Stop Interruptions to Recurring Payments Due to Out-of-Date Card Information

Sponsored by CardConnect
April 21, 2021

Enabling a service on your merchant account to monitor customer payment accounts on a continual basis, to determine if the saved card data has become obsolete, will help you get in front of potential problems with expired cards and other causes of payment interruption. Some of the most common reasons that cause a customer's card data to become obsolete include:

• A new card is issued due to suspected or confirmed fraud,
• A replacement card is issued with an updated expiration date,
• The account transitions to a different class or tier of card that requires a change in account number.

Whether you offer a subscription service or use recurring payment solutions for your business, you know how frustrating it can be to see transactions decline. Using an automatic updater to retrieve new card data can help your business to:

• Update stored customer payment details with new data, without ever involving the cardholder
• Stabilize and maintain cashflow by reducing late and declined payments
• Reduce involuntary churn caused by expired cards or new account numbers
• Reduce efforts and costs associated with merchant outreach due to outdated payment information
• Improve customer satisfaction by avoiding interruptions in products and services as a result of nonpayment

Ready to take the headache out of cardholder updates?

Card Account Updater Is Your Solution

Card Account Updater is a feature embedded directly in CardPointe that automatically identifies Visa, Mastercard, and Discover cards that have been replaced with a new card number or expiration date and updates your stored customer payment details with the new card data – helping you avoid failed transactions or gaps in services provided to your customers.

When the Card Account Updater service receives updated card information from Visa, Mastercard, or Discover, stored customer payment information is automatically updated with the new details, and can be used for any individual payments made using the CardPointe Virtual Terminal, or used for any upcoming scheduled payments that are part of a billing plan.

Sponsored by:
CardConnect provides seamless credit card payment integration services for all businesses, protected by powerful security solutions. Click here to learn more. 

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Management is the Key to Your Success

by Pamela Alton

The key to success is not just finding and hiring a good manager or what wages and bonuses you should offer, but you must also consider training your self-storage staff to be successful! Once all of this is in place, then there are other things to consider such as regular audits and inspections, site visits, employee reviews and "de-hiring" staff, all worthy subjects to touch upon down the road.

Obviously I can't possibly go into depth on each subject; however, I am going to do my best to try to give you some insight from my 26 years in the self-storage industry and hopefully I can get your creative juices flowing by giving you some ideas to help you be a better self-storage owner or operator and increase your bottom line!

FINDING AND HIRING MANAGERS

First let's talk about finding and hiring good managers. As we all know, the people you choose to manage your facility will make the difference between a highly successful operation or a mediocre one. Finding that perfect management staff is not always an easy task to accomplish!  Where do you find them and what do you do with them once you have them?

To find managers, you can place an ad on any number of employment websites available today, such as Monster, ZipRecruiter, Indeed, CareerBuilder, Craigslist, WorkingCouples.com (if your position is for a resident manager team), trade magazines or use one of the placement services such as my company, Mini-Management Services, or Kelly Services. You can also ask for referrals from your current managers or other owners or operators in the industry. Getting people to respond may be the easiest aspect of your management search.

However, interviewing and matching the right manager with your facility is not so easy.  Everyone can be on their best behavior for an hour, that is why it is important to interview your selection of candidates more than once. If they are currently employed at a facility close enough for you to visit them, you should consider that, providing you get their approval. Most managers seek new employment confidentially and don’t want to jeopardize their current position.

When interviewing candidates, consider their individual talents and match the management personality with that of the facility position you are trying to fill. Traditionally, if you have on-site housing, most full-time resident management staff consists of a husband and wife team. Just because the woman is usually the one that is behind the desk and the man is the one that is responsible for the maintenance, doesn’t mean that she is better at office work and he is better with repairs.  Sometimes she is better at maintenance and he is better with the computer! Perhaps he is more outgoing than she is and would be better at outside marketing.  Again, look at the talents of each manager and consider giving them job responsibilities that are best suited to their strengths.

REFERENCES AND BACKGROUND CHECKS

Once you have narrowed down the best possible candidates, then you must check their work references, and when I speak of "work references," I mean past supervisors or owners, not tenants or co-workers, friends or relatives. Do you think they will provide references from friends or family who will speak ill of them? Of course not!

Some large companies will not verify anything more than employment dates and job titles. I have been in this business for a very long time and know a lot of people, and thank goodness I am lucky enough to get a little more information than most because people know they can speak candidly with me about an employee and it won’t go any further than me! 

I also suggest if a candidate is currently employed, have someone telephone shop them to evaluate their telephone skills. You want to make sure the person you hire answers the telephone in a timely and professional manner.  In addition, you want to make sure the person you hire tries to close the sale by scheduling an appointment to visit the facility and rent a space. We all know how much it costs to generate a call, and we want to make sure it pays off by having a professional answer the phone! 

Next, you will want to conduct a background check. There are numerous companies that specialize in background checks, personality tests, drug tests and credit reports.  You can find these companies on the Internet or ask other owners for recommendations. 

LETTER OF EMPLOYMENT AND APARTMENT LEASE

Once you have done your "due diligence" on the possible candidates and have selected your management staff, then you should have them sign a letter of employment and an apartment dwelling lease if you have a resident manager apartment on-site. Your letter of employment should spell out the manager’s typical job duties, their rate of pay and bonus structure as well as the goals you have set for the manager to achieve. This way, you and your manager are on the same page as far as what is expected by both parties. Most states are "employment at will," meaning you can give notice to the manager or the manager can give notice to you to end employment with your company.

If you have a resident manager’s apartment on-site, and yes, I still see new facilities being built with resident manager apartments, please make sure it is someplace you would live.  If possible, have an outside patio or balcony so the manager can get outside with some privacy.  No one wants to drag their BBQ out onto the driveway to grill a steak with moving trucks or tenants driving by! You will attract a better quality manager with a nicer apartment and amenities.

This is where the apartment dwelling lease comes into play! It should cover things like:

• Manager will reside in the apartment rent free as long as they are employed by the facility;
• Manager will vacate the apartment once employment ends;
• Apartment is to be used as a residence for the manager and cannot be rented out;
• Manager is responsible for any damage caused by themselves, their pets or children, etc.

The lease comes in handy for the eviction process if you fire a manager because things went south and they won't vacate the apartment. I personally have never had this happen. However, I have heard the horror stories of a manager who squats down and won't vacate the apartment. Will a lease stop this from happening? No, but it will make it easier to evict your ex-manager and get your apartment back.

MANAGER WAGES AND BONUS PROGRAMS

While I am on the subject of letters of employment and apartment leases, let's talk about manager wages and bonuses I see offered in the industry today. Please keep in mind that most managers do not contact me for placement to make more money, that is usually their third reason on the list of why they are looking to make a change. However, paying a good manager a few hundred more per month than the owner down the street is a drop in the bucket for a manager who can make you thousands more per month! When I mention wages, there are a couple of factors that need to be considered, such as on-site or off-site, team or single, hourly or salary and don't forget relief managers. I am going to be brief and to the point on this one. 

RESIDENT MANAGERS:

Team salary: $3,400 to $5,000 per month

Single manager salary: $2,200 to $3,000 per month

NON RESIDENT:

Usually single, hourly employees: $12 to $20 an hour

RELIEF MANAGERS:

Hourly: $11 to $13 an hour

*These numbers are general and based upon Pamela Alton’s experience in the industry.

These wages are general in terms. Some managers may make more and the size of your facility may come into play. I currently have an opening for a resident manager at a facility with 450 units north of the San Francisco Bay area.  The position provides a single, two bedroom, two bath apartment. In addition to the apartment, it pays $17.00 an hour with some participation on medical and a bonus program. 

People will say, yeah, but that's in the San Francisco area. Yes, it is, but a gallon of milk and a loaf of bread is still pretty much the same everywhere. Yes, it is probably higher to live in that area and rental rates are going to be higher as well. The point is, pay your people well for your area and keep in mind that you cannot use the cost of the housing to offset any minimum wage deficiency. In other words, you cannot say to a manager, “I am going to pay you $2,000 per month, but $600 of that is for the apartment, so I will pay you $1,400 per month and along with the $600 for the apartment, your wage package is $2,000 per month. Oh, and by the way, I expect you to work six days a week.” You can do that, but you may find yourself in a situation down the line with the labor department and owing your managers back wages! Not to mention having one heck of a time trying to find a manager to work for that.

Let’s move on to bonuses. Keep in mind, the best bonus program is one that motivates and is achievable. There is nothing more "de-motivating" to a manager than a bonus program that is over complicated and can’t be understood or achieved.  Also, what motivates one manager may not motivate another. Money is always a good bonus, it is usually the right fit and color and will never be returned to the store.

Bonuses can be based upon different variables such as: increasing occupancy levels and monthly income, reducing delinquency and collecting bad debts, being paid for each signed lease, making or exceeding the annual budget figures, renting spaces at full price without discounts or free rent. They can also be based on cleaning up a distressed or dirty facility and office, by doing an outstanding job on the telephone when shopped by a telephone shopping service, by selling merchandise, packing and moving supplies, property protection or renting rental trucks, etc.

Bonuses can be paid in different ways. They can be paid annually, quarterly or monthly.  Besides giving the manager a monetary bonus, bonuses can take other forms such as: vacations or mini-trips, gift cards or other luxuries such as a flat screen TV, video camera or stereo, etc. There is no black and white when it comes to manager bonus programs. 

TRAINING YOUR NEW MANAGER

Now that you have hired your new manager and wages and bonuses are in place, it's time for orientation and training. If you don’t have a clear and concise policies and procedures manual, then you need to design or purchase one, or several, that are available today and customize them to suit your company’s philosophy. (You can even purchase one from TSSA.) Review the manual with the manager.  Discuss job duties and responsibilities.  Be sure to cover company policies and procedures, sales and marketing, daily operations, company forms, rental agreements, chain of command, etc.  Make sure you are both on the same page.

It doesn’t matter if a manager has been in this business for 25 years or this is their first trek into the industry, all management staff needs to be trained, and in some cases, re-trained. Just because a manager has years of experience does not mean they are doing things the way they should be done, or how you want them done. Training is an essential part of your success in this competitive business. Remember, it’s the little things that will set your staff apart from the competition.

If possible, before the new management staff sets foot on the property for their first day, you should set up a week’s worth of training at your corporate office (if you have one). You both need to give each other your undivided attention in this training session. If you have relief staff in place, then have them run the office during your training sessions with new managers. Obviously, an experienced management staff will have more understanding of the operations of a self-storage facility than someone who has never managed a facility.

When it comes to training, please don't ignore your relief staff and leave it up to your site managers to train them. Yes, they can train the relief staff in the mundane day-to-day duties such as taking a payment or doing a move-in and move-out, but relief staff traditionally have been thought of as someone who will "hold down the fort" while the manager has their day off, but relief staff, if trained properly, can be a ready source of management staff ready to move up when you acquire or build your next project.

