Entering the self-storage industry can be an exciting prospect. The chance to develop and build your own facility can lead to a financial windfall but getting started can also bring with it many newfound risks. Getting the most out of your self-storage facility requires the right amount of capital, good locations and industry expertise. All of these things can be difficult for one person to obtain which is why building an equity team can help you mitigate risk by allowing you to team up with expert business partners who can assure the projects optimal success.

Here are a few things to consider when building your equity team.

Why build an equity team?

You usually want to build an equity team when you have a self-storage project but you are lacking the key ingredients to get that project off the ground. For example, you might have a good plot of land, but may lack the capital needed to develop the property or vice versa. Perhaps, you have both the land and the capital to develop the project but you lack the expertise in dealing with municipal building codes.

An equity team adds an infusion of management, financing and expertise to a project you are unable to complete on your own in exchange for split ownership on the project. However, the formation of an equity team should not be taken lightly because working with bad business partners can only hurt your project. Here are a few things you need to think about.

Draft a summary of the property location

If you are looking to build an equity team for your self-storage project, then it is important for everyone on your team to have all the necessary information regarding the location. Bring a summary of the location that tells potential members of your equity team the size of the land, the zoning and the history of the site. The land history should tell team members what the land was originally used for in the past and if there is proper access to utilities. Be honest about the condition of the land and tell reveal and issues that could be prohibitive.

What is the entitlement status?

What do your local municipalities think of your project? Has your project been zoned for self-storage and do you have all the necessary permits to build a self-storage facility? The biggest thing you need to avoid when it comes to entitlements is resistance to your project. If a city or its citizens are against your project it can be almost impossible to get your facility properly zoned.   

Figure out if it is feasible

Make sure you have a feasible project before you and your team begin investing in a self-storage project. Know how much competition is in your area. What is the demand for a self-storage facility and how many self-storage facilities are in your area? Do a feasibility study and learn how much your competition pays in rent, how occupied they are and what it costs to build their facility. Knowing these things will give you a greater sense of the market and allow you to correctly assess your own project.

Create accurate projections and a budget

Make sure you have projections of how you think the project will do month by month by creating a proper profit and loss statement. Create accurate traffic reports so you know how many people come through your area at a given time. Report on each phase of construction so we can accurately asses the cost of the project and when it is projected to be completed.

Most importantly make sure you have good character references for every member of your equity team. You always want to work with people of high integrity. Character references should be with people and organizations your team members have worked with in the past. They should have a good credit history and consistently pay their loans on time. A past lawsuit does not need to be a deal-breaker but a history of lawsuits is a bad sign. Doing your due diligence with the people you are working with is so important in preventing unwanted risk.

Starting a self-storage facility can be a difficult but rewarding process. Building the right equity team around you can ease some of the burdens and mitigate your risk in a hot market. Follow the steps and cover all your bases and you should be on your way to a strong partnership.

Dave Kotter is the Principal of Integrity Capital LLC, a commercial mortgage brokerage in Scottsdale Arizona. Integrity Capital has obtained self-storage financing for clients across the nation. They are an expert in the industry.

by Sarah Hope

Not every self-storage facility requires their prospective employees and potential property managers to conduct pre-employment drug screenings, but every self-storage property owner should consider implementing this practice.

Property managers and other employees are given a lot of responsibility. They are asked to drive company vehicles, protect customers’ property from theft and uphold the good reputation of your company, so it is important that your employees go about their business in a safe and drug-free way.

Implementing pre-employment drug screenings is an important process and it is imperative that you create an efficient drug screening process that creates quick and accurate results. A drug testing process that makes potential employees wait too long for results can put your company at risk of losing good talent. No one is willing to wait on a job forever so here are a few tips that will ensure you implement a quick and accurate drug testing policy.

Implement A Policy

Before you start pre-employment drug screenings it is important to create a drug testing policy.  A good policy is essential to ensuring that screenings are efficient and fair.

