Tron Jordheim, director of operations for PhoneSmart, a company that provides sales and support and staff training for self-storage operations nationwide, will present a webinar and seminar for self-storage operators in the months ahead. The first focuses on self-storage sales, the other on creating a customer-centric business.

On Aug. 10, Jordheim will present a free webinar for facility owners and managers titled Spend Some Time With the Sales Coaches. The one-hour online event, hosted by Mini-Storage Messenger magazine, will teach attendees how to create a sales team, develop a sales process, craft sales language, set sales standards and more. The webinar will take place at 2 p.m. ET. Registration can be completed at MiniStorageMessenger.com/webinar.

On Oct. 4, Jordheim will present a live seminar titled Why Are You Such Idiots? 10 Ways Self-Storage Owners Shoot Themselves in the Financial Foot as part of the Inside Self-Storage World Expo, in Tacoma, Wash. The session will explore ways facility owners sometimes hurt their own businesses when attempting to save money on expenses. Jordheim will provide attendees with tools to help them refocus their energy on creating a customer-driven business that gets more rentals and ancillary sales, longer lengths of stay, and greater profit. Show details can be found at www.insideselfstorageworldexpo.com.

PhoneSmart, a provider of call-center services, sales training and coaching to the self-storage industry, has worked with hundreds of self-storage ownership groups and answered calls for thousands of self-storage properties. Jordheim is a frequent speaker at self-storage events and a contributor to industry trade journals.

A self-storage developer in Agway, Conn., has submitted plans to the citys planning office for a 74-unit self-storage facility.

The application from Steven Muller of Muller Real Estate LLC includes 42 units with 36 square and six larger rectangular units, arranged in an oval around the property. Another 32 units, 12 square and 20 larger rectangular, would be in the center.

The proposed site is next to a farm and garden supply store. City planners are reviewing the proposal.

 

California self-storage operator A-1 Self Storage is donating money to the Salvation Army Ray and Joan Croc Corps. Community Center, a 12.4-acre family support, education, recreation and cultural arts center.

The center was made possible through a gift from the late philanthropist, Joan Kroc. The facility is open to members and the general public, and serves residents of east San Diego, La Mesa and Lemon Grove with a variety of programs for individuals of all ages. The purpose of the center is to provide opportunities that facilitate positive, life-changing experiences through art, athletics, personal development, spiritual discovery and community service.

A-1 Self Storage has 16 locations in the San Diego County area and more than 40 locations statewide. It is the self-storage division of the Caster Cos., a third-generation, family-owned company headquartered in South California since 1959. Caster Cos. develops and manages A-1 Self Storage, A-1 Car Storage and other commercial properties in California. Its portfolio includes more than 4 million square feet of real estate.

By John Carlisle

Self-storage is a globally viable industry because people everywhere love their stuff. They love it so much they stockpile it beyond what their homes and offices can hold, and many turn to self-storage for a solution. But some fail to pay their storage bills, leaving facility operators in a lurch unless theres a process in place to place a lien on stored property, collect debt and, if necessary, conduct a self-storage auction.

Along the same vein, operators need guidelines for navigating the treacherous avenues of liability. When tenants store certain sensitive property, such as documents, weapons or vehicles, the legal procedure for selling, discarding or destroying these items is crucial for protecting operators against lawsuits.

Each of the United States has laws that define the process for self-storage liens. Though these laws vary, many of the tenets are similar, due in large part to a unified lobbying effort by the national Self Storage Association and the individual state associations. But Canadas lien-law endeavor is ostensibly less streamlined and consistent, and provincial differences can be extreme.  Absent a clear statute in each area, operators must choose which laws to follow. Even when a formal process exists, some operators bemoan the tremendous amount of time and resources it takes to litigate.

Because there are no set rules, everyone does things radically different, explains Robert Madsen, president of U-Lock Mini Storage Group in British Columbia. Madsen, whos on the board of directors for the Canadian Self Storage Association (CSSA) and secretary of the Vancouver Island Self Storage Association, says the CSSA  is making it a priority to create best-practices guidelines for members. When they will be available is uncertain, but Madsen does make his 15-point lien and auction checklist available for others to use.

Madsen also says the popularity of Storage Wars and Auction Hunters TV shows is having an effect on Canada self-storage law. Because of increased industry attention, facilities stand to benefit from conducting auctions, whereas in the past, there was little interest from Joe Consumer to attend a self-storage lien sale. Madsen reports being able to recoup nearly 100 percent of his lost revenue from delinquent tenants.

