Most of the folks in the self storage industry have seen or heard a number of articles – whether located in blogs, chat rooms, etc. – about the war on the aggregators right now, which is being led by one self storage operator in Texas. During this controversy, I’ve been sitting back in the sidelines, talking with quite a bit of others in the industry and hearing different views on the use of aggregators.

As a self storage owner, I’ve used the aggregators sites for advertising; I teach people multiple ways to generate traffic. So with an unbiased opinion, I’ll explain the controversy from both sides of the issue. Just click on the video below.

If you’ve ever wondered about video marketing, in this video Scott gives a quick glimpse on how to market your facility online, primarily through social media. A few tools of the trade don’t have to be progressive as you think. You don’t have to have a production company or a $1,000 camera. In fact, it’s pretty incredible what the iPhone 4s can do as far as video and uploading capabilities. Editing software such as iMovie or profiles on Feverr.com can also help with the production aspects. There are also plenty of cost-saving outlets once the finished product is ready as well, such as YouTube and a personal or company blog.

To find out more details and tips from Scott on video marketing, check out the video below.

Scott Meyers of Self Storage Investing gives an overview of video marketing to help promote your self storage facility. Use his easy-to-follow tips to help get the most out of your internet marketing efforts.

The current trend of storage auctions is growing in popularity by the day. TV shows are devoted to following professional auction buyers, and people everywhere are on the lookout to find a good deal for themselves. But as the facility owners, there is more to the auctions than the public may realize. Just because storage units may sell for more money than their back-rent racked up, it doesn’t necessarily mean it’s extra profit.

There are many rules involved with running these storage unit auctions, and many vary from state to state. For example, in the state of California, the profits – after rent bills are settled – are to be turned over to the original unit’s renter. If, after a year they cannot be contacted, the money should be given to the county in which they are located. But, according to an article found from Inside Self Storage, “the county has no mechanism in place for handling these types of funds.” So, you must go through the formality of sending them a check, but will later need to send the profits to the state. One tip for making the process easier, given by Jeff Greenberger, attorney, is to stamp the checks with a “void after 90 days label,” allowing the unit’s owner to wait the three months and mail the funds to the state. The money is then held until the owner can claim it.

Each state has a separate set of rules and procedures, which can be found at MissingMoney.com. The website can also be used to search for owed funds to individuals, often including stocks, bank accounts, and contents in safe deposit boxes. But the bottom line is, no matter the amount of “extra” profit, a storage facility will have to spend time and money finding their former tenants – all for funds they cannot keep. For many storage facility owners, depending on the amount of back-rent, it may simply not be worth the hassle.

Have questions or comments? Let us know. And be sure to check back in for more business tips and service reviews.

Photo courtesy of Flickr.

As an entrepreneur, chances are you’re looking for every medium possible that can help bring in extra money. Whether it’s adding on a coffee shop, putting in a vending machine, or becoming a certified UPS store, there are always ways to capitalize on your building’s space. Think of the first person to cram a Wendy’s or McDonalds into a gas station. It may have seemed like an unlikely combination at first, but by cutting back on overhead (using a single building) and increasing convenience (the “convenience” store), owners can significantly increase their profits.

One such venture is to turn your facility into a UPS store. This is a combination, unlike gasoline and hamburgers, that goes hand in hand. For example, UPS stores sell packing supplies, boxes, labels, etc. When customers are bringing in items to store, they have easy access to the supplies they will need. And, on the other side, those who come in to pick up or mail a package learn about your storage facility. Plus, you’ll be earning money from the store’s sales, only a fraction of which goes toward royalty and franchise fees.

Success Story

One self-storage facility owner partnered with UPS and has been enjoying the benefits ever since. One of the main high points, he said, is the advertisement that comes with a nationally owned brand. Customers are familiar with UPS and have no qualms about doing business with their “partner.” The storage facility also said UPS has exchanged management information with them (packaging info for storage unit info), and has offered training courses on expanding into a franchise.

Starting Your Own

To start up a UPS franchise, it can be simple as finding a local representative to help you through the process. Owners must then attend training, and prove to have a location outside of other UPS locations’ territory. This also means another store can’t be founded next to yours.

Head to franchise.theUPSstore.com to find out more information on starting your very own operation. And for more tips in the self storage owning business, be sure to check back in or follow us on Facebook or Twitter.

Photo courtesy of Flickr.

As a self storage facility owner, you may wonder what connection truck rental companies can have with your business. Yes, you’re both in the same field, but generally it’s the customers who rent their own trucks, right? Not necessarily. By pairing with a rental truck service and pooling resources, you can not only make the moving process easier for customers, but can make money in the process. And since you’re offering an all-in-one-stop, renters are more likely to see your bundling services as a way to save time.

