When it comes to gathering information, most people like to use websites these days, and we all appreciate how far they’ve come. But no matter how amazing, easy-to-use and intuitive your self-storage facility website is, customers are still going to have questions from time to time. Giving them a way to get assistance right there, where they are, is key to your service experience.

Sure, you can put a “Call now for pricing” button on your page, but how great would it be if there was also a form the customer could complete to receive a return call or email within minutes? Even better, what if there were a link to an online-chat feature, so they could communicate with a company representative right then and there?

Online chat is an easy, affordable way to handle customer service right from your website. Let’s explore the options, needs and opportunities around this technology.

Live vs. AI-Powered

Your self-storage customers will use chat to make many kinds of requests. Sometimes, they’re just looking for information; other times, they’re looking for onsite support. For example, you might get inquiries like:

• I’d like to rent a unit, but I have a question.
• Is there a hand truck I can use?
• Is there a form I need to complete when moving out of my unit?

There are two options for offering chat on your self-storage website: live, which uses human customer-service representatives, and a model powered by artificial intelligence (AI), in which all the responses are pre-recorded. An AI version provides basic customer service, while a live chat agent offers a true customer experience.

For example, consider the above question regarding the hand truck. An AI chat tool operates on keywords. In this case, any inquiry that includes the words “hand truck” would serve up an automated response such as, “We offer hand trucks, carts and dollies for your use while on site. They’re located in the vestibule near unit 100.” This is an excellent use of an AI feature. It gets the customer most of what they need with zero human interaction.

On the other hand, a live agent might respond with something like, “Absolutely! There are hand trucks, appliance dollies and large flat carts available near the front of our building, in the vestibule near unit 100. You’re welcome to use them as long as you’re here! We have several, so take all the time you need. We’re looking forward to having you! Is there anything else I can help you with today?”

With AI, the customer gets most of the answer, but not all of it. Should they press for additional details, they’ll quickly realize they’re dealing with a bot providing recorded responses. This isn’t to say AI isn’t valuable. It’s come a long way and it will continue to evolve. Also, be aware that, for now at least, your search terms and canned responses must initially be built by a person.

Of course, customers could get all of this information by simply calling your self-storage facility, but given the choice, lots of customers simply prefer online chat. The best thing we can do as operators is offer potential and current tenants multiple methods of communicating with us so they can use the one that’s most comfortable for them. This makes your company easy to do business with, and though it may not be something they think about consciously, customers who feel at ease will be happier about renting with you.

Staff Training

If you’re going the live-chat route, your customer-service representatives will need training, just as they would if they were answering the phone. Anyone taking online inquiries should be empowered with the same information as your office or call-center staff. They should be able to assist chatters who have questions about unit sizes, price, features and promotions, as well as all other requests current tenants might make.

It’s also important that your team understands the difference between a phone and chat conversation. The etiquette isn’t the same. For example, when you call someone on the phone, do you just hang up as soon as they answer your question? Not likely. But with chat, it’s common for a customer to abruptly hit the “close” button on the window once they have the answer they need. The person handling the inquiry can’t be sure when they’ll lose the customer, so they must provide thorough, detailed information at every step.

Live-chat operators should also be speedy. When you’re on the phone, you can use filler questions and small talk to pass the time with the customer while looking for the necessary information or waiting for your computer to catch up. With chat, you must be able to access what the customer needs quickly and type fast enough to provide it in a timely manner. We’ve all been there … Sometimes texting, instant messaging or live chatting feels like it takes forever! All you see is ellipses to indicate the other person is typing a response that never seems to come.

Live-chat reps must also be able to type with correct spelling, grammar and punctuation. Though this method of written communication is much less formal, it’s still a business message and should be treated accordingly.

Follow-Up

Even if you offer online chat on your self-storage website, it’s smart to also use a “Contact Us” or “Request a Quote” form as a backup, especially if you aren’t using AI and can’t staff your chat around the clock. And you still need someone who can handle phone inquiries, as some customers will reach out via form to request a callback. You need to follow up on those inquiries quickly, as customers using this method are likely contacting multiple facilities. The first one to respond often wins the business.