Things change rapidly in our industry, new lien laws, new ways to market through social media, call centers, etc. Your managers need to have "refresher" courses to keep up with changes. Get them a subscription to industry magazines. Send them to TSSA classes, seminars and conferences. Give them the tools to be successful.

If you show your appreciation and support by paying them well, rewarding them with obtainable bonus programs, patting them on the back for a job well done, or sending a hand written "thank you for your hard work" note, those things go a long way in showing your appreciation for your manager as part of your team. After all, they ARE your operations manager, and without them you could not be successful. Good management is the key to success!

 

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fIVE SIGNS YOU NEED THIRD-PARTY MANAGEMENT FOR YOUR FACILITY

by Zach Watson, White Label Storage
September 18, 2025

Running a self-storage facility in Texas comes with both opportunity and challenge. Demand remains strong across many metros, but competition, rising expenses and shifting customer expectations have created pressure that owners can’t always tackle alone.

For many operators—whether you own a single property or a growing portfolio—the question isn’t if you’ll hit roadblocks, but how you’ll respond when they come.

Third-party management can be the difference between a facility that struggles to keep pace and one that thrives. Here are five clear signs it may be time to bring in a professional management partner.

1. OCCUPANCY HAS STALLED

It’s not uncommon for operators to hit a wall after lease-up. After an initial rush of tenants in desperate need of storage, move-ins slow and occupancy stagnates.

This phenomenon is sometimes referred to as a middle plateau because it typically occurs when occupancy is between 60-80%. The facility isn’t empty, but there’s still meaningful room to grow.

Why does this happen? It could be any number of factors:

1. Your marketing funnel isn’t optimized for conversions. People come to your website, but not enough of them turn into leads.
2. Your Google Business Profile isn’t set up to appear in local SEO results, and you’re losing traffic to competitors.
3. Inconsistent lead follow up. If someone calls your facility or doesn’t complete their booking online, you need to follow up—fast. After an hour, the chances of turning a lead into a customer plummet.

Get a Proven Marketing Plan

Marketing isn’t the only reason occupancy stalls; pricing matters too, and we’ll cover that later. However, effective marketing can be a catalyst for restarting stalled occupancy.

Third-party management companies typically have marketing strategies that will instantly provide a lift in conversions and move-ins. By managing a portfolio of facilities in different submarkets, these operators have a body of knowledge about what works and what doesn’t. They’ve seen the results.

Outsourcing your self-storage marketing not only takes the guesswork out of the equation, it also takes the real work—hours and hours of set up, monitoring, and optimization—off your plate.

2. SPENDING TOO MUCH TIME ON OPERATIONS

We’ve talked to so many owners who thought self storage was a passive income stream, like other real estate assets. But once they bought a facility, they realized it was something totally different.

Hiring and training staff, answering phones, managing tenant issues, overseeing maintenance and dealing with delinquent accounts are a full-time job. Probably more than one full-time job.

If you’re spending all your time running the facility, there’s no time to think about how to grow the business or add another property to your portfolio. Instead of being an asset manager, you’re stuck as a site manager.

Move from Site Manager to Asset Manager

A good third-party manager can transform your quality of life. They’ll handle the day-to-day ops (and make improvements!) train staff, run customer service, automate collections, and manage the myriad of tasks you were handling before.

Owners regain their time and peace of mind, knowing their asset is in capable hands. And your costs will probably go down too thanks to process improvements.

3. PRICING DOESN'T MATCH THE MARKET

In competitive markets across Texas, like Dallas, Houston, San Antonio or growing secondary cities, rates can shift quickly. It’s all too common for owners to leave money on the table by either pricing too low or failing to adjust rates for existing tenants.

Dropping rates might seem like a logical way to attract new tenants, but it can inadvertently start a pricing war that drives the entire market down. Likewise, existing tenant rate increases (ECRI) can be powerful ways to increase revenue, but if they’re applied haphazardly, churn will spike and the negative reviews will start to roll in.

Of course, constantly monitoring the rates in your submarket takes a substantial amount of time and effort—as does measuring the effectiveness of rate changes.

Implement Data-Driven Pricing and Rate Increases

Third-party managers use advanced revenue management tools and local market data to set competitive street rates, run promotions that actually convert, and spin up a thoughtful ECRI program that tenants will tolerate.

Instead of guessing where to set pricing, you’ll know it’s optimized to capture demand without sacrificing long term profitability.

4. PERSISTENT DELINQUENCY IS AFFECTING NOI

Delinquency is one of the most frustrating parts of owning a self-storage facility. Chasing late payments, sending notices and managing auctions takes valuable time away from running the business.

What’s worse, high delinquency rates erode your net operating income (NOI) and stall your cash flow.

Automate Collections and Reduce Delinquency

Delinquency may feel like an inevitability, but it can be solved. But it means working smarter, not working harder.

Like in other aspects of facility management, third-party operators will have tried and true processes that strike a balance between collecting payments and customer service.

Technology is a major advantage here. Many facility management systems already offer automated follow-ups, but using text-to-pay and personalized payment links can optimize the payment experience and skyrocket your conversion rate. A good management partner will have a collections program ready to go, which should produce an immediate uptick in payments and a long-term reduction in delinquency. For example, at White Label Storage we’ve developed a tool called StorBill that not only improves conversion rate on collections, but also signs up tenants for autopay, reducing the likelihood they’ll be delinquent again. At some facilities, we’ve seen as high as a 75% sign up rate for autopay.

5. YOUR PORTFOLIO IS GROWING, BUT YOUR BANDWIDTH ISN'T

For owners and operators expanding from one facility to several, the complexity multiplies fast. Managing multiple sites with consistent processes, pricing, marketing and staffing is a significant challenge for an independent owner.

If running a single facility by yourself is challenging, running multiple without a team in place can feel downright overwhelming.

Scale Your Operations without Additional Admin

Third-party management scales with you. From site managers to centralized marketing to call centers and tech stacks, they provide the infrastructure that allows you to add facilities without losing control or performance. Growth becomes sustainable instead of an uphill battle.

WHY THIRD-PARTY MANAGEMENT MAKES SENSE IN TEXAS

Texas is one of the most competitive self-storage markets in the country. With so many new developments coming online, owners can’t afford to operate below peak performance. Third-party management brings scale, technology, and expertise that’s difficult to replicate on your own.

By partnering with the right manager, you don’t just solve today’s pain points; you position your facility or portfolio for long-term growth.

About the Author

Zach Watson is the Content Manager at White Label Storage, a performance-focused third-party management company. White Label Storage manages 200+ facilities across the US and was ranked the #6 facility management company in 2025 by Inside Self Storage.

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10 Ways to Boost Your Value

by Mike Miggins, CBRE

1. MARKET INTELLIGENTLY

Are you maximizing your marketing dollar? Are you thinking creatively? An effective website can be essential to capturing today’s savvy consumer. Approximately 80 percent of your tenants will come from a certain demographic and are coming from a select few marketing programs. Know your demographic!

2. DON’T GIVE IT AWAY FOR FREE

Are concessions hurting or helping you? Concessions are a powerful tool to attract tenants. However, be careful not to advertise blanket specials. Instead, concessions should be strategically targeted to increase income by discounting specific unit types that have historically low occupancy levels. This will not only increase the productivity of those unit types with higher vacancies, but will also sustain the economic productivity of unit types heavily demanded by the market.

3. IMAGE IS EVERYTHING

What first impression does your facility give to potential customers? The best tenants will be looking for high-quality, attractive facilities. Simple practices such as a fresh coat of paint, pressure washing doors and exteriors, picking up trash, and sweeping out units are all affordable ways that please those paying attention to detail. A few flowers and nice landscaping will also add greatly to your facility’s curb appeal.

4. MAXIMIZE UNIT EFFICIENCY 

Is the layout of your facility negatively affecting your income generating potential? Maximize the productivity of your property. Remember that overall income trends upward as unit sizes decrease in most markets. To the degree that the market will absorb them, partition unnecessary large units into unit sizes that rent at a higher price per SF to recapture lost potential income. Again, know your demographics! Ending up with too many 5x5 units could result in low occupancy and unsatisfied income expectations.
 

5. LEVERAGE ZONING

Are you aware of the extra value hidden in the land beneath your facility? Knowing the zoning code that governs your parcel can open up opportunities to create substantial income streams that are steady, dependable, and low maintenance in nature.

6. PUT YOUR BEST FACE FORWARD

Who is the face of your facility? Your choice of staff will be the face of your business. Managers who can give a good impression to potential tenants with charisma and attentiveness as well as capture your vision of professional service will attract and retain your tenants.

7. TRACK YOUR PERFORMANCE 

Do you know exactly what your facility’s weakness is? By keeping detailed records on a per-unit basis you can address individual supply and de- mand issues. By keeping track of your customer service and tenant flow you should notice trends that may help you capture more business. In both instances, tracking your performance can help you chart your path to increased value.
 

8. KNOW YOUR NEIGHBORS

Do you participate in your community? Get involved with businesses and residents, and you will gain a more intimate knowledge of your market area, which will allow you to customize yourself to their needs.

9. UTILIZE SECURITY

Do tenants know your facility is safe? Reliable and visible security features will attract high quality tenants and lend to the credibility of the facility. Video surveillance, electronic gates, fencing, individual unit alarms, and on-site management are all becoming standards in the self-storage community.

10. STORAGE INCOME IS NOT EVERYTHING

How much ancillary income does your facility produce? The most successful operators in this industry have recognized that income is not limited to the monthly rent of their units. Additional income generators include RV/boat storage, specialized wine storage, safe deposit boxes, and a host of other creative ideas. Also, look at miscellaneous income items which could include administration fees, late fees, merchandise sales, truck rental, video conference rooms, and auctioning services.

 

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Time Management for Managers

by John Manes, StorSuite

Self storage may present some unique challenges from time to time, but the principles of time management remain the same as in any other industry and those principles are presented clearly in the late Stephen Covey’s ‘Four Quadrants of Time Management’.

Under Covey’s four quadrants, any activity is either urgent or not urgent, important or not important. We can never fully control the four quadrants for example, we never know when a crisis may arise but we can control where the majority of our focus, and our time, is spent. According to Covey and his theory has been proven accurate and successful if we focus the majority of our time and attention on quadrant II, we greatly reduce the amount of time we spend in crisis mode.

So the question becomes, “As a store manager, how do I focus the majority of my time on things that are Important but not Urgent?” The first step in the process would be to identify what daily activities in our business are Important, but not Urgent. Some examples of Important/Not Urgent would include: training and coaching, building rapport, regular lock checks, marketing, cleaning, stocking merchandise inventory, maintenance, collection calls and monitoring rates.

