Jerry Jones CPA
Wouldn’t it be nice to have a CPA that you deal directly with, that knows the Self Storage business, that works in all 50 states and is there for you when you need him?

Interesting Ideas for Self-Storage Facilities

By Jerry Jones, CPA

Hi everybody, went to the AZ Convention a couple of weeks ago and came away with some great ideas from the various speakers. Thought I would pass them along.  You probably do most of them, but sometimes it is nice to re-evaluate and make sure you are doing everything you can to run a top notch facility(s) and make as much money as you can. 

1) Have you thought of doing webinars for all your managers on a monthly basis – great training tool – great way to engage the managers

2) Have you thought of having your staff go thru personality/charisma testing before being hired – helps with cohesiveness

3) Did you know that 70-75% of managers do not get customer’s information before they walk out

4) Did you know that 60% of renters are women – clean facilities front and back are becoming more and more important

5) Do you market the facilities by using distance parameters and track those

6) Do you maintain that all managers at all locations are trained the same way

7) Did you know that 60% of customers walk away because they do not feel cared about

8) Do you train your managers on collections – do you use automated collection calls

9) Do your managers have expectation benchmarks for – appts/retail sales/economic vs. physical occupancy – using a bad/good/very good/excellent scale

10) Do you prepare quarterly newsletters to the facilities – recognizing top managers in retail sales, collections, conversions of calls to appts, appts that actual show up - create an atmosphere of Accountability

11) How often do you audit the stores – deposits vs. unit usage – lock checks vs. used locks – units avail vs. reports – cleanliness

12) Do you use mystery shoppers

13) Do you give out certificates of excellence to top managers – this looks good to the customers

14) Did you know the average customer calls 4-5 times before making a decision

15) Do you track call center performance – calls converted, also – walk ins converted – phone calls converted – appt show up or not

16) Did you know only 25% of calls are booked – but 90% of all potential customers rent somewhere

17) Interesting point brought up – call centers are starting to get negative feedback – customers want that personal interaction

18) Do your managers educate the customer (phone call) on the facility – need to gain their trust and get the appt set – Get the customer to the store 85% will rent

19) Use the name of the facility thru-out the presentation – how did they find out about the facility – what will they be storing – benefits of the facility, truck usage, boxes, locks, security, etc

20) Assume the sale – do not ask if they want the unit – Show them a unit and tell them this is their unit – have a lock with you – show them how to use the lock – then tell them it will only take a few minutes to complete the paperwork

21) Contests for managers across facilities

22) How about start to raise rents now (7-9%), then raise rents every 9 months thereafter – 80/20 rule – raise rents, lose occupancy, but make more money

23) Embrace change – need to continually improve the facilities, the management, the owners

24) Ever thought of buying your own street sweeper for the facilities – could do a cost analysis on this

25) Have you seen the kiosks for propane refills

26) Ever thought of converting a couple of units to a FEDEX, UPS store, have a shredder available

 

Anybody out there that needs a good CPA that doesn't understand the Self Storage business please feel free to contact me.  I have clients across the U.S., so location is not a problem, I have designed 8-10 monthly and annual customized management reports for the industry. Great for single facilities and multiple facilities. 

I can prepare your LLC, Partnership and even your personal returns for all states.

 Feel free to give me a call to discuss how I might be able to help you with your facilities, accounting and tax planning.

Hidden Tax Savings

The Power of Cost Segregation

By Jerry Jones and Jennifer Castillo

Like many owners of self-storage facilities, you may be unaware that could decrease significantly your current federal and state income taxes. These tax savings are hidden beneath your feet, within the walls, and even in the landscaping and paving outside your self-storage facility. How can you get these savings? You can have a cost segregation study performed on your facility.

Cost segregation is a tax strategy used to help classify assets into appropriate depreciable lives-the result of which produces substantial tax savings. It is a detailed financial and construction-based analysis of all purchase or construction costs associated with a property. The objective of the cost segregation study is to help building owners save money and put cash in their pockets now!

Click here to download article.

DUE DILIGENCE

Buying It Right

By Tom Litton

Self-storage is a wonderful investment. The rents are comparable to rents found in apartment ownership, yet the hassles of management are far fewer. Self-storage has become the darling of the real estate investment world; not only has it matured, it finally is understood by lenders and Wall Street. The industry has abandoned its humble beginnings as a backwater industry and is now sought after by sophisticated investors who are determined to milk the cash cow.

For many years, few self-storage facilities were for sale because so many owners were happy with their investments. During the "savings and loan"crisis, some facilities were sold and fortunes were made by astute investors as properties were acquired for a fraction of their true values. Today, owners sell self-storage facilities for a myriad of reasons; some see impending doom in oversaturated markets, others simply want to liquidate their properties while the market is at a peak.

 To download entire article click here.

 

Cell Towers On Site

Growing Profits By Leasing To Cell Carriers

By Elizabeth Ferrin

Years ago, Ray McRae, vice president of Storage Solutions answered a phone call that would change the face of his company's holdings, ultimately adding income and increasing the value of his properties. This single conversation marked the beginning of the self-storage professional's successful relationship with the wireless industry and ultimately led to the development of a cell tower at one of his self-storage facilities. Today, his company's portfolio includes self-storage properties that play host to a total of 11 cell sites.

Like McRae, many self-storage owners and operators are open-and even eager-to increasing their monthly cash flow by allowing a cell tower or monopole at their site. However, very few owners ultimately end up signing lease agreement with a carrier. "The average landowner is likely not a candidate for a cell site." says Ken Schmidt, president of Steel in the Air, Inc., a company with assists landowners with the negotiation of leases. "There are more that 2 million parcels in the U.S. of which less than 175,000 have towers. That means there is less than a one percent chance that your site will be chose."

To download entire article click here.

 

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