As a self-storage operator, you can’t be all things to all people. However, if you put yourself in front of your target market and communicate in the way that makes the most sense to customers, you’ll become their first choice and they’ll remain loyal to you. Adding an online-chat feature to your website can create the ultimate customer experience.

Shannon Charbonneau is director of client relations for XPS Solutions, a Richardson, Texas-based call center that specializes in self-storage. Shannon has been with the company since 2011 and worked with a diverse clientele, from first-time owners to large operators with hundreds of locations. She uses what she learns from customers to help shape the services offered by XPS product developers, software engineers, call-center staff and quality management. For more information, call 877.977.8721. You can also follow Shannon on LinkedIn.

An investment fund managed by SROA Capital LLC, which operates the Storage Rentals of America and Storage Zone brands, has acquired StayLock Storage from investment firm Cequel III and private-equity company Thompson Street Capital Partners (TSCP). The purchase was made through SROA Capital Fund VIII LP. Jefferies LLC served as the financial adviser to Cequel and TSCP. Terms of the deal were not disclosed, according to sources.

StayLock operates 79 facilities comprising 2.8 million square feet of storage in eight states. The company’s 2020 revenue totaled $17.1 million, up from $14.6 million in 2019, a source reported. Its 50 employees are expected to transition to SROA. StayLock CEO Mike Pizzella Jr. will continue in an officer role at Cequel.

The facilities will be rebranded as Storage Rentals of America. SROA also plans to build 500,000 square feet of rentable space in several tertiary markets including Battle Creek, Michigan; Bettendorf, Iowa; and Panama City, Florida.

“Acquiring large, regional operators like StayLock Storage is a core part of our roll-up strategy to open new markets, to overlay our operational expertise, and to send our dedicated in-house acquisitions team into these new markets to continue to bolt on and invest in smaller, independent self-storage operators,” said SROA CEO Benjamin Macfarland III.

Cequel and TSCP combined five companies into a single portfolio under the StayLock brand in 2016. Since then, the joint venture has acquired 22 storage properties comprising 2.8 million square feet in 20,000 units.

“Our investors, managers and employees did an outstanding job over the past five years, integrating acquisitions, enhancing operations and customer service, and building StayLock into a company of which we could all be very proud,” Pizzella said. “The underlying strengths of the self-storage industry, combined with the uniquely strong performance of our team, made us an attractive acquisition target to a larger, well-respected aggregator of self-storage assets like SROA Capital.”

Based in West Palm Beach, Florida, SROA is a real estate investment company focused on the acquisition and operation of self-storage properties nationwide. It owns and operates 11 million square feet of self-storage at 242 properties.

Sources:
St. Louis Business Journal, One of St. Louis’ Fastest Growing Companies, StayLock Storage, Acquired by Florida Company
Thompson Street Capital Partners, Thompson Street Announces the Sale of StayLock Storage to SROA Capital

 

The self-storage technology landscape is quickly changing. To maximize business efficiency and profitability, it’s imperative that facility operators know about the many tools available. Likely, you’re already using some. If you aren’t, you may be leaving money on the table.

It pays to not only stay informed regarding industry technology but to closely examine your operation for level of performance and possible enhancements. A good way to gauge whether your business is reaching its potential is to order a technology evaluation performed by an impartial third party. Though this service is relatively new to self-storage, it’s similar to a financial or operational audit. It’s intended to analyze your technology use, define your business needs and goals, and identify the products and services required to meet them.

To succeed in today’s competitive self-storage market, you need to be constantly improving. A third-party tech evaluation will provide insight to deficiencies that can be minimized or eliminated by tweaking your processes or implementing new tools. It’ll give you a better understanding of the scope of your operation and market position. If used properly, it’ll help you boost efficiency, profit and facility value. Let’s take a closer look at what’s involved.

Technology Map

An effective technology evaluation begins with mapping out the tools you’re already using in your self-storage operation. You’ll measure this against your goals to determine what new tech may be needed. Here are some areas on which to focus:

Security. Strong security is the backbone of a self-storage business, and tools of the trade have come a long way! In many cases, new technology can take your game to the next level. Customers actively interact with components such as access gates and smart locks, and feel comforted by things like video cameras and monitoring, so an upgrade can make sense. It can also help you charge a rental premium.