Let’s look at some examples of how focusing on how Important/Non Urgent reduces the time we might spend in crisis mode. A customer comes in the office to inform you that they have just vacated a 10 x 20, of which you had none available. It is Important, but not Urgent that you make that space ready to rent as soon as possible, but instead you spend the next couple of hours doing Trivia, talking on the phone on non-work related issues, listening to the radio and checking your social media. Now a customer comes in with a loaded moving truck ready to rent a 10 x 20 and when you go to show the space, you discover it’s going to take you an hour or more to get it ready. Now you’re in crisis mode. The customer is ready but you’re not. In fact, you may lose this rental. Here’s another example. You haven’t done maintenance on your golf cart in months, and now, while showing a space at the far end of the property in a pouring rain, your golf cart batteries go dead. Instant crisis and another lost rental. Here’s one more: While enjoying high occupancy for the past several years, you’ve totally neglected any efforts to market your property. Suddenly the local economy changes and you see your occupancy plunging. By ignoring the need for marketing, you now find yourself scrambling to try to drive traffic to your property, thus missing out on multiple rentals and revenue.

These are just a few examples of how neglecting to focus on what is Important but not Urgent will ultimately lead you to spending too much time in crisis mode. It should also go without saying that we need to spend a minimal amount of time focused on the unimportant Quadrant III and Quadrant IV items. Beyond these basic principles of time management, let’s look at a few things specific to our industry. We should get in the habit of making “to-do” lists, so we don’t forget something on the “Important” quadrants. Often there is more than one person performing tasks and having a list will reduce redundancy.

Learn to Prioritize

When I previously listed items that are Important/Not Urgent above, there was a reason why I listed "training and coaching” first. I believe this is the most important aspect of reducing time spent in crisis mode. Many times a crisis develops simply because a person is not equipped with the knowledge and training to make the proper decision. Often when that occurs, that person will either make the wrong decision, or no decision at all. Consistent training and coaching reduces mistakes and keeps you out of crisis mode. A simple way to prioritize would be to take your “to-do” list and rank items in priority from A, B, C. Once you have all of your A’s, B’s and C’s, you then rank each one within the category based on how many you have. Example: A1, A2, A3, B1, C1, C2, C3, C4. Create a monthly operational workload calendar for routine items such as overlocking spaces, sending out certified letters, auctions, and special projects. By having this available, you’ll be reminded of what is Important/Not Urgent, and you can utilize downtime to prepare. For example, you have a slow afternoon and by a quick glance at your operational workload calendar, you are reminded that tomorrow is the day to send out certified letters. You may spend that slow time making one last collection call or preparing envelopes, so that tomorrow when you get hit with a rush of customers, you’re not having to scramble in crisis mode to complete the task.

Communicate With Your Customers

Communication is always a key to success. Unless you are a sole proprietor managing your own property with no employees, then you are part of a team, and being part of a team makes communication essential. Create simple ways of organizing your communication, for example, use a communication binder. This will allow you to communicate with each other on different team member’s days off. Another example would be to hold weekly or monthly meetings with your team. Keep them to a half hour or an hour targeting items that will help improve Quadrant II.

If you know something will be happening at your property that may affect your tenants, communicate it to them and you may avoid having to deal with an angry customer later (Crisis). Every time you interact with a customer (unless it is routine such as taking a payment) you should note that interaction in the operating system so when the next team member is dealing with that customer, they have a history to use to make the right decision, thus preventing a crisis.

Communicate With Your Supervisor

Let your direct supervisor know what you need and what he or she can do to help you, as well as any issues at your property. It’s impossible for them to properly assist you in running your business if they are kept in the dark. By regular communication, your supervisor can then focus on things when they are Important/Not urgent, long before they become a crisis. By paying attention to how you use your time, and by allowing adequate preparation, you’ll be headed in the right direction to master your time.

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Preparing to Use Your New TSSA Rental Agreement

by Kristy Spurr, TSSA Executive Director

One of the most important benefits of membership in TSSA is the right to use the renowned TSSA Rental Agreement. Having a basic understanding of the contract’s terms, as well as the decisions you as the business owner must make, is a great place to start. With this blog, we will focus on Page 1 of the lease, which includes all the items that are not simply defaults (in other words, things that will need to be filled in at the time of rental or decided in advance.) 

The TSSA Rental Agreement is a lease contract between you and the tenant outlining all fees and responsibilities. The agreement informs the tenant of your policies and protects you from damages, lack of payment, or other circumstance that may arise. If this is your first time using the printed TSSA Rental Agreement (or e-Lease if using electronically), this guide will help you get started. For a more detailed look at the terms of the lease you can read this blog or watch this short video. 
 
The first section, Tenant Information, collects the contact information for the tenant. The customer will need to identify who should have access to enter the unit and who should be notified in case of emergency.  That can be the same person or two different people. It’s important to note that the emergency contact (unless named as having access rights) is not authorized to enter the unit unless there is legal reason for such. Additionally, anyone listed as authorized to enter the unit may be given account information. If the person listed as authorized to enter does not have a key, facility staff may assist by cutting the lock. It’s helpful to explain these things to the tenant during the lease process. In either case, neither the person with access rights nor the emergency contact have a financial responsibility. This falls solely on the tenant listed.  

TSSA recommends that only one person or business be listed on Line 1. Spouses or significant others can be listed as having access rights. That way, you are only obligated to deal with one tenant, who makes all decisions regarding the contract.  

 

Paragraph 2 asks the important question about military service. (Special rules apply to foreclosures and evictions of military personnel because of the federal Servicemembers Civil Relief Act, so you need this answer.) Form ADD-4 may be used as an addendum for lease agreements with service members.  

This paragraph also explains the tenant’s obligation to keep information updated. If the tenant moves or is unreachable, the burden is on them to make you aware of current contact information so that any communication you send reaches them. 
 


Paragraph 3 is the space commitment. The minimum lease term is the minimum number of months the tenant is obligated to the terms of the contract. Most members use a default of one month, but you can use a longer minimum if your customer agrees to it. After that initial period, the tenant leases from you on a month-to-month basis. The obligation to pay rent stays in place until the tenant provides a 10-day move-out notice as outlined in paragraph 9 of the lease. 

You can use forms ADD-10 or ADD-11 if the tenant is storing a vehicle, boat, or RV, in addition to renting the unit. Or, TSSA does offer a rental agreement specifically designed for storage of vehicle, boat, trailer or RV when the tenant is renting a parking space or enclosure rather than a regular self-storage unit.  If your facility offers exclusively boat and RV storage, you’ll want to consider using the Vehicle, Boat and Trailer Rental Agreement.  

 

Paragraph 4 details the rental rates, late fees, and all charges for non-compliance. While the rental rate may change based on the unit size (if you offer a variety of unit sizes or amenities), the remainder of the fees are generally the same for all tenants.  Checking to see what neighboring facilities are specifying for each of these charges is usually a good place to start. Things like charges for the newspaper ads you must run in the event of a foreclosure requires a little research on your part, as you’ll want to cover your costs. Only fees outlined in the contract and accepted as terms by the tenant may be charged, so it’s always better to have these dollar amounts filled in, even if you don’t intend to charge them on a regular basis. There is not a guideline on setting these rates, but we can help you understand each line item so you can make an informed decision. 

A. This is the dollar amount the tenant is expected to pay in rent each month until the tenant notifies you of move-out and vacates the space. 

B. What date is the rent due? Some facilities have all customers pay rent on the 1st of the month while others use the anniversary date of the tenant’s move-in and collect rent throughout the month. The 1st of the month is the most common due date. Be sure to check your management software for your options on rental due dates. 

C. This is the date and the amount charged if the rent is not received. You will need to decide if you will give a grace period and then choose either a date or number of days. For instance, on the 5th of the month a late fee will apply, or 4 days after the 1st a late fee will apply. If you are using the e-Lease, it may be helpful to see what your management software offers as default process for late fees. Some require a specific day of the month and some use a sequential number of days before a late fee kicks in. 

D. In the same format as above, complete this if you will charge a second late fee if rent remains unpaid. 

When determining what fee, if any, to charge for E through O you will have to decide what pass-through costs may apply—staff time, and other required resources, etc. PLEASE NOTE: You do not have to apply a fee to these specific line items, but if you choose not to, you cannot charge the tenant later for these specifics.  If you never intend to charge a fee for an item, you should indicate $0 as to not have any empty blanks on the agreement.



Paragraph 5, Payments and Notices, allows you to indicate what payment methods—cash, check, or credit card—you will or will not accept.  Please note that you can change the method of acceptable payment in the future after giving notice to the tenant. 



Paragraph 6, Special Provisions, allows you to add any pertinent facility rules that may not be addressed in the lease. This may be guidelines for parking, notice of a required lock type, gate access rules, etc. 



If you have a lengthy list of rules, you will want to consider using an addendum, indicating that rules addendum in Paragraph 7. 

Paragraph 7 is the place you’ll indicate any addendum you use on an ongoing basis.  If you generate a particular addendum with every lease, you can have this hard-coded into your e-Lease so this remains checked and ensures your facility manager has communicated this to your tenant. Some software programs will require the addendum to be sent to the tenant separately from the lease. In any case, if any addendum is checked on the lease, the tenant is signing off that they have received and agreed to the terms, so you need to provide the tenant those documents.



Signature block—To e-sign or not? 
Lastly, the signature block completes the agreement between the lessee and the lessor. If you are using the e-Lease you will need to understand how your management software processes the electronic signature. Some will have a fully integrated system with a digital signature option and others will generate a PDF that may require the tenant to insert a signature and send back to you for completion. 




If you have further questions on setting up your new TSSA Rental Agreement, please contact us at 512-374-9089 or [email protected]. 

Additional Resources:

Blog: Lease Essentials 

Video: Rental Agreement Overview   

Additional Forms and Addenda (Requires Membership Log In)

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Turn Your Neighbors Into Loyal Customers
6 Tips to Earn the Business of Your Community

by Aytcha Katun-Williams

Do you know where your self-storage customers come from? Most of your customers are located within a seven mile radius of your facility. Given that the majority of your customers are local, you will need to know how to attract local businesses and residents to pick your local storage facility over your competition. Below are six quick tips on how to gain the business of the community that your facility is located within.

1. Get the Attention of Your Neighbors

Self-storage property owners and managers have been utilizing community involvement to create a working relationship within their neighborhoods for a long time. While charitable giving is not a new concept to the self-storage industry, let's look at some creative ways to take your community involvement to the next level:  

• Many storage facilities allow a small percentage of their units to be used rent-free by local charities, churches, schools and alike. In return, these organizations spread the word by mentioning this charitable giving on their website, during their events, but most importantly by word of mouth.
• A storage facility in North Bethesda, Maryland has each drive-up unit door painted with unique artwork. The facility owner hosts a community art day every few months where artists come and paint the storage doors with an art theme of community charitable events. The event is an open house, food and drinks are served while the residents and businesses of the area view the artwork created by local artists. Not only does the facility support local artists, but it also increases its curb appeal while bringing new traffic to the storage facility.
• How about allowing your facility to be a collection point for a charity organization or for electronic recycling? You can opt to collect for your local Food Bank, the Salvation Army or another organization. Most charity organizations have containers that they deliver to your location and do pick-ups on request. They then advertise your facility through all their marketing channels as a drop of location. Electronic recycling companies will need you to allocate one 10’ x 10’ drive up storage unit but they will do the rest of the work to advertise your storage facility as a drop of location and will schedule pick ups at your request. All of these community activities bring further visibility and new customers to your facility.

