Edition 113 - June / July 2020

Insider M AG A Z I N E O F T H E S E L F STO R AG E A S S O C I AT I O N O F A U ST R A L A S I A

113 JUNE / JULY 2020

30 YEAR CELEBRATION INTERVIEWS MARK BATEMAN JONATHAN PERRINS GARTH DAVIDSON

SIP IS LIVE

Latest update from Urbis

SURVIVING THE IMPACTS OF COVID-19 What exactly is the Government offering?

SAFER WORKPLACES

How COVID-19 is making you think about the health and safety of your workers

COVID-19 AND VALUES Self storage is usually recession proof – but what about in a pandemic?

I NDUST RY NEWS | COM M UNICATIONS | HU MAN R ESOU RC ES | O H&S | TRADE DIRECTORY

CONTENTS | 03

SSAA BOARD OF DIRECTORS Chairman – Ivor Morgan Jim’s Self Storage, Victoria Michael Alafaci – Deputy Chair Storage King Group, New South Wales Shaun Bain Keepsafe Storage, Western Australia Ryan Coom National Mini Storage, New Zealand

10

Martin Coote Lock Distributors, New South Wales Ned Coten City West Storage, Victoria

21

Wayne Dade Glenelg Self Storage and Western Self Storage, South Australia David Daddow Able Self Storage, South Australia

30 8 30 YEAR PROFILE Mark Bateman

11 SIP IS LIVE 12 SURVIVING THE IMPACTS OF COVID-19 IN AUSTRALIA

by Bishop Collins

Andrew Eastwood U-Store-It, South Australia

14 FOCUS ON

LIFETIME MEMBERS

16 MARKETING UPDATE

Mark Bateman Frank Cooney Elaine Coote Liz Davies Dallas Dogger John Eastwood Simone Hill Neville Kennard

Sam Kennard Bob Marsh Jim Miller Jon Perrins Phil Robbie Mark Snooks Richard Whalan

SSAA STAFF Susan Phillips CEO

Sandra Evans Office Manager Vanaja Thomas Membership Andrea Bowman Paralegal Bryan Furtado Marketing & Events Melinda Wyper Accounts Michelle Stokes Reception/Administration

www.selfstorage.org.au TOLL FREE – AUS: 1800 067 313 TOLL FREE – NZ: 0800 444 356 T: +61 3 9466 9699 Address: Unit 4/2 Enterprise Drive, Bundoora Vic 3083 E: admin@selfstorage.com.au Connect to our Social Media via our website

www.selfstorage.org.au

SSAA Board member and Deputy Chair Michael Alafaci

by Andy Pudmenzky Providing certainty in uncertain times

REGULARS 4 Chairman's Report 6 CEO's report 10 Industry News 25 Out and About 26 PR Issues and Crisis Communications 28 Out and About 29 OH&S 36 HR Help Desk 37 SSAA Service

Member Profiles 38 Legal Help Desk 40 Trade Directory 42 New Members

18 URBIS UPDATE

What impact does COVID-19 have on values

21 30 YEAR PROFILE Jonathan Perrins

22 CREDENTIAL STUFFING

by Midland Insurance

24 30 YEAR PROFILE Garth Davidson

30 WORKING REMOTELY AND UTILISING CLOUD SOFTWARE 32 BUSINESS CONTINUITY IN THE COVID-19 PANDEMIC CRISIS 34 NEW ZEALAND COVID-19 BUSINESS ASSISTANCE

by Moore Markhams

Insider is published and edited by: Social Ties / E: vforbes@socialties.com.au Designed by: Keely Goodall / E: keely@itsallgood.net.au Advertising and sub editor: Bryan Furtado / E: marketing@selfstorage.com.au Printed by: Homestead Press / E: printing@homesteadpress.com.au Insider magazine (Insider) is published bi-monthly by the Self Storage Association of Australasia Limited (ABN 23 050 341 725).

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JUNE / JULY 2020 INSIDER 113

4 | CHAIRMAN'S DINK REPORT

Ivor Morgan, Chairman SSAA

I

would like to start by welcoming and congratulating existing board member Michael Alafaci after his recent appointment to the position of Deputy Chair. Michael is the Chief Financial Officer for the Storage King Group and brings a wealth of industry knowledge and experience to the position. Covid-19 has presented many challenges for our members and the Association. I have great admiration with the way the industry is adapting and working together through this. I would like to personally thank Susan Phillips (CEO, SSAA) and the team for taking on the extra workload and challenges that working from home presents.

I have spoken to many members from Australia and New Zealand who are all affected in varying ways, depending on the level of restrictions being imposed on them. New Zealand appears to have been impacted the

most with higher level restrictions being put in place by their Government.

The general feel has still been positive as our industry has proven to be more resilient to this pandemic than most.

Having said that, feedback is consistent across the board that storage enquiries are down and therefore move-ins impacted, move outs are up and some customers are reaching out for storage fee relief which are being dealt with on a case by case scenario.

The board has had to think long and hard and make some difficult decisions relating to our Annual Convention, AGM and other events that were scheduled. These have all been impacted by Covid-19.

The SSAA 30th Anniversary Convention has been rescheduled to the 9-11th of March 2021. This presents a number of challenges including the AGM needing to be held within 5 months of the end of the financial year.

Therefore, the AGM is planned to be held in conjunction with the Melbourne networking function on the 26th of November. We are also currently investigating opportunities for the AGM to be live streamed to members via Zoom.

The general feel has still been positive as our industry has proven to be more resilient to this pandemic than most.

Nominations for The Awards of Excellence which run in conjunction with the convention will now be opening in the second half of this year.

I have invited all board members to remain on the board until the AGM and nominations for board positions will be called for in the second half of the year.

Rachel Grant has resigned from her position on the board as a Regular Member Director after the successful sale of her facility, this vacancy will need to be filled come the AGM. I would like to thank Rachel for her time and effort over her term on the board.

On closing, I would like to thank all our members for all their efforts during these difficult times and hope you all take care and keep safe. l

06 | CEO’S REPORT

Susan Phillips, CEO SSAA

A significant decision was made to reschedule the 2020 Convention originally planned for August.

The new dates are 9-11th March 2021.

The venue and all other details remain the same.

W

ell, where has the last two months disappeared to?

For lots of people it has meant working from home and managing the business remotely or working in the business and distancing ourselves from work colleagues and customers. We have introduced new cleaning regimes and how many more times have we all washed our hands!

At the time of writing New Zealand and Australia are now on Level 3 restrictions and life returning to what we might consider normal still seems some way off. However, our industry sector is weathering the storm better than most. Occupancy rates vary, box shop sales have increased for some, interaction with customers is at an all time high as facilities alert their storers to their new hygiene practices and continue to help some who may be struggling with their monthly fees.

INSIDER 113 JUNE / JULY 2020

Some of our service members have experienced delays due to closed state and international borders. Others have been impacted by the availability of imported products. No one has escaped the effects of COVID-19 But what does the future hold? Will occupancy and rates return to previous levels? Will working from home become the new norm, leading to an increase in demand from the domestic market searching out storage options to free up the back room as their new home office? Perhaps more retailers will continue to trade online and not return to their previous business model where expensive rents were demanded by shopping centre management or high street landlords.

One thing is certain, change is upon us and so is opportunity for those who are open to it.

As for your association, we have pushed ahead with many projects whilst balancing out the need to keep members informed with COVID-19 updates.

Some events have been rescheduled. The previously planned South Australian networking function to be held in Adelaide in April has now been moved to 19th November.

A significant decision was made to reschedule the 2020 Convention originally planned for August. The new dates are 9-11th March 2021. The venue and all other details remain the same. In future our annual convention will be held in the first week of March which will make it the first self storage conference globally.

Some of our current projects have been delayed due to recent events, however work has resumed on finalising the suite of six storage agreements for Australia which will be released very soon. The review of New Zealand agreements will follow a little later in the year. We will also release an updated Customer Storage Agreement Guidelines (previously known as the MAP) at the same time.

Another project that has been delayed is our legal online training.

Work has resumed and the corresponding updates from the Agreements review will be reflected in the online training modules.

The SSAA/Urbis Storage Interactive Platform (SIP) project has been released. Refer to page 11 for more detail. The project brings together data gathered by SSAA and Urbis and presents a thorough picture of the six major cities selected – Auckland, Brisbane, Sydney, Melbourne, Adelaide and Perth. Access to the platform is available in the members only section on the website.

At the most recent board meeting the Directors approved funding for a comprehensive industry study in Australia and New Zealand. The main objective is to understand the market demographic and macroeconomic factors that drive storage demand and to explore current and future market supply. Analyse the relationship between historical demand drivers and current performance, help members understand operational best practice, create a benchmark for standard industry and operational metrics and review industry consolidation and analyse the impacts.