If auctions catch on industry-wide, it will be important for operators to know how to conduct these types of sales properly, Madsen says. Otherwise, a highly publicized lawsuit could cast the self-storage in a poor light. The big fear is the operator will make things up on the fly, he adds.

Ontario: A Complicated Lien Process

Ontario, Canadas most populous province, is home to the most self-storage facilities. It has a lien law that mentions storage, though not self-storage specifically. The Repair and Storage Lien Act, initially enacted in 1990 and last amended in 2007, serves as the standard for operators, but some see the process as long, complicated and litigious. Tammy Dewhirst, office manager at StorageStop in Windsor, Ontario, says her company adheres to the statute. Fortunately for her, shes only had to route through the process twice, but one of those incidents is ongoing.

The first step in the process occurs when a tenant has been delinquent for 60 days, Dewhirst explains. In accordance with her facilitys rental agreement, which was written and is updated periodically by a local attorney, the company files a complaint in civil courtin StorageStops case, the Superior Court of Ontario. Before and during the proceedings, the facility operator can charge late fees on a delinquent tenants account. If the tenant disputes the charges, the court will eventually make a judgment, though how long that takes can vary widely.

The judgment may allow the operator to file lien paperwork with Service Canada, a government agency similar to the U.S. Department of Motor Vehicles. Once the agency has processed the lien, the facility operator has the right to sell the property. However, StorageStop has never had to conduct an auction.

If we were to get a lien on an indoor unit, then we might do auctions, Dewhirst says. But thats not something weve had occasion to do yet. In the case of vehicles, we just sell the vehicle. We put it out front with a sign on it and return to the tenant whats above and beyond what was owed to us.

Dewhirst admits the process in Ontario is arduous in comparison to other places. When I see people who post on [Self-Storage Talk] who only have to wait three months before auctioning off a unit, Im aghast, she says, adding that she would like the process to be simplified and expedited. For example, she would like a clause that says if a tenant has not paid in six months, the unit can be considered abandoned. Otherwise, its tough for an operator to decide whether its worth taking a claim all the way through the process.

With most of the people who default, were not going to be able to recoup all, if any, of the losses, she says, noting the high cost of going to court. Were able to file for recovery of court costs, but if the defendants wont pay what they owe already, theyre not going to pay for that, too.

British Columbia: Choosing Which Act to Follow

Whereas Ontario has a statute specifically mentioning storage, British Columbia, Canadas third most-populous province, puts operators in a position where they must interpret multiple statutes and pick the one that applies to them. One option is the Warehouse Lien Act; the other is the Real Estate Services Act, enacted in 2004.

An owner-manager in British Columbia who prefers not to be named says his 60-unit, 16 RV-storage facility in a small town adheres to the Warehouse Lien Act. He describes the statute as really old and not really applicable to self-storage. But when he started his operation, also in 2004, his attorney advised him to use this statute and align his rental agreement with it.

The owner sees several problems with the act, most notably that it doesnt specify a timeframe for the beginning of lien procedure. It does specify the timeframe for sending out registered letters to delinquent tenants and how long an operator must wait before auctioning, as well as an auction-announcement publishing requirement two weeks before an auction. However, that creates other problems, the operator says.

For example, what if he hauls all of a delinquent tenants goods to the auction site (his auctioneer prefers a neutral location as opposed to the storage facility itself), and the delinquent tenant pays at the last minute? Does the tenant have the right to keep his space? The law doesnt specify what should happen. In one instance, a tenant paid one day before the owner was ready to remove the belongings from the unit. He said it was very close to being a legal mess.

By contrast, Jay Lynne Fleming, president and CEO of Storage for Your Life Solutions Inc. in Vancouver, says her facilities operate under the Real Estate Service Act. [It] is much clearer with respect to its process because it deals with physical buildings as rental space instead of warehousing. We as self-storage owners are only in the business of renting space. We do not occupy the space; the tenants belongings occupy the space. Theres no reason its not rental of property, just like youre renting an office, an apartment, or a garage for your car, she says.

Unlike some statutes, the Real Estate Services Act doesnt allow the operator to take possession of someone elses goods and sell them. Instead, it allows the operator to charge late fees, just like a landlord would to an apartment lessee. After 45 days of delinquency, the landlord turns the bad debt over to a bailiff. This is similar to turning someone over to a collections agency in the United States.