2. Know Your Local Businesses

Some owners prefer business customers, as they stay longer and are less price conscious. And, all businesses from dental offices to insurance companies need storage. Understanding how and when each different business could utilize storage will allow you to cater your sales pitch to the needs of that business. Becoming a member of local business organizations such as the Chamber of Commerce or the local Rotary Chapter is one good way to get to know local business owners. Attending the weekly meetings of these organizations and asking the right questions is crucial in finding out how you can help these businesses. What are all the different types of local businesses in your neighborhood and how can you serve them? It’s important to be able to think outside of the box. Your facility may be near multiple retirement communities with new residents who will need storage. Building that relationship with their management may mean steady and long-term storage rentals for your business.

3. Support Your Local Businesses

Giving back to your business community is one of the best word-of-mouth marketing methods. Offering storage units to local businesses at a discount or renting storage units to use as a workshop, selecting a local moving-supplies vendor for your point-of-sale items are all great ways of showing your support. Have you considered selling locally made ancillary products at your storage facility? You can sell scented car fresheners and other locally made products to show that you keep everything local.

4. Cross Marketing to the Next Level

Cross marketing is a tested and proven method for local marketing. Your local restaurants, insurance and real estate brokers and other businesses will gladly exchange business cards and flyers for cross promotion efforts. How about combining your next community event as a networking opportunity for the local businesses? Consider inviting several of your local businesses to be present at your next community event to network with the community and to advertise. Local business involvement will be key to a successful property-hosted event, with the incentives being self-evident.

5. Let Your Managers Get Creative

Leaving some lead room and allocating a small “local marketing” budget for the managers are key. When visiting local apartment buildings or retirement communities, take a basket of muffins or cookies. People love treats, and treats will help you to stand out above your empty-handed competition.

6. Grass Roots Marketing Via Social Media

Are you utilizing social media channels as a form of grass roots marketing? Social media is a free way to reach your target market and take your community relationships to the next level. Consider using Facebook, Twitter, Instagram and other social media channels to announce new local business tenants, to publicize your support of your local businesses or your next community event. Data shows that the ever-increasing number of social media users are checking their accounts several times a day. What better way to announce your support of local businesses, discounts to local residents and more! If you think about it, when working within our communities we go back to the basics. Whether it is a person or an organization, having their best interest in mind and finding creative ways to help results in their appreciation of what you have to offer, and brings new business.

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When Storms Strike: Key Takeaways to Help You Prepare

by Taressa Dominguez
11/18/2020

When disasters strike or hurdles arise, they can be unpredictable. And though you may not know the timing or extent of impact, you can prepare your facility and staff to tackle whatever comes at them by creating a plan of action that is precise enough for your staff and tenants know what to do and expect, but is also flexible enough to adapt to the situation. At the Bigger Ideas in Storage Conference, the Move It Self Storage team of Tim Springer, Tom Maxfield, Katie Cowen and Jesse Munoz shared their expertise on how to respond to disasters. With about half of their properties within 30 miles from the coast, preparing for a storm is a constant and top priority for Move It. Here are some key takeaways from their session for when a storm rolls in.

• Plan ahead and prepare for the worst so you can make the best decisions possible while evaluating your risk.
• Prioritize communication with your staff and tenants. If you have advanced warning of a storm, plan on frequent and regular communications so that staff and tenants are kept apprised of details and your disaster plan as the situation evolves.
• Notify vendors/work crews before the storm that you may need help to get up and running after the storm.
• If you have time when preparing for a storm, file a “notice only claim” with your insurance so that you have a claim number ready in case you need it.
• Power down important mechanical features at your facility, like gates and elevators. This will help ensure a tenant does not get stuck in an elevator and that the gate doesn’t become a safety hazard.
• Make sure to notify tenants via phone, text, email and website of your evolving plan so that they can make their own plans. Tenants may be storing their emergency supplies and need to know when they can access them.
• If you anticipate an increase in demand after the storm, evaluate your marketing spend. You will likely be able to save money by decreasing your Pay-Per-Click (PPC) if you know your demand is about to increase organically.
• Ensure that you can do business, even in a basic way, after the storm. Consider having an “office in a box” at hand with a hotspot and TSSA paper leases included.

There is a process to responding to each stage of the storm—before, during and after. Above, we’ve focused on preparing before the storm hits, but in every stage, communicating your plan to staff and tenants is vital. We thank the Move It team and invite you to watch their full presentation, “When Disaster Strikes: Will You Flounder or Float?” on the TSSA website. If you missed the annual conference and want access to this recording and many more, you're in luck.  With the Post-Conference Pass, you will have access to 12 conference session recordings for a full year, so you can dive deeper into disaster preparedness and so many additional self-storage topics.  

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Storage Essentials Manual

Back to Basics—Industry Fundamentals

by Jennifer Jones, JKJ Marketing

Owning and operating a facility is an enormous responsibility. Some of our members have one facility with a few units while others own multiple facilities in many states. While the needs differ from facility to facility, there are core business practices that make sense for all.

Getting back to the basics of what makes the self- storage industry great is a good way to ensure the core focus of the business is still being realized.

For this series, we spoke with several members in third-party management positions who have a wide variety of experience. Together, they have 88 years of experience in the industry, have managed more than 550 facilities and worked with around 400 owners. All of those owners had different measures of success and goals for their facilities, with some in lease-up and others well established. Within the Storage Essentials Manual, you'll find numerous ideas and best practices that can be used whether you have one small facility or multiple large ones.

BEST PRACTICES

There are so many things to consider when running your facility. If you’re in a major urban area like Dallas/Fort Worth, Austin, San Antonio or Houston, you’re probably seeing a lot of competition. What used to work may not anymore. Many of you are facing competition from the REITs, which report they are increasing their marketing budgets around an average of 25 percent.

So how can you set your facility apart? Do you spend money to make money? Do you increase your marketing budget, or make capital improvements? Knowing the right way to move forward and where to invest your time, money and energy is key to competing in an overbuilt market.

“On one hand, this business is incredibly straightforward: rent units, make money (lots of it at that),” laughs Sarah Cole with Oakcrest Management. “On the other hand, if you invest the time, training and money to ensure that you and your staff are properly trained and have the needed tools to be successful, the investment pays for itself many times over and allows you to sleep better at night.”

“We recommend setting a clearly defined standard or procedure for maintenance, operations, leases, etc.,” says Katie Cowen with Move It Storage. “If you have a clearly-defined process to guide your staff, you’ve set a standard that they know they have to adhere to. “You need to stay on top of things much more than you did in the past because it’s much easier for tenants to find storage now than it ever has been before. I saw a statistic this week that there are more storage facilities in the U.S. than there are Starbucks and McDonald’s combined. I have no idea if that’s actually accurate, since you can’t trust Internet memes for news, but I wouldn’t be surprised if it is.

“Competition is fierce now, and you can’t get by with ‘good enough’ anymore. You have to be great to succeed in the overbuilt market that we’re currently in, and this can mean needing to make significant physical improvements to your location if you want to keep up.

“Another factor now is the cost of hiring good help is getting steeper every day. The strong economy is creating a scarcity of entry-level workers and the days of a $9- or $10- per-hour property manager seem to be well behind us. We’re seeing major metro area salaries in the $13-16 hourly wage level lately, with or without an apartment onsite to offer.”

“Agility is key,” says Monty Rainey of RPM Storage Management. “People tend to think of self storage as a static industry, but you really need to be ready to change tactics at a moment’s notice. What worked a month ago may not work today and what works at one facility may not work in a different demographic.” 

INVENTORY

Keep a rolling inventory of clean units, preferably two of each size, so you have ready-to-show units of every size in which you have a vacancy. Highlight the units on your vacancy report so all employees can easily reference available units.

MAINTENANCE

The most important maintenance tip is setting a schedule and adhering to it.

•  Clean air filters on HVAC units every 30 to 60 days, depending on time of year.

•  Set your HVAC thermostats to cool to 80 degrees and heat to 50 degrees. The objective is to keep the temperature in the range to protect stored contents, but not the same range you would keep an apartment or office. This saves energy and money.

•  Keep the unit door tracks (and any exposed springs) lubricated to make the doors easy to open and prevent broken springs.

•  Change the rubber gasket at the bottom of the door when it gets brittle to allow it to seal out dust.

•  Keep the hall floors dry mopped weekly and wet-polished as needed to keep the halls bright and shiny.

•  Perform daily walk-arounds/lock checks for security and to be visible to customers. A "nice but nosy" manager can help prevent problems before they happen and should always work to establish good rapport with customers.

•  Keep up your property’s curb appeal. If kept clean and well-manicured with professional, friendly signage, it can help generate leases from drive-by traffic.

•  Consider using a support ticket system if you have several facilities or a large facility. This allows your maintenance professional to know what tools might be needed before heading to the store. It also allows tracking of high-priority items.

•  Keep the office area and the approach to the office looking fresh and clean. Often, owners who have had a facility for years let it look less than its best. Look at your facility with a fresh set of eyes.

•  Keep signage as friendly as possible. Don't go overboard on rules signs.

CUSTOMER SERVICE

•  Treat others the way you want to be treated.

•  Respect everyone; it goes a long way.

•  Use scripts to develop managers’ communications skills.

•  Prepare a general escalation or upset customer document for dealing with difficult customers later in the customer life cycle.

•  Role-play difficult situations with managers to teach them the best responses, practices and reactions.

LEASE

•  Use a standard lease, standard addendums, and a scripted lease explanation. It is helpful in getting customers to understand and adhere to their lease agreements.

•  Perform regular lease audits to ensure that you have 100-percent lease compliance at your facility.

OPERATIONS

•  Have a clearly-defined operations manual—it is essential. If you don’t have one, TSSA has a very good basic operations manual that can be purchased. With minimal effort, you can make additions/revisions to make it your own.

•  Perform a very comprehensive audit every month that includes property inspection, inventory, lease reviews, auction file reviews and a review of the financials.

•  Have managers shop competitors by actually driving by the facilities to see what is new/different.

•  Have a third party conduct telephone and in-person shopping to see how your facility is being represented.

•  Focus on rental rates just as much as occupancy—both are important.

•  Take time to have meaningful, unrushed conversations with your managers to let them know how much they are appreciated. A good manager makes a huge difference.

MARKETING

Marketing is really about staying on top of things and finding what works for your property.

“Marketing self storage is inherently different than most businesses,” says Rainey. “You’re not going to have much luck convincing someone who doesn’t need one to rent a storage unit. The key to marketing a facility is to put your name in front of that potential customer so that in six months, when the decision is made to clean out the garage, your storage business is the one they automatically think of. They’ve already been to your property when you had that event (car wash, garage sale, food drive, etc.) and already know your facility is well-run and maintained.”