The research will also profile the consumer and their attitudes towards self storage, understand consumer perceptions and attitudes which includes brand awareness.

Explore future trends that may impact the industry.

The project has commenced, and all members are requested to participate in the online survey that came your way in May. The more input we get from members will result in a comprehensive picture of your industry.

The release of research results will commence in September this year.

So, it’s back to work (at home). l Stay well Susan Phillips

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8 | SSAA CELEBRATING 30 YEARS

Mark Bateman Life Member of the SSAA.

A strong New Zealand advocate that has substantially influenced the structure of the SSAA.

M

ark’s involvement in self storage goes to the very beginning of the industry in New Zealand. His interest in self storage was sparked as far back as 1981 when on a rugby tour in the US, he got his first exposure to the industry.

Not long after that, Mark recalls a conversation with the prominent Auckland businessman, Hugh Steadman. Hugh had a vacant building with no immediate prospect of a tenant. Hugh and Mark decided that it could be used for self storage.

The building became ‘Richmond Self Storage’, and a business was born.

It was later to be known as Storage King, Grey Lynn and became one of the most successful Storage King facilities in Auckland.

In 1992 Mark travelled to Australia for the second Self Storage Association convention held at Manly, Sydney. Mark returned to Auckland, with increased knowledge, a notebook full of contacts and even greater enthusiasm for the industry Mark became the New Zealand representative for Hi-Tech management Systems (later to become Storman, New Zealand) and PTI Access Control Systems in his early years in the self storage industry. However, when Mark joined Storage King New Zealand, as their New Zealand Regional Director, he realised the importance of maintaining a single, clear goal, and stepped down from his role with Storman and PTI. In the early years of the industry in New Zealand, Mark realised the importance of having a strong industry association. Mark became a strong advocate of having a combined New Zealand and

INSIDER 113 JUNE / JULY 2020

Australian Association and influenced New Zealand operators to support the merger of the an informal alliance of New Zealand operators and the Australian Storage Association. He says that the inclusion of the word ‘Australasian’ in the Associations title was an essential step in recognition of the New Zealand industry. Mark was a member of the SSAA Board for five years from 1993 and made sure that the New Zealand voice was always heard.

Abacus Storage Fund purchased the 7 Lock n Leave and the New Zealand Public Storage Auckland facilities in the mid-1990s. This doubled the number of facilities under the New Zealand Storage King Brand. Mark’s role became increasingly demanding, which saw Mark become a driving force in the success of the Storage King Brand in New Zealand.

Mark once considered early retirement. However, his dream was short-lived. He was supervising a ‘sell up’ of the contents of a defaulting customer at the Grey Lynn facility in Auckland. After cutting the lock, they found piles of Brazilian

currency. It was counted, and the Cr$ 5,000,000 (Brazilian Cruzeiros) were stored in his office. His dream was shattered when Mark made enquiries with his bank only to find currency was discontinued in 1986 and was worthless.

The strength of the New Zealand industry can be attributed mainly to Marks initiatives. Mark was instrumental in establishing the New Zealand version of the Manual of Procedures and the New Zealand Self Storage Agreement Mark has been a long-standing and strong supporter of the Self Storage Association. He has been a participant in conferences since the 2nd Annual Self Storage Conference. He has been a passionate representative of New Zealand operators and has ensured that New Zealand interests are always considered.

Mark maintains a keen interest in the industry. He has an encyclopedic knowledge of the industry in New Zealand and many of its ‘colourful’ participants. Mark is one of the great knowledge holders in the self storage industry. l

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10 | INDUSTRY NEWS

PARKVUE SELF STORAGE AND BICYCLES FOR HUMANITY JOIN FORCES Bicycles for Humanity Melbourne was the first Australian chapter, founded in 2008. To date the charity has shipped 25 containers and over 12,000 bicycles to developing countries, primarily Sub-Saharan Africa.

In 2011, B4H needed a space to relocate and store bicycles, Ben Bud needed no convincing to donate a space at Parkvue Secure Self Storage in Melbourne to this cause. Without this generous provision of space B4H Melbourne would have struggled to keep up with the growing generosity of bicycle donations. The storage facility is more than just a space to store collected bicycles, but a space to gather volunteers to prep and pack shipping containers for delivery.

“It’s just space, insignificant in the scheme of things. If you look at the rest of the world it’s quite overwhelming. Not everyone has the resources to make a difference.

To find an organisation that really is about making a change without wanting anything in return, I’m happy to share. If everyone were to offer a simple helping hand, then surely we can make it a better world.” said Ben Bud. Bicycles for Humanity, Melbourne (B4H) is a grassroots movement powered by the people. The bicycles which would otherwise have gone to landfill and are shipped there in containers which are also utilised by the locals upon arrival.

As B4H has grown, they are looking for a second collection/storage site.

If you are interested in finding out how you can become involved with and support B4H please visit www.bicyclesforhumanity.com

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Sensis’s internal research has shown that the self storage industry has never been represented on the front of any Yellow Pages directory and Store-it-Safe in Tasmania is the first.

Good timing on all fronts, as it is Mark Snooks 30th year in the industry and the SSAA’s 30th year.

www.selfstorage.org.au

URBIS UPDATE | 11

SIP is live!!

S

torage Interactive Platform (SIP) was created by Urbis on behalf of the SSAA to bring accurate, reliable and consolidated self storage supply data to the market. Starting with the major metropolitan markets of Adelaide, Auckland, Brisbane, Melbourne, Perth and Sydney, SIP brings you a complete overview of existing supply, including the total number of facilities, total number of units, total net storage area and average unit size. SIP provides you with an appreciation for supply across all ‘mapped’ regions, for a selected market, or for a certain facility. It also provides the location of proposed self storage facilities in the pipeline. You can search supply data by market, region, sub-region or suburb(s).

THE PURPOSE OF SIP The SSAA brings you this data, as members, so that you can have accurate appreciation for the market(s) you have an interest in. By having complete insight into existing and future supply, you can make better decisions for youself, and for the broader self storage industry.

SIP is interactive and easy to use. It is an unique product, only available to SSAA members.

WHAT’S NEXT? Urbis and the SSAA have invested heavily in sourcing and confirming the data that is brought to you through SIP. Whilst it will be a staged process, the overarching goal is to have a platform that provides accurate supply data for the entire self storage market across Australia and New Zealand.

SIP will also be a valuable resource to establish growth trends in supply metrics over time.

Log in through the SSAA member portal, take a look and see how you can make it work for you. l

THE DATA The information sitting behind SIP has come from a range of sources: l Urbis records from existing databases l Contributions from the Self Storage Association of Australasia l Contributions direct from owners, operators and builders l Public sources, Nearmap, Council records, etc l Physical inspections We are confident that the data displayed in SIP is accurate for the regions that have been included to date.

If you are a facility owner in the included regions, you may have been contacted by the SSAA or Urbis to confirm the details. The data is updated as required and there is scope for brief comments on each facility to recognise additional storage areas, approved expansions and SSAA facility award winners.

PROTECTING YOUR INTEL When a community comes together to share intel for the greater good of the industry, it is testament to the stakeholders of that industry. It also demonstrates faith and commitment to the future of the industry.

As custodians of data, Urbis and the SSAA are as invested in the self storage industry as you are. For that reason, the data has been published as indicative ranges rather than exact numbers for each facility. The collective data that displays for a selected market is accurate, and only indicative details are provided for a selected facility.

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JUNE / JULY 2020 INSIDER 113

12 | PANDEMIC SOLUTIONS

Surviving the impacts of COVID-19

By Juston Jirwander B.Bus, CA Associate Director – Bishop Collins.

T

he Federal government and every State and Territory government of Australia, have announced multiple stimulus and relief packages. Updates and changes have been announced every week since the beginning of March.

It is not surprising that many business leaders are confused and unsure what they are eligible for and how they can access these stimulus packages and when they might need them. Getting access to this stimulus at the right time could mean life or death for many businesses so we have summarized the various levels of relief from all levels of government, Australian Taxation Office and Banks.

FEDERAL GOVERNMENT STIMULUS The Australian Government has announced three stimulus packages as an economic response to the Coronavirus.

The Government’s economic response targets three key areas: 1. Support for businesses 2. Supporting the flow of credit 3. Support for individuals and households – Not covered in this article

Eligible Employers

Payment Process

There are a number of criteria which need to be satisfied with one of the key criteria being a reduction in comparative revenue. Employers will be eligible If, at the time of applying: l their business has an annual turnover of less than $1 billion and they estimate their turnover has fallen or will likely fall by 30 per cent or more; or l their business has an annual turnover of $1 billion or more (or is part of a consolidated group for income tax purposes with turnover of $1 billion or more) and they estimate their turnover has fallen or will likely fall by 50 per cent or more; and l For charities and Not-For-Profit, they will be eligible for the subsidy if they estimate their turnover has or will likely fall by 15 per cent or more.