When creating a drug testing policy, consistency is key. Drug testing policies should be conducted the same way every time for every current and prospective employee. This means if you using five-panel drug testing than you must continue to use five-panel drug testing for every employee. If you wish to conduct hair testing than you should stick with this type of testing throughout the hiring process.

If your drug testing policy states that every employee must undergo a drug test, then every employee must undergo a drug test. Consistently following your drug testing policy will ensure that everyone is being treated equally and will your company maintain accurate testing results.

Hire an Expert

Implementing a drug testing policy is not a simple task and you should consult with an expert on how to create the best testing policy. consultants will ensure that your policy clearly states the type of testing you do and when you conduct drug testing. A consultant will also teach you the foundations of every drug test so you understand the type of test prospective employees are taking.

The fact of the matter is that drug testing is important. It minimizes risk by helping self storage companies ensure their employees are the right people to uphold your company’s reputation.

Create an In-House Program

Drug testing does not need to require prospective employees to drive to your local lab and wait to be tested. Employees can conduct same-day on-site drug testing with the proper training. Your local drug testing companies will train HR managers to conduct drug tests onsite at the time the prospective employee is applying for the position at your company. Your HR managers will be trained to conduct saliva or hair based drug testing meaning prospective employees can get accurate testing results on the same day they applied.

Training your HR department to conduct drug tests is a great way to increase the efficiency of your pre-employment process; however, not every self-storage facility has or needs an HR department that can conduct drug screenings so other options are available. If you do not have the resources to train your staff on drug testing, you can hire a local lab to do in house testing. Drug testing companies will gladly come to you and conduct drug testing with same-day results.

Don’t keep your prospective employees waiting on test results. In-house drug testing will ensure you are getting accurate results so you can quickly bring on the newest member of your team.

Sarah Hope is the CEO of 911 Drug Testing in Tempe and Glendale Arizona. 911 Drug Testing is a one-stop-shop for background checks, drug testing, fingerprinting and immunization.  

One self-storage facility owner in Oklahoma experienced over $50K worth of equipment stolen in a matter of five months, according to KOCO news. The worst part is that the thieves executed their plans in broad daylight, despite locks on the gates.

Until he installed multiple security cameras, this Oklahoma businessman was bleeding green dollar bills in the form of ladders, trailers, and even a dump truck. However, his proactive stance seemed to “declare war” on the criminals. Not only did the footage put local authorities hot on the criminals’ trail, but it also safeguarded the self-storage facility for future business.

This particular Oklahoma headline drives home how vulnerable self-storage facilities are without preventive security measures. But here’s how security cameras can change all of that.

1. Deters Thieves

Few criminals are 100 percent fearless, which is good for you. When locks, signs, or even the revealing sunlight doesn’t cut it, it’s time to turn technical. No matter which way you look at it, getting caught doing something wrong is an innate fear inside of most individuals—including thieves. 

By installing security cameras, you trigger that natural fear in what is known as the deterrence effect. Plenty of criminals are terrified of having their guilty mug caught on camera, or at least have enough sense to move on to a target that doesn’t have cameras. This feeling is so intense that most individuals will avoid getting caught rather than going through with the theft.

2. Alerts Authorities

Although the Oklahoma businessman notified local authorities, the police were mostly powerless to locate any thieves with only a missing items report. However, security cameras put a new twist on the situation by offering time, strategy, and the physical demeanor of the criminals. Armed with this information, ending the string of robberies was well within grasp. 

3. Appeals to Customers

Remember, what appeals to customers doesn’t always seem as alluring to criminals. For example, a self-storage facility that markets itself as “equipped with security cameras” won’t look as charming to someone who wants to break into it. 

But for honest customers looking for a safe place to stash their goods, video cameras are an amenity that will make them more likely to rent a storage unit from you. Promoting the fact that you have security cameras installed is a great way to market your facility to security conscious consumers.