ISSUE: Second Quarter 2009

Guarding The Fortress:

Security Through Technology And Company Policy

By Stuart Wade

Is security overrated in self storage? Is it really necessary to have tenant identification procedures in place? Do your tenants or employees really care? One should pose these questions to a facility manager just after a robbery, to a tenant who has informed you of a break-in and his loss of many thousands of dollars of goods stored, or to a self storage owner who has just been interviewed by news media after law enforcement has made a meth lab or terrorist bust at his facility.

Raising The Drawbridge
Self storage security starts with the physical protection of the site. Fencing, walls, building design, and lighting all contribute to security. These physical attributes can prevent an intruder from entering a facility or make his presence more visible.
Access control systems can limit or restrict access to a facility. These devices can be programmed to restrict the time of day access and lock out delinquent tenants. Access control systems are typically integrated with the management software allowing this feature. Entry into the facility is requested using a numeric keypad, but some devices include a magnetic card reader which tenants have a propensity to lose. The system is normally interfaced with an electronic gate, the management software (for password and delinquency administration), and, if present, individual door alarms. Door alarms help ensure that a tenant can only access his or her unit without sounding an alarm, thus minimizing tenant-on-tenant theft or vandalism.

After you’ve suffered a break-in or a
breach of security is not a good time
to find out that your system isn’t
functioning correctly.

Keeping Watch
Camera surveillance and recording come next. Technology has pretty much eliminated the use of VCRs in favor of the Digital Video Recorder (DVR). Cameras should be installed anywhere a tenant could enter or exit from a facility. I also suggest that the sales counter is afforded a camera. Obviously, this would include any doorway, entry or exit gate, gaps or weak points in perimeter fencing, and the dumpster, if one is present. The video monitors should be displayed prominently so potential tenants can see themselves and realize that video surveillance is employed; this helps deter “troublemakers,” who will then pick a softer target to hit than yours.

DVRs allow you to conduct specific searches by time, date, and/or camera location without having to go through VCR tapes like the old technology. If you know an incident occurred in the B building between 7 p.m. and 7:30 p.m., you need only request the data stored for that time to give to investigative personnel. The data is easily burned onto a CD so the investigating officer can go back to their office and review it. Another advantage to DVR technology is you can remotely review everything within camera view of your facility from the Internet. This makes it easy to spot check on your manager, or if anything untoward is going on just after dark at your facility, from wherever you have Internet access.

I might also caution a self storage operator against using “dummy” or “fake” cameras. Security experts state that while installing these things may deter crime, they also instill a false sense of security for your tenants. Accordingly, if an incident does take place, the liability could be much greater to the operator than having no camera at all.

High-Tech Secuirty
On the cutting edge of self storage security is biometrics. Fingerprint, retinal, and palm or hand scanning devices are all examples of biometric identification technology. The most widely used of these technologies is fingerprint scanning. The two main types of fingerprint scanning, constant scanning and optical scanning, require the user to place a finger on a sensor. Contact scanning reads the ridges on the fingerprint directly from the sensor and optical scanning reads the fingerprint by taking a picture of it. Like many security devices, the cost to install this type equipment has come down dramatically in the last few years. Formerly, we managed a facility outside Atlanta that had a dedicated wine storage area and the fingerprint scanner installed by the owner there was much appreciated by collectors of vintage wines. So, if you are interested in attracting tenants who store heirlooms, collectibles, artworks, or antiques, perhaps the costs may be well worth it.

When building a self storage facility or choosing a new security system, the cost isn’t the most important factor. Ease of use, reliability, functionality, installation, and system support should weigh heaviest. The more complex a system, the more frequent maintenance is required. Annual maintenance contracts are a good investment since the service representative will check the entire system for the correct operation of same. After you’ve suffered a break-in or a breach of security is not a good time to find out that your system isn’t functioning correctly.

Before Granting Entry
Now let’s move on to what an operator should do when renting a unit. Do you allow people to rent from you without any form of identification? Do you verify their stated phone numbers or address? Is your behind the counter personnel trained to watch for suspicious behaviors? If you don’t know the answer to any of these questions, your facility could be a ticking time bomb.

According to the Department of Homeland Security, there are several behavioral indicators that can signal potential threats. Things to watch for include:

Cash customers.
24-hour access requests or demands
Long-term pre-payments.
Suspicious behavior in proximity to any staff or security personnel.
Abandonment of unused or suspicious items after leaving the facility.
Suspicious or altered identification cards.
Physical damage on the person (i.e., burns or scars with non-credible explanations about the injury).

Scrutinizing information prior to renting a unit is always preferable to later finding out that a tenant is operating a meth lab or storing explosives or stolen goods. Always inquire as to the customer’s need for storage. Some folks offer unusual explanations that are obvious red flags. More warnings surface if the customer is reluctant to show valid, government-issued identification. Verify phone numbers and addresses wherever practical.

One way to check a mailing address is to send the customer a welcome letter the same day you rent the unit. If the post office returns the letter in a few days, over-lock the unit and inform the customer, authorities, or both. Granted, this method of address verification only works after the customer has moved in, but at least you know you have a problem within a few days of him or her moving in.

Deterring Criminals
Many self storage operators are employing background checks or procuring fingerprints from tenants before renting to them, as well. Be aware that if you chose to utilize these procedures, you should include a statement that you will be doing so on the rental agreement and that you’ll provide this information to the authorities in the event of an investigation. Additionally, you should update the personal information and procure new prints/background checks whenever a tenant requests you add people to their access list. Fingerprinting and background checks should be conducted on all tenants to avoid any appearance of discrimination.

Another deterrent is to place a large visible placard in the rental office revealing that the facility participates with the police department or law enforcement to train drug or explosive sensing dogs. This sign alone will send many nefarious customers to a “softer” self storage facility.

It should also be apparent that your on-site personnel performs security checks and lock audits at least once a day and logs their findings in writing, recording the date and time of the audit performance. This action, when performed diligently, will afford a time line of a disruption in security and allow you to alert the authorities and the victimized tenant, which is far more preferable to the tenant notifying you of a break-in.

Renovation Rationale
Owners with first- or second generation self storage facilities should look at their facilities with a critical eye. Try to think like a burglar to see where your facility’s weak points lie. Perform a cost/benefit analysis on improving your security. Implementing security measures to your facility can help you glean customers who may have otherwise rented a unit at a modern, current generation facility with state-of-the-art security.

Having a secure facility can pay off to the operator with higher rent rates, more customers, and peace of mind. Many times the security of a facility is the customer’s primary reason for choosing to rent there. And isn’t having market share part of the reason you are in this business?

Stuart Wade has been involved in income-producing commercial properties for over 20 years. He is a licensed Real Estate Salesperson with the Commonwealth of Virginia and specializes in self storage, exclusively. He’s familiar with development, management, financing, valuations, and brokering self storage facilities.