By Harold Leslie

In today's market, it is more important than ever to do your homework before investing in a new self-storage project. Unlike the early days of self-storage when you could build a project and expect it to prosper with little or no market study, today you must take an educated approach to your project planning or risk losing large amounts of your hard-earned money. So, plan to spend at least $3,000 to $5,000 to develop information that allows you to make the right decisions--whether to stop or go forward with a project.

Some areas of the country are now overbuilt, with too many available square feet of storage and too few consumers. There are many resources available to the prospective self-storage owner that can tell you whether a site would be profitable, or if it is one that would fail.

I recommend using demographics/ market-research companies and consultants that work in this industry to tell you who are the available customers in an area, what is their mean income, what is the daily traffic count past the location you are looking to develop, what are the statistics and, if an area is growing, how fast. Also important is information on existing storage facilities (prices and occupancy). These facts will guide you, not only in the initial choice of facility location, but it will give insight in preparation of unit mixes, what size facility to build and how much you may be able to charge for your available units. Many market-research companies offer packages tailored to the self-storage market.

One useful source of information is the Inside Self-Storage Factbook. This is published annually each November and contains information on financing, real estate, development, marketing, consulting and other aspects of the self storage business. Also available is MiniCo's Self-Storage Almanac, an annual, statistical abstract containing information on topics such as unit mix, rental rates throughout the country, construction costs, population traits and more. It may not give you the exact information you need for your specific site, but it can give you an overview of self-storage industry statistics nationwide. If you have no previous self-storage experience, you may find both these publications to be most informative.

Another available tool is the use of industry experts. Attend the trade shows that are held throughout the year. There are self-storage development seminars and workshops held regularly, sponsored by several of the major industry publications (including this one). Watch for events in your area of the country. While attending, make good use of the experts available to you. Listen to the speakers and talk to other attendees. Keeping up with the changing trends of self-storage will allow you to build a facility that will meet the needs of your customers 10 years from now, not just today.

Site Selection

Once you have determined where your project should be located, there are some other important aspects to consider. A "good site" for self-storage should be:

1. Located on a major traffic artery.
2. Located between dense multi-family residential areas and retail locations.
3. Located on the "going home" side of the road, if possible.
4. Zoned for self-storage use by virtue of being eligible for a special-use permit.
5. Depending upon population, the nearest competitor should be no closer than 3 miles. If this is an urban site, it can be as low as 1 to 1.5 miles.

When looking to purchase a parcel of land, you must know what you can pay and still be cost-competitive. I use the 66 percent rule of thumb developed by Bruce Manley and Buzz Victor, two of the founders of the self-storage industry. (See "The 66 Percent Rule.")

The 66 Percent Rule Find the average annual per-square-foot rate for a 10-by-10 and 10-by-15 storage unit. Multiply by .66 (calculate 66 percent). The result is the most you should pay (per foot) for ground. Example: 10x10 rent = $85/month x 12 months = $1,020 Divided by 100 square feet = $10.20 per square foot 10x15 rent = $98/month x 12 months = $1,176 Divided by 150 square feet = $7.84 Average= $10.20 + $7.84 divided by 2 = $ 9.02 per square foot Multiply total by .66 = price for gross square foot of land = $5.95

Also, the building-to-land ratio of your project, including water retention, drives, setbacks, etc., must be in excess of 40 percent. For example, a site of three acres (130,680 square feet) must produce a minimum of 64,272 square feet of rentable storage.

Of course, in the process of purchasing a parcel of land, you will need to use a good title-search company that will find any recorded easements, highway right-of-ways, utility easements and service-access easements that you would need to be aware of before purchasing the land and planning your buildings.

Another factor to be aware of before signing the contract on a parcel of land is the state of the land itself. What kind of business was there before? You should invest in an environmental assessment before making a commitment on the land, particularly in urban areas. A professional environmental and geo-technical assessment will include several key components:

• An inspection of the physical characteristics of the property and surrounding area, including topography, geology and hydrology.
• A review of all reasonably ascertainable historic records.
• A review and inspection of the current condition and uses of the adjoining properties to identify the presence of any environmental conditions or regulated activities that may have a negative impact on the property.
• A review and inspection of the current condition and uses of the property, including compliance with appropriate regulations.
• Soil borings collected using a geoprobe drill rig. These samples are to be carefully handled and tested in a laboratory for the presence of harmful contaminates.
• A full written report completed by an environmental-evaluation firm including conclusions and recommendations.

While it may sound somewhat extreme to go through all of this, it can save you from becoming responsible for cleaning up a toxic-waste dump left by a prior owner, or being stuck with a piece of land that you cannot build on economically (or at all) due to poor soil conditions. Also, be mindful that it will be difficult (if not impossible) to obtain financing on a substandard site.

Permits and Zoning

There are issues to be reckoned with that relate to community acceptance of self-storage. Many areas are now requiring elaborate architecture or expensive facades to make the facility blend with existing structures and surrounding architecture. Zoning and planning boards must be approached with an eye toward education in the advantages of having adequate self-storage available in the community. Following are some benefits you can point out while presenting your case for allowing a self-storage project to go forward:

• Self-storage operations are quiet. It's a good buffer.
• It creates very little traffic.
• It has no impact on utilities.
• It has no impact on schools.
• It provides good tax revenues.
• It's a community service.

You will also need to be informed on the community standards for construction, such as allowable coverage on your land, building set backs, parking requirements, minimum drive widths, sign limitations and setbacks, landscape requirements, water use and storm-water management, etc. The better informed you are about these issues before you buy a piece of land, the better you will be able to design your facility correctly the first time, without costly changes after plan review.

Site Design

After you have settled on where you will build, you must design the facility. Look for an engineer or architect who already has experience in self-storage. The unique requirements of storage projects, both in current building techniques and in conformity to codes, can be tricky. You want someone designing your facility who already knows which hoops to jump through. You do not want to have to pay while this person learns the ins and outs of self-storage. There are special code requirements for building separation, fire codes with special requirements for storage, and certain mandatory requirements as to hall widths and maximum travel distance between exits, etc.

When you have a preliminary plan ready, you will have to take it before the building department for permitting. In most cities and towns across the country, it would seem that most bureaucrats disseminate misinformation and inaccuracy. We have found that, in many cases, municipal employees feel it is their job to be adversarial rather than helpful. This is particularly true when it comes to providing answers that require interpretation. The following tips help to approach the bureaucracy.

• Be courteous.
• Be honest about what you do and do not know.
• If you cannot make the progress you want to make on your own, consider the services of an attorney, architect or engineer. But again, anyone you choose out of those three disciplines must have previous self-storage experience; you do not want to be the one paying to educate them.

After you have selected a site and had preliminary drawings made, you must bear in mind that, realistically, the occupancy rate of your facility after 18 months of operation must exceed 80 percent to achieve stabilization. If you fail to select a viable site, you may find yourself paying the mortgage out of your own pocket. If that continues for more than 18 or so months, you may find your financiers looking over your shoulders in a most unpleasant way.

So, make sure to do all of your homework before proceeding on an investment of what could easily amount to over a million dollars. Don't think you can do it on the "cheap." Paying a few dollars before you build may save you much more later in the development of your self-storage project.

Harold Leslie has been involved in the self-storage industry for more than 28 years and is considered one of its founders. He was instrumental in the early development of the Self Storage Association, and was a pioneer in the development of standing-seam roof systems and computer-aided design (CAD) use for unit mix and design. Mr. Leslie currently serves as president of Leslie Industries Inc., a design and engineering firm, which leads in the development of climate- control self-storage and has completed more than 50 million square feet of self-storage projects to date. Leslie Industries' European affiliate has completed more than 5 million square feet of building conversions to self-storage in Great Britain and the continent. He also is the owner of five self-storage facilities in the United States.

By David Wilhite

In any given year, during the months of June through November, an average of three hurricanes will strike the United States. In 1995, hurricanes accounted for more than 100 deaths and caused billions of dollars in damages. National Weather Service experts are in agreement that science will never provide a full solution to hurricane safety. The question is, how can self-storage facility owners operating on America's vulnerable coastlines protect themselves and their business operations from harm?

Since coastal areas are vulnerable to storms, facility owners located in those areas should enter each hurricane season prepared. Aside from such basic safety issues as having an evacuation plan in place and stockpiling emergency supplies, you should be absolutely certain you have appropriate insurance coverage in place to protect your business in case of disaster. Don't gamble on luck to protect you--the price you pay will be much higher in the long run.

Your first step is to secure adequate insurance coverage. In addition to protecting your business from hurricane- and wind-induced damage, a complete insurance package should also include loss-of-business-income coverage and extra-expense coverage to protect your finances in the event of a loss. (Smart shoppers, take note: Your best bet is to purchase property coverage on a special form basis, which also protects against hail, smoke, explosion and other perils, unless the policy specifically excludes them).

Once your coverage is in place, there are a several other steps you can take to prepare against disaster. If you own a camcorder, you can videotape the interior and exterior of your facility, describing each item as you record it. Be sure to store the tape in a secure location away from your premises. Alternately, you can prepare a list of your valuables with Polaroid photos. Either method can save a great deal of time and trouble when making a claim.

Once a hurricane watch has been issued, precautions should be taken immediately to protect your facility. Board up windows or secure them with storm shutters, and brace all exterior doors shut. Secure any loose objects surrounding the area, such as trash cans, signs, etc., so they do not become flying missiles. Unplug electrical items and shut off gas lines. Remember: Hurricanes moving inland can cause severe flooding, which brings attendant risks of fire and electrocution.

Above all, play it safe. Monitor the progress of the storm through National Weather Service advisories and be prepared to evacuate the area immediately. Hurricane warnings may be issued only hours before a storm strikes, so plan your time accordingly. Avoid any last-minute rush that may leave you stranded if disaster threatens, and stay calm.

