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?
In addition to being the best tax advisor I have had the pleasure of working with, Jerry is first and foremost a wonderful person. Building my first storage facility and being a rookie to the industry, I was nervous on what I could expect in my first year of development. With all of the ups and downs of this first year all I can say is I had absolutely no worries when it came to the the most important part of our business - the numbers. Jerry Jones took the time to answer every question or concern we had when going though this process. If you are in the storage business give yourself a leg up and apply Jerry’s experience and expertise of this expanding and ever changing industry. You will be thankful you did.
Bill Pederson
Lock it and Leave it storage

Self-Storage Research
Semi-annual Report Fourth Quarter 2012

Marcus & Millichap

Coastal Cities Lead Recovery, Secondary Markets Lagging

Demand for self-storage space will be sustained by an improving job market and the daunting eff ects from Hurricane Sandy. The catastrophic events unfolding from the hurricane created an estimated $20 billion to $30 billion in damage along the Eastern Seaboard. Typically after a natural disaster of this magnitude, demand for self-storage accelerates as homeowners store undamaged goods during the cleanup process, while contractors and local suppliers utilize commercial space. As such, operators with heavy exposure to the East Coast will see a sharp increase in business over the next six to 18 months. On a more positive note, with the economy on the mend, the nation has gained 1.3 million jobs this year, which enhanced consumer confi dence to a four-year high and boosted retail sales. Th is trend will persist through the holiday season as an additional 400,000 jobs will be created in the fi nal quarter. Technology-driven markets, including the Bay Area, Seattle, Los Angeles, New York City, and Boston, along with oil-rich regions in Texas and North Dakota, will realize a signifi cant portion of these gains. As residents relocate to these areas, many will enter the rental community and utilize storage units for excess items. Th is rise in demand, coupled with limited construction will support positive absorption across the nation this year.

As REITs and private-equity groups remain bullish on high-quality product, cap rates will stay compressed into next year, pushing some yield-seeking investors down the quality scale to capture higher returns. To satisfy investment objectives and grow portfolios, this pool of buyers needs to place liquidity into top-quality properties located in primary markets. Bidding will remain competitive for any new Class A listing, which will prompt most investors to pay cash to stave off the competition. With cap rates for these properties already treading near the sub-7 percent range, buyers looking to maximize returns may target stabilized assets in one-off markets, which can generate up to a 150-basis point premium. Meanwhile, smaller, local and regional investors priced out of the top-tier sector, will purchase Class B/C assets with proven cash fl ows in secondary and tertiary markets. Qualifi ed buyers with a solid operating history may be able to utilize the SBA 504 loan program for the acquisition. Due to the attractive debt being off ered, investors who use leverage could realize a cap rate spread of up to 400 basis points.

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Cost Segregation

The Power Of Catch-Up And Bonus

By Jerry Jones, CPA aPC, and Jennifer Castillo

Last month in the October issue, we introduced you to a powerful tax savings tool called Cost Segregation. If you own a self-storage facility and haven't had a Cost Segregation Study completed, you are unquestionably overpaying your federal and state income taxes.

In this month's issue, we will discuss two specific provisions within the tax code that apply to cost segregation and make it even more advanatageous for you to consider as a self-storage investor. And don't worry-contrary to popular belief, if you've owned your facility for a number of years, it's still not too late to benefit from cost segregation. In Fact, your savings in the current tax year can be staggering!

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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!

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