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Example of a modern, urban, self storage facility.

Self storage refers to a business that owns and operates a facility that is subdivided into self storage spaces which are rented to tenants, usually on a monthly basis.

Description

The term “self storage” is short for “self-service storage”, and is also known as “mini storage” or “mini warehouse” (archaic)^1. . Self storage facilities lease space to individuals, usually storing household goods, or to small businesses, usually storing excess inventory or archived records^[1] . The rented spaces, known as “units”,”rooms” or “lockers” are secured by the tenant’s own lock and key. Facility operators do not have casual access to the contents of the space, unlike a professional warehouseman. A self storage operator never takes possession, care, custody or control of the contents of the storage rental space unless a lien is imposed for non-payment of rent. Self storage facility operators frequently provide controlled access to rental space areas, individual door alarms, interior units lights, and security cameras. Goods or items stored are either not insured by the self storage operator, or insured only to a minimal degree; possessions stored are at the tenant’s “own risk” or can be protected by tenant-purchased homeowner’s insurance or buy purchasing self storage tenant insurance.

Self storage today

At year-end 2009, a total of some 50,000 self storage facilities, owned by 30,235 companies, have been developed in the United States on industrial and commercial land parcels. There is more than 2.35 billion square feet of self storage in the U.S., or a land area equivalent to three times Manhattan Island under roof. The five large publicly traded storage operators (four REITs and U-Haul) own or operate approximately 9% of self storage facilities. More recently, in many metropolitan cities where competition among storage companies is fierce, better parcels of land near residential and commercial areas are being converted into self-storage once approved by zoning panels.

Inside a self-storage facility.

Self storage businesses lease a variety of unit sizes to residential and business customer/tenants. Popular unit sizes include 10×5 (10 feet wide by 5 feet (1.5 m) deep) which is about the size of a large walk-in closet, 10×10 (the size of a child’s bedroom), 10×20 (one-car garage), 15×20 and 20×20 (two-car garage). The storage units are typically windowless, walled with corrugated metal, and lockable by the renter. Chain-link fencing or wire mesh may function as a more secure ceiling than a suspended ceiling. Each unit is usually accessed by opening a roll-up metal door, which is usually about the same size as a one-car garage door. A controlled access facility may employ security guards, surveillance cameras, individual unit door alarms and some means of electronic gate access such as a keypad or prox card. A few facilities even use biometric thumbprint or hand scanners to ensure that access is granted only to those that rent.

Example of an older, urban self storage facility.

In rural and suburban areas most facilities contain multiple single-story buildings with mostly drive-up units having natural ventilation, but which are not climate-controlled. These buildings are referred to as “traditional”. Climate-controlled interior units are becoming more popular in suburban areas. In urban areas many facilities have multi-story buildings using elevators or freight lifts to move the goods to the upper floors. These facilities are often climate-controlled since they have mostly, if not all, interior units. Warehouses or grocery stores are sometimes converted into self storage facilities. Loading docks are sometimes provided on the ground floor. Also, complimentary rolling carts or moving dollies are sometimes provided to help the customers carry items to their units. Urban self storage facilities might contain only a few floors in a much larger building; there are successful self storage businesses cohabitating with light manufacturing, office tenants and even a public school.^{[citation needed]}

According to the “Self Storage Demand Study – 2007″ (published by the SSA) one in ten U.S. households now rent a self storage unit. The growing demand for self storage in the U.S. is created by people moving (some 40 million Americans move each year according to U.S. Census data), and by various lifestyle transitions, such as marriage, divorce, retirement, a death in the family, etc.

Customers are generally allowed to store any non-hazardous, non-toxic, non-perishable material in the facility: personal items, furniture, motorcycles, overstocked retail wares, etc. Customers are prohibited from sleeping or otherwise living in the room. If the customer fails to pay the rent, a lien is placed on the customer’s goods and they are sold at auction based on the provisions of that state’s lien law. The storage facility lien rights are codified in most states. The customer is still responsible for any rent and fees due if the auction does not clear their balance. (i.e. California Self-Service Storage Facility Act, Business & Professions code Sec 21700 et seq

The national Self Storage Association (SSA) was founded in 1975. The SSA represents some 6,000 companies in the United States that own, operate or manage some 22,000 facilities.

Self storage worldwide

There are approximately 58,000 self storage facilities worldwide, of which 50,000 are located in the United States.

Self-storage facility in Bordeaux (France).

According to a report (1 June 2006) by Mintel Consulting and in collaboration with the Self Storage Association of the United Kingdom space available for rental in the USA is approximately 1.6 billion rentable square feet, against 22 million rentable square feet in Australia and around 20 million in the United Kingdom. The report also states that there are around 41,000 facilities in the USA, 1,000 in Australia, around 700 in the United Kingdom and 220 in France.

Climate-controlled storage and cold storage

Some facilities are climate controlled. A few facilities have even added areas for self storage of goods with special needs, such as wine.

Storage auctions

In the United States, self storage facilities may hold storage auctions or lien sales to vacate non-paying tenants according to their enforcement rights that are outlined within the lien law of each state These lien auctions are open to the general public, with most bidders buying for the purpose of reselling for profit.

Often times, the management of the storage facility will host the auction open to the public. However, the tenant in lien has the right to pay their bill right up to the auction and often this is the case. Once the auction starts, any potential bidders will be allowed to view the contents of the space at the door by peering in. None of the contents are allowed to be moved or touched until after the auction. The spaces are usually sold as-is meaning the purchase of one unit results in the purchase of everything in the unit.

Notes

1. In some states, however, courts have specifically ruled that self storage facilities are not to be classified as warehouses. See DePetro v. Township of Wayne Planning Board, 367 N.J. Super. 161 (App. Div. 2004)

References

1. ^ Self Storage Use

External links

• Self Storage Association