After the storm passes, call your insurance company as soon as possible to report a claim. Avoid the temptation to sight-see affected areas--you may be mistaken for a looter. Carry valid identification, along with proof of residency and your business license. Drive carefully through debris-strewn areas, and watch for fallen power lines, especially in areas with standing water. Enter your business with caution. Don't use matches in case of gas leaks, and don't use electricity until your business has been checked out by the proper authorities. Remember, if the area in which your facility is located is heavily affected, it could take two to four weeks (or longer) before local roads are cleared and the area opened to the public. A catastrophic loss can deliver a knockout punch that can devastate your financial future. Don't put yourself at risk.

David Wilhite is the marketing manager of Universal Insurance Facilities Inc. Universal offers a complete package of coverages specifically designed to meet the needs of the self-storage industry, including loss of income, employee dishonesty, comprehensive business liability, hazardous-contents removal and customer storage. For more information, contact Universal at Box 40079, Phoenix, AZ 850067-0079; phone (800) 844-2110; fax (480) 970-6240; www.vpico.com/universal.

Michael Skrentny is currently president and part owner of Mystic Systems Technology Corp. (MSTC), a Scottsdale, Ariz.-based company that provides management software, access and alarm systems to the self-storage industry. He has been with the company since 1991.

Inside Self-Storage caught up with Mr. Skrentney to discuss his unique history in the self-storage industry, the development of MSTC as a company, the perceptions surrounding the launch of its Account Manager program, and his insights on the future of self-storage software. We are now pleased to present an interview with Michael Skrentney...

Now that we know some of your background, what were some of your earlier positions in the self-storage industry?

My first experience was as a manager for Shurgard Storage Centers in Washington state. That was in 1984 when Shurgard was raising capital through limited partnerships. I learned a lot from the experience because Shurgard was very focused on management and quality service. They were from the part of the country that brought us Microsoft and Nordstrom. They wanted to instill that kind of ownership mentality in their employees, and they were very committed to education. They quickly promoted me to regional manager and relocated me to Phoenix, to develop what was then a new market for Shurgard--managing, acquiring and assisting in the development of new properties. At the time, all of the facilities under my direction were computerized, and we used the MSTC Mini Manager as our system.

In 1987, I took a position as VP of operations with a relatively new up-and- coming company, Storage USA. They were in the business of developing high-quality storage facilities and from the very start began positioning themselves to be one of the top three operators in the industry. I was impressed that such a small company could have such drive and focus. We were definitely the underdog, but there was no question in my mind that it was only a matter of time before we reached our goal. We always approached things from the standpoint of "Will this work now?" and "Will it still work with 100 or 1000 sites?" Dean Jernigan was always willing to put the necessary resources toward any problem so that it could be solved in the best possible manner. Much of the groundwork we laid in those days is still in place today.

When I came to work with MSTC, we also had an affiliate company, Arizona Mini Storage Management, which managed the Storage Solutions facilities in Arizona. I was again VP of operations. I worked this position for several years while also working sales and management at MSTC. Later, when I became president of MSTC, we made the companies more independent and autonomous so they could each focus on their particular business.

How has this helped you in your career at MSTC?

I am fortunate enough to have had experience on every level of self-storage management, from on-site management, to supervising facilities all across the country, to writing and implementing policies for several major self-storage corporations. All the while I was also a customer of MSTC, so right from the start I was an outside advocate giving them suggestions on how to make their products more meaningful for the managers, management companies and owner/operators. Whenever we put something new into our program, we think about how it affects the people in all of those positions. Several other key persons in our organization come from the background of self-storage management, so we definitely have that part of understanding the business down pat. In addition, I am able to apply the fundamentals of teamwork to taking ownership and commitment to quality service in how we do business. They are the key elements of MSTC.

When computers first became available on the Macintosh platform, MSTC was one of the first software vendors. Explain its history for us.

MSTC actually started working on products in the early 1980s. At that time, one of the founders of MSTC, Tom Swanson, was an owner/operator in Tempe, Ariz., and had a desire to computerize his storage facility. He worked with some local people developing a product and then realized that this was something they could take to market; so, in 1984, Mini Storage Technology was in incorporated. Right from the start they had a customer-service philosophy, and were the first in the industry to offer 24-hour, 7-day-a-week, 365-day-a-year technical support.

In those days you actually leased the program, the computer and even the computer desk. If something went wrong with the system, they literally shipped you a new computer overnight. It was an Apple computer with two floppy drives and no hard drive. Believe it or not, MSTC was able to actually run a management program and a gate-access system all on that one computer, even when it was supposedly technically impossible. Granted, it didn't have the level of sophistication that we expect from our programs now, but for its time it was very innovative. At the time I was working for Shurgard and we had the MSTC gate-access systems also. I'll never forget the day that Millie Swanson came over to our facility in the heat of summer to troubleshoot a problem we were having with a keypad. It was well over a 110 degrees and there she was out in the middle of the sun on the hot asphalt with a long mop handle in her hand, trying to pull wires out to reconnect the keypad. We took a Polaroid picture and she looked like Carol Burnett doing one of her cleaning lady comedy acts. I wonder where that photo is. That really stuck with me that MSTC would go that far to serve its customers.

In the mid-'80s it became evident that the business world was moving from Apple to IBM-compatible computers and that DOS was here to stay. MSTC jumped on the DOS bandwagon in a big way and began the task of creating the Mini Manager II, which was a derivative of the Apple program but clearly better. At that point, they knew the shortcomings of the previous system and what it needed to do to be at the forefront of technology for this marketplace. When the program came to the market, people didn't want to lease their systems any more, so the approach was all sales. MSTC got out of the business of providing all the hardware and the desks, but stayed with the approach of offering a complete system. Now, however, you could do more than just lease it, you could own a license to the software. By the early-'90s, almost all Apple-based systems were converted to the DOS system. A very similar experience to what is occurring now with so many moving from DOS to Windows.

What significant changes have occurred to MSTC through the years, and how has it impacted the marketplace?

MSTC has always been at the forefront of technology. In the early 1990s, MSTC was the first to conceptualize and implement an alarm system that could be retrofitted into existing facilities because it employed the use of wireless transmitting technology in conjunction with other hardwired devices. This system came with individual door transmitters that could be wired to magnetic contacts or placed in passive infrared devices that required literally no installation. This meant that alarms could be rented out to customers who were willing to pay extra for them. Shortly afterwards, we developed 16-channel multiplexers that could also be utilized in the system. This allowed the system to be practical for new installations where all units were to be alarmed as well as for retrofits.

In 1995, my business associate, Kathy Trevillyan, and I also took over controlling interest in MSTC. It was our goal to reorganize it into a company that still cared about quality products and customer service, but that could hold pace with the way the world does business today. In 1996, we moved our offices and expanded our staff to help maintain consistent levels of sales and technical support. We began business planning using outside consultants, such as George S. May International Co., to help us identify areas that might need work. We also felt that the world would be going over to the Windows platform and we wanted to be at the forefront of that effort with 32-bit technology. So we started the process of defining the specifications for what would later become Account Manager for Windows. It was important for us that we keep the good things about the DOS Mini Manager II that made our company a success, but we wanted to stand on top and incorporate many of the things our customers had been telling us they wanted in a new system.

We began programming the Windows-based Security Manager in 1996 and Account Manager in 1997. We were expecting to release them both by summer of 1998; however, software development is not an exact science and the process took longer than expected. Meanwhile, in 1998 our programming staff (which consisted of three family members) decided that they were not happy with the direction of the company and they departed in October of 1998, leaving us with an incomplete program and some unhappy customers who were anxiously awaiting their new systems.

Recognizing the need to act quickly, we selected a software-development company that had a great deal of Windows- and Internet-development experience, to outsource the actual programming of Account Manager. We decided to turn a negative into a positive, and I began working with them on a daily basis. This gave MSTC a great opportunity to take a fresh look at Account Manager and make it even better than initially conceptualized.

The only problem we encountered was timing. It became apparent to us that we had to start over almost from scratch, and we were already late releasing Account Manager. So we did everything we could to speed up the process. We had up to five people working 10- to 24-hour days trying to accomplish the impossible. We learned an incredible amount during this process. All the while, many people in the industry were waiting to see us fail and spreading rumors that we were going out of business. Consequently, we released version 1.0 of Account Manager a little prematurely. We thought people would be happier to see the product partially functioning and that they would have the patience to go through the completion process with us. We were wrong, and we then recalled the product and began a more controlled approach to releasing the software in the fall of 1999.

That's quite a story. It's easy to see how perceptions can be inaccurate. Are there any thoughts you'd like to share with your captive audience?

We're here to stay! We've weathered a tough storm and come out stronger. It has made us tune into our customer base even more. After all, they have been frustrated; yet, we stuck in there day after day and listened to what they had to say so that we could be the best. We owe a debt of gratitude to thank all of our customers who have supported us and given us the strength to persevere. It is our business and our pleasure to serve such excellent people.

Windows development tools are holding the floodgate open for software vendors. Do you feel this makes the buying decision more difficult? How has competition affected your business?

We program utilizing Microsoft Visual C++ development tools. It is possible to utilize other development tools, but they do not all get the same result. Account Manager offers literally thousands of options of how to do business. It takes a lot of programming (source code) to support that much flexibility. I find there are a lot of systems out there, some of which are new to the marketplace, but few demonstrate the level of experience and depth of configuration that Account Manager has.

Just being "Account-based" makes its source code more complex than anything else. The word "account" as used in our system means that for each customer that rents units at the site, we establish an account you can enter the customer contact, billing and identification information into. In addition, you can have multiple contacts and multiple units in the account. For each account in the system, you actually customize all of your business practices so you can do business with them the way they want you to do business. We have over 15,000 programming hours in the system, and we plan to keep going strong.

Lots of companies will put a Windows product out there. There aren't any real controls in place to regulate software. That's one of the reasons why so many products come to market. Anyone can form a company, write a program, get a trade-show booth and an advertisement, and claim to be an expert. It's difficult initially to tell them apart. They all appear to do the same basic functions. It's the flexibility to conform to how you do business, the accountability of the system tracking controls, and the customer support that sets apart the better ones. I think you'll find that the more mature companies in the industry understand this, and if you evaluate the products you'll see some significant differences.