The Tax Commissioner will have discretion to consider additional information that the business can provide to establish that they have been significantly affected by the impacts of the Coronavirus. There will be some tolerance where employers, in good faith, estimate a greater than 30 (or 50) per cent fall in turnover but actually experience a slightly smaller fall.

The JobKeeper payment to employers will be made monthly in arrears by the ATO.

SUPPORT FOR BUSINESSES

Eligible Employees

JobKeeper Payment

Eligible employees are employees who: l are currently employed (including those stood down or re-hired); l were employed by the employer at 1 March 2020; l are full-time, part-time, or long-term casuals (a casual employed on a regular basis for longer than 12 months as at 1 March 2020); l are at least 16 years of age; l are an Australian citizen, and l are not in receipt of a JobKeeper Payment from another employer.

Under the JobKeeper Payment, businesses significantly impacted by the Coronavirus outbreak will be able to access a subsidy from the Government to continue paying their employees. l The JobKeeper Payment is a temporary scheme. l The JobKeeper Payment will also be available to the self-employed. l The Government will provide $1,500 per fortnight per employee for up to 6 months. l The subsidy will start from 31 March 2020 l First payment to be received by employers in the first week of May.

INSIDER 113 JUNE / JULY 2020

Application Process Eligible employers will be able to apply for the scheme by means of an online application via ato.gov.au

Boosting Cash Flow for Employers The Government is providing up to $100,000 to eligible small and mediumsized enterprises (SME), sole traders and not-for-profits (NFPs) that employ people, with a minimum payment of $20,000. SME with aggregated annual turnover under $50 million that employ workers are eligible.

ROUND 1 : Under the enhanced scheme, employers will receive a payment of 100 per cent of their salary and wages withheld for the period 1 January to 30 June 2020. The maximum payment for this period is $50,000 and the minimum payment is $10,000.

ROUND 2: An additional payment is also being introduced in the July — October 2020 period. Eligible entities will receive an additional payment equal to the total of the first round of payments.

Increasing the instant asset write-off The Government is increasing the instant asset write-off threshold from $30,000 to $150,000 and expanding access to include businesses with aggregated annual turnover of less than $500 million (up from $50 million) until 30 June 2020. This proposal applies from 12 March 2020 until 30 June 2020, for new or second-hand assets first used or installed ready for use in this timeframe.

Backing Business Investment (BBI) The Government is introducing a time-limited 15 month investment incentive (through to 30 June 2021) by accelerating depreciation deductions.

Businesses with a turnover of less than $500 million will be able to deduct 50 per cent of the cost of an eligible asset on installation, with existing depreciation rules applying to the balance of the asset’s cost.

www.selfstorage.org.au

Supporting apprentices and trainees The Government is supporting small business to retain their apprentices and trainees. Eligible employers can apply for a wage subsidy of 50 per cent of the apprentice’s or trainee’s wage for 9 months from 1 January 2020 to 30 September 2020. Employers will be reimbursed up to a maximum of $21,000 per eligible apprentice or trainee ($7,000 per quarter). Eligibility criteria apply.

Employers will be able to access the payment after an eligibility assessment is undertaken by an Australian Apprentiship Support Network (AASN) provider

Temporary relief for financially distressed businesses One element of that safety net is to lessen the threat of actions that could unnecessarily push them into insolvency and force the winding up of the business.

The Government is temporarily increasing the threshold at which creditors can issue a statutory demand and to initiate bankrupt proceedings as well as temporarily increasing the time to respond to statutory demands.

The package also includes temporary relief for directors from any personal liability for trading while insolvent.

SUPPORTING THE FLOW OF CREDIT The Reserve Bank of Australia, the government and the Australian Prudential Regulatory Authority have taken coordinated action to ensure the flow of credit in the Australian economy.

Reserve Bank of Australia — supporting the flow and reducing the cost of credit Banks will have access to at least $90 billion in funding at a fixed interest rate of 0.25 per cent. This will help reduce interest rates for borrowers.

To encourage lending to businesses, the facility offers additional low-cost funding to banks if they expand their business lending to new loans to SMEs. Consider contacting your lender to see how your current mortgage rate and business loans have been reduced.

www.selfstorage.org.au

Government Coronavirus SME guarantee scheme Under the Coronavirus SME Guarantee Scheme, the Government will provide a guarantee of 50 per cent to SME lenders as follows: l Loans will be short-term unsecured loans. l Maximum of $250,000. l Three year term, with six month repayment holiday l Loans are subject to lenders credit assessment.

STATE GOVERNMENT STIMULUS Each state government has issued a range of stimulus measures from Grants to Payroll tax relief and waiver of government rates and fees. Below is just an example of the ones we believe are most applicable to businesses. Please refer to the websites of the relevant states and territories for further detail.

New South Wales l Waiver of payroll tax for businesses with payrolls of up to $10 million for March, April and May 2020. l Annual liability will be reduced by 25% when you lodge your annual reconciliation (due 28 July). Any refunds owing will be paid at that time. l Raising the threshold limit to $1 million in 2020-21 l NSW Government $10,000 grant to entities highly impacted by COVID-19 restrictions. Eligibility criteria apply.

Victoria l Payroll tax for SME enterprises with payroll less than $3 million in the first three quarters of this financial year will be handed back. l Businesses are able to access the payroll tax cash refunds immediately. l Any payroll tax that is payable in the last quarter will be waived. l Hardship payments, small grants of varying amounts are available to businesses. Eligibility criteria apply.

Queensland l All employers will receive a refund on November and December 2019 Payroll Tax. l Larger businesses > $6.5 million in wages must prove they have been negatively affected.

l Employers with less than $6.5 million will get the months of January, February and March 2020 free of Payroll tax and may defer all payroll tax payments for the rest of 2020. l Jobs support Loans - interest free for the first 12 months up to $250,000 to retain staff.

Western Australia l Payroll tax-paying businesses with a payroll between $1 million and $4 million will receive a grant of $17,500. l Additional payroll tax relief will also apply for small businesses as a result of the payroll tax threshold increasing to $1 million from 1 July 2020 (six months earlier than planned). l There is also a payroll tax payment deferral available for businesses with a payroll of $7.5 million or less that are impacted by COVID-19.

A.C.T. l All businesses whose operations are directly affected by the prohibited activities list will be eligible to receive a six-month waiver of payroll tax from April to September 2020. l Additional payroll tax relief will also apply for small businesses as a result of the payroll tax threshold increasing to $1 million from 1 July 2020 (six months earlier than planned). l All ACT businesses with Australiawide wages of up to $10 million can defer their 2020-21 payroll tax, interest free until 1 July 2022. l Commercial tenants that can demonstrate their business operations have been significantly impacted by COVID-19 may receive rental relief for up to six-months from 1 April 2020. l Small business owners with electricity usage below 100 megawatts per year will see rebates of $750 automatically applied to their next electricity bill in around June or July 2020.

South Australia l Small businesses and not-forprofit entities that employ South Australians who have been highly impacted by the COVID-19 pandemic may be eligible to receive a $10,000 grant to support the operation of their business. (continued on page 31)

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14 | FOCUS ON

Wars etc. Just about every time I get asked about what I do for work, questions like these inevitably pop up ‘Oh! You mean like that show Storage Wars?’ or ‘So do you guys do those onsite auctions as well?’ so I then go into my industry explanation and clarification mode.

MEET MICHAEL ALAFACI SSAA BOARD MEMBER AND DEPUTY CHAIR Michael has been in the self storage industry for almost 15 years. He was first recruited by Michael Tate and David Scanlen to join Storage King.

Insider: What benefits do you find to being on the Board?

Michael: The benefits I’ve found in being on the Board include the ability to network where there would otherwise possibly be barriers. Being able to share ideas, experiences and knowledge can go a long way in helping the industry evolve as a whole, for the benefit of its members and all other stakeholders.

How important do you find the SSAA to the industry?

I believe the SSAA plays a very important role in the industry as the conduit for advice, information and education. This has been particularly evident in the current COVID-19 situation where the SSAA made approaches to State and Federal Governments on behalf of the industry.

How do you see the current growth of the industry in your area I see the growth of the industry starting to level out to some extent for a number

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of reasons. Some of those reasons relate to the increasing difficulty in sourcing quality locations. This is due partly to the sheer price of real estate which often make projects more difficult to stack up. Having said this, the current conditions and resulting uncertainty may potentially create some opportunities. I also believe there is still the ongoing issue in the industry of not enough product awareness in the general public.

How has this changed since you started?

When I first started, there seemed to be a flurry of acquisition activity that seemed to continue on for a few years straight. It then levelled out before taking off again just a few years ago.

So it was my observation that things tend to move in waves.

I also believe that our industry’s product awareness and profile has lifted somewhat (good or bad) as a result of shows such as Storage

Do you plan on expanding?

