-storage company with facilities in California, Hawaii, Illinois, Missouri and Nevada. It has been in business for more than 35 years.

Next month StorageTreasures.com, a website designed for self-storage auction hunters, will introduce a video training series that will help new and veteran buyers, pickers and garage-sale resellers make money from merchandise purchased at auctions. The videos will share tips from experts, pitfalls to avoid, and insight on how to operate a part- or full-time reselling business.

The series will include Dan Dotson, founder of American Auctioneers and a star on the A&E reality TV show "Storage Wars," and his wife, Laura. It will also include Troy Howerton, aka "The Redneck Picker," who starred on The History Channel TV series "The Real Deal," and Nabila Haniss, another "Storage Wars" regular whose claim to fame is having once bought a storage unit containing items belonging to socialite Paris Hilton.

"The economy has been hard on so many families for so many years, so Laura and I wanted to create something that could enable people to make money in these hard times," said Dotson. "This series is all about helping people learn a skill that can put food on the table and a few bucks in their pockets."

"Storage auctions offer a viable path for the guy looking to build a significant side income as well as someone looking to start a full-time business," added Lance Watkins, president and founder of StorageTreasures.com. The key to getting and staying in the business is avoiding the mistakes that often derail new buyers. By using our educational series, auction hunters, pickers and garage-sale resellers can shorten the learning curve and build a knowledge base that will help them build a profitable career."

StorageTreasures.com is a free storage-auction locator and self-storage facility finder covering the United States and Canada. The website offers auction schedules and site-specific guidelines for auction hunters and self-storage owners alike.