Developing a reliable, proven product is not easy from what you've explained. Is your newest Windows property management product, the Account Manager, bug-free?

Microsoft has certainly demonstrated that no successful product is bug free. At any given time, any software system has a list of known issues. It is the responsibility of the software companies to minimize the potential risk of any bugs by thorough testing and to respond quickly to any that are identified. A software system with no bugs is essentially a dead system and will soon be obsolete. We maintain a list of issues in our software, track the progress made on each issue, and then test the fixes prior to releasing a new version. We have released a new version of Account Manager at least once a quarter and intend to continue to do so through the year 2000.

So "buyer beware"? What advice would you give to a first-time builder of self-storage who is shopping for automation products?

Since we lack the equivalency of Consumer Reports in our market, it is important to educate yourself via seminars, publications, and relationships with management and consulting companies, as well as with the vendors who supply you with the products. Talk to other operators and learn from their experiences as well.

"User-friendly" is a term so often heard in software marketing. Is there truly such a thing as user-friendly software?

We decided that "user-friendly" means being compliant with Microsoft Windows. We designed our system to use all the standard menus, tool bars, wizards, task bars, properties sheets, drop lists and dialogue boxes you would see in a product developed by Microsoft. In this way, the computer operator is half way there just by learning how to use Windows. We find that people who are Windows proficient find the system easy to use, and those who only know DOS get frustrated. Until they learn Windows, they will continue to be frustrated. We recommend that everyone using our system should take a basic Windows class to learn how to maneuver around, and then they can take one of our optional training courses. In addition, our system has a very thorough online help system that will help the user find just about anything they need to know about the system.

Internet technology is also another life-altering device in our society. How has MSTC applied Internet features in your business and in your products?

We use the Internet as our primary means of communication, even within our own company. In addition, we have created a website that allows our customers to easily contact us for sales inquiries, and support questions, and to make suggestions on product development. Several of our employees actually work from home several days a week and utilize the Internet almost exclusively to stay in touch. We utilize synchronization so they can log on and update their database to match the main one on our network. In the Account Manager, we utilize the Internet for corporate report transmittals and are expanding that to include credit-card processing and the mailing of customer invoices.

We also see the future as being one in which there will be a web-based approach to self-storage management software that will allow storage customers to check their balances and history, make changes to their account and make online payments via the Internet. From a corporate standpoint, the home office of multiple sites will actually maintain the server and host the database that the sites will log on to as browsers. This will allow the home office the ability to always have the most recent information at their fingertips making call-center reservations, rate management, audit controls, report timeliness and marketing decisions a snap.

What can this industry expect to see from your organization in the next three to five years?

Our big emphasis over the next few years will be to continue to refine the Account Manager to meet the needs of the industry, to introduce our new security hardware line and to develop and release a web-based enterprise version of Account Manager. All the while our focus will be to continue to improve our quality of customer service and to introduce innovative and leading-edge solutions for the industry.

By David Reddick

Planning the security systems for your self-storage facility has become a rather complex task. The long and short of it is that there are a lot of choices and you will have unique wants and needs that respond to your market area and how you want to operate your business. Let's begin by defining the environment:

• The self-storage software program you use directly impacts your security system. It makes little sense to operate two separate systems if they can be interfaced or integrated so that many operations are accomplished automatically.
• There are a number of vendors who provide security systems specifically for this market. Self-storage is a unique business and vendors who specialize in this market provide features you need and that are useful in operating your business.
• Many different systems are available. For example, access control (keypads or card readers), individual door alarms (hardwired and wireless), CCTV, perimeter beams, graphic displays, etc.
• Systems/vendors offer unique features. Everyone tries to differentiate themselves from their competition. Providing a capability that no one else offers is one way to say, "my system is better."
• The physical layout/structure of your site will impact your security decision. Single-story, multi-story, inside units, outside units, etc., will impact your specific security system configuration.
• What your competition has to offer can make a difference. Do they have an automatic gate? Do they offer 24-hour access? Do they have and market a door-alarm system?
• Your marketing plan needs to relate to your security system. Security systems can be very effective marketing tools that can increase rates and occupancy.
• Everything has a cost. Your budget will ultimately dictate what you do. Leaving your security decision until late in the game often limits your ability to purchase the security system that will best meet your needs.

Understanding what is available will take the most time, but it is also the most important activity you will undertake. You need to be an informed buyer and that mandates that you do your own research and make your own comparisons.

Property-Management Software

Your software decision is directly related to your ultimate security decision. In most cases, choosing a software program will be the first thing you do. This naturally occurs for several reasons:

• The self-storage property-management software you select will be your primary tool for operating your business. As such, it must meet all of your operational needs, i.e., automatic posting of rent and late fees, generation of customized late and lien notices, printing customer receipts, as well as providing you the financial information you and your CPA need.
• A fair amount of customization will be required to meet your state laws and the conditions specified in your lease agreement. This customization and the fine tuning required as you implement your system will take some time.
• Learning how to use the software will also take you and your managers some time. While it is true that the simple operations (i.e., renting a unit) can be learned quickly, the countless variations (how to take a partial payment or do a pre-lease, for example) will require more hands-on knowledge. The key point is that the time to learn must come before a customer is standing across the counter in the rental office.

Selecting your software will require you to make the fundamental decision of which operating system you will use. It is basically a choice between DOS and Windows. Our industry has grown up on DOS, and there are many vendors with lots of storage experience who can provide you with a reliable and stable DOS-based system. Many of these vendors are working hard to provide Windows-based systems, and there are several who have successfully made the transition. I'll make the following observations for your consideration:

• It is virtually impossible to purchase a new PC that does not have Windows already installed.
• There are inherent conflicts in running a DOS-based program on a PC with Windows. Not that these issues can't be resolved, but it often takes extraordinary knowledge and skill to smooth out all the bumps. These obstacles can be significant when running your DOS-based security system on the same PC as your Windows-based management software.
• Development of Windows-based systems is tedious and difficult. It takes time, both in the development shop and in the field, to provide a system that is reasonably reliable. Early releases (versions) may provide you with some significant challenges. If you are not prepared to do Beta testing for your vendor, look for systems that have been in use for a period of time, and talk with people who use them.
• Finally, why buy old technology? The reality is that all new features and capabilities will come from Windows-based systems, not DOS.

And Now, on to Security

An overview of self-storage security systems will help you focus as you prepare to do your "homework." I think it is most easily understood by separating these systems into three categories: access control, individual door alarms, and ancillary systems and devices.

Access-Control Systems

Access-control systems provide a means of selectively allowing tenants to enter your facility. The most common method uses an entry and exit keypad in conjunction with a motorized gate. Your customer keys in his unique passcode at the entry keypad and, if certain conditions are met, the system will signal the gate to open and record the date and time this tenant has entered the site. Egress from the site is handled in the same manner at the exit keypad, and the system records the date and time this customer has left your facility.

Access-control systems can also be used to control entry via a door with an electric lock, i.e., to an interior corridor where inside units are located. The more sophisticated systems will support both gates and doors and selectively permit access only to those tenants having units in that particular inside corridor. Card readers are also available with many access-control systems. Some use proprietary cards (must be obtained from the supplier) and others use the customer's debit/credit card. The vast majority (99 percent) of self-storage facilities use keypads.

It is important to note that access-control systems only signal the gate to open. They provide a momentary closure (one to two seconds) of the circuit connected to the two normally open contacts at the gate motor. The gate motor (often referred to as "gate operator") controls how long the gate remains open and when the gate closes.

Holding the gate open is most often accomplished with the use of safety loops, which are connected to a loop detector inside the gate operator. Loops are wires embedded in the ground in front of and behind the gate. The loops and detector can sense a vehicle, which is in the way of the gate, and hold the gate open until the vehicle has cleared. They act as both "safety" and a signal to close the gate. Beams are sometimes used in place of loops. They are not as reliable and generally require more maintenance. We are beginning to see an occasional case where local codes require both beams and loops. In my opinion, the use of beams should be as secondary safety devices and not primary safety devices.

Your gate operator should always include a "timer to close." These timers are variable; for example, you can adjust the amount of time before the timer to close signals the gate, i.e., 15 seconds, to close. This is a fail-safe device that will help ensure the gate will close if someone keys in at the entry keypad (or card reader), then changes their mind, backing up and never crossing the loops.

The operation of an electric door strike is somewhat different in that it is always locked unless the circuit is closed. This means that the device (keypad) connected to the door strike must have the capability of holding the circuit closed for some period of time (five to eight seconds, for example) to allow the customer to physically open the door. Remember that exit must always be allowed without restriction.

Gates. Gates are available in an infinite variety. Sliding gates and vertical-pivot gates are the most common in the self-storage business. Swing gates are almost never used. Sliding gates are equipped with rollers that follow a track on the ground to keep the gate on course, or are a "Cantilever" style. Cantilever gates are built to support themselves, i.e., they have rails and rollers that support the gate allowing it to open and close without touching the ground. Vertical-pivot gates (somewhat new to the industry, but catching on) also support themselves. The gate and operator are purchased as a package. The gate opens by pivoting 90 degrees. It is counter-balanced so it can be easily raised manually if required.

The optimum size for a gate in our business is 16 feet wide by 6 feet high. This will allow any vehicle, which can legally travel our roads, easy access (room to spare) to your facility. The reality is that your local fire department is probably going to dictate the width of the opening. Don't give up the fight too easily as very large gates and openings can complicate your operation and add unneeded cost to your project.

Entry/Exit. Designing your entry/exit is something that should be done early in your project. Too often we see plans reflecting gates that don't fit, no provision for keypads or card readers, no conduit specified and little consideration to the flow of traffic. As an industry, we seem so preoccupied with coverage and unit mix that we don't consider how our customers are going to get in and out of our facilities. A normal situation would specify a 16-foot opening that would be a shared entry/exit (one gate). The traffic flow would be reversed so the customer enters and exits on the left side of the driveway respectively.

