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Grand Coulee, WA, Passes Emergency Moratorium on Self-Storage Development

Article-Grand Coulee, WA, Passes Emergency Moratorium on Self-Storage Development

The Grand Coulee, Wash., City Council imposed an “emergency moratorium” on self-storage development on Nov. 30. The six-month ban applies to “any establishment, building, land, structure, or land use in which any commercial mini-storage business or other storage-related business is proposed.” The freeze coincides with ongoing revisions to the city’s Comprehensive Plan, which are scheduled to be complete on May 30, 2018, the same day the moratorium ends. The ban could be lifted earlier if the city adopts permanent regulations pertaining to the location of self-storage businesses prior to the end of May, according to the source.

The special meeting of the council lasted five minutes. It was spurred by a proposal to convert a former Variety Store retail structure to self-storage. Though the store closed this fall, city officials believe repurposing the building as self-storage would “hinder the location of other revenue-generating commercial businesses and be detrimental to the appearance and financial viability of the city,” per language included in the moratorium. “The city council hereby finds and declares that an emergency exists, which necessitates that this ordinance becomes effective immediately.”

The city receives sales-tax revenue from retail businesses but not self-storage, the source reported.

Grand Coulee is one of several Washington municipalities to recently impose bans on self-storage development. Last month, the Ferndale City Council passed a six-month ban, while Federal Way enacted a one-year ban in September. Other incidents in the state include a six-month ban passed in August in Poulsbo and a previous six-month moratorium in Shoreline. Several cities across the nation have also passed similar moratoriums to curb storage projects.

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Self-Storage Developer Withdraws Proposal Due to Opposition in Wallingford, VT

Article-Self-Storage Developer Withdraws Proposal Due to Opposition in Wallingford, VT

AG Self Storage LLC has withdrawn its zoning-permit application for a proposed 18,650-square-foot facility in Wallingford, Vt., after facing heated opposition from residents. Applicant Michael Lazar submitted plans for a three-building, 125-unit facility at 30 Haven Hill Road, which would have required a conditional-use permit and multiple variances because the 3.4-acre parcel is in a district zoned for agricultural and rural-residential uses, according to the source.

Several residents calling themselves Friends of Haven Hill Road attended a site review at the property on Dec. 2 to protest the project. They contended it was a poor fit for the area and would block a scenic view of West Hill. Resident Chip Gottlieb led the opposition group, with support from 16 of the 18 homeowners on the street. The group hired two environmental attorneys to help fight the project and was prepared “for the long haul,” Gottlieb told the source.

Lazar submitted a letter to the development-review board withdrawing his application after speaking with Gottlieb on Monday. The board was scheduled to review the project on Tuesday night. “I’m glad,” Gottlieb said. “He backed out, and he was a real gentleman.”

“Please know that as a small Vermont business, AG Self Storage is committed to developing facilities that are mindful and respectful of the neighbors, the community and the town in which they are built,” Lazar wrote to the board. “My goal is to develop small self-storage facilities that provide a valuable service to communities and are more secure, attractive, user-friendly and convenient than other older self-storage facilities. My intention with this venture is to introduce a new business that will seamlessly and amicably become a member of the community. It is not to fight with or disrespect the people in that community.”

Lazar also expressed some frustration over the permitting process, particularly confusion over setback regulations and recommendation he pursue a variance, which “contributed to the recent negative response to this project. If I had known at the beginning of this process that a variance would be required or that neighbors would feel unreasonably impacted, I never would have pursued trying to permit this project,” he wrote.

Based in Charlotte, Vt., AG Self Storage is building a facility in Johnson, Vt., and has received approval for another project in St. Johnsbury, Vt., according to the source.

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Inside Self-Storage Best of Business 2017

Article-Inside Self-Storage Best of Business 2017

The Inside Self-Storage "Best of Business" reader-choice poll, launched in 2011, solicits online votes from industry professionals who elect their favorite suppliers in more than 35 categories. Voting takes place via the ISS website in June, and winners are announced in early August. Winning companies are featured in the November issue of ISS magazine, and results are published online year-round for readers to access. Watch for next year's voting process, which will open in early June.