Ultimately, as Tron Jordheim with Store Here Management says, “Every market is a bit different, and every facility has its own characteristics and quirks. There is a ‘right mix’ of people and technology for each site. The trick is to find the right mix for your particular needs.“

Processes are very important. If you have solid processes that are well suited to a particular site, and you follow those processes, things will run more smoothly and be easier to track and audit.

MARKETING

Getting it Right, from SEO, Technology to LED Lighting

One of the key things that helps people find you when they need you is marketing. There’s digital marketing, social media marketing, grassroots marketing and traditional marketing. The REITs are increasing their digital marketing budget by around 25 percent this year to dominate online searches.

So how on earth can you compete with their scale and budget?

SEO (search engine optimization) is incredibly important when someone Googles a term like “self storage near me” and gets a search return with ads (at the top of the page), location results with maps (next) and organic search returns. Improving SEO is a long-term strategy; gains do not happen overnight and it takes consistent effort. However, if you do it correctly, you can make significant gains in moving your facility to first page results instead of being hidden on the third or 10th page in a digital ghostland.  As an example, Tiger Self Storage in Porter, Texas moved up to the No. 3 and No. 4 spots on page one from page two on Google for two top search terms using a combination of SEO and PPC, so it can be done with the right strategy and tactics depending on your market. This was accomplished by a new faster website that was optimized for SEO, relevant and optimized content and backlinks in a few short months.

PPC (pay-per-click) is a form of internet marketing, the most common of which is search engine advertising, which you may have heard of as Google AdWords. For example, if someone types in “storage facility near me” and you bid on that keyword, then your ad may show up on their Google search. It’s referred to as “pay-per-click” because each time someone clicks on that ad, you are charged a fee (the amount depends on how competitive that search term is and how relevant and targeted your ad campaign is). Ads chosen by Google are chosen based on the amount of the keyword bid and the advertiser's quality score which is determined by how relevant your site is to the search term, your click-through rate and the quality of your landing pages. When you are working on SEO, which is a slow process, PPC is a great way to get quicker results. In effect, you are buying visibility.

Gately says, “Every facility has a website, hosted by a third-party website marketing company. We believe SEO is very important. We evaluate results monthly and track the number of website visits and eventual leases we get to determine the return on our investment.

“We use tracker numbers on our website and for most advertising to be able to identify the number of calls from any source. The tracker number forwards the caller to your facility, keeping track of each call.

“We use PPC for most properties, especially new facilities in lease-up. We adjust the PPC depending on results and the recommendations of our website provider.

“For new facilities, we invest in prominent LED signs with the capability of changing messages/ graphics. For all facilities, we invest in the largest signage allowed by local code, including banners to promote specials. We schedule our managers to do off-site marketing about two hours per week, targeting area apartment managers, retirement communities, competitors (to promote cross referrals) and major area employers.

“In late spring or early summer, we will send out a postcard mailer for properties in lease-up. Most of our marketing is year-round to keep consistency.”

Rainey says, “Keep it local and know who your customer is. Ninety percent of your customer base either lives or works within a 3-mile radius. Don’t waste time and money marketing to people who live far outside that radius. Limit your promotional giveaways to items people will use over and over and not end up in a junk drawer somewhere, never to be seen again.” This would include items like stainless steel water bottles, magnetic grocery list pads, letter openers and staple removers, and of course the standard items, such as ink pens and keychains.

Cowen says, “We focus a lot of effort online, but we focus just as much effort on the facility itself. All of the online marketing in the world won’t help a run-down or trashy-looking facility succeed. We consider maintaining the curb appeal of our facilities as a key item in our marketing program. Depending on the area, we may also do local marketing in the form of print ads, billboards or local sponsorships.”

Cole says, “You can’t just pick one marketing avenue, you need to do a little of everything to stay visible. We aren't an industry that people are shopping for daily, like a restaurant or grocery store. However, if you keep a visible presence in your community, when they need storage, they'll remember you and come to your facility.

“Therefore, we do online (Craigslist, Facebook, Twitter, Instagram and Google+), grassroots (flyers, tote bags, mugs, pens) and take them to different businesses, and we host charity events (pet adoptions, car washes, BBQs).”

At the end of the day, you have to know what you want to accomplish with your marketing. Tie your marketing with your overall business objectives and set realistic goals to be successful. Digital marketing with re-targeting ads, website analytics and more can help lead people down a buyer’s journey to your facility. One of the keys with any marketing strategy is knowing your audience (potential customer pool) and developing a marketing strategy that is targeted to them.

TRAINING

Tailoring to Your Facility

When you consider what a manager can and can’t do for your business, you realize how important training and hiring really are. A manager is part of your brand—the personality of your facility, the person who makes sure things are working properly. Depending on the size of your facility, they can wear many hats from marketing and maintenance to operations and revenue.

Trusted Self Storage Professionals has new assistant managers work with an experienced manager for two to three weeks before being scheduled to work alone. New managers work with an experienced manager for several weeks before being assigned their property. “We have one site that does most of our training, which makes for consistency,” says Gately. The manager doing the training is a strong manager who likes training others and uses a written checklist of all tasks to be trained that must be completed and sent to the property supervisor. Good training is critical to achieving operational excellence and to have confident, competent employees.”

“Move It is larger than some of the other operators, so we’ve used our benefit of scale to set up an online learning management system (LMS),” says Cowen. “Our managers get a combination of live, one-on-one training, training via review of an operations manual, and training via modules in the LMS. The LMS modules can include written lessons with a test afterward, video lessons with a test afterward, or a combination of both items. We also utilize training resources and certification from our software provider (SiteLink) and our ancillary truck rental services (U-Haul/Penske).”

Cole says that at Oakcrest Management, each new manager gets one week of training with a seasoned manager, two days of customer service phone skill training and one week in their store with a seasoned manager/ supervisor. “By the third week, they should be able to handle day-to-day functions on their own. On lien process days (NOC, cut lock, etc.), a supervisor will be with them to make sure notices are done properly and the new manger is learning how to do them properly. Oakcrest Management also has quarterly training webinars on various topics, such as collections, closing the sale and auction process.”

So, what do you do if you don’t have multiple facilities or don’t want to hire third-party management? You can write your own training manual. Each day you are performing a task, write down your thoughts and start creating checklists. Implement some of the tactics used above at your facility. You may only hire a new manager once in a blue moon or you may have higher turnover. Creating a training manual, although a time-consuming process, can ultimately save time when you hire a new manager.

Creating checklists for leasing, maintenance (as well as schedules), operations, procedures, new hire orientation, marketing and more will ensure your new manager is aware of your systems and expectations.

At RPM, training never ends. They have a designated trainer who gives personal, interactive training following a two-week program. At each subsequent store visit by a district manager, time is set aside for ongoing training for the entire staff. RPM also provides employees with paid tuition for online business management related courses.

PRICING

Finding and Setting Value

While pricing is certainly covered in other articles, it’s a big topic. So we want to call special attention to it. Be sure to look at the other articles for revenue management and how to use software to improve your rates.

Many things should be considered when determining unit rates. “Price should be based on a combination of market rates, quality of the facility and amenities offered,” says Cowen. “Price alone is no way to judge a storage unit because a 10’ x 10’ climate-controlled unit on the fourth floor with no elevator access has a completely different value than the same unit on the first floor right next to an entrance door.”

Cole says, “We base it off of availability and competitor pricing by size. If we are below 70 percent occupied on a size, then we may price it a little under a competitor, but if we are 100 percent occupied on a size, we may price it above other competitors.”

Gately concurs, “We have found on existing facilities with stabilized occupancy, the most important factor in pricing is your property's occupancy on each unit type. We keep pushing rates higher on any unit type that has an occupancy of 90 percent or better. Even if a competitor is $20 cheaper on the same size unit, we will keep inching our rate higher, so long as our occupancy on that size is holding 90 percent or better.

“We also use premium location pricing on certain units. For example, say $10 higher on first floor than upper floors or $5 higher to be near the elevator.

“Manager training on setting rates is very important. A well-trained manager understands that most prospects are looking for overall value (not just low price), so the manager emphasizes the benefits when talking prices.”

“Don’t use a broad scope for pricing,” says Rainey. “When a store is struggling with occupancy, you may have a tendency to lower prices. While this may be needed for some unit types, you may have other types that are more than 90 percent occupied and those rates may even need to be increased. Each unit size and type is its own product and should be based on supply and demand, not on overall store occupancy.”

AUTOMATION

Why You Should Consider Automating at Your Facility

Understanding what technology can do for you and your facility can make a difference in your bottom line, bring you money that may be left on the table and streamline your operations. If you’re still using spreadsheets, they may work for you to some degree, but automating and updating your processes will allow you to have a better idea of where things stand with your facility on a daily basis and free up time to devote to other functions. The difference is like trying to light a fire by rubbing two sticks together versus using a match. Both get the job done, but one is much more efficient.

“I am a strong believer that automation makes for efficiency,” says Cowen. “Your benefit in automating everything that you can is that you know it gets done, and it frees up your manager’s time so they can focus on serving their customers and renting units.”

COMMUNICATION

“We automate functions having to do with tenant communication and revenue management,” says Gately. “We use a texting service to remind delinquent tenants about payments, which has been very successful. It saves the manager time and the tenants appreciate its convenience. We make sure our managers use it as a reminder for tenants, but not as a substitute for the manager making phone calls or sending emails on the more serious delinquent situations.

“We also use automated tenant surveys that can be scheduled to go out within a few days of move-in or move out, which are emailed to the tenant and can be sent to the manager or to the corporate office. We keep the surveys short and easy to complete and use the information to make sure we are creating a positive customer experience.”

“Our management software automates the delinquency process, late fees and automatic lien letters that are generated and emailed,” adds Cole. “All new move-ins receive an automated email welcoming them as customers and inviting them to take a survey.”

 “We automate our collection calls,” says Cowen. “Robo-type calls are used as our first call to alert tenants that units are past due. These aren’t the only calls made, but a good portion of past due tenants pay after the robo call but before our managers make their ‘live calls.’

“We have an integrated SMS [text] program that is scheduled to send tenant messages for certain events on pre-defined dates. These can include past-due notices, or notices that something is happening at the location. This has been especially helpful during weather-related closure events to keep our tenants updated with issues on the property. These aren’t completely automated due to a software limitation in SiteLink, so someone has to actually hit ‘process’ to send out the notices, but once that’s done, the system generates a text to every tenant who is set to receive that particular message.

“Nothing zaps a manager’s will to live like stuffing hundreds of envelopes with letters. We use an automated mailing service that’s integrated with our software to process paper notices to our tenants. This is also an option for sending auction notices without having to go to the post office, which saves a ton of time for our managers.”