Whether you partner up with a specific truck rental company, or decide to offer advice and reviews on all available options, branching out to truck rentals is a great way to expand your business. One storage company in Columbus took the partnering route in order to join forces. Just a few weeks ago, Chatterton Self Storage announced they would be renting out U-Haul trucks to their customers. The trucks will be located on the premises to help reduce travel time and hassle for future movers.

However, U-Haul isn’t the only truck rental company available. Depending on your location, you may have as many as four companies in a single town. As a facility owner, it’s your job to do the research, find who has the best services, and whether or not you partner with them, recommend them to your renters. (For help on the research, click here for a breakdown on Penske vs. U-Haul.)

Building Your Business

There is also one more method that can be taken: creating your own moving crew. You can purchase trucks in varying sizes (the size of the operation is up to you), and find a few movers to work part time. Although this method may require a little more work, it will also net much more profit than by outsourcing. Additional revenue-bringing tactics can be made such as renting ad space on the trucks and offering discounts to tenants to help ensure business. And the services don’t have to be limited to your own facilities; why not profit from home moves as well?

Have questions or comments? Let us know. And be sure to check back in for more business tips and service reviews.

Photo courtesy of WordRidden.

Here at Self Storage Investing, we are dedicated to helping other storage facility owners – whether new to the business or those who have yet to commit – the best advice when breaking into the industry. In order to carry on that promise, I decided to start a series of blogs in which I review and compare different business necessities. Stay tuned for more great self storage business advice. Up first: renters insurance.

Renters insurance, although not (generally) provided by the building owner, is an important piece of the self storage business. Individual renters will be interested in knowing perks, prices, and stipulations to different policies. As a self storage facility owner, it is a good idea to have this information on hand, and be able to offer advice to your future renters.

Here is a breakdown of some of some of the top renters insurance companies:

Safestor

This company is unique in that it offers policies strictly for self storage units, which means they specialize in policies and coverage.

What Does it Cover?

According to their website, Safestor covers: property loss due to fire, hurricane, tornado, wind, earthquake, smoke, lightning, hail, vandalism, building collapse, leaking water, burglary, and explosion

What Does it Cost?

The company offers three options for renters:

-With coverage of $4,000, it costs $6 per month

-Coverage of $10,000 costs $18 a month

-And for $15,000 worth of insured, $24 each month

(For what it’s worth, their website was by far the most informative and easy to navigate.)

Bader Company

Bader works a little differently as it purchased by the building’s owner, not the renter. While they do offer commercial insurance, the company also allows for property owners to offer the option of tenant insurance. Renters may find this more convenient than working with two separate companies.

Coverage and quotes available upon request.

Esurance

Pretty standard set-up here. Unit renters can set up a policy for renters insurance. They also offer separate policies for storage units vs. an apartment or home rental. Esurance also lists the price at an average of $.50 per day for renters insurance.

Shelter Insurance

For you folks in the midwest, Shelter Insurance offers coverage of storage units by a yearly fee. Because they do not specialize in self storage units, they are able to offer more competitive prices.

What Does it Cover?

Fire, theft, wind, hail, water, tornado, vandalism, building collapse, explosion, and, upon endorsement, earthquake

What Does it Cost?

On average, $10 per year per thousand insured

Other popular companies, such as Geico, State Farm, Allstate, Liberty Mutual, etc., offer renters solid protection plans as well. Potential renters can easily get a free quote by visiting their websites. However, it’s also important to note that many homeowner insurance policies cover a percentage of outside-stored items. Depending on the value of a unit’s contents, those with homeowners policies may already be covered. Renters should check with their local agent for policy-specific details.

Have tips or questions? Let us know. And be sure to check back in for more tips in the self storage facility ownership field.

With all of the advertising options that are available today, the costs can add up quickly. There are radio ads to purchase, commercial slots, internet space – the options quickly make a dent in the profits. But, what if there were another way? What if there were a way to get the word out about your services without having to pay for it? While nothing can actually replace conducting your own advertising, there are methods that can help along the process. One such free example is winning an award.

While, of course this path requires for your company to be chosen by others, it also makes it that much more honorable once it’s been earned. Not only will winning an award bring clout to your business, proving to potential customers that you’re the real deal, it will also get your name out into the public. Award winners can also be featured in local publications, reaching an even broader audience.

How to Get Recognized

The first step in winning an award is proving to be worthy of its honors. Whether you’re hosting a charity drive, recycling, or implementing a new type of business plan, get others to notice you. Ask for city support, or call up a local reporter and give them a tip on what you’re up to. Just remember it shouldn’t be done in order to get attention, just to bring light to what’s already in place.

Another way to earn your business a reward is to find them – perhaps there’s an award for office managers, or a janitor of the month program – and nominate your employees. This is the once instance where you can go out looking for your own awards, and possibly give a great honor to an employee in the process.

As for awards specific to the self storage industry, top publications come out with a list each year, giving awarding brands a ranking number. Finding your name on one of these lists is a great for of free advertisement in the self storage world. There are also several state and city certificates given each year to reward top-performing businesses.