Revenue management. You may already be using tools that help in this area, but to maximize income, you need to make sure they’re optimized and used correctly. Today’s technology, including software, offers support for dynamic and value pricing, rate increases, auction procedures, and more.

Marketing. It’s critical to use marketing technology in today’s crowded self-storage marketplace. Your map should consider your facility website as well as:

• Paid ad campaigns 
• Process for requesting and posting Google reviews
• Google My Business (GMB) listing
• Referrals program
• Competition analysis
• Tracking of return on investment

Focusing on the way technology weaves throughout your self-storage operation and ties everything together helps ensure your site runs smoothly. Other areas that can be impacted by tech tools include:

• Communication between ownership and management
• Communication with tenants and prospects
• Staff training and evaluation
• Customer-relationship management, including sales follow-up
• Move-in procedures
• The overlock process
• Ancillary sales (retail product, tenant insurance, etc.)

As you map all these things for your third-party technology evaluator, you’re really identifying the customer journey and the main touchpoints of sales interaction, from getting a prospect’s attention with marketing to maximizing revenue during the tenant lifetime. Overall, this is a great exercise to help you see how well you’re using technology to improve efficiency.

Three Phases of Evaluation

One of the nice things about having an unbiased technology evaluation of your self-storage business is it doesn’t even have to be in person. You can use a conferencing platform like Zoom to engage with your outsourced professional. Typically, the process happens in three phases.

Discovery. When you map all the areas in which you’re using technology, you’re engaging in the discovery process. This’ll help you get from where you are to where you want to be.

Goal-setting. Once discovery is complete, you’ll review the findings, measure performance and set new goals. For example, let’s say your main concern is how to leverage technology to run a self-storage site remotely from 800 miles away. As you work through a series of questions, you’ll identify the challenges this goal presents and examine potential solutions.

Game plan and implementation. The final step is to create a game plan and timeline for execution. In the example I just mentioned, solutions might include a call-center setup, installation of cloud-based gate access, website optimization for converting online rentals, leveraging your GMB listing, and fine-tuning your property-management software.

Performing a technology evaluation is a bit like running a health-screening diagnostic on your self-storage business. Though the industry has tried-and-true principles to follow, the tools and systems used to achieve success can differ from location to location. There should never be a one-size-fits-all approach. Having an outside third party complete this specialized assessment helps expose your blind spots.

Doing things a certain way because that’s “just the way it’s always been” or operating with an “if it ain’t broke, don’t fix it” mentality is a recipe for disaster. Believe me—potential revenue that’s been hiding for years can often be uncovered during the discovery process and realized with some simple tech systems and tools.

Finding a Partner

So, you now know that performing a self-storage technology evaluation will help you understand how your facility is performing and identify products and services that can optimize your operation. The industry experts who can help with this are those who also serve as operational consultants or site auditors.

Look for a professional who has years of industry experience and doesn’t work for a specific technology vendor. You’ll be best served by a provider who’s impartial and can help find the best fit for your needs.

In addition, look for someone who wants to do more than just help you formulate a game plan. Ask about the full breadth of their offerings. Ideally, they should help you beyond the evaluation to implement any new technology systems and tools you choose to incorporate into your business. Once you execute, I’m confident you’ll better your performance over and over again!

Jim Ross is founder of 3 Mile Storage, a self-storage management and training platform. He’s a frequent speaker at industry events, virtual-summit host, podcaster, author of “3 Mile Storage” and creator of “The Ultimate Self Storage Playbook.” His company offers fully automated, unattended self-storage management solutions. For more information, call 801.381.3298; email jim@3milestorage.com.

Inside Self-Storage (ISS) has released its 2021 Top-Operators Lists, ranking the industry’s top 100 facility owners and top 50 third-party management companies by net rentable square feet. The lists include facility and brand owners, independents and property-management firms. Collected data also includes contact information, expansion plans, and each company’s number of locations and units. Simple list rankings are viewable on the ISS website, while detailed results are featured in the September issue of ISS Magazine.