Reviews can help a facility’s reputation drastically by showing your potential customers that your current customers love you. Cole says, “Use Google Review QR codes to allow tenants to leave reviews while at the store. We created a QR code that will take tenants directly to our Google Review page for each location. When the customer is at the store renting a unit or truck, or making a payment, we ask them to scan the code and leave us a review. Because we made it so simple, our number of reviews have gone up quite a bit.”

LEADS

There’s also something to be said for instant communication and striking while the iron is hot. “We don’t have missed call leads because they automatically roll over to our call center rather than going to an answering machine,” says Cole. “When a customer makes an appointment to come to the store to rent a unit, there is an auto- mated text message that is sent out two hours before their appointment.”

Cole’s website automatically emails completed and incomplete reservations to the manager, district manager and home office to follow up with the customer and track the reservation lead.

REVENUE MANAGEMENT

“Most management software programs now offer a revenue management feature, which we have found to be a real money maker and time saver,” says Gately. “For example, you can program the software to raise rents on vacant units by a set percentage when the occupancy on any unit type exceeds a defined target (e.g., raise rents by 6 percent on any size that is 90 percent occupancy or higher). During the busy leasing season, this can really be a big help to the manager, as the software will automatically raise the rate without the manager having to even notice that the occupancy target has been achieved.

“This revenue management feature is also very helpful in prompting rate increases on occupied units. For example, you can instruct the software to raise rents on any occupied unit after 12-months’ tenancy by a certain percentage. You can allow the rate increases to be limited to the current street rate or not. The manager can get the proposed list of rent increases each month for review. The manager can be given the authority to approve the rent increases or modify as deemed appropriate.”

“We use a website scrubbing soft- ware to monitor our competitors’ rents and specials and any changes. The software is inexpensive and provides regular prompts of any rate changes with comps in your defined market trade area. The pricing is laid out in an easy-to-use grid, showing rates by competitor and unit type. In addition, we have the managers contact their counterparts on five or so comps each month by phone to trade notes on the occupancy, rates, specials and market info. The managers should drive by their comps at least quarterly.

Cowen also uses software to help with competitive pricing. “We use a revenue management program that ‘scrapes’ online rates for our competitors and compiles them into a list so we’re able to easily see our low, high and median competitor rates in any given market.”

PAYMENTS

“We have an automated payment prompt that customers can use to make their payment over the phone,” says Cowen. “This saves our managers or call center agents from having to talk to multiple customers who are just wanting to make a payment and frees them up to handle other customer issues or new inquiries.

MAINTENANCE

“We even use automation for maintenance internally,” says Cole. “We have a maintenance ticket system where the manager creates a ticket and it sends it to the maintenance personnel. They repair what needs to be repaired and the manager receives a notification when the job is done and the ticket is resolved.”

Technology has come a long way and continues to allow us to streamline things that we previously handled manually. A lot of times, the use of technology can give us an edge on competition as well by giving us data at our fingertips to help us make smarter and quicker decisions.

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Developing Your Disaster Plan

by Grow Your Storage, LLC, Members Lee Fredrick, Denise Bowley and Brandon Grebe

On July 13, 2016 a building at one of our facilities became engulfed in flames. The building was a total loss and virtually every tenant experienced complete loss as well.

We have learned a lot through this process and hope our story will help you develop a best-practice plan to handle a disaster such as a fire.

IMMEDIATE STEPS TO TAKE – STORE MANAGER

• Call 911.
• Call the facility owner or your immediate supervisor.
• Lock the access points after the situation is contained.
• Email all tenants to notify them that access will be limited until further notice and be sure to mention which building was on fire, so you are not bombarded with phone calls from tenants worried about their belongings.
• Call all tenants affected by the fire and explain the situation. Know ahead of time what information you can provide (but also what you will not provide) and don’t make any assumptions regarding cause, responsibility, loss, insurance coverage, etc.

 IMMEDIATE STEPS TO TAKE – OWNER/PROPERTY SUPERVISOR

• Call your insurance agent to initiate a claim.
• Call your fellow owners, partners and shareholders.
• Speak to your store manager about not answering any questions from the insurance adjusters or media.

By order of the fire marshal, our facility was closed to all traffic and we were required to have 24-hour security until the burned RVs were removed from our driveway, which took three weeks.

We incurred numerous expenses which had to be paid prior to the insurance company settling the claim with us. Keep a detailed record of all expenses associated with the emergency and insurance claim.

EXPENSES PAID PRIOR TO INSURANCE SETTLEMENT

• Wrecker service (fire department ordered stored vehicles to be towed from the building)
• Temporary fencing
• Security
• Extra staffing
• Door removal
• Locks and chains – to secure temporary fencing
• Testing required by the building engineer
• Volunteer fire department services

EXPECTED EXPENSES

• Demolition
• Cleanup
• Engineering (new building)
• Permitting
• General contractor fee
• Steel, fabrication, delivery, erection
• Electric
• Lighting
• Overhead doors
• Restoration of buildings affected by smoke damage
• Sprinkler system (code update – luckily our insurance covers the cost of any code updates)

In addition to the expenses we have already paid and those we anticipate, we have lost revenue because of the fire. The building had to be demolished.

Going through a fire can be traumatic on your staff and certainly on your tenants. It is important to train your staff about how to handle a disaster BEFORE it occurs. Below is a list of items you should have in place now.

BE PREPARED

• Import a form letter into your property management software stating access to the facility is closed because of unforeseen circumstances, so your manager can easily email tenants.
• Check your insurance coverages for lost revenue, code updates and volunteer fire department invoices. Verify each building has the appropriate value and square footage.
• Discuss how to handle a disaster with your manager.
• Require your manager to keep a printed current rent roll, which includes telephone numbers, at all times, preferably kept off site.
• Reserve a minimum of $25,000 for upfront out-of-pocket expenses for clean-up.
• Perform a lease audit quarterly.
• Require tenants to purchase or provide proof of insurance on their stored goods.

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Setting Sale

Questions to Consider Before You Jump on Board to Sell Your Facility

by Michael Johnson, Bellomy & Co.

What should an owner look for when he/she is interested in selling?

The owner should seek the advice and feedback of a self-storage broker on pricing conditions based on the current market. Brokers can walk an owner through the marketing process and explain what goes into selling a self-storage facility. Other items an owner should look for include estimated closing costs and an overall timeline. After getting this information, owners should consider if it fits within his or her investment goals and expectations.

When should an owner sell?

This answer comes down to many individual characteristics. Several market factors can make it an attractive time for an owner to sell. A few examples of these market factors are favorable cap rates, interest rates and supply/demand within the facilities sub-market. When cap rates are low, prices are high. When interest rates are low, there are more buyers willing to take advantage of the lower cost of capital. However, the majority of sellers are often forced to sell because of life events, such as relocation, health problems and divorce.

What are the peak conditions for selling?

Several factors determine peak conditions for selling (also known as a seller’s market).

Examples are:

High demand combined with a shallow inventory of properties for sale. In this type of environment, there are more buyers than sellers. Many of the large operators and REITs have been aggressively buying in the top 50 MSAs to build up scale/efficiencies in those markets.

Low cap rates and financing readily available with rock-bottom interest rates.

Historical occupancy and NOI growth with little new construction within five miles.

Buyers using pro forma underwriting standards to determine the value.

Do you need to be fully stabilized when you sell?

Short answer: No. At certain times in the market cycle, buyers give the owner credit for unleased units. However, it is more advantageous for an owner to be stabilized when he or she decides to sell. This is an income-based business, meaning the higher the income, the higher the purchase price.

How do you get your facility ready to sell?

When getting a facility ready to sell, it is important for owners to focus on three areas that can pay off in the long run:

Improving revenue

Owners should look at their rent roll to determine how long it has been since raising prices for both existing tenants and street rates. This is an easy way to pick up additional income. A five to 10 percent increase every 12 months is standard. Getting delinquent tenants current on their rent or getting them to move out is also important to maximize revenue.

Reducing expenses

Owners should take the time to identify and clean up expenses. Have real estate taxes been appealed? Are marketing costs in line with market averages? It is important to identify personal expenses such as cell phone, car and health insurance payments. Owners who can identify their facility expenses make their income statement more appealing.

Improving facility appearance

Quality sells, so an owner should focus on the general aesthetics of the facility. In residential real estate, it’s called “curb appeal” and it’s no less important with your facility. Dusting hallways, cleaning doors, cutting grass and removing weeds are a few small things that make a difference in the overall appearance. Repairing lights, replacing damaged doors and adding a fresh coat of paint are larger items the seller should focus on. A coat of paint goes a long way.

How do you structure a deal?

Owners should consider working with a professional self-storage broker who has a proven track record selling storage facilities. Brokers can use their expertise to help structure a deal with the highest price and best terms. An experienced broker who specializes in this unique market has a database of qualified, interested buyers.

How can you buy in a seller’s market?

Over the past decade, the self-storage industry has evolved dramatically, and keeping up with the change can be difficult for some facilities/operators. Even though prices can be at all-time highs in a seller’s market, buyers take advantage of their large amounts of capital with low interest rates. Buyers tend to look for value-add opportunities to increase their bottom line. A few examples include raising prices on existing tenants, investing in online marketing and expanding the facility to add more units. Buyers who understand the operating fundamentals of the business can effectively purchase properties in both seller’s and buyer’s markets.

How can you sell in a buyer’s market?

Prices in a buyer’s market often suffer due to economic conditions and less favorable financing terms. Of course, all owners prefer to sell for the highest price possible. Whether it is a life event or other factor causing an owner to sell in a less-favorable buyer’s market, it is important that he or she focus on the following:

Revenue management

By keeping apprised of competitor pricing, owners can ensure their units are being rented at a price the market bears. The value of the property directly relates to the income the facility produces.

Property inspection

Owners should complete any minor deferred maintenance items and make the property as presentable as possible. Owners should let potential buyers know of any outstanding maintenance items on the front-end, so they do not have a reason to reduce their offer during their due diligence.

Pricing

Owners should seek out a professional storage broker who will give them pricing feedback based on current market conditions. There are more properties for sale than purchasers in a buyer’s market, so

it is important not to have unrealistic pricing expectations.

Is it better to build or buy?

This is always a popular question. Loans are readily available for people looking to build a new facility or acquire an existing facility. Both options have their own pros and cons. Take a closer look below to help determine which may be a better fit.

Building new

Ground-up construction gives you the benefit of creating and customizing everything from start to finish, or from the initial design to the way the property is managed. Overall, it is a riskier investment to build new because you will be starting at zero percent occupancy with expensive carrying costs and negative cash flow. However, there is greater profit to be made on the back-end when the property is stabilized. The overall timeline of building new is another potential drawback. Finding the right land, getting permits and approvals, having design work done and experiencing unexpected site conditions and other unforeseen issues can delay the project.

Buying existing

The immediate cash flow from a stabilized facility is a major benefit for individuals looking for a turnkey investment. A potential con for buying an existing property is the time it can take to find that opportunity that fits all of the individualized investment criteria—size, price, location, cap rate, etc. The success of the self-storage industry has been well-publicized for some time now, and competition is very strong from the self-storage REITs and other large private equity group that have been able to pay more than the average investor can because of their lower borrowing costs.

