Armadillo Self Storage, which operates 24 facilities across the United Kingdom, is providing free space at its Warrington, England, location to the North Cheshire branch of National Childbirth Trust (NCT), the U.K.’s largest charity for new parents. NCT will use the unit at 73 Manchester Road to store equipment for its “nearly new” sales and during its community baby groups, according to the source.

“We are incredibly grateful to Armadillo Storage for continuing to offer storage to our charity. The branch is currently run by only a couple of volunteers, and we were facing the problem of potentially having to dispose of equipment that we have used to run baby groups and ‘nearly new’ sales due to lack of storage,” said Gilly Liput, branch treasurer and a 10-year member. “We are really keen to find new volunteers to help revive the branch so we can continue to offer support to new parents. We would love to be able to run more groups to help parents meet other parents after the birth of their children, and to run more of our popular nearly new sales but we just can’t do this without more volunteers.”

Launched in 1956, NCT aids parents in the first 1,000 days, from pregnancy through a child’s second birthday. Services include classes for prenatal, twins and multiples, yoga, baby massage, and first-aid. It also organizes postnatal community groups. Each branch is operated by local parents.

Armadillo previously supported NCT North Cheshire Little Bundles, before that branch closed due to lack of volunteers, the source reported.

“Supporting local charities is really important to us at Armadillo Self Storage. NCT is a fantastic charity that supports parents in the area and, as such, we are delighted to donate storage to support this growing charity,” said Kerrie Horan, charity representative for Armadillo Warrington. “We wish them all the best and hope that, by through our donation, they are able to expand and continue to be a pillar in the community.”

Armadillo is a member of the Big Yellow Group PLC, which operates 100 self-storage locations in the United Kingdom under the Big Yellow Self Storage and Armadillo brand names, with most concentrated in Greater London and Southeast England. Its total portfolio comprises 5.7 million square feet.

Source:
Warrington Guardian, Storage Firm Steps in to Save the Day for Struggling Antenatal Charity

Police arrested three men last week at Big Padlock Self Storage in Aintree, a village just outside of Liverpool, England, on suspicion of burglary after possible stolen goods were found in a unit. Officers were called to the Dairy Business Park on Long Lane at 12:15 p.m. on Sept. 26 following reports of the men acting “suspiciously,” according to the source.

Shortly after the discovery, investigators erected a barrier around the unit as well as several vehicles. Forensic officers and a police dog were also on site, the source reported.

Two of the men, ages 26 and 34, are from Liverpool, while the third, age 29, is from Kirkby. They were taken into custody for questioning.

Big Padlock operates eight facilities in the United Kingdom, in Halifax, Huyton, Liverpool and Wirral, England; Ayr, Scotland; and Aberdare, Cardiff and Wrexham, Wales. It also offers office suites, workshops, and document and vehicle storage.

Source:
Liverpool Echo, Three Arrested After Massive Police Presence at Storage Facility

So, you’ve just hired the perfect employee to run your self-storage property. You know this person will quickly stabilize occupancy and increase revenue while protecting your investment. The only problem is he’s never operated a storage facility on a day-to-day basis, and you have little to no experience in staff training. You understand that every person has a different learning style, but what do you teach him? When and how?

No worries. These days you can outsource training to a company that specializes in bringing self-storage initiates up to speed on the latest policies, sales tactics, delinquency procedures and so much more.

Benefits

Outsourced training is usually geared toward smaller storage operations, as the larger operators typically have their own in-house resources. If you’re just entering the storage business or have never participated in a facility’s day-to-day operation, you likely don’t have the expertise to share with staff that a seasoned industry professional can impart.

Also, hiring and training new staff can quickly eat up an owner’s most valuable resource: time. “The first reason for outsourcing training is so you don’t have to remake the wheel. Let someone who has already created a successful system save you from having to go through the headache of creating your own system through trial and error,” says Matthew Van Horn, co-founder of 3 Mile Domination Self -Storage Services, which specializes in self-storage management, marketing, feasibility studies and consulting.

Program

If you outsource, you want to review and approve the training program before lessons begin to ensure the trainer’s practices align with your own and won’t conflict with your policies and procedures. In short, you should know exactly what staff will be learning.