Keypads (or card readers) would be placed on the left side at a point 12 feet away from the gate--one for entry on the outside of the property and one for exit on the inside. Remember, it is as important to know when a customer leaves as it is to know when he arrives. Access to either keypad would be done from the window of the customer's vehicle. Ample space would be provided so the customer could easily straighten the path of their vehicle to line up with the keypad and proceed through the gate once it opened. The gate would be back from the main thoroughfare to allow room for three or four vehicles, and would be easily viewed from the office. Sufficient parking would be available outside the gate for prospective tenants, delivery vehicles, etc. There are, of course, many acceptable variations.

Your access-control system vendor should be able to provide you with scaled drawings to assist you in designing your entry/exit, placement of keypads/card readers, size and placement of required concrete pads and placement of conduit. Today's access-control systems are rich with features tailored to meet the unique requirements of self-storage. Individual passcodes, multiple time zones, holiday programming, discrete access levels and make late/pay up are just a few standard capabilities you will need to operate your facility. Evaluating the practical use of features available as they apply to how you want to run your business will help you in your decision-making process.

Individual Door-Alarm Systems

Door-alarm systems, by design, have inherent access-control capability. The most common configurations utilize the entry function to not only open the gate, but to also disable the alarm on that tenant's unit door. An entry message is recorded, and the date and time the unit door is opened is also recorded. For example, "OPEN 1124 9:37 4-26-2000." Thus, you not only have a record of when the tenant entered the site, you also have a record of when they entered their unit. When the unit door is closed, the system will record a close message (CLOSE 1124 10:14 4-26-2000) for the unit, which will also record the date and time. Upon keying out at the exit keypad, the system will open the gate and record an exit message (EXIT 1124 10:17 4-26-2000) and re-enable the unit-door alarm.

At this point, you will have a permanent record of the tenant's entry, open door, close door and exit from the facility, a much more complete record of the tenant's onsite activity than simply an enter and exit message provided by an access-control system. And, most certainly, a more complete record than just an enter message captured by an access-control system using only an enter keypad and providing a free exit.

Individual door-alarm systems are still the best way to secure a self-storage facility. Considering that most break-ins (60 percent or more) are accomplished by tenants, electronic monitoring of unit doors makes a lot of sense. The classic break-in scenario goes like this: An individual rents a unit, probably paying in cash. He spends a fair amount of time on site observing move-ins and other activity where unit doors are open (so he can see what's inside). As each "good" tenant leaves and the opportunity presents itself, the individual cuts the lock, sorts through the unit contents placing the valuable items at the front of the unit, closes the door and secures it with his own lock. When he has eight or 10 units secured (I've seen as many as 35 or 40 at a time), in comes the truck and out goes someone else's goods. The unit doors are left locked, and no one is the wiser until the real tenant returns and his key doesn't fit.

I will occasionally hear opinions that since it is the door that is alarmed, burglars will cut through unit walls and obtain goods in that manner. The reality is that while this may occasionally happen, the vast majority are accomplished as described above. It's a whole lot easier. The other reality is facilities that post appropriate signage ("Every Unit Alarmed"), who market this capability by describing and demonstrating it to every prospective tenant, and who include it as part of their advertising, probably send problem tenants "down the street." After all, why would a burglar select a target with an individual door-alarm system in place when they could go down the street to a facility that doesn't have one?

The marketing capability of an individual door-alarm system is enormous. Properly and consistently done, the sales pitch can easily increase revenues $2 to $5 per unit per month and increase occupancy between 5 percent and 10 percent. Let's build an example: Take a facility with 50,000 rentable square feet and convert it to 500 equivalent 10-by-10s. In this market, a 10-by-10 rents for $50 per month. Add $3 per unit per month (on the low end of the scale) and increase occupancy by 6 percent (also on the low end of the scale). The result? An increase in revenue of approximately $32,000 a year. Further, at time of sale, the value of the facility would increase about $280,000 using a 10.5 CAP rate.

How do you sell door-alarm capability? Simple. You have your manager demonstrate the capability every time he shows a prospective tenant a unit. On the way to the unit, the manager explains that the security system provides a "secret" and unique passcode to each customer. Entering his passcode at the gate not only lets them in to the facility, it also disables the alarm on his unit door. When they arrive at the unit, the manager says, "We obviously haven't entered a passcode. Let me show you what happens when the door opens." The manager opens the unit door and the system sirens sound, clearly audible throughout the site. The system will automatically "time out" the siren after whatever period of time you desire, such as 25 or 30 seconds.

This demonstration provides a graphic example to the prospect of the door-alarm capability. I should add that the manager provides other descriptive information such as the systems-records entries, opening of doors, etc., and that the door alarm is re-enabled when the tenant exits the facility. Most door alarm systems are "hardwired," i.e., each unit is physically connected to the control system in the rental office. This connection is shared in some fashion to avoid the need of physically running wires from each unit back to the office.

Wiring and switches. There are several wiring schemes in use, with the most prominent being "multiplexed." One or more multiplexers are placed on each building and are used as a central point to connect the wiring from each unit. Multiplexers are connected together using communications cable, which can be routed in a variety of ways and placed to minimize wire lengths and conduit requirements.

A reed switch is placed inside the unit and its associated magnet is placed on the unit door. They are positioned so that when the door is closed, the magnet and switch are "aligned" and within the operating gap of the switch, normally two to three inches.

Several different types of reed switches are used. A floor-mounted switch is ideal for roll-up doors. This device is anchored to the floor of the unit inside the door and on the same side as the door latch. The magnet associated with the switch is mounted on a bracket, with the bracket being mounted on the inside of the door. The bracket provides an easy way to align the magnet to the switch and position it within the operating gap. The other type of switch is normally used with swing doors. This switch is mounted to the door header, and the magnet mounted on the door. A bracket is not usually provided unless the particular swing door has no header for mounting the switch.

Many facilities will use the swing-door switch with roll-up doors. The magnet is mounted on the upper part of the door (inside) and to the side. The switch is positioned by using a bracket, which is mounted to the unit wall. The use of swing-door switches on roll-up doors is done because of cost--they are generally $5 or $6 less than floor-mounted switches, which are more expensive and require some additional wire and connectors to install.

The arguments for using floor-mounted switches with roll-up doors are: 1) the point at which these switches and magnets are mounted is the most stable position of the door and more likely assures that the alignment and operating gap are maintained for an extended period of time; and 2) the magnet never gets "rolled up" inside the door when the door is opened, thereby avoiding the wear and tear that causes magnets to fall off over time.

Door-alarm systems that are hardwired operate in a "normally closed" condition. This means that the each circuit has continuity when the unit door is closed, and the magnet and switch are aligned and within the operating gap. An easy way to visualize this state is to make a comparison to a light and light switch. When the light switch is turned on, the circuit is complete and "closed." When the switch is turned off, the circuit is broken or "open."

Normally, closed systems also protect against wires being cut or components being disconnected since either will create an "open" condition and, therefore, generate an alarm. Hardwired door-alarm systems are normally installed during construction since all the wiring, switches, etc., can be placed inside. They can, however, be installed on the outside of the buildings after the facility is leased up. Installing a door alarm system on the outside (commonly referred to as a "retrofit") is being done with increasing frequency in our industry. There is no disadvantage to an outside installation, but there are two considerations that impact cost.

Reed switches used with an interior installation cannot be used for an outside installation since they can be easily "defeated." These switches are appropriate for an inside application because they are located on the back side of the unit door and, therefore, are not accessible from outside the unit. Switches that are accessible from the outside must be "high-security" or "anti-defeat" devices, and they are simply more expensive ($10 to $12 more) than standard reed switches. In addition, since wire for the units is run along the outside of each building, it should be concealed for aesthetic reasons as well as to protect the wire. It is important to note that protecting the wire from the sun is every bit as important as protecting it from moisture.

Protecting and concealing wire can be accomplished by using conduit or steel molding. Conduit is not very attractive, and wire placed in conduit is sometimes difficult to service. Molding, on the other hand, is attractive (many colors are available) and servicing wire is much easier than with conduit. Molding manufacturers have costs for each piece and part used, e.g., straight runs, 90s, couplings, etc. As a general rule of thumb, you can figure 85 cents to 90 cents per linear foot for molding. Assuming that your average unit is 10 feet across, you can estimate molding to cost about $9 per unit. Adding $12 per unit for anti-defeat switches will bring your incremental costs for a retrofit door alarm system to $21 per door/unit.

Wireless door-alarm systems have begun to make an appearance in the self-storage industry. Their primary appeal is the avoidance of having to discretely wire each unit. The perception is that material and installation costs are less than those of hardwired systems. The only way for you to determine which method is less expensive is to request proposals from hardwired and wireless vendors. The other claim of wireless-systems vendors is that you can market unit-alarm security on a customer-by-customer or unit-by-unit basis. In other words, the customer can rent unit alarm security for their unit(s) for a fixed amount per month in addition to their rent, if he chooses to do so.

There is a real question as to whether or not this kind of marketing is effective. We most certainly know that facilities with door-alarm systems can use the alarms as a marketing tool. You will have to decide if a unit-by-unit option is viable for your market. Perhaps discuss the merits with owners who use wireless systems and make your own judgement.

Individual door-alarm systems have many variations and features that will help you tailor them to your situation. For example, door-alarm systems are used at facilities without gates. The customer is still required to key in, which disables his unit alarm, but without an exit keypad to re-enable the unit alarm, the system is programmed to rearm at close. This means that when the tenant closes his unit door, the system automatically resets the alarm. This is not an operational problem, it simply means that instructions regarding the system must be slightly changed for the tenants. They need to understand that they must key in each time they open their unit door. This feature is used at many facilities without difficulty.

One feature I consider imperative as well as useful is "multiple units." Your security system must have the capability of linking all units rented by the same customer. This allows him to use only one code for entry and exit, regardless of how many units he rents from you. Customers with multiple units have a habit of only entering the codes for the units they believe they will need to access. Invariably, once on site, they determine that the things they need are in a unit for which they have not entered a code. They open the door and the alarm sounds. The multiple-unit feature eliminates this problem.