The original Top-Operators List was issued as a single top-100 ranking by total square footage. For the past five years, ISS has broken the data into separate rankings for owned and managed square feet to reduce the potential for square-footage redundancy that can occur when using only total square-footage figures for all companies in a single list.

A more robust version of the data is available for purchase at the ISS Store. The 2021 package includes both complete lists in Excel format as well as a 20-page PDF companion comprising a three-page analytical report of the list results and a full representation of the rankings in easy-to-read format. The lists feature data on owned vs. managed self-storage facilities for companies that do both, with breakouts for number of facilities, units and square footage for each.

The report portion of the PDF analyzes growth, decline and general movement among this year's final list participants. It identifies companies in aggressive growth mode, notable portfolio declines, and up-and-comers in the business. It also tracks activity by the industry’s six largest players, putting their numbers in context with each other as well as the larger rankings. Previous lists for 2012 through 2020 are also available for purchase.

A gallery of the 2021 Top-Operators Lists is also viewable online, providing an inside look at company movement in the latest ranks. It includes historical and comparison data and offers insight to factors that affected the lists this year.

The Top-Operators Lists are compiled annually by ISS. Participation is voluntary and open to all self-storage operators. To be considered for the 2022 lists, self-storage operators can complete an online form to ensure they’re contacted when data collection begins next May/June.

For more than 30 years, ISS has provided informational resources for the self-storage industry. Its educational offerings include ISS magazine, the annual ISS World Expo, an extensive website, the ISS Store, and Self-Storage Talk, the industry’s largest online community.

It starts with a few dollars missing here or an item or two there. At first, you may be too busy to notice or brush it off as a simple mistake or error. However, employee dishonesty may also be the cause, and if you ignore the loss, it may simply embolden the person to try again and potentially seek bigger targets.

The losses suffered through in-house theft can accumulate over time and often aren’t discovered until they reach alarming rates. By then, more damage has been done. Thankfully, employee-dishonesty insurance is designed to protect your self-storage business from such events. In truth, this coverage is as important as fire and flood insurance.

Business Risk

Employee theft ranks as one of the most underreported crimes in the United States. Estimates vary, but experts agree that billions of dollars are lost to it every year. Many victimized business owners suffer severe financial damage and, in the worst cases, bankruptcy.

While many dishonest acts are one-time or occasional, large losses are often caused by long-term, ongoing schemes by one or more staff members. It’s often the best and most-trusted people who are in the most advantageous position to use their knowledge of the company to steal from you. In one notable case, a self-storage owner treated a young employee like family, only to find out she’d been siphoning money from the business for years.

Unlike losses due to burglary and robbery, those caused by employee dishonesty are excluded under many commercial-property policies. Without specific coverage, your storage business is at risk. Employee-dishonesty insurance allows you to hope for the best in your staff while helping prepare you for the worst.

Why Dishonesty Occurs

The forces that give rise to employee dishonesty are as complex and varied as the individuals who perpetrate such acts. It’s beneficial to understand why staff engage in this behavior. It might help you recognize the signs of a potential problem and even enable you to prevent these situations from occurring. Though a complete analysis of the subject is beyond the scope of this article, here are three theft motivators you should recognize:

Opportunity. Even the most loyal employee might be tempted to steal if an opportunity arises in which they feel safe from discovery. Eliminating these openings and an atmosphere of complacency through proper loss-prevention controls can help remove such temptations.

Economic or emotional pressure. Personal hardships caused by chemical dependency, gambling debts or medical bills can create a situation in which an otherwise honest employee may become desperate enough to steal. Maintaining a good rapport with staff will provide clues about problems they may be experiencing.

Attitude. An employee who feels they’ve been passed over for a raise or promotion may turn to theft by way of a misplaced sense of retribution, trying to take back what they consider theirs. A combination of sound loss-control procedures and solid communication practices can reduce such situations.

Coverage Options

Now, let’s take a look at some of the commercial crime exposures facing a self-storage business and the coverages available.

Crime coverage. This protects you against losses from robbery, burglary, theft, embezzlement and other risks, and can be tailored to fit the size and scope of your business. In most cases, your business-property and liability-package policy can be endorsed to provide coverage against employee dishonesty. It can also cover the loss of money and securities from your premises, and the loss of other covered business property such as computers and cell phones.