The bailiff, a private, non-government entity with the legal authority to assume the debt, buys the debt and tries to collect the funds. If the delinquent tenant pays the bailiff, he can keep his space. If not, the bailiff assumes possession of the unit contents, and the facility gets its space back without liability.

The bailiff may also examine the goods and determine they have no value. In that case, the facility operator calls the tenant and offers him the chance to remove the items, because the operator has already minimized his own damage by selling off the debt. The operator could also elect to throw the items in the garbage, donate them to charity or hold some kind of charity sale.

Fleming says the act doesnt require the use of the bailiff, but she prefers it. It removes us from backlash from the customer, she claims. Customers usually pay bailiffs much faster than theyll pay you. On average, Storage for You Life is able to recoup 50 percent of its lost revenue this way. This may not sound like much, but its often more cost-effective than trying to litigate or manage some lengthy process.

Would Fleming prefer a self-storage-specific statute be on the books in British Columbia? Only if its modeled and related to the real estate act, she says. The process should be simple for the landlord, she asserts.  It makes no sense to me that a lien process takes anywhere from three to eight weeks. If someone steals a product from a store, its theft. If someone overstays their time in a hotel room, they pay for that day within hours. Why should the use of the storage space be any different?

U-Lock Mini Storage 15-Point Auction Checklist

Locker #: __________ Tenant: _________________

Schedule Auction Process Checklist Verified By

57th Day Red file date: ________________________ _____

Paid-through date: ____________________ _____

Last payment received: ________________ _____

File Folder/Records Searched and Up-to-Date _____

11th/26th/42nd/57th Letters Sent _____

51st Day Video Look/Contents Verified: ___________ _____

65th Day Lock Cut: ____________________________ _____

Photos taken: ________________________ _____

Contents Inventoried: __________________ _____

72nd Day Registered Letter date: _________________ _____

72nd Day Ad in Newspaper: _____________________ _____

90th Day Auction date: _________________________ _____

Calls Placed:

45th Day 1st Call: ____________ Number: __________ _____

Response: _____________________________

61st Day 2nd Call: ____________ Number: __________ _____

Response: _____________________________

Additional Notes/Comments: _____________________________ _____

________________________________________________

Auctioneer : _________________ Price: _________ Initials: _____ _____

Sovran Self Storage Inc., a self-storage real estate investment trust (REIT), and Uncle Bobs Management LLC, the companys fully owned subsidiary, entered into a third-party management agreement with Storage Bin Self Storage Centers. The agreement covers three properties in New Jersey totaling more than 298,000 net rentable square feet. 

"I'm delighted with our new partnership with Uncle Bob's Management, said Horace Murph Long, president of Storage Bin Self Storage Centers.  As a mid-size operator, I lack the effective toolbox the Uncle Bobs brand offers, specifically the technology, capital and people required to manage an in-house call center, revenue-management program, and a strong Internet marketing presence.

The storage facilities will be re-branded as Uncle Bobs Self Storage and integrated into the companys management platform, allowing them to take full advantage of the companys Internet advertising, website functionality and national call center. 

The addition of these properties allows us to expand our footprint into New Jersey and adds to the 25 properties already being managed under our joint-venture agreements, said Jack Rogers, vice president of business development. 

Sovran Self Storage, Inc. is a self-administered and self-managed equity REIT in the business of acquiring and managing self-storage facilities.  The company operates 380 self-storage facilities in 25 states under the name Uncle Bobs Self Storage. 

By Scott Zucker

Title III of the Americans With Disabilities Act of 1990 (ADA) prohibits private entities from discriminating against individuals with disabilities and maintaining places of business that are not physically accessible. The Act requires places of public accommodation to remove architectural barriers that limit access or use of the public place. The term public accommodation in the ADA generally encompasses all private businesses that offer goods and services to the public, including self-storage facilities.

Existing buildings, alterations and new construction are all within the scope of ADA's public-accommodation provisions. The ADA requires small businesses remove architectural barriers in existing facilities when its readily achievable to do sothis means easily accomplishable without much difficulty or expense. This requirement is based on business size and resources. Businesses with more resources are expected to remove more barriers than those with fewer.

Readily achievable barrier removal may include providing an accessible route from a parking lot to the entrance, installing an entrance ramp, widening a doorway, installing accessible door hardware, repositioning shelves, or moving tables, chairs, display racks, vending machines or other furniture.