If not, why not?

I can’t see us stopping expanding any time soon, but I do believe that the whole industry’s rate of expansion will slow down (or a ‘flattening of the curve’ as the media loves saying these days).

I also believe this is needed to avoid a situation of oversupply.

How long have you been a member of the SSAA? I have been a member of the SSAA since I joined Storage King back in 2005.

What benefits do you find from attending SSAA Conventions?

Last year was my first ever SSAA Convention and I can say that it was a very good way of meeting industry peers and other industry participants.

Historically, I have only attended Storage King events, so this helped me expand my experience and my involvement more broadly in the industry as a whole.

What advice would you give someone looking to come into the self storage business?

This is a great industry to be involved in and can be quite financially rewarding.

However, I would strongly recommend to anyone that they carefully and critically assess what is involved in terms of the capital required. As well as the ongoing operational requirements including WHS compliance, legal etc. These can easily be overlooked but could end up being the hidden landmines that can make, what would otherwise be a great venture, potentially come unstuck.

The good things is it’s now nearly 15 years later since l fist started and I’m still not tired of the industry! l

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16 | MARKETING

Providing certainty in uncertain times Just because we’re working through uncertain times, doesn’t mean we have to change everything about the way we run our facilities. With a few simple and careful considerations, we can keep storers up to date, continue to do business and keep our staff engaged.

By Andy Pudmenzky – Big Budda Boom.

WORKING REMOTELY These days much can be done remotely. We can watch our facility CCTV remotely, open and close the gate from anywhere on the planet and we can manage your storers, units and payments with a customer management platform such as Storman Cloud.

However, if your facility staff are working from home and accessing storer data (such as CCTV images, personal details, payment history, etc) on their own computer, you may wish to have an appropriate Working From Home policy or legal document created and signed by staff to ensure nothing goes awry. The team from HR Central (the SSAA’s HR Helpdesk) will be able to point you in the right direction.

Some things to think about may include: l Are any remote systems (CCTV, alarm systems etc) locked down so only certain IP addresses or computers can access them?

INSIDER 113 JUNE / JULY 2020

l If a staff member has their web browser set to auto-login and their laptop gets stolen from their home, how quickly do they need to act? What does the business owner need to do? Do you know where to go to change passwords for any of your compromised business systems? You may even be legally obliged to inform storers of a data breach. l Do any work-from-home (ie. noncompany supplied) computers have up to date virus scanners installed?

Do they auto-lock after a short time of inactivity? What else do you require of staff when using their own technology to access work systems and storer data?

Remember: Your storer data is only as safe as the weakest computer system that’s being used to access it. If there’s no password, no IP address restrictions or two-factor authentication in place, how might your storers feel if they knew?

Your business may have passed a PCI compliance test as part of a wider security audit, but if you’re suddenly letting staff accessing data remotely, the rules and guidelines change.

KEEPING STORERS IN THE LOOP Storers, both existing and prospective, will no doubt have plenty of questions so be sure to keep your communication channels open and up to date. For example, does your website have a prominent banner on the homepage advising of your response to COVID-19, whether you’re still open and the things your facility is doing to support social distancing, improved hygiene and cleaning practices etc.

Your email signature and phone-onhold messages or voicemail greeting should also contain similar details or, at least direct storers to your website for more information so they know how to reach you, access their goods or purchase any additional supplies

www.selfstorage.org.au

(boxes, etc) if they have to store more goods from their home or business.

As new storers find you online and enquire about your services, ensure that your online resources are up to date. Can people reserve online for a contactless experience?

Are your office hours (both on your website and on your Google Business listing) correct? Existing storers will also want to know how they can reach you if they need to.

Employment (or lack thereof) will also play a part in how your storers are able to cope with change in the coming months. As time goes on and four months turns into six, you may find more people choosing to store with you if they lose their jobs and are forced to downsize or move into a smaller/ cheaper home.

Additionally, existing storers may come to you seeking a discount if they are finding it hard to stay on top

of their finances due to a job loss or a reduction in hours or pay. If you’re noticing slower than expected growth at your facility, you’ll need to weigh up whether temporarily discounting your rates (for those that ask for it) is better than losing a storer completely and then having to fill that space from scratch and pay for the advertising to do so (remember: keeping an existing customer is always cheaper than paying for a new one).

In trying times, people remember kindness. Supporting them now may result in some referrals and positive feedback down the track when life returns to normal.

USING YOUR SSAA RESOURCES And finally - as an SSAA member, don’t forget that you get access to their wealth of knowledge, online resources and legal + HR advice. It’s all included as part of your Facility or Service

STEEL STORAGE ARE THE PROVEN LEADERS - FROM THE SMALLEST CONVERSION OR ADDITION TO THE LATEST HIGH-TECH MULTILEVEL STORAGE BUILDINGS

YOUR TRUSTED STORAGE PARTNER

Member membership. Be sure to keep up to date with the regular COVID-19 email updates from SSAA CEO Susan Phillips and log into the SSAA Members Portal to browse the latest news and document downloads to help you during this most unusual time.

All the best - and stay well! l

BIG BUDDA BOOM WEB ▪ PRINT ▪ AUDIO ▪ VIDEO ▪ STAGE

Andy Pudmenzky has been working in the self storage industry for over 13 years and is the managing director of Big Budda Boom Pty Ltd, a self storage marketing company specialising in website development, advertising and video production. Big Budda Boom currently works with self storage facilities right around Australia and New Zealand. Read more at bigbuddaboom.com.au

WE ARE SPECIALISTS IN DESIGN AND CONSTRUCTION CONVERSIONS TOP UPS FIT OUT INSTALLATIONS

PLEASE CONTACT STEEL STORAGE TODAY WITH ANY ENQUIRIES

E sales@steelstorage.com.au T + 61 (0)7 3865 1600 www.steelstorage.com.au

18 | FEATURE MARKET UPDATE

What impact does COVID-19 have on values?

Traditionally, there has been the perception that self storage is recession proof. In times of disruption, the need for storage as a temporary solution often rises. However, the COVID-19 emergency hit us suddenly and severely – the question is, will it be different this time?

By Linda Sharkey, Director – Urbis. uncommon for transactions to halt in a counter cyclical market – a similar predicament to the GFC. l Average storage fee rates have been under pressure for some time. The latest edition of the Urbis Storage Index reaffirmed our view that increased competition and a subdued economy have been keeping fee rate growth well below the 10-year trend. The knock-on economic impact of the COVID19 pandemic will mean it will be extremely difficult to increase storage fees in the near term. l Interest rates are at an all-time low and finance is still available. Money is the cheapest it has ever been, and banks are open for business – a very different scenario to the GFC. Here’s what we are assuming, using our best judgement:

AUS AND NZ CAPITALISATION RATES 9.00% 8.50% 8.13% 8.00% 7.75% 7.25%

7.25% 6.75% 6.50%

6.38%

5.50%

2014

2015

2016

2017

2018

2019

WHAT DO WE KNOW? It's winter in Australia and New Zealand and the world is still uncertain. By the time this article is printed, we may have clearer sight of where we will land on the other side. However, at this moment, the short answer is that we simply do not know what the full impact of COVID-19 will be on self storage asset values.

Here’s what we do know: l Capitalisation rates were continuing to compress (strengthen) at each new sale we had been analysing.

At the end of 2018 we were seeing capitalisation rates of 6.50% to 6.75%. At the end of 2019 we were seeing rates of 6.25% to 6.50%.

The most recent 2020 ‘prime’ sales we have analysed were sub 6.0%.

We are yet to witness a sale that was agreed in this new market and we may not see a true transaction for a number of months. It is not

INSIDER 113 JUNE / JULY 2020

AUS & NZ AVERAGE ANNUAL FEE RATE GROWTH 5.00% 4.23% 3.94% 3.75%

6 Year Average 2.61%

2.50% 2.15%

1.68%

1.25%

0.19% 0.00%

2014

2015

2016

2017

2018

2019

www.selfstorage.org.au

l Fee rate growth will be flat and may possibly retreat over the COVID-19 period. Over the next 12 months, we are assuming fee rate growth will return a neutral result overall (i.e. storage fees may retreat in the near term and rebound when social distancing measures are relaxed – but overall will be approximately the same rates in 12 months’ time). l New enquires may rise in the short term and are then likely to slow. Some facilities may go back in occupancy over the COVID-19 period. Occupancy take up rates for new facilities are likely to be much slower over the next 12 months, particularly if customer offices are unable to open. We are projecting a deferment of net build up rates for the next 12 months for established facilities and substantially reduced take up rates in new facilities for the initial 12 month trading period. l The use of concessions / promotional offers is likely to increase over the COVID-19 period to maintain occupancy levels. We may even see concessions being offered to retain existing customers. l There is potential for a rise in delinquencies as some customers are unable to make payments. l We are likely to see a slowdown in new supply coming to the market in 2020 and 2021 given the desire for the full impact of the pandemic to unfold before new projects are progressed.