One important point to remember about employee-dishonesty claims is the acts must be committed with manifest intent. That is, a loss resulting from an unethical act such as lying, due to the employee seeking personal gain. Without manifest intent, such claims would be disallowed.

Endorsements or riders. Consider also that money and security claims as well as business-personal claims aren’t the only losses that can be covered under employee dishonesty. Endorsements or riders are available to protect you against check forgery, credit card misuse and computer fraud. These supplement your existing protection and are available for an additional cost.

Protocols and Supervision

In addition to securing adequate insurance protection, the best available defense against employee dishonest includes implementing strict operating controls in combination with effective staff supervision. There are several steps you can take to help minimize the risks:

• Checks should be stamped "For Deposit Only" immediately upon receipt. They should be scanned or copied and filed securely.
• Invoices should be stamped “Paid” to circumvent the chances of the company paying the same invoice twice.
• If an employee maintains your books, ensure someone reconciles bank accounts other than the person who handles deposits and withdrawals.
• Institute an internal-audit system for all financial records and have an independent accountant perform a full audit annually.
• Security controls and procedures, such as installing surveillance cameras in your manager's office and other key locations, can also deter or prevent dishonest acts.

Implementing a loss-prevention program at your self-storage facility can reduce your risk of serious financial damage. However, for true peace of mind, your best bet is to purchase adequate employee-dishonesty insurance coverage, regardless of the size of your property. Contact a licensed insurance agent or broker to review the coverages available to protect your business from this type of theft.

Disclaimer: This article was written as a guideline to aid in minimizing risk at self-storage facilities. The information is intended to be of general interest and doesn’t address the circumstances of any particular individual or entity. Nothing in this document constitutes legal advice, nor does any information constitute a comprehensive or complete statement of the issues discussed or the laws relating thereto.

Jenny Bortman is vice president at Universal Insurance Programs, which has created and provided specialized insurance coverages to the self-storage industry for more than 20 years. For more information, call 602.222.8300.

The five largest publicly traded, U.S.-based self-storage real estate investment trusts (REITs)—CubeSmart, Extra Space Storage Inc., Life Storage Inc., National Storage Affiliates Trust and Public Storage Inc.—have released financial statements for the quarter that ended June 30. In general, the companies indicated gains in funds from operations (FFO), net operating income (NOI) and occupancy.

“Operating fundamentals continued to strengthen throughout the rental season resulting in an exceptional quarter,” said Christopher P. Marr, president and CEO of CubeSmart. “We believe the foundational elements of consumer demand will continue to have positive implications for growth throughout the balance of this year and into 2022.”

Joe Margolis, CEO of Extra Space, expressed similar sentiments. “We had an exceptionally strong second quarter, with record setting occupancy and very strong rental rates. Our stronger than expected year-to-date performance, together with an improved outlook for the remainder of 2021, has allowed us to increase the midpoint of our FFO guidance by 8.3% to $6.53 per share.”

CubeSmart

CubeSmart reported FFO per share of $0.50 during the second quarter of 2021, up from $0.41 a year ago. Same-store NOI at its 511 facilities grew 17.6% year over year. The company attributed this to a 14% increase in revenue and a 6.6% increase in operating expenses. Same-store locations contributed 90.6% of property NOI during the quarter.

Same-store physical occupancy was 96.1% as of June 30, up from 93.7% a year ago. The company’s total-owned portfolio, representing 547 facilities and comprising 39 million square feet of rentable space, had a physical occupancy of 94.5% at the end of the quarter.

CubeSmart acquired one wholly-owned property during the quarter, in Maryland, for $22.1 million. It also contributed $3.4 million to purchase a 50% stake in a consolidated joint venture that bought a Minnesota self-storage property for $12 million. At quarter-end, the company had three joint-venture projects under construction to which it’s expected to contribute $73.7 million.

On May 12, the company declared a dividend of 34 cents per common share, which was equal to the previous quarter. The dividend was paid on July 15 to common shareholders of record on July 1.