A New Ruling

In 2010, the Department of Justice issued new Standards of Accessible Design. The Standards lay out accessibility design requirements for newly constructed and altered public accommodations and commercial facilities. Certain dates in the construction process determine which ADA standards1991 or 2010must be used. If the last or final building permit application for a new-construction or alterations project is certified before March 15, 2012, the business may comply with either set of standards. If physical construction starts after March 15, 2012, the business must use the 2010 standards.

Although self-storage operators are currently subject to all ADA building-access regulations applicable to structures in general, the 2010 standards included space accessibility scoping requirements that apply specifically to self-storage buildings. The storage-space regulations are:

Scoping. Five percent if the facility has fewer than 200 units, 10 units plus 2 percent if more than 200.

Dispersion. Accessible units should be dispersed among classes of spaces provided. Since the term classes is undefined in the standards, it could mean either the size or type of unit such as climate-controlled. If there are more classes than the number of accessible units required, operators do not need to have additional accessible units just to have one in each class.

There also appears to be no need to disperse the accessible units among buildings in a multibuilding facility. As with hotels, there appears to be no requirement to hold the unit back from rental solely for a disabled customer if other spaces are otherwise rented and the space is needed.

However, the requirements have created many questions with few clear answers. For example, are roll-up doors accessible? Is there a requirement as to the minimum force needed to open a self-storage door? Should doors open electrically (garage-door operations) or sideways? Should a ramp be placed over the concrete lip installed in the doorway, and must the lip not exceed a certain height?

Meet Requirements Now

Notwithstanding these many questions concerning the units themselves, storage operators should consider accessibility issues during facility construction or renovation. Now is the time to determine if your business meets compliance with areas such as entry-pad heights, parking spaces, ramps to offices, counter heights and restroom design. The national Self Storage Association is seeking additional guidance from the Department of Justice concerning the scoping requirements relating specifically to self-storage facilities.

The ADA is not a building code, and Title III of the Act doesnt have any direct effect on state and local building codes. The ADA allows the U.S. Attorney General to certify that a state law, local building code or similar ordinance meets or exceeds the minimum accessibility requirements for public accommodations in commercial facilities.

However, accessibility compliance can be tested by the Department of Justice as well as private citizens bringing complaints under a private right of action. Self-storage facilities that fail to comply with the law may find themselves subject to liability for non-compliance. Operators need to review these issues before the March 15, 2012, deadline to prepare themselves for the risk of claims.

Scott Zucker is a partner in the Atlanta-based law firm of Weissmann Zucker Euster Morochnik, P.C., where he specializes in business litigation with an emphasis on real estate, landlord-tenant and construction law. Zucker is a frequent speaker at national conventions and the author of Legal Topics in Self Storage: A Sourcebook for Owners and Managers. Hes also a partner in the Self Storage Legal Network, a subscription-based legal service for self-storage owners and managers. To reach him, call 404.364.4626; e-mail scott@wzlegal.com .

The portfolio for American Self Storage, with facilities in Indiana, Kentucky and Ohio, recently sold for $39.5 million to Extra Space Storage Inc., a self-storage real estate investment trust. The 15-property portfolio includes 8,910 storage units with 954,285 rentable square feet.

This sale is a testament to the strength of an industry which is attracting public and private capital to self-storage assets located outside of primary markets, said Marc Boorstein, Principal with MJ Partners Self Storage Group. The public investment market is on track for over $1 billion in self-storage transactions in 2011.

The properties will be rebranded Extra Space Storage. MJ Partners in conjunction with A.M. Macy Co. represented both parties in the transaction.          

Headquartered in Salt Lake City, Extra Space owns or operates 820 self-storage properties in 34 states and Washington, D.C. The companys properties comprise approximately 550,000 units and more than 59 million square feet of rentable space.

The Southern Storage Group (SSG), a Texas-based real estate firm focused exclusively on the self-storage industry, has brokered the sale of Austin Mini Storage on Hamilton Lane in Austin and Alpha Mini Storage at 32525 Interstate 10 W, in Boerne, Texas.

The Austin facility was built in 1971 and was 25 percent occupied at the time of sale. It has visibility from Highway 183 and is in the shadow of a Randall's anchored shopping center. The property was on the market for 24 days. SSG Partner Bill Bellomy negotiated the sale between the Las Vegas-based seller and the Texas-based buyer.

Alpha Mini Storage, a 125-unit facility, was 75 percent occupied at the time of the sale. Bellomy negotiated the sale between the Texas-based buyer and seller.

SSG is a full-service real estate brokerage company focusing exclusively on the sale and financing of self-storage properties nationwide. The company has offices in Austin and Houston.