The multiple-unit feature has another advantage to the facility, since many changes can be accomplished through programming in place of making physical wiring changes to the door-alarm system. For example, if you take two 5-by-10s and combine them to make a 10-by-10, you will have two doors on the 10-by-10. Without the multiple-unit feature, you would either have to wire both doors together (in series), or put your lock on the second door so the customer could not use both doors. With the multiple-unit feature, it is a simple programming change to designate the second door as a "secondary unit" and give the customer full use of the unit.

Individual door-alarm systems are reliable and can be a productive security and marketing tool for an extended period of time. They are, however, dependent on the quality of the material used and require that they be properly installed. And as with any system, some preventative maintenance will assure proper operation. Your individual door-alarm system vendor should provide you with a specific installation overlay on your site plan/unit mix indicating conduit requirements, multiplexer locations and how each door switch is to be wired. Since these systems are low-voltage DC, care should be taken to provide separation (8 inches minimum) between conduit for the door-alarm system and conduit for AC power.

Ancillary Systems and Devices

There are an infinite number of security devices and systems available for use today. The most common ones used in our industry are perimeter beams, intercoms, closed-circuit television (CCTV) and site-graphic displays. Let's examine them one at a time.

Perimeter Beams

In the use of perimeter beams, a "line of sight" projection of an infared beam will annunciate an alarm if it is interrupted (something is in the way). They are commonly used along fence lines surrounding the facility, but can be installed at other points if useful. These are referred to as PIR beams.

PIR beams were originally introduced as a single-beam system, i.e., only one beam was transmitted to a receiver/reflector. They were only moderately dependable as almost anything (weeds, birds, dust, etc.) could interrupt the beam and cause an alarm. Dual beams followed and reliability increased, since both beams had to be interrupted at essentially the same time to cause an alarm condition. Quad beams (four) are now the most common and are much more reliable than dual- or single-beam systems. PIR systems are priced on a "distance sensitive" basis, i.e., the longer the beam, the more it costs.

Many beam systems offer control and annunciating equipment that allow them to stand alone and, therefore, operate as an independent entity. Beam systems used in self-storage are more commonly connected to the site access-control system and operate under its control. PIR systems should be treated as ancillary security and used only when a specific need is identified. They have limited value as a general-security system.

Intercoms

Intercoms are an easy and reliable way to provide voice access between the rental office and key points throughout the facility. Intercom systems include a master station and one or more substations. Master stations are designed to support one, two, three, five, 10 or 20 substations (there may be other variations) and are priced accordingly. The larger the capacity, the more they cost. Substations are relatively inexpensive, generally come with a plastic or metal face, and should always include a "call button" to provide a way for the substation to contact the office.

All primary self-storage security systems should include provisions for an intercom system. At a minimum, intercom substations should be associated with the keypads or card readers supported by the primary site-security system. The use of intercoms has been one of convenience in the past. Today, intercom systems are viewed as security and safety devices and are being installed throughout the site, particularly in inside corridors, multi-story buildings, etc. The real decision is not whether to install an intercom system, but how large a master station to buy that will meet your existing and future needs.

Closed-Circuit Television (CCTV)

CCTV is available in black and white or color and, in its most simple form, consists of one camera displaying an image on one monitor. Few CCTV systems are limited to only one camera and, since it doesn't make sense to add a monitor for every camera you place, the CCTV manufacturers have developed equipment to handle multiple cameras.

The early systems used a "switcher" that would allow the office to manually select which camera image to display or to switch from camera to camera at a specified interval. Switchers were commonly built to accommodate four or eight cameras. Next came the quad system, which split the monitor screen into four equal parts so the images from four cameras could be displayed at the same time. These systems also provided the ability to display a "full screen" for a designated camera should the office personnel want to enlarge the image.

Today's systems utilize technology that allows the cameras to be multiplexed, allowing the monitor to view eight, nine or 16 different images at the same time. Single, enlarged images can still be viewed easily by office personnel. A time-lapse VCR is often included with CCTV systems to provide the ability to have a record on videotape of all activity viewed by the installed cameras. Videotapes are generally archived and labeled with the start and end dates should the site need to review activity at a certain point or during a specified period of time.

There are a number of motivations for using CCTV at a facility. They range from simply wanting to see gate activity (if not readily viewed from the rental office) and perhaps having a video recording of all entries and exits, to having a comprehensive video record of site activity, including what was stored and by whom. You can spend as much money as you want on CCTV systems and should remember that they have some marketing value when monitors are prominently displayed in the rental office. You should also consider that such systems require some human intervention to be effective; therefore, their value is often "after the fact" as opposed to systems that are electronically based, e.g., individual door alarms.

Of particular interest is the newest remote-viewing capability now available at a reasonable price. These systems use a differential transmission protocol over a dial-up telephone line, which greatly enhances the quality of the video image and increases the "effective frames per second." This gets you much, much closer to real-time viewing than anything previously available on a dial-up basis. Owners with remote, unattended facilities should investigate this technology. You could be in your distant office (or at home), dial the telephone number and view your site (from multiple cameras) using your PC monitor. It is really slick!

Site-Graphic Displays

These systems provide a full-color view of your facility indicating units, buildings, etc. Unit colors are changed as their status changes, e.g., rented/vacant, tenant on-site, tenant in unit (alarm systems) and alarms (PIR or alarm systems). They often will also include activity messages across the display as these messages are generated by the primary system.

Most graphic displays address only the security system, including rented and vacant units. Other displays will also provide management information, such as delinquent, lien and unrentable status. They display the site by "paging" or "scrolling," as most sites are too large to fit on a single screen. Some vendors provide the site with the ability to reflect changes in the unit mix as they occur and stipulating what will be displayed and in what color. This gives the facility the ability to keep the display current (I had two 5-by-10s and now I have a 10-by-10) and to only display what they deem necessary; for example, they may not want to display delinquent units.

Site-graphic displays are most effective when displayed on a separate, larger monitor. DOS-based systems require a dedicated processor (a low-end PC) to run the separate display. Windows-based systems utilize a second video card to operate the separate monitor. Both approaches work satisfactorily, but the Windows-based display offers more capability and opportunity for future development.

Site-graphic display monitors are often placed in a cabinet along with CCTV monitors and other peripheral devices. This provides the rental office with a "high-tech" control center that also gives customers and prospects some real sizzle when they visit the office. Cabinets can be purchased from a variety of vendors or can be built at and by the site. Building a cabinet on site is easy, and there is not much for you to know. For example, once you have decided what will be placed in the cabinet, you can easily determine the horizontal shelf space required. The depth will be determined by the size of the monitor you select for the graphic display, as this is almost always the "deepest" component.

Construct the cabinet and place the required shelves. Make sure that access to AC power is provided, and allow for wire to placed through holes in the shelves or a space are the rear of each shelf. Paint the inside of the cabinet black. This reduces the opportunity for light to bounce around inside the cabinet, reducing the effectiveness of the displays. Purchase a piece of smoked Plexiglas cut to match the opening at the front of the cabinet. Obtain a hinge(s) suitable for mounting the plex on the cabinet frame. A piano hinge works well for this purpose. Hinges are not necessary, but you will want to have access to the inside of the cabinet from time to time, so make it easy on yourself. Locate your closest instant-sign store and arrange to have some lettering cut to label the devices inside the cabinet. You may also want to have your site name and logo prepared for placement on the plex. White letters show up very well on smoked Plexiglas. This lettering can be prepared so that words or groups of words are registered (in a straight line with appropriate separation between letters and words), which will make it easy for you to affix them. If you are not up to the task, the sign shop will place them for you for a nominal charge.

Shop around for other devices to be placed on the inside of the cabinet that will enhance the high-tech look. For example, Walgreen's sells a digital alarm clock with 4-inch, red digits that shows up extremely well behind the smoked Plexiglas. You may also want to include a simple key lock available from almost any hardware or builders store. The real magic is provided by the site-graphics display and the CCTV monitor. Color and movement is significantly enhanced when viewed through the smoked Plexiglas.

Compatibility With Your Property-Management Software

Self-storage property-management software systems generally have the capability of communicating with self-storage access-control and individual door-alarm systems. This is an important consideration since it reduces work in the rental office and helps ensure that the management and security systems are "in sync."

The primary protocol used is referred to as "interfacing," which essentially means that the management software is downloading information to the security system and the security system is acknowledging receipt in some manner. Information that is commonly sent to the security system includes move-ins, move-outs, change passcode, make late and pay up. Other data is becoming available that will allow assignment of time zones, access levels and multiple-unit designation.

There has been much discussion about establishing a "universal-interface" protocol that would allow software and security vendors to communicate between systems using the same standards. Several documents have been written and shared among the involved vendors, but a ubiquitous spirit of cooperation is not in place. From a customer's point of view, it would be ideal to have the flexibility to select a preferred software vendor and a preferred security vendor and be assured that an interface exists that would communicate 100 percent of the required information. Today, this capability only exists with vendors who provide both software and security or, in selected instances, where liaisons have been established.

The introduction of Windows-based systems further complicates the interface debate and the decisions you will make regarding software and security. Windows-based security and software systems can operate in a stand-alone mode, but they can also be "integrated" if obtained from the same vendor. Integrated systems completely avoid the interface question since they are essentially a single program, written in the same code and sharing the same database.

What Kind of Computer Does Your System Require?

This question is asked because a self-storage operator has a computer and wants to know if it will run the system, or because he is planning to purchase a new PC and wants to know what to buy. The question of using an existing PC should be easily answered by the security vendor if you can specify the general configuration. Does it run DOS or Windows? What version? How much memory (RAM)? How much hard-drive space is available? What other programs do you run?

Purchasing a new PC requires you to consider what's available on the market as well as what the vendor's system requires. The probability is high that a new PC will more than meet the vendor's system requirements. PC technology is changing very rapidly and you should consider your new PC as a short-term investment (two to three years.) At that point in time you must consider the merits of obtaining new equipment and discarding old equipment.

