May 16, 2023
There are 5 types of crises storage owners and managers need to be prepared for according to Peter Spickengel’s article in the latest edition of Inside Self Storage. We thought we would share a short summary from his article covering these 5 types and how to be prepared.
- Building Failure (power outage, fire, water) – Battery backups or generators might be considered to prevent security systems from shutting down and tenants being locked inside the property during a power loss from a storm. To help prevent fire damage, routinely check smoke alarms and fire extinguishers. Additionally, consider removing outlets in individual units to prevent tenants from overloading them. Regarding water damage, make sure sprinklers are out of reach of tenants so they do not accidentally hit them.
- Natural Disaster (thunderstorm, lightning strike, tornado, flood, hurricane, earthquake, wildfire, etc.) – Consider installing lightning rods and ground wires to prevent fires or electrocution. Clean out catch basins and ensure the door seals for drive up units are intact to prevent water seepage into the unit. Be sure to have an action plan in place in case disaster does strike.
- Human misconduct or accident (criminal activity, injury or death) – Ensure your lease agreement addresses the owner’s rights in cases of suspected criminal activity allowing you to enter the unit. Conduct daily walk throughs of the property. If you suspect wrongdoing, immediately contact the authorities.
- Financial negligence (employee theft, money mismanagement) – Create financial controls to verify the accuracy of deposits. For instance, a team member not involved in the transaction needs to verify the deposit slip matches the bank receipt and summary report from the management software. Additionally create caps for fee waivers, credits, and large expenses.
- Technology failure (cyberattack, virus, hardware or software failure) – Make sure the facilities technology is up to date. Ensure you have the appropriate protections and systems in place to prevent cyberattacks and viruses. Setting up a system to regularly change passwords might be considered.
Spickenagel, Peter. “5 Types of Crises: What they are and how to recover quickly.” ISS Inside Self Storage, May 2023.
« Previous Next »