With changes in the general economy have come changes in the self-storage finance world. Self-storage lenders, like those for all commercial real estate, apply more stringent underwriting standards when evaluating the potential of a construction, permanent or other self-storage loans. Even the refinancing process has become more challenging for self-storage owners, who must weigh their options and exit strategies. Some negotiate with lenders in an attempt to salvage underperforming self-storage properties. Tax issues are also a significant concern for self-storage owners. Cost segregation and 1031 exchange are possibilities to be explored. Financial and operating performance is reported quarterly by the self-storage real estate investment trusts (REITs): Public Storage Inc., U-Store-It Trust, Sovran Self Storage and Extra Space Storage.
The key to sustaining a healthy relationship with employees who handle facility revenue is a clear set of operating rules, segregation of duties, and a checks-and-balances atmosphere. Many operators ask, “What if my operation is too small to accomplish separation of duties? ...More
Self-Storage Tax Advantages
If it were possible to expense the entire construction cost of a new facility the year it’s incurred instead of capitalizing it, most self-storage owners would do so in a heartbeat. Although that’s not feasible, cost-segregation studies provide a good—and absolutely ...More
SIA Offers Free Self-Storage Property Valuations
Storage Investment Advisors LLP (SIA), a Houston-based investment real estate services firm, now offers no-cost property valuations to self-storage facility owners. ...More
The Skinny on Compliance
Until recently, compliance for acceptance of Visa and MasterCard was at best voluntary and at worst ignored. This is no longer the case; failure to comply with the regulations set by the Payment Card Industry (PCI) Security Standard can lead to termination of card ...More
AFC Realty Capital Forms Finance Group
AFC Realty Capital formed the AFC Self-Storage Finance Group to serve client demand. ...More
Did you know you can sign up for a free weekly e-mail newsletter from Inside Self-Storage? It’s available in HTML or plain-text formats. Every week your e-newsletter will include an operational tip from an experienced self-storage professional; a feature article on business ...More
If you have a sale, grand opening, groundbreaking or other real estate transaction you would like listed here, e-mail firstname.lastname@example.org. Larry Goldman, a broker affiliate with Argus Self Storage Sales Network, represented the seller of Liberty Storage in Grove, Okla., ...More
You’re Being Robbed!
Every moment a U.S. merchant is robbed via electronic payment systems—totaling $3 billion per week. What’s a merchant to do? First, we must define and understand the problem. Three types of fraud afflict merchants using electronic payment systems: 1. Internal fraud, or ...More
Guard Against Employee Theft
Most business owners are vulnerable to ongoing employee theft. One of the most widely used methods is through a credit card system. As your employees get rich, you become subject to fines, penalties, and the loss of revenue and credit card-acceptance privileges. Over the ...More
Do You Process Credit Cards the Old-Fashioned Way?
Processing credit card transactions through a conventional retail merchant account could be costing your storage business in unnecessary fees and putting your business and customers’ security at risk. Many credit card transactions in the storage industry are not ...More