We are defining the COVID-19 period as the social distancing timeframe with minimised business activity, which at this stage is expected to be around six months.

Our discussions with major operators indicate that they are taking a sympathetic position with customers facing genuine hardship. There has been a range of responses including suspending arrears penalties, providing rent free periods and offering payment holidays with the expectation that an arrears amount will be paid back over time. We think that the self storage

www.selfstorage.org.au

industry has demonstrated a socially responsible and generous position and should be congratulated. But these measures are also a pragmatic approach to the current crisis. The practical situation is that it may be better to retain a customer with stronger loyalty when conditions improve rather than have a moveout in a market where finding a replacement customer may be challenging.

VALUING SELF STORAGE FACILITIES The role of a valuer is to consider and utilise all available information to assess the likely price a purchaser would pay for an asset in a particular market – i.e. at the date of valuation.

The opinion of value is formed by applying a series of inputs, projections and assumptions which are arrived at by a deep and strong appreciation of the market.

There are two primary valuation methods typically used for assessing the going concern value of a self storage facility: 1. The Capitalisation of Net Income (Capitalisation) method examines the ‘point in time’ value by applying an appropriate rate of return (capitalisation rate) to the projected maintainable long-term EBITDA (Earnings Before Interest Tax Depreciation and Amortisation), i.e. the optimal achievable revenue, to determine the core value. Any rental shortfalls or surplus income that occurs while the EBITDA is stabilising are accounted for as ‘below the line’ adjustments to the core value.

2. The Discounted Cash Flow (DCF) analysis looks at the monthly cash flows over a specified assumed investment period - typically 10 years. It considers all costs to enter the 10-year investment period, along with all costs and desired returns to exit the investment in Year 11.

The purpose of having two valuation methods is to ‘check’ one method with the other. Traditionally,

the Capitalisation method has been favoured by both investors and valuers of self storage assets as it is simple to run, easy to understand and relies on less variables which can often mean more certainty.

In times of uncertainty however, the DCF method brings the benefit of agility. The ability to control inputs at a granular or monthly level that respond to an evolving market like the one we find ourselves in today.

WHAT DOES THIS MEAN FOR YOUR VALUATION? We are making a series of minor adjustments to the DCF model, mostly in Year 1 (12 months from the date of valuation) including removing fee rate growth, deferring occupancy build-up and increasing the concessions and arrears write-off allowance. Whilst we have confidence that growth, build up and effective fee rates will return to normalised levels beyond Year 2, the upfront variables reduces the valuation marginally. This tells us that a moderate retraction in the market is occurring due to the immediate impact on cashflow. By placing more weight on what the DCF approach is telling us, we can have regard to the short-term impact of COVID-19 whilst upholding long term investment metrics. We will continue to monitor and respond to market and financial performance as the situation unfolds. The full impact will depend on the depth and length of the disruption.

We are monitoring occupancy and revenue performance across several facilities and will be in a position to provide more definitive insight on the overall impact in the near future. We see this as an important test as to the resilience of the self storage industry.

Keep an eye out for our next update in The Insider where we will comment on our findings. l

JUNE / JULY 2020 INSIDER 113

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SSAA CELEBRATING 30 YEARS | 21

Jonathan Perrins

Former SSAA Chairman 2007 – 2009 Life Member of the SSAA.

J

onathan is an industry leader, innovator and has been a strong advocate for the self storage industry for over 30 years. He has had roles as a builder, an owneroperator and as a specialist funds manager in self storage.

He was Chairman of the SSAA when they made the decision to purchase the offices which are still used today. At the time it was a big decision for the Board and they received a lot of flak over it, but over time it has proven to be the best decision.

In addition, they established a code of ethics, developed the strategic planning, enabled a service members position to become available and set up bigger trade shows.

In the 1980s, Jonathan owned and operated a rolled form steel production business in Brisbane and Tweeds Heads. When his father explained to him that he wanted to build one of Brisbane’s earliest self storage facilities in Virginia, Jon designed and fabricated components specific for its construction.

Steel Storage was established with Brian Perry and grew rapidly in 1991-1992 with a Steel Storage production facility in New Zealand opening in the first two years.

Steel Storage became a multi-national operation, the UK was an emerging market with Steel Storage opening there in 1996. Business expanded throughout Europe where Steel Storage became an industry leader in storage construction.

Further expansion occurred in Singapore in 2000 where they supplied self storage projects across Asia.

Steel Storage has been a design leader and has driven constantly improved standards and services in self storage development. This has included the development of 3, 4 and 5 level construction techniques, use of high-speed lifts, use of humidity controlled facilities and constant upgrades to partitioning and lock systems. Their well-designed facilities fit well with Jon’s view that high standard facilities will enhance longer-term returns for self storage investors.

Jonathan has owned PTI Australasia Pty Ltd for 28 years, the leader in Access Control equipment.

In 2007 Jonathan co-founded Crown Self Storage in the UK, and after building a solid business over three sites, he sold the facilities to interests associated with Babcock and Brown.

In 2007 Jonathan purchased Extra Space Self Storage sites in Singapore, Malaysia and South Korea. The specific requirement of the storage market in Singapore, included the implementation of air-conditioned self storage units to the market and Wine Storage. After five years of growth, the business was sold. Extra Space is still the largest self storage operator in South East Asia.

Jonathan established the Prime Self Storage fund developing facilities in Brisbane, Gold Coast and Melbourne with National Storage. He and Robert Gregg formed Universal Self Storage Funds Management who have the Armadillo Self Storage Portfolio of 27 sites in the UK and he remains as an investor and advisor to a range of other self storage specific investment syndicates.

Jonathan’s commitment to the industry is also evident in his leadership by establishing and becoming the initial Chairman of the Self Storage Association of Asia, which his company funded for the first two years. In 1997 he founded the modern-day trade show in Europe and was in the formidable years of the establishment of The Self Storage Association of the UK. Jonathan believes the industry must continue to innovate and raise the standard of storage facilities to ensure financial success. He says that reaching a pragmatic solution to fire safety regulators as the most pressing issues in new self storage development today.

Steel Storage was sold early 2020 to Janus International.

Jonathan still remains an active participant in the industry with roles as an investment advisor and funds manager. l

JUNE / JULY 2020 INSIDER 113

22 | FACILITY SECURITYOF THE YEAR

The hacker tactic posing a real threat to Australian and New Zealand SMEs

by Chris O’Connell – Midland Insurance.

C

ybercrime and hacker ingenuity continue to grow at an alarming rate, which is why effective cyber security is so challenging these days. New vulnerabilities and exploits are constantly being found, with each attack more sophisticated than the last.

For self storage businesses, data breaches and cyberattacks are real threats, especially for the small, independent operators. One particular hacker tactic – albeit rather rudimentary, yet very effective – has recently been surging across Australia. It’s called ‘credential stuffing’ and it poses a serious threat to Australian and New Zealand businesses.

WHAT IS CREDENTIAL STUFFING? Credential Stuffing is where a hacker obtains already stolen usernames and passwords, then ‘stuffs’ them into other website logins in order to gain access to sensitive and valuable data. This type of attack is emerging as a critical new data breach risk in ANZ and was considered among the top threats for web and mobile applications in 2019.

It’s a frightening stat, especially considering Australia’s population in comparison to the four countries above it – US, India, Canada and Germany. Australia and New Zealand

IN FACT:

AUSTRALIA IS NOW THE 5TH MOST TARGETED COUNTRY IN THE WORLD FOR CREDENTIAL STUFFING ATTACKS INSIDER 113 JUNE / JULY 2020

also doesn’t rank in the ‘Top Attack Sources’ list; only the ‘Top Attack Destinations’ list, meaning both countries are a very popular choice for international hackers.

There were more than 100 million credential stuffing attacks made in Australia in 2018, ranking it fifth in the world. And with up to 87% of consumers reusing their passwords online, hackers have easy access to millions of credentials, often for free.

87% Of consumers reuse

their passwords online

>100M There were over

100 million credential stuffing attacks made in Australia in 2018

2/3 Two-thirds of Australian

SMEs operate without cyber insurance cover

Cyber-attackers always have an agenda in mind when generating a strike. So, even though you might be a small self storage operator, you could still be an attractive target for hackers looking to steal your information, hold your data to ransom or sell it to the highest bidder.

Once a hacker gains access to your accounts, they can perform a wide range of illicit actions, from data theft through to a complete account takeover. Some examples include: l withdrawing your account balance l transferring funds or points l selling access to your social media, retail store and even bank accounts on the dark web l taking multiple free trips using your Uber account l ordering food from sites like Deliveroo l accessing your company’s WordPress site in order to take control over it and use it in other malware distribution campaigns

www.selfstorage.org.au

WHO’S MOST AT RISK? Small to medium sized businesses (SMEs) are the most attacked segment of the market. Small niche industries are increasingly being targeted as they are more likely to have lower security capacity due to smaller IT budgets and staff, and can often hold a rich collection of data available on their customers as well, making them easier prey for data theft.

