Inside Self-Storage

NOV 2018

Inside Self-Storage (ISS) is an information source for industry owners, managers, developers and investors covering news, trends, facility operation, finance, real estate, construction, development, marketing, technology, insurance and legality.

Issue link:

Contents of this Issue


Page 50 of 71

they're making money; but that's the perfect time to spend money. If they don't upgrade their facilities, and we start getting claims against the industry for ADA-type occurrences, some media nut is going to get ahold of that and then we'll get a black eye. That's the last thing that we want! We want to have a positive look to Wall Street, to tenants, and to the population in general; that we care about the tenants that are coming to the facility, and not that the facility owners are waiting and aren't upgrading their doors because they've never had a claim. I would like to see more proactiveness, and that's one of the things that makes me really excited about a company like Janus pushing this topic. Let's talk about this really exciting partnership between Janus International and Universal Insurance on the R 3 > Certifed Programs! What drew you all to this partnership? Can you touch on the benefts and offers you have for people who complete R 3 > Certifed and R 3 > Certifed Secured Programs? The Janus and Universal teams have known each other for a while and have a lot of mutual respect. Even though we're in different sectors of self-storage, we're really working towards the same goal, which is helping facilities be well-run, that they're built better, and that they're better protected. I think it was just natural because a facility that is well-built, that is secure, and that is ADA compliant is, in our eyes, an A+. It's the kind of business that we will look at and apply the maximum credits. We have a program with credits available for more security, and there are credits for better constructed facilities. There are facilities out there that are still made of framed construction! A building that's made of frame carries a much higher insurance premium than a building made of a good grade metal because when that tenant does something stupid in their unit (like leaving a lit cigarette butt in their unit and closing the door, sending the place up in smoke), if it's a frame, it's going down fast because it's old wood and when it ignites, it blows through the whole building. You have a better chance if it's a metal building and you get the fre department out there. You could reduce and mitigate that loss. Those are the kind of examples for why insurance premiums are higher or lower depending on the quality of the construction. The same applies to security. We were down a couple of weeks ago visiting the National Self Storage site we insure in Marana, Arizona and we have applied every single credit that we have in our box to that facility because of the quality of the construction and the security of the site. Because that's the kind of the facility that should have lower losses. You can't even get away from the stupid tenant, but if there is the stupid tenant, then that facility will have a smaller loss than one that has no security, that is poorly constructed, and doesn't have good management. The loss will be less, but obviously there will still be claims. So that's why I think we came together, and I think it's kind of natural, because of the quality of what you guys do creates an opportunity for us to lower the cost of their insurance. While that doesn't offset the cost of what they're doing on your side, it certainly should make them feel better about investing and knowing long-term that they're going to continue to have lower insurance premiums. Do the discounts you offer for R 3 > Certifed and R 3 > Certifed Secured facilities have a certain number percentage? Or is it more of a case- by-case basis? It is on a case by case basis, but it's anywhere from 10% to 15%. It's not going to move the needle in a huge way that's going to reduce how much owners have to invest to do it right, but it makes it more attractive year after year after year. Numerically, those percentages may not seem like a lot, but they really add up over the years. It really starts making a difference when we're talking about a portfolio with multiple locations, and that makes it material. ADVERTISEMENT DISCOUNTS Learn more at: or call 678-798-8727 to fnd out how to get R3 Certifed

Articles in this issue

Links on this page

Archives of this issue

view archives of Inside Self-Storage - NOV 2018