The best training usually encompasses every aspect of day-to-day management and attempts to address the “oddball” events that can occur on a storage property. Here are some essential topics that should be covered:

• Facility opening and closing procedures
• Daily cleaning
• Routine/ongoing maintenance
• Unit inventories
• Occupancy types (physical, economic)
• Payments
• Management-software reports (obtaining, reviewing)
• Market/competition surveys
• Revenue management
• Gate operation
• Basic marketing
• Sales techniques
• Rental agreements
• Delinquency and lien law
• Unit conversions

As you can see, it can be comprehensive. Managers who oversee properties with specialty storage, such as wine or vehicle, will have additional tasks. The best program is one that’s tailored to your site and responsibilities.

Method

The best training is performed in person by a seasoned self-storage professional who has first-hand experience in day-to-day property management. However, technology now allows for phone-based and online training. For example, webinars are common. Applications like TeamViewer allow for remote control, desktop sharing, online meetings, web conferencing and file transfer. There are many options available.

These types of tools are also great for follow-ups. A good trainer should be available to answer questions even after the initial training is complete. Though there’s really no substitute for face-to-face, one-on-one training, phone and Internet-based options can be a solution if that isn’t affordable or practical.

Choosing a Trainer

Hiring a third-party trainer can be tricky and expensive. You can expect to pay upward of $3,000, so you want to make sure you’re getting your money’s worth. There are several good self-storage consulting and management companies around the country. I recommend choosing one as close to you as possible to minimize the cost of the trainer’s travel expenses.

Keep in mind there’s no substitute for an excellent manager. The best ones can take an investment to its peak and enjoy doing it. Outsourced training can give staff the confidence they need to tackle day-to-day operation in the most profitable manner.

“Managers who are trained well will rent up a facility faster and, in most cases, more profitably than a manager who’s still learning through trial and error,” Van Horn says. “If the facility is meeting its financial obligations, it’s positive not only for the manager but also the owners, investors, and financial institutions that have interest in the facility.”

Good managers are mostly self-sufficient. In an industry where most cover their work shifts single-handedly, there’ll always be an element of “throwing them to the wolves.” Offering the right training will minimize this feeling and bolster the investment. As our industry continues to grow and become more competitive, the real question is not whether you can afford to outsource your training, but rather, how can you afford not to?

Sean Landry is owner and president of Expert Storage Management LLC, which offers third-party management services for self-storage, including staff hiring and training, revenue management, pricing, unit-mix optimization, marketing strategies, and more. He founded the company in 2016 after a successful career as a facility manager and consultant. For more information, call 504.251.1260; e-mail [email protected]; visit www.expertstoragemanagement.com.

Update 9/27/19 – More details have been released about the state of a body that was found inside a self-storage unit earlier this month. An unsealed search warrant shows Valdez’s body was partially mummified and wrapped in “cloth, rope or twine, wire, plastic, and/or other materials.” The remains were believed to be in the unit for some time, according to Ogden Police Lt. Brian Eynon.

The cause of death has yet to be determined, but investigators are treating it as a “suspicious” death. Detectives are interviewing several persons of interests.

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9/11/19 – Police identified the body that was found last week inside a unit at Stock-N-Lock in Ogden. The remains belong to Alice Anne Valdez, 41. Investigators say the body was badly decomposed, but they were able to determine identity through fingerprints, according to a source.

The investigation is in the preliminary stages and police have few leads, a source reported. An autopsy was performed on Sept. 6, but a cause of death has yet to be determined.

Court records show Valdez had pleaded guilty to drug and trespassing crimes in Utah, a source stated.

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9/9/19 – A body was found Thursday inside a unit at Stock-N-Lock Self Storage in Ogden, Utah, by a person who was cleaning it. Police are calling the discovery at 2868 Grant Ave. “suspicious” but haven’t determined if there was a crime, according to sources.

Investigators also haven’t released information on the person’s gender or age, or how long the body had been in the unit. The person has yet to be identified. Police are collecting evidence including video surveillance from the scene.

Stock-N-Lock operates eight facilities in Utah along the Wasatch Front, a metropolitan region in the north-central part of state.

