A Clean Slate

Preparing For The New Year

Start off the new year with a clean slate gives one the total satisfaction of a job well done! Managers, as you begin to plan this task, you will find that this final part of the year-end process involves every aspect of the operation. From collecting on past-due receivables to conducting file audits, starting off the new year with a clean slate will take discipline and commitment, but your facility’s owners will thanks you! As we look forward to 2010, it’s time to take off your gloves and dig in! You need to play an active role in your team!

File Audits
Make a checklist of all required docu­ments as a starting point. You will find that following this checklist upon move-in will dramatically cut down the frequency of corrections during file audits. As you go through each file, verify that all paperwork is accounted for, but take it a step further. Ensure that all paperwork is filled out cor­rectly and that all required signatures are in place. Also verify that the name and address of the customer is cor­rectly typed into the computer; if the address is different, immediately locate a written change of address in the file. Always keep in mind that any change to a customer’s contract needs to be in writing and kept as part of the lease. As managers find missing information, it’s easiest to devise a for­mal letter and mark the items needed for the tenant to return, sign, and/or replace. Keep both the letter to the tenant and the checklist in a follow-up file for easy reference.

Don’t overlook the main document which is your lease. If your property has been bought and/or sold or expe­rienced a change in management, your main lease agreement may not be standard. In fact, you may find that you have several different leases that have been used over the years. As this may be a policy issue, I suggest you seek the advice of management before changing anyone’s actual lease document. Remember to keep your focus and concentrate on the task at hand. It is imperative that your files be in order as it is the first line of defense should anything occur with your customers.

Whose Rent Is Not Standard
Every mini-storage accounting system has the ability to get nonstandard rates for you in a matter of minutes. Make certain that discounts are accurate and any move-in specials are input cor­rectly. Going into the new year, also review customers who are receiving large discounts to determine if their rent needs to be adjusted. Existing tenants’ rates are just as important to manage as bringing in new rentals for the economic success of your storage facility. Even with the present economy, don’t cut your facility short! Feel secure in the knowledge that you, as the best manager around with the best customer service around, and the property your company manages are worth the value that people pay to rent there!

Delinquent Accounts
Regardless of your company’s policy for auction procedures, end of the year delinquencies are always higher as people tend to put off paying for their storage until after the first of the year. That being said, begin your collections calls in early December and incite your tenants to settle their accounts before the end of the year. Some operators have been known to offer discounts to their customers during the month of December to incite on-time payments before the end of the year. No matter what angle you take, it’s always nice to collect on as many accounts receivable as possible so you can start off the year with a clean slate.

Facility Maintenance
Here is an area that can be divided into two groups: Capital improvements (addressed in the overall budget for the new year) and minor improvements or enhancements (completed by the site manager). I suggest conducting an overall walk-through and notate any and all site repairs/maintenance that need to be addressed. When complete, separate the items on to an appropri­ate list for easy reference. Submit your capital improvement items, such as asphalt repairs/resurface, roofs, gutters, doors, landscaping, coolers/air con­ditioners, elevators, and office equip­ment, to management and request that these betterments be respect­fully considered. Then take the list of minor improvements (enhancements), such as recoating painted office areas, touching up curbs and bollards, and replacing rusted and weathered signs, which site managers can complete and begin to schedule these tasks on your calendar by highest priority. While doing your walk about, remember the importance of street appeal and how something small like freshly painted curbs can make a huge difference. You may not have much control over the larger items and whether or not the owner will put them into the budget for the upcoming year, but you cer­tainly can take care of the small stuff! Maintenance is an ongoing issue that needs constant vigilance.

Marketing
We all know the tried and true basics of marketing for our self-storage facili­ties and you will need to make time for that marketing on a monthly basis. Visiting your local apartment com­plexes, businesses, moving compa­nies, real estate offices, etc., should be a standard operating procedure for your business. Use the end of the year slow down (most operators see a slow down in the fourth quarter of the year) as time to plan marketing strategies for the year ahead. We all are experienc­ing an economic down shift and the economy has us focusing on market­ing. Most operators are trying all kinds of new and innovative ways to gain tenants. Internet marketing seems to be the hot button this year and make sure your future marketing efforts include an expansion on that forum for your operations.

Leave plenty of time in your sched­ule to meet new people, network with your local Chamber of Commerce members, and attend as many different types of chamber functions as you can. Your local chamber should have break­fast and lunch networking meetings, as well as various other evening functions available for you to attend throughout the month. They make it easy for you as a member to attend these meetings depending upon your work schedule. As you focus on the new year, lay out any plans that you may be able to attach a large promotional event to such as a 10-year anniversary or a holiday event to draw in traffic to your facility. These types of large promo­tional events take much thought and preparation; many owners like to get involved in these, so it’s always good to get these events into the marketing plan at the first of the year. In 2010, we will all need to be innovative and continue to drive up our profits. We all know that starts with marketing.

Overall Organization
Finally, organize, organize, and orga­nize! Nothing makes you feel better than a clean, organized work area—this also makes a great first impression to your customers! The end of the year affords substantial time to update your office and maintenance unit inventory records. Make sure that any and all equipment purchased within the last year is on your records and that you eliminate from history, if necessary, any items that were replaced. You will notice as you are taking inventory that you are cleaning and organizing as you go and both your maintenance unit and your office will reflect this. Step back and take an objective view of your office; is it cluttered or outdat­ed? What simple steps can you take so that your customers’ first impressions are positive ones?

While it may appear overwhelming to take on all of these tasks, if done in steps it will be the best thing you could do to prepare for the new year. Be very disciplined and methodical with your plan and set goals. Goals help you to visualize your end result and give you a sense of accomplish­ment when complete.

Diane Gibson is the CEO of Phoenix, Arizona-based Cox Armored Mini Storage Management.