Best Architectural Services: ARE Associates
Best Builder: Mako Steel Inc.
Best Building Components: Trachte Building Systems
Best Call-Center Services: U-Haul International Inc.
Best Climate-Control Products: Quest/Therma-Stor LLC
Best Commercial Insurance: MiniCo Insurance Agency LLC
Best Construction-Project Management: Kiwi II Construction
Best Customer Service: CubeSmart
Best Development Consulting: 180 Self Storage LLC
Best Elevators/Lifts: Automated Self Storage Systems LLC
Best Finance Broker: The BSC Group
Best Green Product: Baja Construction Co.
Best Lender: Live Oak Bank
Best Live-Auction Services: Storage Auction Kings, The
Best Lock: Chateau Products Inc.
Best Maintenance Products & Services: ABR (Accent Building Restoration Inc.)
Best Management Software: SiteLink
Best Manager Training: Universal Storage Group
Best Marketing Services: storEDGE
Best Online Directory: SpareFoot
Best Online-Auction Services: SelfStorageAuction.com
Best Operational Consulting: Storage Asset Management
Best Payment Services: Select Merchant Solutions
Best Portable-Storage Unit: Universal Storage Containers
Best Real Estate Brokerage: Argus Self Storage Sales Network
Best Retail Product: Supply Side USA Inc.
Best Retrofitting/Refurbishing: Janus International Group
Best Roofing Company: Global Roofing Co.
Best Security System: Sentinel Systems Corp.
Best Self-Storage Door: Janus International Group
Best Signage: Vixxo Sign and Lighting
Best State Association: California Self Storage Association
Best Tech Support: QuikStor Security & Software
Best Technology Innovation: CallPotential
Best Tenant Insurance: SBOA Tenant Insurance
Best Tenant-Protection Program: On The Move Insurance Agency
Best Third-Party Management: Extra Space Storage
Best Truck Rental/Leasing: On The Move Inc.
Most Innovative Product: BOS Container USA

 

Inside Self-Storage Best of Business 2016

Article-Inside Self-Storage Best of Business 2016

The Inside Self-Storage "Best of Business" reader-choice poll, launched in 2011, solicits online votes from industry professionals who elect their favorite suppliers in more than 35 categories. Voting takes place via the ISS website in June, and winners are announced in early August. Winning companies are featured in the November issue of ISS magazine, and results are published online year-round for readers to access. Watch for next year's voting process, which will open in early June.

Best Architectural Services: ARE Associates
Best Builder: Mako Steel Inc.
Best Building Components: Trachte Building Systems
Best Call-Center Services: OpenTech Alliance Inc.
Best Climate-Control Products: Quest/Therma-Stor
Best Commercial Insurance: MiniCo Insurance Agency LLC
Best Construction-Project Management: Kiwi II Construction
Best Customer Service: CubeSmart
Best Development Consulting: 180 Self Storage LLC
Best Elevators/Lifts: Schindler Elevator Corp.
Best Finance Company: Live Oak Bank
Best Green Product: Baja Construction Co.
Best Live-Auction Services: Legacy Auction Services
Best Lock: Chateau Products Inc.
Best Maintenance Products & Services: All From 1 Supply
Best Management Software: SiteLink
Best Manager Training: Universal Storage Group
Best Marketing Services: Go Local Interactive
Best Online Directory: SpareFoot
Best Online-Auction Services: iBid4Storage.com
Best Operational Consulting: Haviland Storage Services
Best Payment Services: Select Merchant Solutions
Best Portable-Storage Unit: Universal Storage Containers
Best Real Estate Brokerage: Argus Self Storage Sales Network
Best Retail Product: Supply Side USA Inc.
Best Retrofitting/Refurbishing: Janus International Group
Best Roofing Company: Global Roofing Co.
Best Security System: Sentinel Systems Corp.
Best Self-Storage Door: Janus International Group
Best Signage: Vixxo Sign and Lighting (Formerly US Signs)
Best State Association: California Self Storage Association
Best Tech Support: Quikstor Security & Software
Best Technology Innovation: CallPotential
Best Tenant Insurance: SBOA Tenant Insurance
Best Tenant-Protection Program: On The Move Insurance Agency
Best Third-Party Management: Extra Space Storage
Best Truck Rental/Leasing: On The Move Inc.
Most Innovative Product: BOS Container USA