43% Of targeted cyber-attacks

are aimed at small businesses

$276k The average cost of a

cyber-crime attack to a business

60% Of small businesses go

out of business within 6 months following a cyber-attack HOW CAN I PROTECT MY BUSINESS? Two-factor authentication Two-factor authentication (2FA) is one of the most effective controls an organisation can implement to prevent hackers from gaining access to sensitive information.

It also means increased productivity. With most employees now being able to work on their mobile devices outside the office, 2FA becomes particularly helpful by securing their devices so they can safely access companyowned applications, data, and shared documents without putting your company at risk.

Users simply need to provide two different authentication factors to verify themselves, such as a primary password, plus a secondary authentication like a PIN or fingerprint.

It is one of the top safety practices recommended by The Australian Cyber Security Centre (ACSC) and you can read more about it at www.cyber.gov.au and the National Cyber Security Centre in New Zealand www.ncsc.govt.nz.

Password managers Password managers basically generate, retrieve and keep track of unique, long and random passwords across countless accounts for you.

They’re effective, easy to use, and businesses really need to encourage staff to use them. There are several great (and free) password manager options out there, but we find

www.selfstorage.org.au

A cyber-attack using credential stuffing tactics could seriously compromise your financial viability in more ways than one, so a robust cyber insurance policy is crucial.

LastPass one of the best. Ultimately, the only password you will need to remember is your super-secure master password you log in to the site with.

Cyber insurance There’s unfortunately no silver bullet that can keep your business 100% protected from a data breach, whether the attack is driven by a professional hacker on the other side of world using credential stuffing tactics, or by one of your own staff who accidentally attaches sensitive credit card information to an email. However, a tailored cyber insurance policy is there to fill all the gaps that traditional liability and risk policies do not protect, ultimately providing you and your business with peace of mind if trouble ever strikes.

Currently two-thirds of ANZ SMEs operate without cyber insurance cover, leaving them vulnerable to potentially irrevocable damage. According to the Australian Government’s ‘Stay Smart Online’ initiative, 60% of all cyber-attacks are targeted at small and medium businesses, costing an average of $276,323 per attack. The indirect costs to a business can also be considerable: l 40% business disruption l 29% information loss l 25% revenue loss l 29% productivity loss l 4% equipment damage A cyber-attack using credential stuffing tactics could seriously compromise your financial viability in more ways than one, so a robust cyber insurance policy is crucial.

At the very least, it will cover risks such as financial loss arising from lost revenue, customer churn, privacy fines and legal expenses.

Cyber-attacks can happen without much rhyme or reason these days, and with Australia and New Zealand being the destinations of choice for hackers, why take the chance of putting your business, your data and your employees at risk.

Because at the end of the day, all it takes is one successful attack to bring your business to a screeching halt....or to put you out of business altogether. l To gain an understanding of the insurance coverage protection that is available for you and your business, contact cyber@midlandinsurance.com.au, or call 1300 306 571.

JUNE / JULY 2020 INSIDER 113

24 | SSAA CELEBRATING 30 YEARS

Garth Davidson, Fort Knox Queensland

G

arth Davidson‘s name and his company’s brand, Fort Knox Storage has been synonymous with self storage in Queensland since the early 1990s’ Garth spent the early part of his life as a grazier in central Queensland but always had a strong interest in real estate. After moving to the coast, he operated a furniture hire business on the Gold Coast. He stored a lot of his equipment at the Millers, Gold Coast facility and in doing so started to learn about the self storage industry.

INSIDER 113 JUNE / JULY 2020

A name synonymous with self storage in Queensland since the early 1990s.

His first purchase was a facility in Greg Chapel Drive, Burleigh Heads. He had worked out that he could buy the facility at a yield of 13%. Garth knew a good thing when he saw it and jumped into the self storage industry. He says that those days are past but wishes that he could still buy self storage facilities at those yields these days.

Garth proved to be an astute purchaser and pursued an aggressive acquisition strategy. He combined that with investing in the upgrade and further development of key sites. Garth and Fort Knox drew from a diverse pool of investors. Over close to 30 years of self storage industry involvement, he has built a portfolio of 28 Fort Knox facilities on the Gold Coast, Brisbane and North Queensland.

Garth was a regular attendee at the yearly conventions and toured the US on a Self Storage Association Study tour in 1995. He says that the companionship he enjoyed and the ability to share the experience with other self storage operators was the best feature of the self storage industry and the SSAA. Garth remembers the early days in the industry when as he says “the Banks and insurers just did not want to know you”. They were the hard days, and he recognises the important role that the Self Storage Association and the larger operators have played in establishing a strong industry. He now says that these days “the banks come to him”.

While Garth sees the consolidation of the industry into the larger investment fund as a positive feature of the industry, he believes that there are still excellent opportunities for small operators.

He remembers the early years where holding top position in the Yellow Pages was the place to be. He now recognises that this is a thing of the past and now management of social media is one of the most significant challenges for self storage operators.

Gath says the most significant reward he has had in his career is the many firm friendships that he has established within the staff that worked with him in Fort Knox Storage.

In 2019 Garth stepped aside as CEO and Managing Director of the Fort Knox Storage Group in Queensland.

His daughter Katrina and son Mark (Shorty) now hold senior roles with Fort Knox Group. Garth remains active in the industry and is out there negotiating the purchase of additional self storage facilities. l

www.selfstorage.org.au

OUT AND ABOUT DINK | 25

KINGSCLIFF OPEN DAY Kingscliff Open Day was held at the Mantra Salt Beach.

Members and non-members were invited to attend the day and learn about the industry. Little did everyone know at that time, it would be the last get together for a while.

The day consisted of presentations for the SSAA Service members and a facility tour of Coast to Coast Storage which was hosted by the owners' Brian and Vicki Ryder.

Brian Ryder, Vicki Ryder, Ricki Watson – Coast to Coast Storage.

Donna Wenham and Sion Ford – Ladd Distribution, Brad Kane – J&B Projects (Aust), Roger Green – Secure Storage Bangalow.

Open Day Kingscliff Facility Tour - Coast to Coast Storage.

Lift at Coast to Coast Storage.

Javier Rezzonico – Storcad, Roger Green – Secure Storage Bangalow, Mark Greig – StoreLocal, Curt Dogger – R6.

Shay McQuade – USC, Martin Coote – Lock Distributors.

Mark Doldissen – Southwell Lifts & Hoists, Harland Sandeman – Storco, Ellis Fisher – Ocean Shores Mini Storage.

www.selfstorage.org.au

JUNE / JULY 2020 INSIDER 113

26 | COMMUNICATIONS

101 Issues and Crisis Communications Don’t hope for the best, prepare for the worst by Rebecca Smith – That Comms Co. could shut your IT and communication systems down.

While we know that the COVID-19 outbreak and the damage it’s wrought is an unprecedented event, it’s still possible to prepare at a very high level for an economic downturn with respect to how you would potentially communicate with your customers during this type of event — regardless of what might have initiated the downturn.

3

WHAT WOULD IT TAKE FOR EACH OF THESE SCENARIOS TO REACH CRISIS POINT

A

s we’ve all witnessed with the recent global outbreak of COVID-19, crisis events will often occur when we least expect them to, and bring with them devastating effects for businesses and individuals alike.

While very few (if any) were anticipating the arrival of a global pandemic, in being prepared for worst case type scenarios, businesses can better equip themselves to manage through adversity. The best defence against a crisis is preparedness.

Here are six steps to guide you through the process of preparing for issue and crisis events.

1

THINK THINGS THROUGH WHEN YOU’RE NOT UNDER PRESSURE

Decisions made under pressure are rarely the best ones. To avoid having to

INSIDER 113 JUNE / JULY 2020

make hasty judgement calls when a crisis hits, take advantage of ‘business as usual’ times to assess various scenarios that could negatively impact your business so you can develop a sensible response plan for each of them.

2

UNDERSTAND WHAT THE BIGGEST RISKS ARE TO YOUR BUSINESS Consider a range of potential risk scenarios, then identify the top three to five of them that would pose the greatest threat to your business or are most likely to occur. Natural disasters causing physical damage to your storage facility — for example storms or bushfires — are obvious threats, but also consider how your business would stand up to an industrial accident, an electrical fire, or even a cyber security breach that

Once you’ve identified the top highrisk scenarios for your business, take a thorough look at each of them and what their escalation points would be. Consider how you will detect an incident has occurred and the different stakeholders who would be affected.

You should view these scenarios from as many angles as possible, with the help and insights of your team.

