Jonathan, the person who works with me on providing the content I produce supporting small investors getting in, or growing their self storage business, suggested I consider writing something on security options for people building or rehabbing a facility.
It always seems like a boring subject to me, but in every Bootcamp, he reminded me there are a lot of questions on it.
He is right.
I seem to want to focus on the bigger picture, and participants want to be in the weeds asking specific questions, like about security options.
So, let’s get a little in the weeds, or more accurately, hover just above them.
Overview of My Relationship with Security
I want you to know I am in no way an expert or a final word on the subject.
You very well may know more about self storage security than I do. I will share my relationship with it and why it is important to me.
Essentially, it is important to me because it is important to our customers.
My experience is most of the time, or at least very often, break-ins are inside jobs. The person committing the break-in knows the tenant and what is in the unit.
On numerous occasions, at least in our facilities, it was an estranged spouse or significant other.
But not always. On a few occasions, we have had someone break in and hit multiple units and buildings simultaneously.
When we build or buy existing, we always want to end up with certain security features. I will attempt to break it down into some basic categories and how we approach it.
Ultimately, we address them for the main reason I stated above: it is important to customers. So, if we address them correctly for the specific trade area, we can (1) lease faster and (2) get the best income possible for that location.
We also address them because our exit strategy is to sell to institutional buyers, and we know they are looking for these specific features.
I think security can be approached by addressing these basic areas:
- Fencing
- Access control
- Cameras
- Unit Control
Fencing
In most cases, we have used decorative black fencing in areas visible from the road to obtain governmental approvals.
If possible, we will use chain link fencing for the remaining portion of the property unless we have designed the project so that the buildings act as the barrier.
In some locations, not many, but a few, we have had issues with people cutting the chain link fencing and entering the promises. In those few locations, we have had to beef up the fencing with metal inserts that weave through the chain link fencing. It has acted as a deterrent for someone trying to quickly use bolt cutters to cut the fence.
Access Controls
There are all kinds of access controls specifically designed for the storage industry. We have used mostly PTI or Sentinel access control boxes to automate and give customers controlled entry into the facility.
We have mostly used local fencing companies in the markets where the faculties are located. They handle the fencing and gates.
Then we use the national access control vendors I just mentioned or others who are members of the SSA and ISS. They will find the local installers who will install their systems and connect them to the gates systems and the operating system we will use in the self storage facility. That way, when someone is late in paying, the operating system temporarily deactivates their code to get into the facility, and the gate doesn’t open for them.
The instant they pay, like on their phone in front of the gate, their code is reactivated, and they are granted access again. It’s all connected.
Access control is a critical component for any self storage facility, in my opinion.
Cameras
We use cameras.
Mostly for three reasons (1) customers feel safer, (2) it can deter crime, and (3) it helps rent units and helps on resale.
I am not convinced they do a whole lot, but they sure help rent units, in my opinion.
We will almost always have a large screen, with multiple camera shots behind the manager’s desk or on the wall where customers can see them.
We have found this single thing helps sell the idea that our facility is a safe place to be. We make sure customers see the camera shots on a flat screen and mostly let that do the work. In other words, we may say very little about them, but customers see they are being filmed.
Our goal is not to cover every square foot of the project. Just major ingress and egress points of the facility, most hallways, and critical entry points in various buildings.
We usually have the vendors suggest camera locations on a facility layout we give them. We usually tweak it slightly, but for the most part, if you are dealing with a vendor with self-storage experience, the camera locations are easy to figure out.
These are a few things we have learned over the years. Don’t daisy chain the cameras.
In other words, if cameras are wired back to a central computer, which we recommend over wireless at this point, each camera is individually wired.
If multiple cameras are on one wire, and one camera goes out, they all go out.
Also, most camera systems require a separate computer. Don’t max out a computer or system where no more cameras can be added. Have your system be large enough that you can add a few more cameras if needed. We have had to do this multiple times, and if the system is maxed out, a few more cameras can be very expensive.
Every now and then, the cameras have allowed us to give the police a clear shot of a person of interest, but mostly they sell the heck out of units for us. Just my opinion and many may disagree. Especially the camera vendors.
Unit Access
Unit access is a big topic today. With the introduction of smart door systems that require no latch and or lock, and access is granted by electronic locking mechanisms accessed by smartphones, many are going to these high-tech systems.
There can be advantages to them, especially for facilities that are “fully automated” and don’t have onsite personnel. But we have never used them yet.
For how we run facilities, we cannot get an ROI on them. As I stated in last week’s episode, I love selling disk locks.
You can also add individual unit door alarms that notify the office and the customer via their phone if the door is opened.
I do have people I have worked with who use this feature in certain areas of certain markets, but I have yet to do so.
I usually try to run a cost/benefit analysis on these enhanced tech features to see if there is a return to us for the extra cost.
I usually try to quantify what is the cost of the feature and can I (1) lease up faster because I have it, (2) can I charge more rent because I have it, and (3) can I get more money on resale.
So far for us, I still just use regular door systems, have our managers overlock and remove overlocks, and sell the heck out of locks.
Regardless, a lot of thought needs to go into unit access, your business strategy, exit strategy, the demographic profile of the trade area, as well as cost/benefit analysis.
All of the above areas of security are what we focus on and our approach as we build or rehab our facilities.
