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 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!

Here in the self storage business there are many important aspects to keeping your business in line. However, perhaps none are more important that who you choose to manage your facility/ies. A good manager can turn a self storage facility into a booming, profitable business, and in the same light, an awful one can bring it tumbling to the ground. Finding the right manager may be a time consuming task, but a necessary one when you consider all of their responsibilities.

Choosing your manager

When it comes to finding a self storage facility manager, do your homework. Do your potential hires have experience? Is that experience topic related? Or will their other skills translate? Just because a potential manager has minimal experience with the self storage industry doesn’t make them a bad choice. Look at their backgrounds: have they worked in retail? Dealt with customer service? All of these things will fall under your manager’s jurisdictions. Look beyond their former positions and see what skills will help them succeed in the self storage industry.

Another aspect to consider when hiring your manager is to get help from an outside source. Having a personal relationship with a potential hire or choosing after first impressions aren’t always a good idea. Ask a fellow property owner to help you decide, or a close friend who has experience owning their own business or working in management. When it comes to picking your manager, you can’t afford to get emotionally involved and risk choosing the wrong hire.

Ongoing education

Next, once you’ve made your pick, don’t forget that the self storage business is always changing, and so are the management techniques. There are hundreds of opportunities for continued education, and allowing your manager to expand their knowledge will only make them better at their job. Treat your manager to seminars, webinars, speakers, or a training sessions on a regular basis. Not only will the expense help your employees, but it will have a direct (and positive) effect on your business; helping it run smoother. And although it may seem like a costly expense, remember that with employees, you get what you pay for and your manager is the central piece holding your business together.

From the outside looking in, the self storage business can often look intimidating. Especially in an economy where it’s difficult for anyone to get a loan, particularly first time property owners. However, there are steps that you can take to make getting into the self storage business easier and less stressful.

First of all, it’s important to understand why banks are so selective when it comes to self storage borrowing. Not only is it a property loan, but the self storage industry is unique from most other property ownerships. In fact, it’s more of a retail business – meaning you not only have to known how to be a successful landlord, you have to know how to run a sustainable retail business. And if you have little or no experience in either field, banks and credit unions are often hesitant to cough up the loan.

How to Gain Credit

Before heading into the loan office, it’s a good idea to build up your credit. Whether it be business or personal, having a good track record will only help your chances at getting approved. If you’re working under a company name, be sure to register with the three credit bureaus. It will put you on the map with creditors and allow banks to check your Small Business Credit Risk Score. Another way to earn a high credit score is to open up a checking account or credit card in your business name. And if you’re operating under your personal accounts, make sure your debts are paid up and any previous property loans are in order.

Next, get to work on your paperwork. Your loan application is one of the most important steps when purchasing your very own self storage facility. Make is shine by highlighting all of your assets. Have you owned property before? Worked in retail? Show the bank your skills and why you’ll be great in the self storage business. On the other hand, though, make sure the skills you’re listing are worth bragging about. Selling retail in college for a few months isn’t exactly going to impress a possible investor.

Finally, utilize your resources. Do you currently own properties? What collateral do you have to offer?Having a sufficient amount of insurance is sure to help any lender feel at ease when handing you a check. Another helpful resources is hiring an experienced manager. Bringing in an employee who is well-versed in the business will prove to the bank or credit union you’ve done your research and are serious about the loan and the self storage industry.

In the self storage business, there’s not always a lot of opportunities to have one-on-one contact with your customers. And chances are, if you do, it’s to talk about maintenance or contracts. So how do you get reviews or testimonials that will help your business from existing customers?

Why should you have reviews?

Customer reviews are an excellent way to give first-hand experience on your company. Potential renters will appreciate opinions from those who have already dealt with your business and will be more likely to trust you after hearing others’ reviews. Having existing customers review your business will also show that they are not only satisfied with the services, but confident enough in their experiences to share them with others.

Using testimonials are also a form of marketing with minimal costs as sites such as yelp, yahoo local, etc. do not charge for users to post or check reviews.

How to obtain self storage reviews

If you don’t already have customer reviews for your self storage business (a quick google search can find this out for you), a good tactic is to be direct with your customers. Ask them to post for you … their honest opinions though, as the reviews should be genuine. Let them know you are trying to expand your market and a review from existing customers will let others know what to expect. You may offer those who agree a coupon of sorts, or a discount on services in exchange for their review. Just make sure whatever you offer them does not come off as bribery or payment. However, a simple this-is-for-your-trouble coupon can be a sincere form of thanks.

Another great way to get exposure is to offer deals to new customers. The sale will get the buzz out about your company, and renters have a reason to contact you because of the new-timers discount. And, those who are satisfied are sure to pass along the news, either through word of mouth or through their own personally-written testimonial.

Keep these tips in mind the next time you’re marketing your self storage business to help bring in new customers and keep your current ones involved and happy.

Last week, we talked about new tips for marketing strategies for your self storage business by purchasing TV time slots. Today, we’ll take the idea of marketing through television and expand on it even further. For those who have already made an investment in TV time slots, you’ll understand the ease of getting your name out there through the power of commercials. However, for those who are wanting to expand on their commercial, there are many options to utilize TV ratings even further.

Start by checking in with your local TV station(s). Oftentimes, smaller stations will have a channel that is very similar to a radio show. Radio ads are played along with a picture of the business and contact info. This is not only a way to reach a larger number of people, but to capitalize on another channel through advertising, while essentially offering them two separate ads as only one is through video.

Next, check the station’s website. Do they sell ads? Purchasing an online ad next to the classifieds will ensure that interested consumers will see your self storage ad. The ad can also be seen by those who may be more technology savvy and may record their shows or watch them online.

Finally, ask any TV or radio stations if they are looking for any sponsors. When they cover a live event, these stations may have banners or give away items for listeners and viewers. By buying one of these spaces for your company, you will get your name out there by spending minimal amounts. And if you participate in the giveaways (self storage businesses could offer free keychains or calendars), consumers will be reminded of your business while also passing along your info to others.

The next time you’re working on your self storage business’s marketing strategies, keep these simple yet effective ideas in mind.

So you’ve decided to get into the self-storage business by developing your own Self Storage Facility.  Well the first step should be to locate a viable parcel of ground to develop.  However, many investors find that determining an adeqate site is a little more difficult than they imagined, and perhaps, should be done with the aid of an independent third party. Why? Because a feasibility study, conducted by a professional, will provide an in-depth analysis of the location to determine if it is viabie for Self-Storage. Read the rest of this entry »