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Making Taxes Painless Starts with Clean Accounting

by Magen Smith, CPA

No one wants to pay more in taxes than they should, self-storage owners included. Working hard on your self-storage business every day of the year only to hand over a large check to the government on tax day is painful and unpleasant. However, seeking to minimize taxes smartly should be the goal for every business owner. Spending $60,000 on an unnecessary truck to save only $20,000 in taxes is a waste of $40,000. Too many business owners try to spend money to save taxes. Instead, focus on maximizing tax savings on the money already spent.

Below are some painless suggestions that will help you keep more of your profits this year.

Enter Income Correctly

Making taxes painless starts with having clean accounting records. Many of my clients have saved thousands of dollars in taxes each year simply by recording their income correctly. Income should be entered from the self-storage management system and then reconciled from the bank account. Far too often, all bank deposits are entered as income. These deposits likely include sales tax, security deposits and other potentially non-taxable items. Entering your income using the self-storage management system ensures revenue is entered correctly as rent, late fees, administrative fees, sales tax and so forth. It is also an excellent way to check if all of the money shown as collected in the self-storage management system was actually deposited into the bank account.

There are multiple ways of entering the income from the self- storage management system into the accounting system. Most self-storage management systems provide reports for daily deposits which can be entered into the accounting system. Using a journal entry report from the self-storage management system or integrating directly with your accounting system are two options.

Enter Expenses Correctly

Once the income in your accounting system is correct, add the expense information. Make sure all of the business’s bills and bill payments, payroll information, refund checks written to tenants, payments on bank loans, and owners draw amounts are added into the accounting system.

Excluding reductions in liability or changes in equity, the money spent in your business falls into two buckets: expenses or assets. Common expenses are advertising, dues and subscriptions, office expenses, payroll, repairs and maintenance and utilities.

Assets are items which will be used for years and should be depreciated. When buildings, vehicles, large office furniture, improvements to the building that extend the useful life, or machinery and equipment are purchased, they are shown on the balance sheet as an asset. Each year, depreciation expense is recorded until the asset is fully depreciated.

Depreciation rules constantly change, so it is wise to consult your tax professional to ensure that all assets are properly recorded. A common tax strategy in self storage is cost segregation. Many professionals will perform cost segregation studies to determine if it is a wise investment or not, but the basic strategy is using the useful life of each component to depreciate the asset. This will commonly increase depreciation in the first few years. Be aware, depreciation expense will eventually run out, and taxable income will increase in later years. Consult with your tax professional to determine if cost segregation is best for you.

Review Your Balance Sheet for Errors

Reviewing the balance sheet is an excellent way to save tax money and reduce personal property taxes if your state has them. I consulted with one client who had a building missing on his depreciation schedule for ten years so he missed all the depreciation expenses he could have taken. No one ever thought to determine what was included in the purchase price and it was all coded to land, which isn’t subject to depreciation.

Your tax CPA should be able to provide you with your depreciation schedule. Go through each item and make sure it still exists in the business. Also, look around at the assets and make sure they are on the schedule. Common items that will appear on a depreciation schedule are buildings, building improvements, parking lot improvements, vehicles, golf carts, computers, office furniture and any machinery the business owns

Working With an Accountant

The most painless and comprehensive way to make sure all of the right information is in the accounting system is to have a CPA familiar with self storage handle your accounting.

Once all of the accounting information is properly entered in the accounting system, it is critical that bank and credit card statements be reconciled. It is also wise to tie income numbers back to the self-storage management system to make sure the information is properly recorded. You can certainly do all of this yourself, but using a CPA who is familiar with self storage throughout the year can give you timely, relevant statements which will help grow your business.

Once it is time to prepare taxes, your accountant should provide your tax professional with the year-end statements, along with all supporting documents to make tax filing as painless as possible. Because your tax professional is looking at clean accounting records, he will be less likely to ask you to rummage around for some receipt from 11 months ago that you have misplaced. If the records are well-organized for the tax preparer, he can focus on advising on tax issues and helping plan for the future, instead of doing detailed accounting work. The best time to save taxes is throughout the year, not right before the filing deadline in April. By that point, it is too late to change the previous year. Meet with your tax CPA in the summer for a mid-year review and again in the fall so they can estimate the taxes that will be owed and give you advice on any last-minute changes to minimize your tax obligation.


Magen Smith started as a self-storage manager and went on to become a licensed CPA. Her CPA firm focuses on self-storage companies by helping them with accounting, getting started in the self-storage industry, raising rates, improving operations and providing audits so they know their business is running properly. She has online courses on revenue management and how to read Sitelink reports available on her website.

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Best Practices

by Jennifer Jones, JKJ Marketing

There are so many things to consider when running your facility. If you’re in a major urban area like Dallas/Fort Worth, Austin, San Antonio or Houston, you’re probably seeing a lot of competition. What used to work may not anymore. Many of you are facing competition from the REITs, which report they are increasing their marketing budgets around an average of 25 percent.

So how can you set your facility apart? Do you spend money to make money? Do you increase your marketing budget, or make capital improvements? Knowing the right way to move forward and where to invest your time, money and energy is key to competing in an overbuilt market.

“On one hand, this business is incredibly straightforward: rent units, make money (lots of it at that),” laughs Sarah Cole with Oakcrest Management. “On the other hand, if you invest the time, training and money to ensure that you and your staff are properly trained and have the needed tools to be successful, the investment pays for itself many times over and allows you to sleep better at night.”

“We recommend setting a clearly defined standard or procedure for maintenance, operations, leases, etc.,” says Katie Cowen with Move It Storage. “If you have a clearly-defined process to guide your staff, you’ve set a standard that they know they have to adhere to. “You need to stay on top of things much more than you did in the past because it’s much easier for tenants to find storage now than it ever has been before. I saw a statistic this week that there are more storage facilities in the U.S. than there are Starbucks and McDonald’s combined. I have no idea if that’s actually accurate, since you can’t trust Internet memes for news, but I wouldn’t be surprised if it is.

“Competition is fierce now, and you can’t get by with ‘good enough’ anymore. You have to be great to succeed in the overbuilt market that we’re currently in, and this can mean needing to make significant physical improvements to your location if you want to keep up.

“Another factor now is the cost of hiring good help is getting steeper every day. The strong economy is creating a scarcity of entry-level workers and the days of a $9 or $10 per-hour property manager seem to be well behind us. We’re seeing major metro area salaries in the $13-16 (and above ) hourly wage level lately, with or without an apartment onsite to offer.”

“Agility is key,” says Monty Rainey of RPM Storage Management. “People tend to think of self storage as a static industry, but you really need to be ready to change tactics at a moment’s notice. What worked a month ago may not work today and what works at one facility may not work in a different demographic.” Some additional tips:

INVENTORY

Keep a rolling inventory of clean units, preferably two of each size, so you have ready-to-show units of every size in which you have a vacancy. Highlight the units on your vacancy report so all employees can easily reference available units.

MAINTENANCE

The most important maintenance tip is setting a schedule and adhering to it.

•  Clean air filters on HVAC units every 30 to 60 days, depending on time of year.

•  Set your HVAC thermostats to cool to 80 degrees and heat to 50 degrees. The objective is to keep the temperature in the range to protect stored contents, but not the same range you would keep an apartment or office. This saves energy and money.

•  Keep the unit door tracks (and any exposed springs) lubricated to make the doors easy to open and prevent broken springs.

•  Change the rubber gasket at the bottom of the door when it gets brittle to allow it to seal out dust.

•  Keep the hall floors dry mopped weekly and wet-polished as needed to keep the halls bright and shiny.

•  Perform daily walk-arounds/lock checks for security and to be visible to customers. A "nice but nosy" manager can help prevent problems before they happen and should always work to establish good rapport with customers.

•  Keep up your property’s curb appeal. If kept clean and well-manicured with professional, friendly signage, it can help generate leases from drive-by traffic.

•  Consider using a support ticket system if you have several facilities or a large facility. This allows your maintenance professional to know what tools might be needed before heading to the store. It also allows tracking of high-priority items.

•  Keep the office area and the approach to the office looking fresh and clean. Often, owners who have had a facility for years let it look less than its best. Look at your facility with a fresh set of eyes.

•  Keep signage as friendly as possible. Don't go overboard on rules signs.

CUSTOMER SERVICE

•  Treat others the way you want to be treated.

•  Respect everyone; it goes a long way.

•  Use scripts to develop managers’ communications skills.

•  Prepare a general escalation or upset customer document for dealing with difficult customers later in the customer life cycle.

•  Role-play difficult situations with managers to teach them the best responses, practices and reactions.

LEASE

•  Use a standard lease, standard addendums, and a scripted lease explanation. It is helpful in getting customers to understand and adhere to their lease agreements.

•  Perform regular lease audits to ensure that you have 100-percent lease compliance at your facility.

OPERATIONS

•  Have a clearly-defined operations manual—it is essential. If you don’t have one, TSSA has a very good basic operations manual that can be purchased. With minimal effort, you can make additions/revisions to make it your own.

•  Perform a very comprehensive audit every month that includes property inspection, inventory, lease reviews, auction file reviews and a review of the financials.

•  Have managers shop competitors by actually driving by the facilities to see what is new/different.

•  Have a third party conduct telephone and in-person shopping to see how your facility is being represented.

•  Focus on rental rates just as much as occupancy—both are important.

•  Take time to have meaningful, unrushed conversations with your managers to let them know how much they are appreciated. A good manager makes a huge difference.

MARKETING

Marketing is really about staying on top of things and finding what works for your property.

“Marketing self storage is inherently different than most businesses,” says Rainey. “You’re not going to have much luck convincing someone who doesn’t need one to rent a storage unit. The key to marketing a facility is to put your name in front of that potential customer so that in six months, when the decision is made to clean out the garage, your storage business is the one they automatically think of. They’ve already been to your property when you had that event (car wash, garage sale, food drive, etc.) and already know your facility is well-run and maintained.”

Ultimately, as Tron Jordheim with Store Here Management says, “Every market is a bit different, and every facility has its own characteristics and quirks. There is a ‘right mix’ of people and technology for each site. The trick is to find the right mix for your particular needs.“

Processes are very important. If you have solid processes that are well suited to a particular site, and you follow those processes, things will run more smoothly and be easier to track and audit.

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Training

Tailoring to Your Facility

by Jennifer Jones, JKJ Marketing

When you consider what a manager can and can’t do for your business, you realize how important training and hiring really are. A manager is part of your brand—the personality of your facility, the person who makes sure things are working properly. Depending on the size of your facility, they can wear many hats from marketing and maintenance to operations and revenue.