Sources:
13 News, Dead Body Found in Utah Storage Unit by Person Cleaning It
Desert News, Human Remains Found in Ogden Storage Unit
The Salt Lake Tribune, Ogden Police Identify Woman Whose Body Was Found in a Storage Unit
US News & World Report, Police Identify Dead Body Found in Utah Storage Unit
KSL, New Details Revealed About Body Found in Utah Storage Unit
Desert News, Mummified Body in Ogden Shed Wrapped in Plastic, Rope, Warrant States

Attic Self Storage, which operates three facilities in Greater London, has started using virtual reality (VR) facility tours on its website to help prospective customers understand its building layouts, unit sizes, pricing, retail items and more. The tours are accessible via mobile or desktop devices to anyone with a VR headset. The goal is to “bring the in-store experience directly to customers without the need for coming into the store,” according to a press release.

“We know that estimating what size unit you need is a key challenge for our customers. Our staff are, of course, always on hand to help in store or on the phone; however, we know that visiting [a] store is not always convenient,” said CEO Frederic de Ryckman de Betz. “We wanted to be able to help our customers understand what they might need from the comfort of their own homes should they wish. Our aim is to really deliver an exceptional storage experience for our customers.”

The tours are accessible through the individual location pages at atticstorage.co.uk. Once users click on the “Take a Virtual Tour” link, they’re redirected to a page with a virtual assistant who walks them through the process.

The launch builds on Attic’s other technology-based offerings, including the automated online check-in and account-management services it implemented in 2016. The company’s website include an online storage calculator as well as an instant quoting tool.  

The company’s VR offering is being considered for an innovation award from the Federation of European Self Storage Associations, the release stated. The winners will be announced at the annual conference, Oct. 1-2, in London.

Founded in 2006, Attic Self Storage operates facilities in Bow, King’s Cross and Marylebone, London.

Source:
Response Source, Attic Self Storage Introduces the First Virtual Reality Enabled Store Tours and Is Shortlisted for an Industry Innovation Award

 

Commissioners in Pompano Beach, Fla., unanimously approved a six-month moratorium on new self-storage development this week. No new applications will be accepted or permits issued. The move is part of a broader resistance to storage projects, according to the source.

Commissioners granted preliminary approval on the first reading of the ordinance at their Sept. 10 meeting. “This is long overdue. These are hulking buildings that occupy a great deal of space and employ a handful of people,” vice mayor Barry Moss said during the meeting.

During the cessation, city staff will develop zoning proposals to prevent clusters of self-storage in the area, which is already overbuilt, according to a report from a consulting firm retained by the city. There are 28 facilities in Pompano Beach, with many situated between Interstate 95 and Florida’s Turnpike. There are 21.7 square feet of self-storage for every resident when including existing and planned properties, the report states. That’s higher than in seven other South Florida cities, where the per-capita number ranges from 4.7 to 15.5 square feet.

The moratorium will likely have a limited impact because the area already has an excessive supply of storage, said Michael Mele, vice chairman of real estate firm Cushman & Wakefield and head of its national Self-Storage Advisory Group. “Nobody’s going to want to build with 20.7 square feet. The national average is 6 square feet per person,” he said.

Source:
The Real Deal, Hold Onto Your Stuff: Pompano Beach Suspends Self-Storage Development

As self-storage operators, we’re obsessed with facility occupancy. It’s mentioned everywhere: at every industry convention and meeting, in every trade magazine, with graphs of where it is today compared to historic levels. We worry about occupancy every day and rightfully so, as it indicates business performance and the underlying financials.

However, when discussing occupancy, it’s vitally important to understand which type. There are two—physical and economic—and many operators confuse them. Failing to understand the difference can cause managers to pull the wrong operational levers at their facilities, thus failing to maximize revenue potential.

Let’s talk about the two occupancy types, how they differ, and how to use them to set key performance indicators (KPIs) and drive performance at our properties.

Occupancy Types

Physical occupancy is the easiest to gauge but the least informative from a revenue standpoint. It’s simply a measure of how many self-storage units are occupied. While it may feel good to walk around your site and see all those tenant locks, high physical occupancy doesn’t mean the facility is producing the most revenue it could. In fact, 100 percent physical occupancy should never be a goal. As an investor, when I hear a manager brag about being at 100 percent, I know the facility’s revenue isn’t being maximized and I see opportunity.