Successful businesses everywhere will continue to advertise and raise the word about their company, but winning an award is one of the easiest ways to put yourself a step ahead of the competition.

Be sure to check back in for more info on the self storage industry and investing in your very own property.

With Thanksgiving looming around the corner, I thought this week would be a great opportunity to talk about some of the thankless tasks within the self storage industry. Anyone who has ever owned property, managed a business, or even just held down a job, knows how many steps that can be involved in a day-to-day operation. Trash has to be taken out, sidewalks swept and kept clear of ice, billing and paperwork, maintenance – the long list of chores could go on for pages. But, unfortunately, those who complete those tasks don’t always get a pat on the back.

First things first, the manager is the person who makes your business run. They are also the middle man, passer of information, and answerer of questions. Managing means taking care of the small details, and one of the simplest of details is showing others how much you appreciate their work – remind them of how helpful they are. As for other employees, they’ll fulfill countless tasks such as running auctions (no two of which ever turn out the same), and making sure statements get out on time – both of which are the reason you’re making a profit. So, why you’re technically paying the bills, they’re making it possible. Let them know.

And, obviously, you’re customers are what make the business sustain itself. Their patronage, their willingness to donate to charity drives, their interest in the self storage-related reality shows – all of this combines to help create a successful operation. Renters are also the reason the self storage industry has managed to not only thrive, but grow in uncertain economic times. Thy’re the reason everyday people can turn their money into high-earning businesses with the self storage industry. And for all of these reasons, I am thankful.

This turkey day, in between the stuffing and the pumpkin pie, take the opportunity to realize it’s because of the help from others you’re where you are today. And have a happy Thanksgiving!

Over the years I’ve seen and heard hundreds of excuses for people not starting their own self storage business. “There’s already too many facilities in our area.” “I wouldn’t know where to start.” Or, “My neighbor rents from such-and-such.” And while the excuses themselves may vary, they all have the same theme: overestimating the competition. Many of these startup businesses fall short before they can even launch due to lack of confidence. But, there are several reasons you should have faith in your abilities.

Why Certain Fears are Invalid

When I hear “There’s already too many facilities in our area,” I always ask for more info. How many facilities? Are there climate-controlled units? Individually alarmed? Business Centers…? More often than not, these questions can’t be answered. Just because there are “a lot” of self storage facilities doesn’t mean every market is covered. Many owners overestimate what their customers will want, offering services that are more than consumers are willing to spend. Others may have underestimated storage needs. The key is to find a gap in the market and take advantage of it.

These other excuses can simply be solved by gaining confidence in what you’re doing. Do bigger-named companies have “control” of the market? Start advertising as a self-owned shop. Offer competitive prices, or simply connect with your customers. Never assume the current businesses have it under control. The self storage market is a versatile one. The business is continuing to expand, and those who are staying ahead of the curve are the ones seeing this growth – not necessarily the ones who own the most facilities. Find a gap in the industry and take charge, regardless of what the other guys are doing.

Out of all of the successful tips I’ve found, none have been as helpful as simply understanding what the customer wants. Tap into your inner consumer, and you’ll find it can be easy to compete with even the largest of self storage facility companies.

It’s nothing shocking to hear yet another blog/article/news piece about the failing economy. Every day the media is announcing one more way the US economy is hitting the ground. From banks, to small business, to Fortune 500, it seems that everyone has taken a hard hit from the Great Recession. However, it seems that, with all of this negative financial news does come an up side, there is one industry that is thriving more than ever: the self storage business. (I knew I got into this business for a reason.) And for those still standing on the outside of those storage garage doors, it’s not too late for you either.

How is the Self Storage Business Thriving in This Economy?

If you’re wondering how the self storage market is thriving when financial companies can’t even make it, you’re not alone. People from all across the country are analyzing the self storage business and looking to duplicate its success. Their results? There are several for the current success rate. Here’s the top three contributors I’ve researched:

1. Banks aren’t approving many loans. Rather than purchasing land, building, and then renting, owners are buying up current properties. Bankrupt furniture businesses, grocery stores that have closed – no matter the building, almost any property can be built with plans for a storage units in mind. (And many for prices much lower than their worth.)
2. People are downsizing. With the looming thought of an increasing mortgage payment, or just the realization that a home is too large, many are packing up and moving their excess belongings into a self storage unit.
3. Bang for your buck. Buying a property outright can be expensive. But renting for a few months is much more cost-friendly and allows renters the flexibility to use a unit for as little or as long as they need.

But, as many have found, why the self storage business is thriving isn’t so much as important as the why-haven’t-I-been-doing-this-for-years. Newcomers from all over the employment map are beginning to purchase storage units and renting them out. Former businessmen/women, former salespersons, and even those just looking for some extra side money have bought units and started turning a profit almost immediately. And just because you haven’t gotten in the game yet doesn’t mean it’s too late. To find out more on how to get into the self storage business, contact us or check back here for weekly tips.