The other issue with buying a new PC is where to go to make your purchase. I would suggest that you discuss your purchase with your self-storage vendor(s) before you buy. Certain brands have high failure rates and hardware/software packages at cheap prices are not always the value they seem to be. Remember that you are going to depend on the PC to run your business. This may be an important--but not critical--consideration as it relates to your management software, but it is absolutely essential when your PC is responsible for your security system.

Dave Reddick is president of Sentinel Systems Corp. of Lakewood, Colo., which has been manufacturing self-storage software and security systems since 1975. Mr. Reddick can be reached by calling (800) 456-9955 or (303) 242-2000; fax (303) 242-2010; e-mail davidr@sentinelsystems.com; www.sentinelsystems.com.

By Cary McGovern

After almost three years of writing columns in Inside Self-Storage, I continue to get questions from owners and operators that show a degree of misunderstanding about how to operate records management in a self-storage operation with little or no cost or added effort. This column focuses on clarification of those issues.

What Drives Growth in Records Management?

I have been working in the records-management industry for more than 25 years. During that time, I have witnessed the growth of the industry beyond anyone's expectations. Early in my career I thought that government regulation drove the need, and so it does to some degree. But the single most prevalent reason for the huge growth in records management is "fear." It is the fear of litigation, fear of not keeping the "right stuff," fear of being blamed if something goes wrong. Fear drives records management today.

Records Management is an Absolute for Business

Businesses have no choice--they must keep records. The problem is that it is very confusing, and there is no immediate payback for keeping records the right way. I have witnessed, in literally thousands of companies, that business records always have the lowest level of importance until something goes wrong. The problem is that when something goes wrong, it could cost millions of dollars, usually in litigation; and the very thing that they try to protect is the thing that gets them. Keeping records too long is the most common mistake and the rule of the court is, "If you have it, you have to provide it in legal discovery."

Growth in Records-Storage Revenue

Iron Mountain, the worlds largest commercial-records business, wrote the following in a recent press release (For the complete press release, visit www.corporate-ir.net/ireye/ir_site.zhtml?ticker=irm&script=410&layout=9&item_id=58273):

Storage revenues increased to $82 million for the third quarter of 1999 from $60 million for the same period in 1998. This marks the 43rd consecutive quarter for which Iron Mountain has reported increased storage revenues. Storage revenues, which are considered a key performance indicator for the records and information-management services industry, are largely recurring since customers typically retain their records for many years.

Question: Do you know where most new accounts for records storage come from? Answer: Self-storage. The industry has used self-storage as the feeder system for new business. I have talked to records-storage salespeople who literally follow your customers into your facility and sell records management to them on your premises. If you don't believe that, then I can also tell you that I personally have done it many times. There was one self-storage facility I know well that had little or no security. I actually walked through their facility, took notes on who had records there, and eventually got more than 90 percent of the business from them. You, as a self-storage operator, are an easy target.

The industry estimates that approximately 5 percent to 10 percent of your self-storage units contain business records. Since most of you have only a month-to-month lease for your space, it is easy for your competition to get the business away from you. It is true to say (without exception) that records management is always cheaper and better than records storage. It is also true to say that records-management revenues in self-storage are three to five times the revenue of traditional self-storage. So, if you want to keep units full, offer records management services. When you convert them from records storage to records management, you lock them in because there is a retrieval fee for each carton. You have them, as the industry says, "held hostage."

Additionally, your revenue per unit in records management compared to self-storage grows significantly. Your customer gets better service, variable charges, doesn't have any hassle and you get more money. What's wrong with this picture? I always say to customers, "Yes, we can fix your records system, but the only problem is, it will cost you less to do it right." (You may want to refer to some of my past columns for additional resources. You can access them at www.insideselfstorage.com or www.fileman.com.)

How Do You Stop the Exodus to Commercial Records Centers?

Yes, you can offer records-management services without hassle. This is where the misunderstanding comes in with owners and operators who call me. As soon as they start thinking about records management, nearly everyone wants to jump in and compete with the "big boys." That may be a mistake for many of you who just want to hold on to your business and increase revenue with little or no new cost. Of course, if you have the where-with-all to do traditional records management, then do it. Most of my customers simply want to add value, increase revenue and use existing resources.

Records Management--One Unit at a Time

My proposed method of records management will do just that: Help you add value and increase revenue at your facility while utilizing your existing resources. You already have the basis of a profitable business in 5 percent to 10 percent of your existing units. You can go into the business within two weeks if you follow my nontraditional model, accruing very little new cost and becoming profitable in less than 90 days. (See my column in last month's issue of Inside Self-Storage.) The components of the model include:

1. The use of existing units. It is common for my customers to choose several larger, contiguous units, usually 10-by-10 or larger, to start. Simply take the divider walls down between the units. Remember contiguous units are not required, but simply assist in the logistics.
2. Lease racking one unit at a time only when you have the business to fill those units. Racks always maximize storage revenue. My shelving partner has designed layouts that maximize revenue in units size 10-by-10 or greater. My leasing partner can design a lease that can be added to as a facility grows.
3. Use time-shared software. Pay only when you use it. There is no up-front cost for this software and only a one-time cost for bar-code scanning equipment that can be added to your lease agreement along with the racking. (See www.fileman.com for more information.)
4. Outsource the labor and delivery manpower. I recommend outsourcing all of the activities. You will make a little less in transaction revenue, but you will have no personnel overhead.
5. Allow the customer to add new box and file data and request transactions via the Internet. Your system should allow the customer to add new boxes, request delivery and generate reports without any interaction with your manager. For this, you and the customer need only three things: Internet access through a service provider, e-mail and Microsoft Internet Explorer (all of which can be obtained for free).
6. Automatic billing. Billing should be automatic, with transaction and storage fees computed and maintained throughout the month. At the end of each month, billing is generated for you to send to your customer.
7. Training and education. A start-up manual, video training, audiocassettes training and a distance-learning program can be provided to you via telephone or the Internet.

You Should Be in the Records-Management Business

Regardless of your size, location or resources, if you own or operate a self-storage facility, you should be in the records-management business. Remember, it can be simple if you follow the nontraditional model. If you begin with this model, it may lead you to a decision about going into the more traditional form of the business. My advice to you is to take it one step at a time.

Regular columnist Cary F. McGovern is a certified records manager and the principal of File Managers Inc., a records-management consulting firm that specializes in implementation assistance and training for new, commercial records-center start-ups, as well as marketing support for existing records centers. For more information, contact Mr. McGovern at File Managers Inc., P.O. Box 1178, Abita Springs, LA 70420; phone (504) 871-0092; toll-free (877) FILEMAN; fax (504) 893-1751; e-mail fileman@fileman.com; www.fileman.com.

By Jim Chiswell

I had the recent honor of speaking at the very first conference of the Illinois Self Storage Association (ISSA), which is now just over a year old. The association is off to a good start, with 70 owners/operators and vendor members.

I want to congratulate Jack Murphy, Kevin Heiden and John MaanDeKok for their personal efforts, and the financial resources they have invested in launching the ISSA. This association's leadership, under President Murphy, has already taken a major step in the group's growth. Rather than depending on the work of volunteers, they stepped out in faith and retained a professional association manager, Michael Lane, to run the day-to-day operations. Michael's 20-plus years of association experience has already paid off significantly for all of the self-storage owners in Illinois.

The Illinois Association's goal is much like that of the Texas Mini Storage Association (TMSA) and the New York Self Storage Association (NYSSA). They not only provide legislative monitoring at the state level, but also provide a vehicle for owner and manager communications, cooperation and learning. The establishment of state organizations is a critical next step in the growing maturity of the self-storage industry.

The ISSA, with direct help from the TMSA, is already planning to publish its own version of the Texas Gold Book. For those of you not familiar with the TMSA Gold Book, it is, in my opinion, one of the finest resources that has ever been published for self-storage operators. It contains up-to-date information on Civil Codes, Lien Laws and other legal matters essential for all self-storage facility owners and managers to be familiar with in the operations of their properties.

There are other state associations starting to evolve around the country. It is vital for the long-term health of our industry that these efforts succeed. If you are an owner in a state with an established association or one just being developed, get behind them with your membership dues check and a commitment of your time. I feel this is especially true for the major national and regional companies that, in many cases, are standing on the sidelines and not supporting these organizations. Yes, I have heard all of the reasons why people don't join. The bottom line is that we all owe something back to the industry where we make our living. If you don't have a state organization, get some industry friends together and get one started.

There is one final opinion that I want to express about associations. I personally think that the time has come for the national Self Storage Association's (SSA) Board of Directors to fully recognize the importance of state associations to our industry. I feel that the national board needs to totally restructure the SSA. By dismantling the antiquated regional structure and creating a new governance board made up of representatives from each state association, we can take a giant step forward in improving the focus of national activities on the problems facing our business. I am convinced that a new direction for the national SSA is in everyone's best interest.

I have posted on my website (www.jimdot.com) the state associations that I have been able to identify, including their address, the name of a contact person and their URL (when available). If you are part of a new association that is not listed there, please drop me a note or e-mail, and I will add you to the list immediately.

How Much Does the Telephone Really Cost?

When I ask most owners and managers that question, I am given the per-month cost of the phone bill. In a few cases, I am asked, "Does that include my Yellow Pages costs?" The point I am making is that the cost of the telephone is really every dollar that you spend on marketing your facility.

Almost every marketing dollar spent is designed to get the phone to ring. What happens from that point is the subject of an entire day's seminar. I would like to challenge you to take a few minutes and fill in the blanks for your own facility. The following is an example for you to follow:

• Total Marketing Dollars = $18,000
• Total annual calls = 480

Only count your prospective customer calls, not calls from existing customers. Take your total marketing dollars, and divide them by the total of annual calls. In this example, the cost per call is $37.50. That sounds like a lot of money to me.

Now take it one step further with this calculation:

• Total new rentals last year = 175 units
• Average length of stay = 8 months

The average rental rate per month is $100. Multiply the average length of stay by the average rental rate per month. The average rental customer who stays an average of eight months brings in $800. If you rented 175 units, total sales would equal $140,000.

