Self Storage Review

There is nothing uglier than a storage shed in a yard. These tin or wooden boxes become the focal point of the yard. Sometimes storage sheds are randomly placed, in the driveway, on a side yard, or in the backyard. And the older they get the uglier they get. A tin storage contracts rust as it ages. A wooden storage shed turns grey with age like a hunched over old man with a cane. Besides their repulsive appearance, a tin storage shed is noisy. Have you ever heard a neighbor open one up? It sounds like a bad car accident without glass shattering. The doors creek and the metal echoes pop noises as it bends.

The inside of these shed is unbearable too. I have not seen a storage shed that was well organized. Tools are randomly scattered about; power tools are hard to find; bikes are piled on top of one another. Getting the lawnmower out is always a chore. First you have to remove the snow blower, then take out the bicycles, but not before you get the hedge trimmer out of the way.

So why do people buy the obnoxious storage devices for their yard? They have too much stuff. Usually, a storage shed is installed to store outdoor tools, such as lawn mowers, leaf blowers, rakes, shovels, tractors, riding mowers, and bicycles. Storage shed people either do not have a garage or the garage is full. Storage shed people lack storage space in the basement for their outdoor equipment. These desperate people make a rash decision to buy a storage shed; they don’t review other options.

The better solution is to rent a storage unit. Storage units have more size options. You can rent a unit as small as a 5 by 5 and as big as 10 by 30. Don’t worry about how big of a storage unit you need because it won’t stand out on your property. You can store lawn tools seasonally. Keep the snow blower, snow shovels, salt bags, and sandbags in the storage unit during the summer; keep the lawnmower, rider mower, rakes, and bicycles in the storage unit in the winter. A storage unit has climate control options, unlike a storage shed. Climate control will enhance the life of your lawn equipment. All lawn equipment is subject to rust and climate control units will prevent rust from expanding.

If you were considering a storage shed, hopefully you did not buy one, because storage unit is the better choice. Call your local convenient location and schedule a guided tour with the property manager and see the benefits for yourself. Storage units are safe and secure; where as, storage sheds are vulnerable and ugly. Storage units have video surveillance. Unless you put up a video camera in your yard, storage sheds are unwatched. Storage units are well taken care of by a property management team. Storage sheds deteriorate as soon as you bring them home. Neighbors hate looking at storage sheds and you will too if you set one up next to the kids’ swing set.

Due Diligence

Due diligence is an essential step in real� estate

investment.� After selecting the property type and geographic location, the investor needs to

ascertain he has accurate information regarding the physical asset, financial performance, tenant base

and future prospects for the subject property. Due diligence helps the investor accomplish those tasks.

Due diligence can provide in-depth data and insights for these areas and mitigate the risk of a real

estate investment.� The costs associated with due diligence are minimal compared to the costs of

making an imprudent investment decision.

In addition to investors avoiding unfavorable investments, due diligence can:

Enable investors to quickly pass on potential investments which do not merit a complete analysis;

Save money and reduce the time an investor spends evaluating a possible investment by more quickly

declining an investment which does not fit the investor’s criteria or that is not consistent with what

was presented; and

Provide the investor with a better understanding of the benefits, costs, risks and opportunities

related to an investment.

The financial costs and time expended by the investor and the opportunity cost (of not pursuing

other more attractive investments) related to fully analyzing a real estate investment are substantial.

Due diligence helps to reduce these costs. In most due diligence�cases, the business person

leading the investment effort has developed an “investment hypothesis”.� Potential “investment

hypotheses” include the following:

This property will generate a 7% unleveraged yield without any upgrading.

This property is 30% occupied due to poor management. By focusing on leasing, the purchaser can

achieve stabilized occupancy of 90% within 12 months while leasing at $18 per square foot.�

The subject class A apartment complex was built 15 years ago when the level of finish was at a

lower level.� The subject property currently has both a good resident profile and is in good

physical condition. By spending $8,000 per unit to upgrade the level of finish with items such as

granite countertops, better appliances, upgraded cabinets, the rental rates can be increased from $.90

per square foot per month to $1.05 per square foot per month.

Investors cannot save both time and money by performing an initial review of the investment

hypothesis.� In many cases, the investor has too many other time consuming�commitments and

responsibilities to personally perform an in-depth analysis or to visit the property to confirm the

investment hypothesis before proceeding with an acquisition. If it is possible to eliminate investments

which do not meet the investor’s criteria before negotiating the contract to purchase the property, the

investor can save legal fees related to the contract, time involved in negotiating the contract, time

working with the lender, the cost of third-party lender – related records and any additional due

diligence the investor would perform.� Depending on the investment hypothesis, the

investor’s familiarity with the submarket where the property is located and the subject property

itself, the following due diligence tasks merit consideration:

Market rent analysis;

Market analysis (occupancy, absorption, construction and rental rate trends);

Financial analysis/financial modeling;

Construction cost analysis (upgrading and curing deferred maintenance);

Code compliance;

Organize procurement of third-party reports;

Evaluate options regarding the level of renovation or upgrading;

Highest and best use analysis;

Market study;

Feasibility study;

Lease audit;

Lease abstraction;

Detailed examination of the seller’s financial statements;

Comparison of seller’s financial statements with bank statements;

Obtain survey;

Interview management companies;

Interview leasing companies;

Property tax analysis and forecast.