CubeSmart owns or manages 1,265 self-storage facilities across the United States. Its operating portfolio comprises 87.2 million square feet.

Extra Space Storage Inc.

Same-store revenue and NOI at Extra Space increased 13.6% and 20.2%, respectively, compared to the same period in 2020. Core FFO, excluding adjustments for non-cash interest, was $1.64 per diluted share, a 33.3% increase over the previous year. Same-store occupancy was 97% as of June 30 compared to 94.2% a year prior.

During the quarter, the company acquired 13 operating facilities and two properties at Certificate of Occupancy for approximately $184 million. It also purchased five facilities in conjunction with joint-venture partners for $68.7 million to which it contributed $6.9 million.

Extra Space paid a quarterly dividend of $1 per common share, which was equal to the previous quarter. It was paid on June 30 to common shareholders of record on June 15.

Headquartered in Salt Lake City, Extra Space owns or operates 1,973 self-storage properties in 40 states and Washington, D.C. The company’s properties comprise approximately 1.4 million units and 152.6 million square feet of rentable space.

Life Storage Inc.

Same-store revenue and NOI at Life Storage increased 14.7% and 20.2%, respectively, compared to 2020. FFO was $1.22, compared to $0.94 a year ago, while adjusted FFO for the quarter was also $1.20 per fully diluted common share, compared to $0.94.

Net income attributable to common shareholders for the second quarter was $57.5 million, or $0.74 per fully diluted share. For the same period in 2020, net income attributable to common shareholders was $36.5 million, or $0.52 per fully diluted common share.

Same-store revenue for the company’s 531 wholly owned, stabilized facilities increased 14.7% year over year, impacted by an increase in average occupancy of 420 basis points and an 8.3% bump in rental rates. Overall occupancy as of June 30 was 95%, up from 91% a year ago, with units renting for an average of $15.32 per square foot.

During the quarter, Life Storage acquired 17 facilities across five states for $267.5 million. The assets include five in New Jersey, four in Texas, three each in Florida and North Carolina, and two in New Hampshire. At quarter-end, the company was under contract to acquire four properties for $54.1 million.

Subsequent to quarter-end, the company approved a quarterly dividend of $0.74 per share on a post-split basis, which was equal to the previous quarter. It was paid on July 26 to shareholders of record on July 14.

Based in Buffalo, N.Y., Life Storage operates more than 950 self-storage facilities in 33. Its portfolio of owned and managed facilities comprises more than 71.4 million square feet.

National Storage Affiliates Trust (NSAT)

Core FFO per share was $0.55 during the second quarter, a 34.1% year-over-year increase. NSAT net income was $35.7 million, a 100.6% increase compared to the same period in 2020.

NSAT reported diluted earnings per share of $0.25 during the quarter. Same-store NOI was up 21.5%, driven primarily by an 16.3% increase in same-store revenue and partially offset by a 4.3% increase in same-store operating expenses.

As of June 30, same-store occupancy was 96.7%, an increase of 720 basis points from a year ago. Average annualized rental revenue per occupied square foot for same-store facilities was $12.78 during the quarter compared to $11.97 in 2020.

During the quarter, NSAT acquired 20 properties for about $269.4 million, adding approximately 1.7 million rentable square feet and 13,700 units to the company portfolio.

On May 27, the company declared a quarterly dividend of $0.38 per common share, which was up from $0.35 the previous quarter. It was paid on June 30 to holders of record on June 15.

Headquartered in Greenwood, Colo., NSAT is a self-administered and -managed REIT focused on the acquisition, operation and ownership of self-storage properties within the top 100 U.S. Metropolitan Statistical Areas. The company has ownership interest in 864 storage facilities in 36 states and Puerto Rico. Its portfolio comprises approximately 55.2 million net rentable square feet. It's owned by its affiliate operators, who are contributing their interests in their self-storage assets over the next few years as their current mortgage debt matures.

Public Storage Inc.