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10 Ways to Create Self-Storage Revenue With Rental Trucks

Article-10 Ways to Create Self-Storage Revenue With Rental Trucks

Self-storage operators are often spread thin trying to overcome the competition, market their business, ensure customer satisfaction and stay on top of property maintenance. The busy nature of running a facility can make it difficult to find new ways to earn revenue. Luckily, rental trucks and storage go together like peanut butter and jelly! Not only can a rental truck help you trump your competition and provide customers with a valuable service, it’ll generate additional cash flow.

Don’t eat peanut butter alone. Liven up your facility income with some delicious jelly! Here are 10 ways to promote and maximize your truck-rental program, and ultimately make more money.

Catch the Eye

One of the most important aspects of marketing your truck is its graphics, which are worth some time and investment. They should be vibrant and eye-catching, and include details about your property such as location, website, phone number and even popular features. Spend time with your graphic designer to maximize the representation of your brand.

Once you have your truck handsomely designed, don’t hide it! Simple visibility is excellent marketing. Your truck is a billboard that should be parked where everyone can see it. If your facility isn’t on a key thoroughfare, park your truck on a main road and use it to direct people to your site. You can even ask a local business if you can station the truck in its lot in exchange for a discount on a storage rental.

Just remember that if you want your truck to be highly visible, you need it to be clean and in good working order. A dirty truck would make a poor impression of your business. You want it to be every bit as clean and safe as your actual storage property.

Stay on Message

A critical component to a successful truck-rental program is marketing, and the simplest approach is consistent consumer messaging. For example, you can answer the phone with something like, “ABC Storage, home of the free rental truck … How may I help you?” When you have someone interested in storing, ask how he plans to move his belongings. You can then mention you have a facility truck available. While a truck is a great advantage for all customers, it’s a particularly great closing tool for those who are on the fence about renting.

Maximize Your Rental Time

The most common truck-rental promotion used at self-storage facilities is, “Rent with me, use this truck for free.” But that doesn’t mean you have to lend it to the tenant for a full day. You can offer it for a few hours or a half-day based on the tenant’s unit size. Maybe your customers will be enticed to rent a larger unit to have the truck for a longer duration. If they bring it back late, you can charge a fee!

Charge for Fuel, Amenities

Your facility should enforce a policy that the truck should always be returned fully fueled. If it isn’t, impose a fee.

You can also offer furniture pads and hand trucks for a price. It’s standard practice in the truck-rental industry to charge for these items, and imposing a fee encourages customers to return these items.

Offer Non-Peak Specials

Offering discounts for truck rentals during off-peak times such as mid-week days will encourage more rentals. Consider using a fun slogan to promote the deal—the more creative, the better! “Military Mondays” and “Working Women’s Wednesday” are just a couple that have worked well. Catchy phrases also encourage word-of-mouth advertising that will promote your unique services and referral program.

Target Commercial Tenants

In the self-storage industry, about 20 percent of tenants are businesses that use trucks daily. During slow rental periods, encourage these customers to rent your truck. Sometimes a contractor will need more than one vehicle, so this service can be beneficial to him. Plus, contractors and other commercial tenants tend to be long-term renters. You might even be able to create a custom service for these tenants to use your truck on a regular basis.

Capitalize on Move-Outs

Tenants who are vacating your property are also great candidates for truck rentals, as they have a need to move the contents of their storage units. When their lease comes to an end, simply ask if they need a truck to move out and offer to schedule it. You can price it at normal rental rates. Not only is the onsite delivery of the truck a great service, you’ll make additional revenue and continue to share your brand as they drive the truck to their new location.

Sell Ad Space

Your truck can pay for itself if you sell ad space on the back door. Offer it to local business partners at $100 per spot. You could make as much as $800 per month or more, depending on how many spaces you offer, which offsets your own monthly costs.