The list of due diligence tasks which should at least be considered is daunting.� However, the

time and cost related to properly performing due diligence is insignificant compared to the time and

cost to remedy a poor investment.

O’Connor & Associates’ staff complement of over 50 real estate professionals can handle any or

all of these to due diligence tasks.� These professionals are supported by a support staff of over

100 who are accustomed to complex assignments.� Our team has experience in all aspects of real

estate including acquisitions, due diligence, ownership, appraisal, property tax appeals and

dispositions.� Reduce your risk and stress by utilizing O’Connor & Associates’ breadth and

depth of experience to evaluate your real estate investments.�

To obtain more information on O’Connor & Associates due diligence services, call or email Larry Brewster at

713-686-9955 or fill

out our online form.1. O’Connor & Associates is a national provider of commercial property real estate consulting services including cost segregation studies, due diligence, insurance valuations, abandonment studies, business personal property valuations, commercial appraisals, financial modeling, highest and best use analyses, and lease audits.

Our services benefit owners of all commercial property types including multi-family housing, retail stores, hospitals, hotels, industrial properties, manufacturing facilities, medical offices, commercial offices, restaurants, self-storage units, shopping malls, shopping plazas and warehouse/distribution centers.

CHOOSING A SELF-STORAGE FACILITY

The first thing you need to consider is which self-storage facility to use. Visit a few local self-storage facilities before you make a decision. It’s always best to remember that you’re planning on storing your own items in the facility and you want it to remain in the condition you left it in. By the time you make your choice you should be confident of the following:

The self-storage facility has adequate security measures.

You can access your self-storage unit when you want to.

The units offered in the self-storage facility are the right size for you

You could cope with any future needs you might have to increase or decrease the space you rent.

The self-storage facility offers units that will suit the goods you want to store - for example, if you’re storing valuable items you want an enclosed unit with concealing walls so that nobody can see what’s inside.

The climate control in the self-storage facility is adequate for your needs - particularly important if you’re looking to store upholstered items, business goods or archive documents

The storage units are tidy and well-maintained - professional self-storage facilities are well kept and clean.

Pest control shouldn’t be an issue - the self-storage facility should be able to tell you what types of measures they take.

The small print of the contract for the self-storage facility has no hidden surprises.

If you’re planning on storing a large amount, check that the self-storage facility has adequate access for the removal vehicle you’ve chosen. Many self-storage sites don’t have the space or access for large removal trucks.

PACKING FOR SELF-STORAGE

Unless you plan on paying the storage unit to pack for you, you’ll have to box things up yourself. Before you begin, you’ll need to put some thought into the packing process. After all, one of the primary advantages of using a self-storage facility is the fact that you can continue to access your items even in storage.

The first thing to remember is to pack in such a way that you can find things at a later date quickly and without unloading absolutely everything you’ve put away. Make an inventory of what you’ve packed and where it is as you go along. Other packing and storage preparation tips include:

Make an estimate of the replacement value of each item you store to help with accurate insurance policies and in case of unforeseen damage in the self-storage facility.

Invest in quality, sturdy boxes and packing materials. If you buy boxes of similar sizes it’ll be easier to stack them securely in the self-storage facility and will save you space.

Box everything that you can. Everything that is left unboxed in a self-storage facility will get dusty and potentially dirty.

Fill boxes to capacity wherever possible to avoid breakages but don’t make them too heavy - remember you’ll have to be able to lift them. You can use materials such as paper or towels special packing materials to fill spaces if necessary. Depending on the space you opt to rent from your self-storage facility, you might be stacking boxes on top of each other and the lower levels need to be sturdy enough to take the strain. Boxes that are only partly filled may tip over or collapse.

Label all boxes clearly so you can identify the contents and keep an inventory. Label them on more than one side so you can see what’s what quickly. Mark ‘Fragile’ on any boxes containing breakable items.

Don’t be tempted to fill large boxes with heavy items such as books as they’ll quickly become impossible to carry and may break. You can buy small book boxes from your self-storage facility that will do the job just as well. If you do pack heavy items in a large box put in just a few and then fill the box up with lighter items or filler.

Don’t pack items into sealed plastic bags, since humidity can cause mildew. Don’t store wet items in a self-storage facility as they can cause water damage, mold and mildew.

Large appliances need care before placing in a self-storage facility. Make sure you defrost fridges and freezers thoroughly before storing them, to avoid water damage. Tie doors up for the move, but leave them slightly ajar once in storage to stop condensation forming and help ward off bad odors. Drain washing machines before storing them and tie down hoses etc. Appliances should be clean and dry and it’ll be worthwhile to wipe the insides with bicarbonate of soda before storing.