Now take total annual telephone calls (480) and divide that number into the figure for total sales ($140,000). You discover that each telephone call is worth $291.67. It doesn't matter if the person on the other end of the line ended up renting.

If you run these numbers for your facility, you might be surprised at just how much each phone call costs you, as well as what each call is worth over the course of the year. So, managers, every time you answer a phone call from a prospective customer, you will realize how important it is to give that caller your undivided attention and best sales effort. And, owners, it really is important that you provide your managers with educational opportunities to improve their telephone/sales techniques.

The more you understand the internal operations of your facility, and what things really cost, the more effective you will become as a manager and an owner. I would be very interested in the results that you obtain for your facility. Send me an e-mail or drop me a note. If I receive sufficient participation, I will publish the results in an upcoming article.

Jim Chiswell is the president of Chiswell & Associates of Williamsville, N.Y. Since 1990, his firm has provided feasibility studies, acquisition due diligence and customized manager training for the self-storage industry. In addition to contributing regularly to Inside Self-Storage, Mr. Chiswell is a frequent speaker at Inside Self-Storage Expos. He can be reached via e-mail at Jchiswell@adelphia.net; phone (716) 634-2428; www.jimdot.com.

By Harley Rolfe

Note: The views expressed in this column are not intended to represent the opinions of Inside Self-Storage or members of its staff. We invite any comments and will present them in a subsequent issue, if appropriate.

Are there new facilities arriving in your area? If so, that's great for all the folks who benefit from development: architects, builders, suppliers, certain land owners, etc. And it's great for those who want to sell. It may not be the greatest for existing operators. So it's a good news/bad news story depending on who you are. More importantly, it's a typical story.

All industries go through this sequence as they mature. A new service is introduced and is well received. For a while the problem is creating enough supply to handle all comers. Initially, individual suppliers can offer a commodity; but that period passes and on comes the difficulties of price competition. It's the opening gun for interest in marketing. This story should be comforting. We are not dealing with rocket science. Many have gone before us. It's how marketers make a living.

Usual Competitive Response

If the management orientation has been one of offering a commodity, then it's a matter of getting prepared to give a rate-level response to new suppliers. To endure as a successful approach, we know that price competition should really be cost competition. So we need to look for areas of cost advantage. I have mentioned in previous columns that the level of marginal unit-operating cost for self-storage operations is quite low, so it's not possible to cut much there.

That leaves financing. While not literally an operating cost, debt service is regarded like one in this kind of situation. Here an existing facility is likely to have an advantage: They may have little or even no debt. That would ease cash-flow pressure and provide room for the rate-level contest. The new facility may not be so fortunate. Its new debt-level obligations could discourage aggressive pricing. So, they may not be too willing to move down as you push to maintain your market position. Without some kind of cost advantage, it is difficult to persevere for long using a rate-level response.

Time to Bail?

There's another reaction. A friend who was in the self-storage business in the Pacific Northwest took a look at the developing situation in his area and decided it was time to sell. He wanted no part of what he thought was going to be a dogfight. I tried to tell him that there were a number of things he could do to insulate himself, but his "day job" prevented him from devoting very much attention to his facility. With a resident manager, the facility had pretty much run on its own.

What's Normal?

I've been asked about a norm for promotion expense as a percent of total sales. Operators are looking for guidelines as they pick their way along an unfamiliar route. Many have never spent serious money on marketing. Spending on Yellow Pages is about it. Anything more can seem like a lot.

Other industries do have such norms. They are used to a competitive market and have been responding for years. Both they and their industry have a track record. But most current self-storage operations function as a commodity; so the first move is to segue into a product-type operation. That is a transitional step. Next is the ongoing operation of the facility on the product basis. The norm we're after relates to the latter ongoing phase. Few have gone there, so the guideposts aren't established, yet. It will seem like you're flying blind for a while.

Time to Rock 'n Roll

It's no fun to face a competitive threat for the first time. The normal reaction is to retrench, get conservative to preserve resources. But that isn't the usual way to engage in a competitive contest. Normally, the more aggressive the opponent, the more active the home team gets. But just when it's time to rock 'n roll, the opposite may seem to be the best course. Also, direct price responses usually can only go on so long. More creative differentiation approaches need to be introduced. Still, persons not familiar with marketing options hesitate to expend resources under pressure circumstances. It's no time to try out unfamiliar fixes.

You Woulda Thought...

The additional puzzle: Where can existing owners turn for help? In other kinds of business, the industry association would be there to help members thrive. It's one of their most valued services. But in this industry, the Self-Storage Association (SSA) offers little marketing help for present owners being pressed by new competition. They may offer some assistance with Yellow Pages ad layout advice and point-of-purchase displays, but such responses are anemic in the face of serious market combat.

Yet, the SSA offers extensive assistance to developers, both in written material and trade shows aimed at newcomers attracted to those fine returns. They provide them with excellent knowledge--coaching, guidance and pitfalls to avoid--that many existing owners never got. Moreover, those lessons were born of the hard knocks present owners had to suffer on their own. The SSA must know that added capacity in the association has the potential to threaten those souls located in any area of expanding operations. It would seem that before offering aid and comfort to newcomers, they would move hard to make more room in the industry first.

A while back, I had a personal experience in that regard: I offered the SSA use of my book. They did not answer--I received no comment at all. Maybe the book is no good, but the association doesn't offer anyone's marketing material. It seems to have little interest in helping existing owners respond to the competition it fosters. The local state/regional associations focus on the welfare of existing operators. The national organization seems less inclined--at least on the marketing front. It is a source of pride to herald the "growth" of the self-storage industry. By growth they mean added capacity and more units. Continuous added capacity inevitably leads to destructive competition. As I've said before, competition is great for society, but hell on suppliers. I mention this only to lament the dearth of marketing resources available to operators who find themselves on the wrong end of the self-storage industry "growth" story.

Where to Turn

There are two facets of cost related to getting marketing help: 1) the personal time and raw cost of gaining information, and 2) the risk in lost effectiveness if the answers turn out not to work. A problem caused a need for information; the problem continues, and there is a penalty for not solving it. So choosing a poor solution not only wastes the direct cost of the action taken, but also exposes the operator to the continuing costs of not solving the problem.

Another part of the dilemma for the marketing novice is how to tell the straight stuff from the pretenders. If you don't know a whole lot about a new subject, how do you determine how good the information that you're getting? Under those circumstances and in a situation where you often need to know--quickly--how can you judge enough to bet your business?

Earlier I mentioned that price is the first weapon of choice in the face of new competition. Operators can persevere for a while using it. But who wants to just persevere? Owners want to prosper. Next month, I'll offer some suggestions on sources for marketing help.

Missed some previous issues? Check the web at www.hardnosed.com.

Harley Rolfe is a semi-retired marketing specialist whose career includes executive-level marketing positions with General Electric and AT&T. He also owned lodging and office facilities for more than 20 years. Mr. Rolfe holds a bachelor's degree in economics from Wabash College and a master's degree in business administration from the University of Indiana. He can be reached at his home in Nampa, Idaho, at (208) 463-9039. Further information can also be found in Mr. Harley's book, Hard-Nosed Marketing for Self-Storage.

By David Wilhite

Every self-storage facility owner/operator is subject to litigation from tenants who have suffered damage to their goods while in storage. Fortunately, our courts have generally held that one acceptable defense strategy is to offer customer storage insurance (CSI) to your tenants. That's why most savvy self-storage operators offer a CSI program, which can help reduce or eliminate a major insurance exposure while providing a valuable service to tenants. By making CSI available, you can help reduce the likelihood of litigation for damages to your tenants' stored goods.

What exactly is customer storage insurance? It is an insurance policy specifically designed for tenants, the customers of self-storage facilities. It typically provides short-term, low-cost coverage for specified perils, such as fire, hail, wind, lightning and other covered causes of loss. It usually also provides a limited amount of burglary coverage. (Note that while most homeowners' policies will provide a limited amount of off-premises coverage, most self-storage tenants are transient by nature and do not have homeowners' policies). CSI can protect your tenants' stored goods while ensuring your peace of mind. By simply making CSI available, you can help reduce the threat of litigation for damages to your tenants' stored goods.

It Pays to Know the Facts About CSI

Fact: All self-storage facility owners/operators are subject to litigation from tenants who have suffered damage to their goods while in storage.

Fact: One of the key elements in any legal defense against claims of negligence or liability (on the part of the operator) is whether or not customer storage insurance was made available to the tenant while he was renting storage space.

Fact: Today's judges are more likely to uphold the exculpatory provisions contained in your self-storage rental agreement when you make CSI available to your tenants.

Fact: There are precedent-setting court cases in which the self-storage operator was found to be not liable for damage to a customer's goods because CSI was made available.

Fact: Customer storage insurance must be considered a necessity and should be made available to every tenant.

What Does Storage Insurance Cover?

The availability of a comprehensive CSI policy is the easy, low-cost way to protect your tenants' stored goods from loss or damage from a wide variety of perils. Tenants valuables can be protected for amounts that typically range from $2,000 to $20,000, and polices can generally be written or renewed in three- or six-month periods. Standard covered perils generally include fire, lightning, smoke, burglary, water leaks, hurricane, explosion, tornado, building collapse, wind, hail, earthquake and vandalism.

No matter how large or small your self-storage facility may be, securing adequate coverage is essential for protecting your business and your peace of mind.

It is vitally important that customer storage insurance (CSI) be made available to your tenants in order to reduce your exposure to claims of negligence from those persons who have suffered damage to their stored goods. Universal Insurance Facilities Ltd. provides low-cost, A-rated CSI that will protect your tenants' stored goods as well as ensure your peace of mind. Universal's program is professionally staffed and underwritten by Ranger Insurance, one of the industry's top carriers. The company's CSI coverage may be purchased at any time by new and existing tenants, and there is no cost, paperwork or program maintenance for you. A sample of the actual CSI policy with exact terms and conditions is available upon request. For more information, call (800) 844-2101. Note: Universal does not offer CSI in Florida or Kentucky.