Create Staff Incentive

Truck rentals can be very profitable for any facility, large or small. However, the success of your program largely depends on staff. Managers need to maintain the truck, schedule its use, and promote it whenever and however possible. Consider offering extra pay for leasing the truck to people beyond new tenants. They’ll appreciate the additional income, and it’ll motivate them to be more enterprising. Renting out the truck beyond your breakeven point could also be a great benchmark for awarding bonuses to your management or sales team.

Work With Local Organizations

Loan your truck to local organizations and charities that need a temporary vehicle. This not only creates goodwill, it makes more visibility for your business. It could even generate free publicity. Community outreach is a great opportunity to become a staple at local events such as toy and food drives. Having a positive image is a great means of networking and improves company morale. It’s a win-win!

The local chamber of commerce is another great community partner. Local businesses benefit greatly from a rental truck and storage, and partnership with the chamber will help you share information about your facility and services.

Other great groups to target are apartment and realtor associations. Their clients need trucks and storage.

Why eat a boring peanut-butter sandwich? A rental-truck program can be the tasty companion that generates add-on revenue and propels your self-storage business to the next level.

CJ Steen has been the marketing director of On The Move Inc., a provider of rental moving trucks for self-storage and other businesses, for 10 years; though being the founder’s granddaughter, she’s been unofficially involved with the company for far longer. She’s worked in the self-storage industry for 16 years, starting as a facility relief manager. She has a bachelor’s degree in marketing from Hawaii Pacific University and an MBA from Texas Woman’s University. For more information, call 800.645.9949; e-mail cj@onthemovetrucks.com; visit www.onthemovetrucks.com.

Registration Goes Live for 2018 Inside Self-Storage World Expo

Article-Registration Goes Live for 2018 Inside Self-Storage World Expo

Registration is now open for the 2018 Inside Self-Storage World Expo, the industry’s largest conference and tradeshow. The event will take place April 3-6 at the Paris Hotel & Resort in Las Vegas. Created for self-storage developers, investors, managers, owners and suppliers, the annual expo comprises four days of education, exhibits and networking opportunities.

Early-bird rates, which provide a discount of more than 25 percent on the show’s three registration packages, are available until Jan. 30. Discounted room rates are available through the Paris Hotel and subject to availability. Attendees are encouraged to make reservations early.

The 2018 event will include six education tracks, eight workshops, several networking events, and two days of product and service exhibits. The concurrent seminar program includes 45 sessions covering industry construction, development, finance, investing, management, marketing, ownership, risk management, sales, staffing and more. It’ll also feature a a full-day International Program focusing on self-storage across the globe as well as several sessions in Spanish.

Attendees can choose from several immersive workshops, including the revamped Development Workshops. The morning workshop will focus on the planning phase, while the afternoon event will focus on the building phase. The Sales-Skills Workshop will return for a second year. Additional favorites include the two Legal Workshops, Management Workshop, Online-Marketing Workshop and Owner/Operator Executive Workshop. Participants can purchase these options individually or be eligible to attend all of them by purchasing the All-Access Pass.

Scheduled networking opportunities include the Self-Storage Q&A, evening cocktail reception, roundtable discussions, Self-Storage Legal Q&A, and the Buyers & Sellers Meeting. These events are included with all registrations.

The exhibit hall will feature nearly 200 suppliers representing all segments of the industry. The expo floor will be open 4:30 to 7:30 p.m. on April 4 and 1 to 5 p.m. on April 5.

For more than 26 years, ISS has provided informational resources for the self-storage industry. Its educational offerings include ISS magazine, the annual ISS World Expo, an extensive website, the ISS Store, and Self-Storage Talk, the industry’s largest online community.

Hong Kong Valet-Storage Startup Boxful Raises $18M in Second-Round Funding

Article-Hong Kong Valet-Storage Startup Boxful Raises $18M in Second-Round Funding

Boxful, a Hong Kong-based startup business specializing in valet self-storage services, has raised $18 million in a second-round fundraising from several investors including real estate developers Nan Fung Group, Shimao Property Holdings and Shui On Land. Boxful intends to use the capital primarily to expand its pickup and delivery services in Mainland China and other Asian markets, according to the source.