A good rule of thumb for assessing when an issue has reached or is close to reaching crisis point is when it stops you from operating business as usual.

4

COMMUNICATION IS KEY

Most businesses have some level of planning in place to mitigate against risks and often processes for dealing with crises operationally, but it’s not uncommon for businesses to underestimate the importance of having a communication plan to go with these.

There are many platforms available to people these days that allow them to share their grievances to a wide audience, such as social media and Google. If they’re unhappy with your business, and you haven’t communicated with them effectively, you risk having your business discredited and called out publicly for your perceived failings. Getting on the

www.selfstorage.org.au

front foot with timely and informed communications with those who matter to your business can work to mitigate against this.

be a lifesaver during a crisis when you need to keep your important audiences informed of an unfolding situation or issue important advice.

help you to not only be better equipped to manage the smaller issues, but also critical for your business to bounce forward after a crisis.

5

6

WHEN TO CALL IN THE PROFESSIONALS

WHERE TO COMMUNICATE AND HOW

When you are preparing for a crisis, think about the places your customers will go to find information. It could be your website, your social media pages, email or phone hotline. Plan communications for your stakeholders across all of these platforms and ensure your key messages are consistent across each of them. The format of the messages may need to be slightly different depending on the platform, but the facts and instructions should be the same.

The advantage of the communication technologies we have at our disposal is that you can deliver information immediately and frequently — this can

MAKE TIME FOR TRAINING

Being crisis-ready shouldn’t be limited to management — your whole team needs to be prepared to act when an issue or crisis occurs. Share your action plans with all of the team members who might play a role in a crisis situation and provide them with training on how to execute your plans. Your team should know how to detect when an issue may be escalating, and what they should do to manage it so everyone is on the same page and is empowered to act quickly and with confidence.

No-one wants to be in a crisis situation, especially when livelihoods are at stake. But taking measures to be prepared for worst case scenarios will

While the steps above offer ways to help you manage communications when an issue arises, there may be times when the situation calls for professional advice. l That Comms Co. is the SSAA’s preferred public relations and crisis communications service for its members and is able to be engaged to prepare holding statements and customer communications as required.

For more information and advice on crisis communications support contact SSAA at admin@selfstorage.com.au or +61 3 9466 9699.

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28 | OUT AND ABOUT

BRISBANE NETWORKING The SSAA decided to change the format to its networking events early this year. The new format has brought success at the recently held Brisbane Networking hosted

by Storage King, Jindalee. The SSAA had the pleasure of having Jon Perrins on the day as its guest speaker providing insights and delving into the history of the building. These networking events are free for members and include a mini tour at the host facility while providing a relaxed atmosphere where guests are welcomed with nibbles and drinks while networking with other members and suppliers.

Carl Greaney & Adrian Wylde – All Bay Mini Storage, Jarryd Chorcher – Storage King.

Hans Pearson – StoreLocal, Steve Boxall – Steel Storage, Logan Beitz – Alarmquip, Jarryd Chorcher – Storage King, Michael Bruton – Steel Storage, Jon Perrins.

Jeremy Hoffman – M3property, Pat & Vikki Hogan – The Storage Place Cooloola, Shay McQuade – USC.

Storage King Team – Jarryd Chorcher, Sharon Darward, Kerrie Valery, Martin Richards.

Steve Boxall & Michael Bruton – Steel Storage, Jon Perrins – Universal Self Storage Fund Manager.

Logan Beitz – Alarmquip, Kerrie Valery – Storage King, Rob Hunt – StoreLocal Jindalee, Javier Rezzonico – Storcad, Curt Dogger – R6.

Vikki Hogan – The Storage Place Cooloola, Andy Shaw and Jonathan Wilden – Storman.

INSIDER 113 JUNE / JULY 2020

www.selfstorage.org.au

OH&S | 29

How the COVID-19 crisis is making workplaces safer How the OH&S Help Desk are applying the learnings from COVID-19 to make your workplace safer by Action OHS Consulting.

C

OVID-19 has provided an unprecedented impact on the way we live, work, and interact.

It has required every business to explicitly consider the health and safety of its workers, and any person impacted by its operations.

Rather than reciting your legal health and safety duties, we checked-in with the OH&S Help Desk – manned by the team at Action OHS Consulting – to get their thoughts on key learnings with a self storage lens that can be taken from COVID-19, to help you build towards a safer workplace.

FOUR LEARNINGS:

1

COVID-19 reinforced the importance of clear rules.

Remember March, pre-shutdown? They were the days! Whilst, self-isolation and social distancing was encouraged, groups of people continued to flock to pubs, restaurants and beaches – this was until laws were established.

The learning here is that for order to be established and maintained, both workers and stores require clear rules.

For compliance, it’s important that the purpose and relevance of the rule is understood. If you are not able to explain how the rule will positively impact your workplace, it’s unlikely to be followed.

2

COVID-19 was risk management 101. Three-months in, we have found that the stores who have contacted the OH&S Help Desk were able to demonstrate a clear understanding of the risk management process through their actions. Everyone we have spoken with has been able to identify ways a worker or storer could contract COVID-19; and, could talk to controls that they had implemented to prevent the spread. Controls

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implemented, for the most part, were similar, and included a combination of: l Ensuring that hygiene facilities were easily accessible for both workers and storers. l Introducing contactless storing, deliveries and payments. l Restricting access to meal areas, etc. l Managing schedules to limit workers shifts overlapping. l Limiting the numbers of people on site at any one time. l Maintaining logs of people onsite.

4

Throughout this pandemic we have seen evidence that every business can make significant change overnight. It is incredible to see how swiftly businesses have implemented new processes and improved communication. Indeed, many SSAA members have moved mountains to stay in the game – kudos.

It demonstrates that things that are important get done. How will the importance of safety be maintained in your workplace, even after the risk of COVID-19 disappears? l

3

COVID-19 made it very clear that health and safety duties extend beyond physical hazards. Across the storage industry, this includes site-based hazards such as manual handling; slips and falls; forklift movements; traffic management; or fire and emergency.

Psychosocial hazards should now be part of your consideration. Are you managing hazards such as customer aggression, cash handling, bullying, mental fatigue or stress? If you don’t think these are relevant to you; remember, in January, these hazards would have been more likely than a pandemic.

The OH&S Help Desk has been established by the SSAA to support its members. This advisory service is free. Free call 1800 067 313 (Australia); 0800 444 356 (New Zealand); or email admin@selfstorage.com.au.

JUNE / JULY 2020 INSIDER 113

30 | REMOTE ACCESS

Working remotely and utilising Cloud Software

T

he pandemic, government restrictions and social distancing rules are changing daily and can confuse staff and clients. By implementing and enabling remote access, owners can still operate and adhere to the changing guidelines without affecting operations.

As a result, storage facilities with remote access can ensure continuity to a facility’s operations.

We spoke with three SSAA Service Members who work and help the industry with remote access.

WHAT IS REMOTE ACCESS? Remote access has been around for a long time and is widely used in the IT world. It was primarily used by IT departments in large corporations or by IT services to help small businesses troubleshoot issues.

IT departments were able to assist employees and customers when they had computer issues. They did this by remotely connecting (or logging in) to their computers to see what they are seeing and take control of the computer itself.

Ben Parsad from PTI believes the major growth in this industry is due to the availability of high-speed internet through out residential, major cities and rural areas. This has now enabled numerous services and applications to utilise remote access via the internet which has brought remote access out of the backroom and made it available for everyday applications.

The facts are that many sites often go days without seeing anyone come into the store. That can be attributed to the development of websites and the technology to pay their storage bills online combined with the ease by which new storers can browse for sizes and prices, making navigating the current crisis that much easier.

Dallas Dogger from R6 Digital says “I reckon self storage has always been mostly a ‘contactless’ business, with the advent of technology, it’s only the coronavirus that has highlighted it.”

These are the applications storage facility owners are using technology for:

INSIDER 113 JUNE / JULY 2020

Security and Access l Access to CCTV cameras to view and monitor activity remotely via mobile app or laptop. l Receive notifications from the office alarm system to alert you when there is an intruder or break into the office premises. l Via a mobile phone app, facility owners can view customer access, open gates to allow customer entry. l Enable customers to use mobile phone apps to access the storage facility l Plus it gives owners and staff the ability to access the whole portfolio of storage facilities from one remote location.

Storman Software has always believed technology should make running your business easier and today more than ever, it’s all about making sure your business continues to run. l Working remotely: Cloud based software can be accessed from anywhere eliminating the need to be physically on-site. l Contactless online move-in: Give your prospective customers the ability to choose a unit and move-in from your website without meeting face-to-face. Have a deposit taken to secure the transaction with an online signature of the contract. l Contactless payments online: Integrated into your website, keep your cash flow high by utilising an easy, no-contact solution that keeps both your customers and employees safe. Alternatively, enable BPAY in your software to provide a further convenient way to pay. l Making it easier for your staff: Set-up automatic overnight processing to generate your invoices and send key notices to your customers via email and SMS.