By Steve Cooper

The bottom line is the bottom line in any business. In today's self-storage environment, security sells. Building a safer and more secure facility from the ground up, or upgrading an older site to better keep up with the competition, not only makes sense, but also adds revenue and profit. Experience proves that what says, "You'll be secure here" to customers in the current marketplace is individual-unit door alarms.

General security is important. Crime Prevention Through Environmental Design (CPTED) principles lay the foundation for a more secure facility, then the specific security systems add benefits for safety, better risk management and more thorough operational control. "Access control and surveillance systems play a major role in keeping any establishment safer, but the one single item that more customers pay attention to in your advertising and in your facility is knowing there is specific protection for the unit they will be renting," says Bill Hamilton, president of San Diego-based Price Self Storage. "Individual-unit door alarms provide the protection our prospects and customers expect. They get real comfortable when they know the unit is alarmed."

Several security vendors serving self-storage have used a variety of approaches to provide a secure solution for each unit. Dating back to the mid-1970s, some of the earliest attempts to adapt available alarm technology could have been more successful. Since that time, innovations in technology and improvements in installation-labor methods have brought reliability and economy to the practice of alarming every door.

"If I were building my own facility, there's no question that I would put door alarms on," says John Arsement, division manager with John E. Hall Electrical Contractors in Virginia Beach, Va. "Since we learned how to install them efficiently, we have installed more than 10,000 sets of door contacts. We're proud of our record because the owners happily tell us that the systems are working well with no false alarms." Arsement comments that in cases where alarms have not worked well, the installation itself is usually suspect. "Somebody didn't do something right, if they have a lot of false alarms. With today's generation of matrix wiring systems, the problem shouldn't be in the equipment from the major suppliers. We've worked with at least three of the suppliers, and that gives us a basis of comparison."

The concept of arming a monitoring and alert device for each door is simple, but the engineering and execution can prove intimidating to most engineers, especially when there are limits to the cost that self-storage operators are willing to absorb. "The traditional self-storage environment is just too harsh for a lot of electrical and electronic systems," says Jon Loftin, vice president and systems engineer for Digitech International, a vendor of security systems designed especially for use in self-storage. "Components must be able to withstand and operate properly, regardless of heat, cold, dust, rain, ice and anything else that nature throws at them. With the hardwired system we've been using the last few years, we were able to overcome all of that."

In addition to hardwired systems, a few companies have experimented with wireless alarms, some with minimal success. According to Arsement, Loftin and others, the problem has been in trying to adapt equipment designed for residential and light commercial applications for use in the self-storage environment. "The difficulty has been trying to take off-the-shelf parts and make them work for a use where they were not intended. I've tried similar equipment at my home that didn't perform that well, so I would never expect it to work at my facilities," says Hamilton.

According to Loftin, "The spread spectrum technology is a good idea, but most of the equipment we've all tried in the past is really about the same as what's used for garage-door openers. It's subject to quite a bit of interference, but the main thing is, it's not designed to be used in or around an all-metal building. That's why we went all the way to ground zero to engineer an all-new approach that does work. We went back to basics and engineered a new device to meet all the specific demands we've encountered, the environmental factors, how to send and receive a radio signal when the transmitter is surrounded by nothing but metal, and how to easily retrofit an existing facility at a competitive price."

Hardwired systems, though effective, can be labor intensive. "We use apprentice-type labor to pull all the wire and apply the contacts," says Arsement. "Then we bring in the higher-priced technicians to do all the terminating and testing. We have learned the hard way that doing it right the first time is the only way. Once the units are rented, having access to the unit to do repairs or testing makes it hard on everybody: the owner, the manager, and the customer."

According to owners, installers and vendors, the appeal for someone to present a viable wireless solution to the industry has been eliminating the need for working inside the unit and reducing both the amount of labor involved and the skill level of the technicians. According to Loftin, "We could have come to the market a long time ago with a solution using what's called high-security alarm contacts, but it was way too expensive. Now, we have a solution that will be price-competitive with our hardwired system. Owners building new facilities will have a choice, and those with existing facilities will have a new affordable option they've never really had before."

Regardless of the technology used, customers appreciate the assurance that the unit they rent has the additional protection. "When I was in college," says Wendy Earley, a typical storage customer, "I rented a locker for the summer in a place that looked nice and was well-fenced. Somebody apparently jumped the fence, even though there was an automatic gate. My parents and I had to replace a microwave, a toaster oven and everything else that seemed to have value. The next summer, we stored in a place that had better alarms."

Arsement says, "Every door should be armed, even the vacant units. That way the manager knows, not only who is coming and going, but also whether or not they are actually going to their unit. We've seen where tenants would come on site just to use the dumpster." He also mentioned that alarming the empties keeps them clean and ready to show to prospects. "If even the vacant units are locked and alarmed, they're not available for people to throw trash into, or use as a place to relieve themselves, as we have seen on occasion."

Crime-prevention experts talk about "hardening the target." According to Roger Austin, CPTED specialist with the Tempe, Ariz., police department, "Anything you can do to make it hard for a criminal to do his thing will help. We have instituted a crime-free program specifically for mini-storage. In the past three years since we started the program, we've seen a 50 percent drop in calls to storage facilities."

Each call saved is money in the bank. Industry surveys consistently show individual-unit door alarms are the largest contributor to the feeling of security customers enjoy. Surveys also show that alarms help justify premium rates in a competitive situation. Owners and self-storage customers seem to agree. That makes individual-unit door alarms a win-win security solution.

Steve Cooper serves as marketing director for Digitech International Inc., a supplier of crime-proofing access-control and security systems manufactured especially for the self-storage industry. For more information, call (800) 523-9504; www.digitech-intl.com.

By Lance Comstock

You have read the magazines, gone to the trade shows, and even visited your competitors' facilities to see what they have to offer. You have finally made the decision as to what type of security system and which manufacturer you will invest in to protect your property and your tenants' goods. So, now what?

As your decision comes to a close, let's hope you looked at and weighed a decision as equally important to the functionality of the system as the components of price, features, etc.: installation and post-install support. As the industry and its security systems get more complex, one important fact remains true: If the system is not installed or maintained properly, it can give you and your customers years of aggravation and a breach in the security itself, exposing you to unnecessary liabilities.

The reality is that, once your property is open for business and units are being rented, your security system will be one of the most important purchases you make. If there is a failure in one part of the system, it will create great inconveniences for you and your customers. Finding the right installation company can be very difficult if you don't know the right questions to ask or what to look for in the vendor.

When researching, ask the manufacturer if he offers a dealer or distribution network of qualified and trained installers. This can be one of your more useful tools, and the best way to find qualified companies. If he does, don't just get one name but several, then make sure they are actually familiar with the equipment and installation in this particular industry. If they aren't, you may want to reconsider your purchase. Many times, customers will purchase equipment directly from a manufacturer, then look through the Yellow Pages to find the closest and cheapest burglar-alarm company, asking them to bid the install of the equipment. This is the wrong way to go. Even though the components may be similar to what the company may have installed in the past, there are many things that must be installed differently when looking at self-storage.

One of the most common mistakes unqualified companies will make is using the wrong switch and mounting method for an individual door-alarm system. If you look throughout your home or any commercial business with a standard burglar-alarm system, you will normally see a magnet and contact set, which measures approximately 2 inches across. This contact will only allow for a maximum gap distance of three-quarters of an inch. This contact is much cheaper and can appear to save you hundreds of dollars in the beginning, but it is not sufficient for storage use because the tolerances of self-storage doors will greatly vary. This switch may work for the first few years, but as the door tolerances increase and the magnet for the switch looses its effectiveness from being mounted to the metal surface, false alarms are inevitable.

Other very common mistakes from an inexperienced company will be its assumption that the wiring and contact will be accessible for repair if a problem is incurred. This is not the case. When the unit is rented, it is nearly impossible for the installer to ever gain access for any adjustments or wiring issues, thus rendering the alarm useless.

Most installers not familiar with installing hundreds of contacts on one job will also suffer from getting lazy by redundancy. Be sure your installation company has had experience with installing a door-alarm system of this type before hiring them.

Although few and far between, a company that can handle all aspects of the install is superior to having to use several different companies. In most security applications, you will need high-voltage electric conduit work, fencing work, concrete and low-voltage work. Finding a company big enough to handle all these tasks may be difficult, but they can usually get the install done quicker and cheaper than several different companies hired separately. It also helps to keeps the responsibility with one company if there is a problem somewhere, rather than getting into a finger-pointing contest to determine who is to blame.

It seems that what goes up must come down, and what goes in must get repaired on occasion. Be sure to check with your installation company as well as the manufacturer to determine the warranty period and service policies on your system. As many installation companies may be small, be sure to ask about their response time and number of personnel dedicated for service work. Also ask to see if they have any annual service agreements or 24-hour on-call service. As coincidence has it, gates always seem to fail at 5 p.m. on Friday. If your service company does not offer extended service, your facility may be left unsecured all weekend until Monday.

Lastly, your system may be comprised of a very complex mixture of power supplies, sirens, cameras, conduits, junction boxes, wiring and splices. Keeping track of all these items is important and is essential for service in the future. As the owner, you should demand in your negotiations to get a copy of the wiring and equipment schematics. These can prove to be invaluable in the unlikely event there are disputes with the installing company and a new company is brought into the picture to resolve any issues, or if a technician is on site for service and has never seen the property before.

Remember: The lowest price is generally not the best. Make sure you fully research the companies. Call their references and ask questions. With a very busy economy, it's easy to become lazy and just buy the lowest priced system or hire the company that responded to your phone calls. Your security is crucial, and access control is the nuts and bolts of your facility. It's what sets you apart from your competition. Don't treat the installation lightly--you may pay for it in the long run.

Lance Comstock is CEO of Preferred Technology East, a project-management and installation company to the self-storage industry of more than 12 years. Mr. Comstock is also president of Scottsdale, Ariz.-based PTI Access Controls, which has designed and manufactured access-control systems for the self-storage industry for more than 20 years.