Ecological consciousness, or simply “going green,” depending on how much you like catchphrases, has been gaining popularity in almost every industry and market in the last decade. Businesses are looking for ways to reduce their ecological impact.
Self storage businesses are particularly keen on shrinking carbon footprints and keeping electrical use down for a simple reason: it’s pretty easy, and we’ve already been doing it for a while.
In the world of self storage, we’re expected to do a few common sense things for our customers. We need to keep their property protected from environmental factors and theft and provide easy, convenient access for renters. Ecological consciousness isn’t at odds with either of these concepts.
Many of the simple “green home improvement” tips that you’ve heard everyone from Oprah to Steve Jobs discussing over the past few years are already widely recognized in the self storage community. CFL bulbs are a standard, as is quality insulation and eco-smart HVAC.
Of course, any change to storage facilities costs money. Going green can be costly, particularly when an HVAC system needs an overhaul, so many storage companies aren’t going to play a game of follow the leader. There needs to be an established benefit to going green, whether that involves a chance at new customers or better utility bills.
Fortunately, green storage facilities get a lot of good press and can claim their eco-friendly status on websites and in advertisements, which brings in new customers. Lower utility bills are a no brainer, as they’re one of our biggest costs. If you’re looking for an industry that’s moving toward a positive ecological impact, the self storage industry is certainly a great example.
By Scott Meyers
Published 30th June 2011
Ecological consciousness, or simply “going green,” depending on how much you like catchphrases, has been gaining popularity in almost every industry and market in the last decade. Businesses are looking for ways to reduce their ecological impact.
Self storage businesses are particularly keen on shrinking carbon footprints and keeping electrical use down for a simple reason: it’s pretty easy, and we’ve already been doing it for a while.
In the world of self storage, we’re expected to do a few common sense things for our customers. We need to keep their property protected from environmental factors and theft and provide easy, convenient access for renters. Ecological consciousness isn’t at odds with either of these concepts.
Many of the simple “green home improvement” tips that you’ve heard everyone from Oprah to Steve Jobs discussing over the past few years are already widely recognized in the self storage community. CFL bulbs are a standard, as is quality insulation and eco-smart HVAC.
Of course, any change to storage facilities costs money. Going green can be costly, particularly when an HVAC system needs an overhaul, so many storage companies aren’t going to play a game of follow the leader. There needs to be an established benefit to going green, whether that involves a chance at new customers or better utility bills.
Fortunately, green storage facilities get a lot of good press and can claim their eco-friendly status on websites and in advertisements, which brings in new customers. Lower utility bills are a no brainer, as they’re one of our biggest costs. If you’re looking for an industry that’s moving toward a positive ecological impact, the self storage industry is certainly a great example.
Okay, guys in the previous post I mentions all the good things that California had done! I ran across an interesting article today on the “Real Estate Journal Online” website (link: http://rejournalonline.com/new-self-storage-lien-law-in-nevada/854027/) discussing a law recently passed in Nevada. The law helps self storage owners by requiring delinquent renters to file suit against a lien within 21 days of filing of Declaration of Opposition. This prevents a legal deadlock by imposing a time limit on the renter.
Understand that I’m NOT advocating throwing someone’s stuff out due to one missed bill. Everybody has a chance at running into difficulty and being unable to make their bill one month. Someone might have something come up and need to renegotiate a contract. That’s no problem. I doubt a landlord would be so rigid as to refuse a change in financing to someone who clearly needs it.
Rather, this law protects owners from people manipulating the legal system in order to obtain self storage services for free. Some people out there will, when unable to pay their bill, simply stop paying it. They ignore phone calls warning them that a lien will be put on their storage unit and then are shocked when a lien is filed. They will then file a Declaration of Opposition in order to delay the process, rather than working with the owner to figure out how to keep their unit through a difficult time. This is costly for the company, and increases the stress for everyone involved.
The article closes by asking whether you think such a requirement is unfair to the tenants — So, what do you think??
By Scott Meyers
Published 27th June 2011
Okay, guys in the previous post I mentions all the good things that California had done! I ran across an interesting article today on the “Real Estate Journal Online” website (link: http://rejournalonline.com/new-self-storage-lien-law-in-nevada/854027/) discussing a law recently passed in Nevada. The law helps self storage owners by requiring delinquent renters to file suit against a lien within 21 days of filing of Declaration of Opposition. This prevents a legal deadlock by imposing a time limit on the renter.