Revenue for same-store facilities at Public Storage increased 10.8%, or $66.4 million, over the same quarter in 2020, primarily due to higher realized annual rent per available square foot and weighted average square foot occupancy. Operations costs for same-store facilities decreased 13.1%, or $25.2 million, compared to the previous year. This was attributed primarily to a 7.3% ($5.3 million) decrease in property-tax expense, a 33.7% ($13.1 million) decrease in onsite-manager payroll, and a 61.2% ($10.8 million) decrease in marketing expenses.

FFO was $2.99 per diluted common share, compared to $2.28 for the same period of 2020, marking a 31.1% increase. NOI increased $126.8 million, which was driven by a $91.6 million increase in same-store facilities and a $35.2 million increase from other non-stabilized stores.

During the quarter, Public Storage acquired 84 facilities across 18 states for $2.3 billion. The properties comprise 7 million net rentable square feet. The company also completed two development projects in Florida and Colorado, adding 300,000 net rentable square feet to its portfolio for $40.2 million.

The company reported a regular common quarterly dividend of $2 per common share, which was equal to the previous quarter. It also declared dividends with respect to various series of preferred shares. All the dividends are payable on Sept. 30 to shareholders of record as of Sept. 15.

Based in Glendale, Calif., Public Storage has interests in 2,649 self-storage facilities in 39 states, with approximately 184 million net rentable square feet. It holds a 35% interest in Shurgard Self Storage SA, which has 243 facilities in seven European countries, with approximately 13 million net rentable square feet.

Sources:
CubeSmart, CubeSmart Reports Second Quarter 2021 Results
Extra Space, Extra Space Storage Inc. Reports 2021 Second Quarter Results
Life Storage, Life Storage Inc. Reports Second Quarter 2021 Results
National Storage Affiliates Trust, National Storage Affiliates Trust Reports Second Quarter 2021 Results
Public Storage, Public Storage Reports Results for the Three and Six Months Ended June 30, 2021

Most self-storage facilities have a lot of roof square footage, and you may think it’s too expensive or time-consuming to practice preventive maintenance against leaks and other issues. The reality is you can’t afford to ignore it. Putting a precautionary plan in place will save you money down the road by reducing repairs and delaying the need for replacement. This has been proven time and again. Keep in mind, too, that warranties usually require some level of ongoing maintenance to remain in effect.

Of course, before you can prevent roof-related problems, you need to understand what causes them, and they can differ depending on roof type. Metal roofs, which are common in self-storage, have unique characteristics that can be difficult. Unlike traditional, flat, built-up or modified roofs, metal roofs aren’t intended to be waterproof. They’re designed for water flow, which means there should never be any ponding or standing water for extended periods.

Let’s look at some common causes of self-storage roof damage, the dangers they pose and steps you can take to prevent them.

Surface rust

 

Causes of Damage by Roof Type

Some of the things that can create leaks in your metal self-storage roof include:

• Surface rust: If left unattended, it can peel the roof coating, causing holes or scaling; and this can lead to major structural damage. Using an inhibitor won’t remove the rust, but it’ll stop it from spreading.
• Deflection: This basically appears as holes or crimping/creasing of the metal panels, most commonly caused by foot traffic. This can lead to ponding and, ultimately, rust and leaks.
• Movement: A metal roof should be designed to move, allowing water to flow off. If you use a repair product that doesn’t allow for proper elongation (flexibility), the panels will continue to move, but the patch won’t. This can cause more issues than the original leak.
• Incompatible materials: Metal roofs require specific materials to help avoid corrosion and rust. Using dissimilar metals together can cause a negative reaction.
• Punctures: Holes, creases and crimping are generally caused by foot traffic or HVAC installation. If an installer drags an HVAC unit across the roof, there’ll be a trail of tears and punctures.
• Fastener issues: There are two types of attachments for a metal roof panel: clips, and fasteners with rubber washers. Clips attach to the purlin, whereas fasteners are concealed once the panels are seamed or crimped together, generally with a sealant underneath. Fasteners with rubber washers are self-drilled, sometimes every 2 square feet. Over time, they’ll back out and leave holes or gaps between the metal and rubber washer, opening the roof to water intrusion.
• Open laps: If the metal panels aren’t properly installed, the seams can lift and open, creating an area for water and, ultimately, structural damage.
• Missing parts: Over time, pieces of a roof can fall off due to wind, debris or deterioration. Issues with foam closures, vent flashings and boots, edge metal, gutters, and downspouts can all lead to water intrusion and leaks.