The company plans to begin service in Shenzhen, China, during the first quarter of 2018. Pricing will be less than in Hong Kong due to lower operating costs, said co-founder Norman Cheung.

Boxful has raised more than $26.1 million in investment since launching two years ago. It raised $6.6 million in June 2015 and acquired a smaller competitor two months later. It has since expanded to Taipei.

Launched in Hong Kong in January 2015, Boxful offers pickup and delivery service in Hong Kong Island, Kowloon and most of New Territories, according to the company website. The company uses an online platform that allows customers to schedule free item pickup, maintain an image catalog of stored belongings, and schedule delivery of items to their home.

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Self-Storage Employee Wins $1.35M Verdict in Wrongful-Termination Case

Article-Self-Storage Employee Wins $1.35M Verdict in Wrongful-Termination Case

The California 1st District Court of Appeal has upheld a lower-court decision that awarded former self-storage employee Eva O’Brien $1.325 million for wrongful termination and punitive damages. O’Brien was awarded $325,000 in compensatory damages and $1 million in punitive damages in her case against Dennis E. Baca, owner of Airport Self Storage in Livermore, Calif. O’Brien was also awarded the cost of her legal fees.

Baca appealed the lower-court decision after a motion for a new trial was denied. The defendant argued there was insufficient evidence to support the jury’s verdict. He also contended the awarded damages were excessive and that O’Brien’s attorney committed misconduct during Phase II of the trial, according to court documents.

O’Brien was hired in November 2010 by Baca and self-storage facility manager Laura Read, who is described in court documents as Baca’s “longtime companion.” O’Brien was hired at $15 per hour as a “relief clerk” to spend three days per week at the self-storage facility and two days per week at Baca’s business office. Airport Self Storage also does business as Baca Properties, which owns other commercial assets including office and retail properties, according to its website.

In May or June 2011, O’Brien learned she was pregnant and later told Read, despite being warned by a fellow employee that Baca wouldn’t be happy about the news. During a meeting with Baca and Read on Oct. 7, Baca confronted O’Brien, berating her and throwing a rental agreement at her. “All you can think about is your family, and you’re making so many mistakes. You don’t pay attention,” Baca said, according to court documents filed on Dec. 4. “You’re four, five months pregnant now? In a few weeks, with your belly, you’re not going to be able to do your work, and then you’re going to be breast feeding; and it’s going to cause even more problems.”

Baca then apparently got in O’Brien’s face and asked if she wanted to give notice. When O’Brien said no, Baca told her to get back to work and “I’m going to take care of you.” The self-storage owner didn’t fire her in part because he didn’t want her to collect unemployment. He told another employee that he was going to make O’Brien quit, and instructed another staff member to confiscate her keys to the storage facility.

On Oct. 10, O’Brien was prohibited from answering the phone, collecting rental checks or using the computer, and instructed to clean, dust and mop the office, including the toilets and windows—duties she hadn’t been assigned previously. Four days later, she was sent home after three hours of work and filed a claim with the Employment Development Department for a reduction of hours. She was also sent home early on Oct. 17.

According to the court, Read began searching for O’Brien’s replacement after the Oct. 7 meeting and had that person begin work on Oct. 19. When O’Brien reported for work on Oct. 21, she was told Baca wanted her to go home. When O’Brien called Read to inquire when she could return to work, Read told her, “We see that you filed for unemployment. We no longer need your services.”

On O’Brien’s final paycheck, Baca forged a note from O’Brien to appear she’d given notice. Baca admitted in court that he wrote the note to create the appearance of O’Brien having quit. The court indicated this was an intent to “create beneficial evidence if O’Brien sought unemployment benefits for being fired.”

O’Brien described Baca as a “micromanager” and was treated for anxiety and depression after her termination. The jury awarded her $25,000 for economic loss and $300,000 for emotional stress. After Phase II, the jury determined Baca had acted with malice, oppression or fraud, and awarded O’Brien $1 million in punitive damages.