Understand that I’m NOT advocating throwing someone’s stuff out due to one missed bill. Everybody has a chance at running into difficulty and being unable to make their bill one month. Someone might have something come up and need to renegotiate a contract. That’s no problem. I doubt a landlord would be so rigid as to refuse a change in financing to someone who clearly needs it.
Rather, this law protects owners from people manipulating the legal system in order to obtain self storage services for free. Some people out there will, when unable to pay their bill, simply stop paying it. They ignore phone calls warning them that a lien will be put on their storage unit and then are shocked when a lien is filed. They will then file a Declaration of Opposition in order to delay the process, rather than working with the owner to figure out how to keep their unit through a difficult time. This is costly for the company, and increases the stress for everyone involved.
The article closes by asking whether you think such a requirement is unfair to the tenants — So, what do you think??
Marcus & Millichap Real Estate Investment Services has tapped Michael Hoffman as national director of the firm’s national self-storage group. Hoffman is also first vice president & regional manager of the firm’s Denver office. He has also served as regional manager of the Austin, San Antonio and Houston offices.
He began his career with Marcus & Millichap’s Newport Beach office in 1992 as an associate focusing on the multi-family market, receiving several distinctions for sales achievements. In 2001 he was named sales manager in the Ontario office, where he managed and trained the sales force. In April 2004 he was promoted to vice president and then first vice president in April 2008.
According to president & CEO John Kerin, Hoffman’s extensive knowledge of the national self-storage market makes him a valuable asset to clients as well as self-storage investment specialists.
Hoffman received his undergraduate degree in real estate finance from the University of Arkansas.
Information from: CPExcecutives.com
By Scott Meyers
Published 27th June 2011
Marcus & Millichap Real Estate Investment Services has tapped Michael Hoffman as national director of the firm’s national self-storage group. Hoffman is also first vice president & regional manager of the firm’s Denver office. He has also served as regional manager of the Austin, San Antonio and Houston offices.
He began his career with Marcus & Millichap’s Newport Beach office in 1992 as an associate focusing on the multi-family market, receiving several distinctions for sales achievements. In 2001 he was named sales manager in the Ontario office, where he managed and trained the sales force. In April 2004 he was promoted to vice president and then first vice president in April 2008.
According to president & CEO John Kerin, Hoffman’s extensive knowledge of the national self-storage market makes him a valuable asset to clients as well as self-storage investment specialists.
Hoffman received his undergraduate degree in real estate finance from the University of Arkansas.
Information from: CPExcecutives.com
Hey folks, Scott here again with a little observation on some news affecting our industry — and this is a good one because the government got it right and we stand to gain. The areas directly affected are California and Nevada, but we all should see benefits from new laws recently passed in these two states as other jurisdictions make similar moves in an effort to keep up with the times. Or, at least, we can hope this is the case. New legislation is already in the works in Arkansas, Colorado, Illinois, Tennessee and Maine.
The first change, which took effect this past January 1st in California, establishes a more cost effective process for lien sales, which is good news for self-storage facility operators. Anything that makes our businesses easier and saves us money is a good thing – don’t you think???
The new legislation also removes the requirement for California self-storage companies to take their lien and auction disputes to Superior Court for resolution, which has always been a long and costly procedure. We can now seek relief in small claims court, which will save us both time and money (and headaches, no doubt) – Go California!
Finally, in an additional cost-saving measure, the new law allows notification of lien notices to be served with a ‘certificate of mailing’ as verification. This is a less expensive alternative to the old method requiring notification by certified mail.
In Nevada, similar changes have been passed and signed into law to take effect October 1. These new rules governing the self-storage industry should also prove beneficial to our businesses, as they are meant to limit operators’ liabilities in regards to protected property. They are a general improvement in the state’s lien laws, as they allow:
· Lien notifications to be delivered by email (or any method of verified mail)
· A delinquent tenant who has signed a Declaration of Opposition is now responsible to file suit within a 21-day period.
· Protections have been put in place for facility operators having to deal with sensitive, abandoned items like private records and pharmaceuticals.
· Any limitation of value contained in a storage rental agreement shall serve as the maximum value assigned any stored property.
All of these new provisions favor self-storage facility operators, which we like. When the last Nevada laws regarding storage facilities were written, it was 1983, before emails were even heard of. It’s nice to see the government keeping up with the times!
Just wanting to keep you informed – have some information or a topic to discuss just comment back!!