Economic occupancy is the percentage of total gross potential rental income (GPRI) that’s being collected. If your facility has an annual GPRI of $100,000 and your annual rent collections equal $80,000 (excluding ancillary revenue for things like moving supplies, tenant insurance, late fees, etc.), you have an economic occupancy of 80 percent.

Unlike with physical occupancy, it’s desirable to achieve 100 percent economic occupancy. That should be every manager’s goal: to collect as much rent as possible on every occupied unit.

There are three factors that affect economic occupancy:

• Delinquent units: When a tenant fails to pay, your unit is off the market and yet no revenue is being collected.
• Discounted units: A tenant might be paying less than your street rate for various reasons such as a promotion, your failure to raise rates over time, or because he made a partial payment rather than full.
• Vacant units: There’s no revenue here yet, but the opportunity is there.

Let’s look at an example of how discounts affect economic occupancy. Say your street rate for a 10-by-10 is $100 per month, but you’re running a promotion and offering the first month for free. The annual GPRI for that unit is $1,200. If your tenant stays for one year, you’ll collect $1,100, which gives you an economic occupancy of 91.7 percent on that unit. If he only stays for six months, you’ll collect $500, giving you an economic occupancy of 83.3 percent on that space.

Measuring Occupancy

The late author and management consultant Peter Drucker said, “What gets measured gets improved.” Both types of self-storage occupancy can be measured at the facility level and the unit level. Facility-level measurements are an aggregate of all units, calculated as a percentage of the whole. For example, if 450 of 500 units are occupied, I’m at 90 percent physical occupancy. If I’m collecting $96,000 of my total GPRI of $100,000 on those units, the economic occupancy is 96 percent.

The facility level gives a holistic view of how the property is performing overall. However, the industry’s best operators measure occupancy based on individual unit size as part of their revenue-management strategy. Why? Because doing so enables them to more carefully adjust their rates and operational approach. It’s called dynamic pricing. You set your rental rates based on availability within a specific unit category. Some operators have taken this method to an even higher level and delineate by unit location as well as size, for example, by floor or proximity to the elevator, gate, office, etc.

Setting KPIs

Now comes the fun part: driving revenue. At my company, we use KPIs to give us the insight we need to adjust our operation and maximize income. How? Let’s look at some examples at the facility and unit level.

Our facility-level KPI for physical occupancy is 90 percent. Once we exceed that level, our software alerts us and we know it’s time for a price increase. Again, 100 percent physical occupancy is bad news. Not only are your prices too low, you have no flexibility to adjust and take advantage of opportunity in the marketplace. On the flip side, we know that if our physical occupancy dips below 90 percent, it’s potentially time to increase our marketing spend.

Our facility-level KPI for economic occupancy is based on a percentage of physical occupancy. If our economic is more than 10 percent below our physical, we know it’s time to look at two things: promotions and delinquencies. If, however, it’s within 5 percent, we consider performance bonuses for our managers.

Our unit-level KPIs are different for each size and depend on facility location. Most of our sites are in secondary and tertiary markets, so we like to keep our 10-by-10s, 10-by-15s and 10-by-20s flexible in terms of pricing. We keep the physical occupancy of our 5-by-5s and 5-by-10s above 95 percent because the demand is lower. We also like to keep our larger units full because, in our experience, those tenants tend to stay longer and are less sensitive to price increases.

To truly leverage occupancy as a measure of self-storage performance, you need to understand both types, physical and economic. This allows you to develop KPIs and adjust your operational and marketing plans to maximize revenue and, ultimately, put more money in the bank.

Scott Lewis is the co-founder and chief executive officer of Spartan Investment Group LLC (SIG), where he’s responsible for developing business strategies and overseeing all operations and business activities. Scott has led several successful real estate projects ranging from single-family flips to ground-up self-storage developments. He’s also a major in the U.S. Army Reserves and a veteran of Operation Iraqi Freedom. SIG has completed $9 million in development projects, with $70 million underway. For more information, call 866.375.4438; e-mail [email protected]; visit www.spartan-investors.com.