Trusted Self Storage Professionals has new assistant managers work with an experienced manager for two to three weeks before being scheduled to work alone. New managers work with an experienced manager for several weeks before being assigned their property. “We have one site that does most of our training, which makes for consistency,” says Mike Gately. The manager doing the training is a strong manager who likes training others and uses a written checklist of all tasks to be trained that must be completed and sent to the property supervisor. Good training is critical to achieving operational excellence and to have confident, competent employees.”

“Move It is larger than some of the other operators, so we’ve used our benefit of scale to set up an online learning management system (LMS),” says Katie Cowen. “Our managers get a combination of live, one-on-one training, training via review of an operations manual, and training via modules in the LMS. The LMS modules can include written lessons with a test afterward, video lessons with a test afterward, or a combination of both items. We also utilize training resources and certification from our software provider (SiteLink) and our ancillary truck rental services (U-Haul/Penske).”

Sarah Cole says that at Oakcrest Management, each new manager gets one week of training with a seasoned manager, two days of customer service phone skill training and one week in their store with a seasoned manager/ supervisor. “By the third week, they should be able to handle day-to-day functions on their own. On lien process days (NOC, cut lock, etc.), a supervisor will be with them to make sure notices are done properly and the new manger is learning how to do them properly. Oakcrest Management also has quarterly training webinars on various topics, such as collections, closing the sale and auction process.”

So, what do you do if you don’t have multiple facilities or don’t want to hire third-party management? You can write your own training manual. Each day you are performing a task, write down your thoughts and start creating checklists. Implement some of the tactics used above at your facility. You may only hire a new manager once in a blue moon or you may have higher turnover. Creating a training manual, although a time-consuming process, can ultimately save time when you hire a new manager.

Creating checklists for leasing, maintenance (as well as schedules), operations, procedures, new hire orientation, marketing and more will ensure your new manager is aware of your systems and expectations.

At RPM, training never ends. They have a designated trainer who gives personal, interactive training following a two-week program. At each subsequent store visit by a district manager, time is set aside for ongoing training for the entire staff. RPM also provides employees with paid tuition for online business management related courses.

 

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Find the Perfect Fit
Hiring the Right Manager for Your Self-Storage Business

by Jennifer Jones, JKJ Marketing

Your facility manager is the face, heart and soul of your business, which means finding, hiring and training the right person is key. While that perfect fit will differ from store to store, it’s important to take your time to hire for the position. “Take the time up front to look for the perfect fit,” says Tristina Volesky with Lockaway Storage, San Antonio. “It will be time worth spent. Rushing to hire someone can sometimes cause more time and money down the road if you find out they are not a good fit.”

“It’s beholden on all of us, who own stores or who are in the industry, to elevate the profile of the staff we hire, not just through training, but also through coaching,” says Bob Vamvas with Storage Revenue Solutions, Richmond. “We may need to pay them differently. You need to ask yourself: Do you want a gatekeeper or an expert? Where are you going and growing? Make sure the person who represents your business is someone you are proud of and a professional in the industry. By hiring the right person, tremendous things happen in stores and portfolios.”

Job Description

You need a good job description so you know what you are looking for and attract the right candidates. “A job description is important in two ways: for candidates to understand what they are doing and for legal reasons,” says Mike Gately with Daughtry Properties, San Antonio. “If they think they will be in an office and you ask them to clean up a unit, and they balk, then you have a problem. For legal reasons, if you have an issue and you haven’t completely explained the job and have to terminate, then you may have to pay an unemployment claim.”

The job description will also help you narrow your focus. “The criteria we look for in a manager can differ for different sites,” says Volesky. “If we have a facility that is in lease up, then we need a manager who is strong in marketing. If we have a facility that is a busy location then we need a manager with energy and a can-do attitude to get things done. If we have a facility with storage, truck rentals, and mini offices then we need a manager who can multi-task.” 

Job Posting

“Expand your resources in searching for a new manager: different job posting websites, use signage, ask for trustworthy referrals,” says Volesky.

Gately also advises to put the word out to current employees and suggests Craigslist. “We’ve tried other things, but have had the most success with referrals and the information we keep on file from past people who were looking.”

Vamvas adds, “A manager who’s a high performer will refer someone who is like them. They won’t refer someone who won’t put in the same effort they do.” He also suggests using Indeed.com.

Experience

While some prefer to hire someone with self-storage experience, others prefer different skill sets. Gately says the best managers are: motivated to help people, friendly, good listeners, enjoy the work they do, have an entrepreneurial spirit with a strong work ethic, and welcome responsibility.

“I look for someone who has worked in a managerial capacity that proves they are a hard worker,” says Vamvas. “Boutique fast food restaurants like In-and-Out Burgers are good for showing that. I also look for community involvement.

“I also like people with marketing backgrounds who aren’t afraid to get a little dirty by spraying for weeds and sweeping out. They tend to be more outgoing, customer-service driven and articulate. People who have worked as a recruiter or at a staffing agency make good self-storage managers as well as people who have experience in apartment leasing and are involved in the community.”

“I believe that to be successful, first and foremost, a great self-storage manager must possess superior customer service skills,” says Stephanie Skinner with Seguin Self Storage, Seguin. “This is a service industry, why wouldn’t one strive to provide the absolute best service possible to their customers?”

Gately recommends, “Hire for attitude even more than experience. Within a few weeks or months, you can train people to learn the skills, but attitude is not a trainable item­. There will be a certain way they conduct themselves with the public. If they have a down-beat attitude, you start with a deficit you can’t overcome. Determine if they welcome new challenges.”

Since we need customers to survive, “We look for candidates who have had longevity,” says Volesky. “If they do not have self-storage experience, then we are looking for someone who has customer service experience. Someone with management experience is also a plus. We also make sure they have basic cash handling skills and computer skills.”

The Interview

“Set up multiple interviews before you hire,” says Gately. “Depending on logistics, have one of your senior managers interview at the site, or at your corporate office. Have two to three different interviews. Note if they get there on time. Have them interview with different people in addition to you. I may think they are a great fit, but a manager or marketing director has different perspectives, which improves the chances that we will have a good hire. We each have our own biases and someone else may be able to pick up on something I miss.”

“Interview more than once, so you have spent more time with the candidate(s) that are potential new hires,” says Volesky. “Be organized in the interviewing process: review resumes, ask the right questions, ask the important questions, and ask the same questions.

“We are sure to ask questions that help us figure out if the candidate is going to be a good fit for our company and the culture we have created.  We also ask questions that help us get a good idea of their work history, why they feel they will fit our position, how they work with others, and how they present themselves professionally. Some of our interview questions are:

1. Name two accomplishments in your last position.
2. What specifically about your past work experience makes you a strong candidate for this position?
3. What specifically about our open position interests you?
4. Tell me something you have accomplished as part of a team.
5. What motivates you?
6. Name a time that you wow-ed someone.
7. What techniques do you use to keep yourself organized?
8. What does good customer service mean to you?

If Volesky interviews a candidate that has self-storage experience, then she asks questions that will let her know how much experience they actually have. Some example questions:

1. What size facility have you worked, sq. ft, and number of units?
2. What did a normal day of work look like?
3. What did you do to market the facility?
4. What did you do to bring in more income to the property?

Gately adds, “A good prospect is interviewing you as much as you are interviewing them. If you are taking calls when you are interviewing them then they may not want to work for you. It’s a two-way street. Every candidate deserves respect and your undivided attention. Also, if you get a good candidate, then move fast, because you will lose them if you don’t.”

Characteristics

When interviewing, Vamvas has a variety of questions to find out what characteristics a candidate has:

1. Describe for me your closet? How do you hang your shirts?
2. Where do you keep your car keys?
3. Where do you keep your tools? Would I have a hard time finding a screwdriver? Hammer?
4. What did you do the last two weekends? When did you plan those?
5. Describe an adventure you’ve had.
6. Would you be embarrassed to have someone come to your home right now? Why or why not?
7. What was the biggest failure you’ve ever had on any job?
8. What are/were the strengths/weaknesses of your last boss?
9. Explain a way you sought a creative solution to a problem.
10. What MS Office products do you use?

As the candidate answers, Vamvas looks for the following characteristics:

1. Adventurous – from renting units to selling ancillary products to marketing, I look for someone who doesn’t mind trying.
2. Self Sacrificing – for superior customer service look for someone who wants to help.
3. Refreshing – when you walk into this person’s office you can feel their positive attitude; they never have a down day.
4. Self Reliant – someone who requires little hand holding.
5. Faithful – one who won’t quit on me.
6. Leader – one who will take charge but not be bossy; one whom others gravitate to.
7. Productive – someone who likes to be busy and will find ways to do so during the slow times of the month.  Also, they will want to work on all managerial responsibilities, such as cleaning the inside of a storage unit and wiping doors down just to make sure the climate control building is spotless. They’ll take the initiative to prepare for the oncoming leasing season by putting together packets. We want a person who will find ways to stay busy and not sit around watching YouTube videos all day.

Training

Depending on your facility, training may look different from one to the next. However, it’s a must and there are a number of things you can do to help your new hire integrate into your business and set them up for success.

Gately and Vamvas suggest buddying up your new hire with an experienced mentor manager. “I recommend two weeks of training, four if your new employee doesn’t have storage experience,” says Gately. “An experienced manager who is doing the same thing day in and day out will be in an excellent position to show your new hire the ropes.”

In addition to pairing up the new manager with another manager, Gately recommends giving managers the big picture. Include them in financial reviews and ensuring they understand owner goals, why decisions are made and why each lease matters.

“Empowering the manager to solve problems for the customer and be responsive so that each customer has a pleasant experience is something we can offer over the REITs,” says Gately. “We take our smaller size and make it an advantage by allowing the customer to deal with a decision-maker. For example, if a customer has three units and wants four, then your manager will come back with a price. The customer may decide it is too much for their budget. The manager may opt to cut them a deal because they understand that the customer is valuable and will make money for the facility over time.”

“Managers need the ability to make decisions on their own,” says Skinner. “Giving a manager the authority to make decisions based on what is best for the customer, as well as the facility, speaks volumes. Empowerment creates leaders on every level. Lastly, I believe a truly great self-storage manager must be humble, have integrity, and maintain the highest level of accountability at all times.”

Vamvas uses the following training checklist:

1. Send a formal welcome email to staff.
2. Review and signature of business controls.
3. Conduct one-on-one training with an experienced manager (takes 3-5 days).
4. Partner new manager up for another 5 days with experienced manager.
5. Cover the following:
1. Summary of key contacts
1. Owner, other managers and staff
2. Summary of technologies in place
3. Login into and using site management system
4. How to get callers off the phone and into the store
5. Renting a unit
6. Controlling delinquency
7. Tracking information
8. Review and signature of other business critical information (responsibilities, marketing, safety and environmental)

 

No matter the size of your facility, or how many you have, hiring a manager who runs it like it’s their own is the holy grail of managers and may seem like a hard task. But, taking your time to find, hire and train the right person will pay off in spades over the long term.

Additional information, forms and a checklist for hiring and firing employees can be found in the Goldbook©.

 

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