By Scott Meyers
Published 24th June 2011
Hey folks, Scott here again with a little observation on some news affecting our industry — and this is a good one because the government got it right and we stand to gain. The areas directly affected are California and Nevada, but we all should see benefits from new laws recently passed in these two states as other jurisdictions make similar moves in an effort to keep up with the times. Or, at least, we can hope this is the case. New legislation is already in the works in Arkansas, Colorado, Illinois, Tennessee and Maine.
The first change, which took effect this past January 1st in California, establishes a more cost effective process for lien sales, which is good news for self-storage facility operators. Anything that makes our businesses easier and saves us money is a good thing – don’t you think???
The new legislation also removes the requirement for California self-storage companies to take their lien and auction disputes to Superior Court for resolution, which has always been a long and costly procedure. We can now seek relief in small claims court, which will save us both time and money (and headaches, no doubt) – Go California!
Finally, in an additional cost-saving measure, the new law allows notification of lien notices to be served with a ‘certificate of mailing’ as verification. This is a less expensive alternative to the old method requiring notification by certified mail.
In Nevada, similar changes have been passed and signed into law to take effect October 1. These new rules governing the self-storage industry should also prove beneficial to our businesses, as they are meant to limit operators’ liabilities in regards to protected property. They are a general improvement in the state’s lien laws, as they allow:
· Lien notifications to be delivered by email (or any method of verified mail)
· A delinquent tenant who has signed a Declaration of Opposition is now responsible to file suit within a 21-day period.
· Protections have been put in place for facility operators having to deal with sensitive, abandoned items like private records and pharmaceuticals.
· Any limitation of value contained in a storage rental agreement shall serve as the maximum value assigned any stored property.
All of these new provisions favor self-storage facility operators, which we like. When the last Nevada laws regarding storage facilities were written, it was 1983, before emails were even heard of. It’s nice to see the government keeping up with the times!
Just wanting to keep you informed – have some information or a topic to discuss just comment back!!
Ugly topic of course, and no one wants to think about the declining economy and how that is affect credit. With the job losses and the inability to pay timely — credit ratings for those wanting to start there own business is crucial to obtaining the best loan.
Few things for you to consider:
Has my credit score significantly improved?
Your credit score greatly affects the rate you qualify for when you apply for a loan. If your credit score was in less than stellar condition when you got your mortgage or auto loan, you may consider refinancing. It’s likely your interest rate will improve if your credit score has.
Can I consolidate debt?
If you’re paying high interest rates on credit cards or other personal loans, consider cashing equity out of your home and consolidating your debt into a low rate home equity loan (HEL) or line of credit (HELOC). Doing so will help you save money each month by eliminating those higher interest rate loans.
Cleaning up some extra credit issues can help you achieve your goals of becoming a Self Storage Owner!
By Scott Meyers
Published 19th June 2011
Ugly topic of course, and no one wants to think about the declining economy and how that is affect credit. With the job losses and the inability to pay timely — credit ratings for those wanting to start there own business is crucial to obtaining the best loan.
Few things for you to consider:
Has my credit score significantly improved?
Your credit score greatly affects the rate you qualify for when you apply for a loan. If your credit score was in less than stellar condition when you got your mortgage or auto loan, you may consider refinancing. It’s likely your interest rate will improve if your credit score has.
Can I consolidate debt?
If you’re paying high interest rates on credit cards or other personal loans, consider cashing equity out of your home and consolidating your debt into a low rate home equity loan (HEL) or line of credit (HELOC). Doing so will help you save money each month by eliminating those higher interest rate loans.
Cleaning up some extra credit issues can help you achieve your goals of becoming a Self Storage Owner!
Hey folks, Scott here wondering what you think the outlook is for Self Storage — Are you keeping up on the latest news in the industry? Do you have pending questions?
Use this blog and post a comment and we’ll turn it into a Q & A for you!
By Scott Meyers
Published 17th June 2011
Hey folks, Scott here wondering what you think the outlook is for Self Storage — Are you keeping up on the latest news in the industry? Do you have pending questions?
Use this blog and post a comment and we’ll turn it into a Q & A for you!
Self-storage has gone through great changes in the public’s consciousness. Investors and lenders from Wall Street to insurance companies are beginning to have greater confidence in self-storage real estate ventures. This has led to lending being done on terms similar to that of more traditional real estate classes like the office and industrial sectors. These changes in perception, in addition to low-interest rates, have created a perfect storm of opportunity for sellers and buyers to make the most of these properties.