Baca produced only one financial-related document during the trial, which included a list of properties he owned with a 2014-2015 assessed value of more than $57.7 million.

“Baca contends his conduct was not ‘sufficiently reprehensible to warrant imposition of punitive damages.’” the court wrote in its opinion. “He is wrong.”

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Las Vegas Self-Storage Manager Jailed After Fatally Shooting Burglar

Article-Las Vegas Self-Storage Manager Jailed After Fatally Shooting Burglar

A resident self-storage manager has been charged in the Dec. 1 fatal shooting of an alleged burglar at Storage @ Summerlin in Las Vegas. Martin Maycock, 60, told police he fired the .40-caliber rounds as the thief drove a Ford cargo van toward him. However, security footage from the property shows the victim, 25-year-old Jeffrey Pierre Paget, may have been trying to escape and veered away from the shooter, according to police.

Maycock told detectives he was walking the property at 7441 W. Lake Mead Blvd. just before leaving for dinner when he spotted the van parked near stored motorhomes. When Maycock approached him, Paget said the motorhome belonged to his friend. After Maycock noticed Paget was holding a screwdriver, Paget told him to “mind his own business” and jumped in the van, the source stated.

Maycock fired a single shot at the van’s tires, but missed, police stated. He then fired again, striking Paget in the chest. Maycock called police at about 7:10 p.m. to report the incident, and then rendered aid to Paget. Responders found the victim slumped behind the wheel of the van, which is reportedly stolen. Police believe the fatal shot penetrated the driver’s side window, the source reported. Paget died shortly after being transported to University Medical Center.

Paget pleaded guilty in April 2014 to two counts of grand larceny and was sentenced to two to five years in prison, according to Clark County District Court records.

Maycock, who has been employed at the self-storage facility for 17 years, recently obtained a concealed-weapon permit following several thefts at the property. He’s been charged with one count of murder with a deadly weapon, and is being held at the Clark County Detention Center on a $25,000 bond. He was scheduled to have his initial court hearing yesterday.

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Florida Self-Storage Operators Prepare for Change in Rental Sales Tax

Article-Florida Self-Storage Operators Prepare for Change in Rental Sales Tax

Self-storage operators in Florida are preparing for a change in sales tax to be applied to unit rentals starting next month. An amendment to the state’s real estate sales-tax law, passed in May, will drop the sales tax on commercial rent by .2 percent statewide, reducing the tax from 6 percent to 5.8 percent in every county except Miami-Dade, which will fall from 7 percent to 6.8 percent. Though the update technically went into effect on July 1, it will only affect rent on new leases, including self-storage, beginning Jan. 1. Rent paid on leases signed prior to Jan. 1 will stay at their current rate, according to a source.

“This tax reduction is minuscule; a tenant only saves 20 cents per month on a space that rents for $100 per month. It also creates an administrative headache for self-storage operators who must modify systems to calculate the tax correctly,” said national Self Storage Association officials in a Dec. 4 e-mail newsletter to members. “Operators will need to modify their accounting software, so that they are charging the correct sales tax on January 2018 rents.”

Florida is the only state that imposes a sales tax on rent, according to “The National Law Review.” The commercial-rent sales tax has existed since 1969. “There has been a movement to repeal this tax for several years, but it should be noted that Florida’s general revenue stream is very heavily reliant on sales tax in general,” the source reported. “For the 2016-17 fiscal year, the sales tax accounted for 78.5 percent of all such revenue.”

The real estate sales tax is higher in Miami-Dade County because it has a 1 percent local-option surtax. Florida authorizes local-level government to use eight different discretionary sales surtaxes, though not all are available to every county. There are also caps based on certain combinations, according to Florida TaxWatch, a non-partisan watchdog group. “The maximum potential local sales tax rate in Florida ranges from 1.5 percent to 4 percent, but the highest rate currently in effect is 1.5 percent (in 10 counties),” according to its website. “Eleven counties do not levy any local-option sales tax. Most of these taxes are not widely used, and only three of them are levied in more than three counties.”

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