 
Top left is an example of deflection damage. At right is a roof fastener that has
backed out of position.

If your roof is not metal, these are your most likely culprits:

• Membrane damage: For various reasons, commercial roof membranes tend to split, tear, crack or expose open laps. The latter is typically a sign of poor workmanship at the time of application, while cracks are typically a sign of age or material defects.
• Loose parts: Drains, gutters, scuppers and flashing can loosen or require additional sealant. Repairs can be made by tightening, clamping and securing loose components as well as by coating and sealing open joints. Checking the integrity of caulking and sealant needs to be part of regular maintenance.
• Ponding: When water ponds on the roof surface for more than 48 hours, it’s a sign that there’s an issue with the drain system. Ponding deteriorates a roof prematurely and can cause leaks.

 
Top left is an example of incompatible materials. At right is an example
of missing edge metal.

 

The Impact

Regardless of your roof type, consequential damage from a leak is a big risk for self-storage facilities. It can negatively affect your business in a variety of ways, including:

• Damage to stored goods: Water entering your storage units can naturally damage walls, floors and ceilings. It can also ruin tenants belongings, which can lead to insurance battles and unhappy customers. Act quickly to determine the leak source and temporarily stop water from entering the building.
• Slips and falls: Moisture on the floor can create hazards of injury throughout the property, which puts you at risk for workers’ compensation claims or customer lawsuits. Be mindful of these perils and have them quickly remedied.
• Wet insulation: Along with potential structural damage, wet insulation will contribute to higher monthly utility costs. When it gets saturated, it’s nearly impossible to dry and prevent moisture from accumulating. The U.S. Department of Energy estimates losses caused by thermal resistance, even from minor leaks, can be as much as 70 percent. Ask your roofing company to use infrared scanning to catch wet insulation before it becomes a costly problem. If any is found, remove it and replace it with the same R-value thickness.
• Mold and insects: Moisture from a roof leak can serve as a source for mold and bacteria growth, as well as attract cockroaches and other insects. This is a recipe for disaster within self-storage units. In addition, the cost to mitigate mold or exterminate insects can add up if not dealt with promptly.

 
Top left is a lifted seam. At right are Roof punctures. 

 

Prevention

The good news is there are things you can do to self-storage roof leaks and other related problems. For starters, remove debris from drains and look for obvious damage, like punctures and splits, after a weather event. Detritus from storms and natural elements can clog downspouts, which gives rainwater nowhere to go. This results in ponding on the roof.

Schedule an inspection and maintenance routine with a professional roofing contractor. It’s generally recommended that this be done twice per year, but check your warranty to make sure you’re following its guidelines.

The roof is one of the largest assets of any self-storage facility. Get the most out of your investment by actively managing its care to maximize its useful life. Proper maintenance will save you money in the long run. Don’t allow small issues to become big problems and a financial headache!

Marian Nolletti is a co-owner of Simon Roofing, a national roofing manufacturer and contractor. The company provides roof-asset management, evaluation, preventive maintenance, repairs, restoration and replacement. For more information, call 888.353.7178.

Police arrested a man this week following a domestic-violence incident that occurred at a self-storage facility in Evans City, Pennsylvania. The suspect allegedly strangled his girlfriend during a fight on Sunday at Evans City Mini Storage. The couple has been living inside the storage unit, according to the source.

Officers were called to 447 May Lane at 12:31 a.m. and discovered a woman with red marks on the left side of her neck, and scratching and bruising on her left arm, according to the police report. Her left knee was also injured and she was walking with a limp. She said her boyfriend had slammed her against the unit wall and strangled her with his hands. He then threw her to the ground outside the unit.

Dale R. Spaulding, 50, has been charged with felony strangulation, misdemeanor simple assault and summary harassment. He’s being held at Butler County Prison on a $5,000 bond. His next court hearing is Aug. 10.

Evans City Mini Storage offers drive-up and vehicle storage.

Source:
Cranberry Eagle, Evans City Man Charged With Strangulation