Not too long ago it looked as though the real estate market crash would cause owners to suffer losses on their properties and even have to face defaults as property values continued to fall and the number of lenders willing to be part of such ventures quickly dwindled. However, with an increase in confidence, the number of lenders for self-storage enterprises grew. That, compounded with low-interests over the past few months, has given property owners the ability to sell their properties at historically high prices. Owners also have the ability to refinance at much better rates ensuring that they are able to keep more of the money they make rather than handing it off to lenders.
Low-leverage refinancing options are leading to non-recourse loans that are almost identical to what they were at the market’s peak. Higher-leverage deals are also making their way into the industry, though at high interest rates. These factors have caused property values to bounce back faster than could be expected. Of course, not all businesses are run the same way and cannot expect to see the same growth. Self-storage businesses that were started at the height of the industry with little foresight and impractical expectations will find themselves struggling and will only make their way through it with hard work.
With the new ability to find and receive financing at low rates, self-storage facilities are seeing pricing, as it relates to income, change. Low rate financing means increased returns on every dollar because less of the income needs to be tied up. The estimate is that over the last 12 months, value has gone up by around 15% without any gain on the cost of operating.
For as well as the self-storage industry is doing, it would be improper to think that everyone involved is doing equally well and facing no or few problems. Larger operators can take better advantage of changes in the industry than their smaller counterparts.
With greater value in the eyes of the public, self-storage has become much more competitive. Operators are beginning to see that in order to stay in business and make their businesses profitable, they need to make adjustments in the way they operate. This means taking advantage of sophisticated operations and economies of scale. Big operators are able take business from the smaller businesses for a variety of reasons from marketing to pricing, and if small operators hope to stay solvent in the same markets as their larger counterparts, they will need to make changes to how they operate.
This is contrasted between how large and small operators work and the ways these changes in the industry can impact them. Big operators are able to more easily fold these changes into their operation, while smaller operators are being forced into difficult positions.
By Scott Meyers
Published 16th June 2011
Self-storage has gone through great changes in the public’s consciousness. Investors and lenders from Wall Street to insurance companies are beginning to have greater confidence in self-storage real estate ventures. This has led to lending being done on terms similar to that of more traditional real estate classes like the office and industrial sectors. These changes in perception, in addition to low-interest rates, have created a perfect storm of opportunity for sellers and buyers to make the most of these properties.
Not too long ago it looked as though the real estate market crash would cause owners to suffer losses on their properties and even have to face defaults as property values continued to fall and the number of lenders willing to be part of such ventures quickly dwindled. However, with an increase in confidence, the number of lenders for self-storage enterprises grew. That, compounded with low-interests over the past few months, has given property owners the ability to sell their properties at historically high prices. Owners also have the ability to refinance at much better rates ensuring that they are able to keep more of the money they make rather than handing it off to lenders.
Low-leverage refinancing options are leading to non-recourse loans that are almost identical to what they were at the market’s peak. Higher-leverage deals are also making their way into the industry, though at high interest rates. These factors have caused property values to bounce back faster than could be expected. Of course, not all businesses are run the same way and cannot expect to see the same growth. Self-storage businesses that were started at the height of the industry with little foresight and impractical expectations will find themselves struggling and will only make their way through it with hard work.
With the new ability to find and receive financing at low rates, self-storage facilities are seeing pricing, as it relates to income, change. Low rate financing means increased returns on every dollar because less of the income needs to be tied up. The estimate is that over the last 12 months, value has gone up by around 15% without any gain on the cost of operating.
For as well as the self-storage industry is doing, it would be improper to think that everyone involved is doing equally well and facing no or few problems. Larger operators can take better advantage of changes in the industry than their smaller counterparts.
With greater value in the eyes of the public, self-storage has become much more competitive. Operators are beginning to see that in order to stay in business and make their businesses profitable, they need to make adjustments in the way they operate. This means taking advantage of sophisticated operations and economies of scale. Big operators are able take business from the smaller businesses for a variety of reasons from marketing to pricing, and if small operators hope to stay solvent in the same markets as their larger counterparts, they will need to make changes to how they operate.
This is contrasted between how large and small operators work and the ways these changes in the industry can impact them. Big operators are able to more easily fold these changes into their operation, while smaller operators are being forced into difficult positions.
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