Wrap all fragile items and breakables such as dishes, glasses, and ornaments separately. Paper will do but bubble wrap is a good investment. Pack them tightly into strong boxes, filling any gaps with paper or filler. Try to avoid putting heavy items on top of fragile ones in a self-storage facility.

If you’re going to be storing clothes think about buying wardrobe or clothes boxes so you can simply hang the clothes in them and they’ll keep their shape. It’s not wise to simply put your clothes in bin liners in a self-storage facility as moisture can get trapped inside when they’re sealed and your clothes could be ruined.

For the best protection for mirrors and pictures in a self-storage facility, wrap them in a protective covering such as bubble wrap and stack them on their ends. Mirrors and pictures should never be stored flat. Mark them as ‘Fragile’.

Separate lamp bases and lampshades and wrap them for protection.

If you’re storing upholstered products such as mattresses and sofas in a self-storage facility it might be a good idea to invest in covers, bags or sheeting to give them some additional protection. Stand sofas and mattresses on end wherever possible to save space and don’t stack too much on top of soft furnishings. Mattresses are best stored on the long end and should be ideally raised above floor level or laid on protective sheeting.

If you’re storing a few items of furniture on top of each other a simple dust sheet or cover placed between items will minimize scratching and damage.

You’ll save space if you can dismantle furniture such as beds and tables before you store them. Wrap and cover furniture sections and keep them together, clearly marked, for quick retrieval. You can put components such as screws and bolts together in a plastic bag, mark them clearly and tape to the relevant piece of furniture. Store large pieces of furniture vertically to save space.

Chairs can be stacked seat to seat to save space. Cover chair legs with protective wrapping for extra protection.

Spray your wood furniture with a quality furniture spray before storing it to give it some added protection.

Electrical equipment such as TVs, stereos and computers should be packed in their original boxes if possible. If this isn’t possible, pack them into boxes that are the right size making sure that you pack gaps with paper etc. Make sure you tie down the player arm of a record player and secure your turntable.

If you’re storing items with fuel tanks such as lawn mowers and cars etc in a facility, expect to drain the tanks before you put them in storage. Fuel is one of the few things that you CANNOT store in a self-storage facility.

Wipe down metal objects and tools with a little oil before storing to avoid rust formation.

You can tie tools and long-handled items in bundles. Don’t store a brush resting on the bristles.

Don’t store vacuum cleaners with the bag, throw it away before you store them.

Treat leather items with a leather conditioner before you store them.

Think hard about whether you really want to store photographs in a self-storage facility. If you do store loose photographs, place them between pieces of clean cardboard and tape them together to avoid curling. Photographs will suffer temperature damage and, if the facility you have chosen is not climate controlled, you might want to keep them out of storage to avoid losing them.

Think creatively and you’ll make more space. Plan to use furniture drawers as an extra box (they are especially good for fragile items) and you can use the inside of wardrobes to store boxes. Kitchen appliances such as stoves and fridges can also be used in this way.

Seal all your boxes with packing tape before you put them in a self-storage facility - this will help keep dust out of the contents.

ORGANIZING YOUR STORAGE UNIT

It’s worthwhile to take some time to plan exactly how to pack your items into the unit. Unit sizes are determined by price so you can save money by assessing what you have to store and planning to pack it in efficiently - a smaller and well-packed unit will be cheaper than a larger one that is badly organized.

There are two key things to remember when organizing your self-storage unit. Firstly, you need to make sure that you can easily access the items you’ve stored in the facility when you want them. Secondly, you must take care of your things when storing - these are your belongings and there are measures you can take, apart from careful packing, that will help protect them during their time in storage.

If you’re worried that the floor space in the facility is not clean enough and might cause damage to your items, put down protective sheeting or boards.

If you’re storing heavy items or boxes check with the facility to see if they have trolleys or other machinery you can use. Some self-storage companies will offer these free of charge.

In all but the smallest units, try to create an aisle and leave enough room to be able to get around the back.

Store your largest items first. If you’re stacking your unit high with boxes, always make sure to put the heaviest boxes at the bottom to avoid damage.

Stack boxes and similarly sized items together to save space.

Try not to lean furniture against outside walls. If you’re storing metal objects avoid resting them against items susceptible to damage.

Try to assess what you’ll need to access frequently and keep it at the front of your unit.

Fill anything that’s hollow - i.e. wardrobes, drawers, washing machines and fridges with small boxes and other items to maximize your available space.

Make sure to stack boxes and containers so you can see the labels you put on them.

Wedge the doors of all kitchen appliances whilst in the facility open to avoid bad odors and mildew etc., building up.

Don’t store anything in the facility you’re not sure is sturdy vertically; if it seems wobbly store it horizontally.

If you’re worried about the atmosphere/environment in the unit put down moisture absorbers, deodorizers and vermin bait.