I partnered with Sterling to acquire a underperforming project in Port St. Lucie. Sterling had the skill to bring the project into peak performance quickly. We sold the project in 2002 and earned a handsome ROI together.
I hired Sterling to open our 80T sq. ft. project in Seattle in 1996. They achieved stabilized occupancy within a year, and have since maintained in excess of 90% occupancy even in the most of difficult economic times. We are now expanding and trust Sterling to achieve the same results. We are also developing a new site and will look to Sterling's leadership to achieve RESULTS. I trust Sterling.
Iâ€™ve done business with Sterling principals since 1984, and partnered with them on several projects since 1997. Three words say it all: Trustworthy, Smart, Results.
Since the inception of Storage King, Sterling Management has been an invaluable asset. Their expertise in the storage industry has been key to the success we have experienced and their diverse and creative way of thinking has helped us through the economic decline.
Since 1996, Sterling has delivered 90+ percent occupancy rates at both our mini-storage facilities, despite severe economic challenges of the 2010+ era. They also did the feasibility study, start-up, and fill-up within one year of our latest project.
In 1994, my company partnered with Sterling to develop a full-service record storage center, Sterling Records Management, Inc. My partners and I feel that Sterling principals are outstanding business people, and our relationship has proven to be extremely profitable, even beyond our greatest expectations.
Sterling managed six self-storage projects my partners and I acquiried through bankruptcy in the late 1980's. Sterling took 40% non-performing projects and turned them into 95%+ profit centers within one year. Sterling ran the projects for 6 years until we sold them. Sterling not only made us money in all of these projects, they achieved results far beyond our wildest expectations.
Do you believe that all management companies are created equal? The variance in profitability of facilities in the same marketplace is unequivocal proof that they are not. When you turn your asset over to a management company to operate, your fiscal exposure as on owner does not change. Therefore, it is critical that you retain a company who will manage your asset as you would manage your asset.
Sterling Management Services has built its reputation by looking out for the best interest of its clients. Our "fiduciary" approach to mini storage management has set Sterling apart from the masses.
Sterling Management Services offers full service management as summarized in the attached outline; however, we can customize a program to address your specific needs by singling out specific services you are interested in.
When choosing our full service management, Sterling handles all aspects of the project: operations, policy/procedures, hiring, training, on-site supervision, and repairs; additionally, Sterling Management handles A/R, A/P, GL functions including P&L and Balance Sheets, and budgeting.
When Sterling assumes responsibility for a Mini Storage facility, it first completes an in- depth Marketing Analysis of the competition. This analysis includes a Rate Survey and a recommended rate by unit size of the subject facility. Once the rates have been established, Sterling then produces an Operating Budget, Management Plan, and Marketing Plan for ownership approval. Once approved, Sterling then assumes full day- to-day management responsibilities of the site.
Mini Storage daily operations will be supervised by Sterling Management Services. Sterling will hire, train, and supervise staff for the day-to-day operations of the facility. Sterling will be in constant contact with on-site personnel via personal site visits, telephone and fax. On-site personnel must report and fax daily deposits and computer printouts evidencing income and bank verified deposits slips. Weekly reporting is required that summarizes these daily deposits and facility activity (move-in, move-out, marketing statistics). Monthly reporting and "closing" of the facility activity for the month must be performed, totals in the computer system reset, and reports sent to Sterling.
Sterling's supervisory staff will perform on-site audits no less than monthly. The available inventory is reconciled to the facility computer (i.e., units with locks on them match rented units in the computer, vacant units match the computer, etc.). Petty cash and change funds are verified, and a general audit of the daily deposits are reviewed. A facility inspection is also performed to review maintenance levels, security procedures, and needed repairs.
Marketing goals and results will be reviewed with the on-site manager. Plans are adjusted based upon input from the managers as to what is working and what is not. New objectives are established or existing ones fine-tuned to achieve maximum results. Rates are reviewed quarterly following the completion of the quarterly rate survey by the on-site personnel. This provides the opportunity to either increase rates or offer additional services to remain on the cutting edge of service versus price in the marketplace.
Accounting will be performed by Sterling's corporate staff utilizing a double entry accounting system. Financials will be published monthly on an accrual basis, with the general ledger reconciled to the on-site Accounts Receivable software. The following reports will be published:
Careful budgeting, planning, and staff supervision and motivation is critical to achieving pro forma goals; however, the financials become the ultimate measure of performance.
Management Fee Includes:
FINANCIAL MANAGEMENT including A/P, A/R, Payroll, and Monthly Operating Statements Balance Sheet, Profit/Loss Statement, General Ledger, Aged Accounts Receivable, Rent Rolls, Monthly Disbursements Journal, Monthly Cash Receipts Journal.
AUDIT of the General Ledger to on-site reports, and thorough financial audit each month of on-site records.
CASH MANAGEMENT AND FINANCIAL ANALYSIS including cash flow projections.
MORTGAGE, TAX, AND INSURANCE payments including creation of impounds. SMS will competitively shop insurance rates and coverage for a nominal fee.
PAYROLL FUNCTIONS including timecards audit, disbursements, tax deposits, Quarterly & Annual Payroll Reporting, and preparation of W-2's administration through Paychex.
BUDGET PREPARATION including comparison analysis.
MARKET ANALYSIS updated quarterly to determine rate competitiveness and/or increases.
ADVERTISING placement through SMS's agency and monitoring of results.
VENDOR AND SUBCONTRACTOR negotiations including competitive bidding and supervision of repairs. Improvements in excess of $500 will be billed at a nominal cost.
EDD OR LABOR BOARD representation (additional fee may apply).
ON SITE SUPERVISION including employee relations, telephone support, and all aspects of day-to- day operations.
STAFFING including Interviewing, Selection, Hiring, Firing, Training, and on-going supervision of facility personnel.
TRAINING (Initial and On-Going) of all personnel in: Sales Skills, Telephone Techniques; Customer Service; Collection and Skip Tracing; Legal Procedures; Office Administration; Facility Maintenance and Repairs; Lien Sale Policy and Procedures; Marketing and Facility Promotion.
FACILITY AUDITS include financial review outlined above, and inspection of grounds, administrative compliance, and maintenance.
ADMINISTRATIVE includes design of all leases and other administrative forms used in the day-to- day operation of the facility.
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