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PANDEMIC SOLUTIONS | 31

(continued from page 13) l Business groups with annual Australian wages of up to $4 million will receive a six month payroll tax waiver. l Business groups with annual Australian wages above $4 million that can demonstrate they have been significantly impacted by COVID‑19 will, upon application, be able to defer payroll tax payments for the six months from April to September 2020. l Eligible non-residential and residential landlords will receive up to 25% land tax waiver on their 2019-20 land tax liabilities for properties leased to tenants who have been financially impacted by the COVID-19 pandemic.

Northern Territory Eligible businesses will be able to apply for two payments: l an immediate survival payment of between $2,000 and $50,000 to help offset the immediate cost pressures on businesses l a rapid adaption payment of between $1,000 and $5,000 to help businesses make the necessary changes they need to help adapt to the new operating environment.

Tasmania

l Automatic payments: Once setup, it’s ‘set and forget’ for you and your customers to automatically debit payments from credit cards or bank accounts. l Communicating with your customers: Send bulk emails and/or SMS to your customer base letting them know important information about your facility.

With the capabilities of accessing services remotely, this can also apply to daily operations, where a site can be unstaffed and run from the comfort of your home with management software.

Dallas Dogger has found that some of the people in self storage that defended not putting prices online may now find a slow down in the rate of move-ins. Online shopping spiked over 30% higher in March 2020, and many sites reported an increase in online traffic as a result of forced isolation by consumers.

Dallas’s view is that these circumstances will bring a new source of online business to self storage operators, and if you’re not getting your share, you should contact the SSAA technology suppliers listed. They are all able to help you get more online business. l

l Payroll tax liabilities will be waived for hospitality, tourism and seafood industry businesses for the last four months of 2019-20. l Other businesses with payrolls of up to $5 million will be able to apply, based on the impact of virus, to have their payroll tax waived for April to June 2020.

Banking Association response The Australian Banking Association (ABA) says all small businesses affected by COVID-19 will be able to access a sixmonth deferral of all loan repayments.

Australian Taxation Office Relief To assist businesses (including sole traders) experiencing financial difficulty as a result of COVID-19, the ATO are implementing the following relief options: l Payment deferrals - You may be eligible to defer some payments by up to six months. l PAYG instalments - Taxpayers can vary their PAYG instalment and can also claim a refund for any instalments made for the September 2019 and December 2019 quarters. The ATO won’t apply penalties or charge interest to varied instalments for the 2019–20 financial year. l Remitting interest and penalties - If your business is affected by COVID-19, the ATO will consider remitting interest and penalties incurred after 23 January 2020. l Low interest payment plans - ATO are offering low interest payment plans.

One thing is certain, this current crisis will end and each day that passes brings us closer to that end. l

Many thanks to the contributors of this article: Duncan Clarke General Manager Storman Software Benjamin Parsad General Manager PTI Australasia Pty Ltd Dallas Dogger | Chairman Centreforce Technology Group Pty Ltd

For more personalised advice and recommendations please contact Bishop Collins – Chartered Accountants on the following link: bishopcollins.com.au or email justonjirwander@bishopcollins.com.au

www.selfstorage.org.au

JUNE / JULY 2020 INSIDER 113

BUSINESS CONTINUITY IN THE COVID-19 PANDEMIC CRISIS While COVID-19 has significantly impacted our communities both locally and abroad, the Australian storage business community finds itself uniquely positioned as an essential service for both commercial and personal needs.

By Marcus Vaughan Director, Growth Strategies – RiskLogic.

W

hile business in this industry will change, the show must go on. To assist business leaders navigate their people and operations through these trying times, we’re going to walk through some of the key considerations to crisis management and business continuity.

ASSESSING IMPACTS When any major event takes place that has the ability to significantly impact your organisation, a foundational starting point in crisis management is to undertake an impact assessment on both current and potential impacts.

The key process here is to understand ‘How does this event have the potential to impact our organisation?’. Walking through this assessment, organisations should always consider a variety of impact categories such as people, operations, financial, reputation. By clarifying where the greatest impacts will be, you can begin to consider where you allocate your time and resources to execute strategies to reduce these impacts.

INSIDER 113 JUNE / JULY 2020

PANDEMIC MANAGEMENT During COVID-19, the driving complexity that has hindered many plans is the execution of health and safety strategies for operating onsite for both employees, contractors and customers. The strategies employed to mitigate health concerns should reference Australian federal and state health guidelines. This will ensure that best practice is considered in the current environment. Social distancing measures, cleaning regimes and quarantine / isolation measures all need to be considered, aligned with health authority advice.

Tracking your actions during COVID-19 (facts, tasks and communications) is also an important factor. Many organisations are already finding a need to demonstrate to a variety of stakeholders what decisions were made, on what information, at what time. Crisis management tools such as CQ have been developed to simplify this process.

COMMUNICATING WITH YOUR STAKEHOLDERS In crisis management, communication is everything.

However one of the greatest undoing’s of many organisations in crisis communications is first considering

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BUSINESS CONTINUITY | 33

The organisations who both prepare to manage a disruption as well as position themselves to capitalise on the upswing will be valiant in the market. your stakeholder map. Who are your stakeholders, and how will you communicate with them? Developing a stakeholder map is an essential step before communicating. Stakeholder groups will include your employees (very commonly forgotten in crisis communication strategies), your customers, the community, local or regional government agencies such as council, emergency and health services (where appropriate). Your message to each stakeholder group needs to be carefully considered so that it is empathetic, factual and relevant. Your mode of communication will also be important depending on the message and stakeholder you are sending it to (phone call, email, sms etc).

UNDERSTANDING AND PROTECTING YOUR CRITICAL FUNCTIONS At the turn of 2020, Australia was rightfully consumed with the impacts of the devastating bushfires ravishing most of our nation. Now, our focus has turned to the impacts of COVID19. The reality is, as one major event unfolds, it does not eliminate the broader threat landscape that our organisations are exposed to. As such, it is critical for every organisation to understand the critical functions that our business needs to continue to perform. By undertaking a business impact

analysis, we can identify what functions are truly critical, what resources (e.g. people, assets, utilities, applications, suppliers) we need to continue them and how long will it take before the loss of that function significantly impacts on our business. In identifying these functions, we can work towards building out contingency strategies to keep the most critical functions working, when a disruption occurs.

Keep in mind that we’re all very focussed on COVID-19 now, but what would happen if 80% of your system applications were knocked out due to a cyber-attack, this month? What functions would be disrupted and how would you continue to service your customers and look after your staff?

PREPARING FOR RECOVERY As social distancing begins to lift and the Australian business economy begins to function as a new normal, you may very well see a surge on demand for your business. The organisations who both prepare to manage a disruption as well as position themselves to capitalise on the upswing will be valiant in the market. Working through strategies to capture and service this upswing should be considered before it arrives. Key questions to ask yourself as we move closer to recovery are ‘How would our business deal with a 30% - 50% demand increase in service?’ and ‘What business functions would be stretched during this time, and what resources would be required to meet this demand?’ l If you need any resources or assistance with regards to crisis management or business continuity during COVID-19, please visit www.risklogic.com.au

new standard storage agreement* now available! *only available to financial members

putting ink on paper since 1977 3 Paterson Parade Queanbeyan NSW 2620 PO Box 624 Fyshwick ACT 2609 tel: 02 6299 4500 email: printing@homesteadpress.com.au SSAA SERVICE MEMBER SINCE 1999

www.homesteadpress.com.au

34 | WAGE SUBSIDIES IN NEW ZEALAND

New Zealand COVID-19 business assistance Assistance for New Zealand businesses financially impacted by COVID-19.

By Sam Bassett – Moore Markhams.

M

oore Markhams Auckland director, Sam Bassett outlines the government’s financial and business assistance options available to NZ business owners to get through the coming months in a much-altered economic environment.

1

WAGES SUBSIDY

Businesses will be eligible for the subsidy where they have experienced a 30 percent decline in actual or predicted revenue related to COVID-19.

Before receiving a subsidy, you must take active steps to manage the implications of COVID-19 on your business. This might include talking with your bank, making an insurance claim, or activating your business continuity plan.

The wage subsidy supports businesses and their staff to maintain an employment connection – so employers can continue to pay employees and workers can receive an income, even if they aren’t able to work.

Use the Wage subsidy eligibility tool to assess your eligibility.

Apply for the Wage subsidy scheme on the Work and Income website.

They will verify the information you provide in your application with Inland Revenue so ensure your IR details are up to date before applying for the subsidy – you can check online at the Inland Revenue website.

Moore Markhams has prepared a guide to answer payroll queries around the treatment of the wages subsidy.

2

BUSINESS FINANCE GUARANTEE SCHEME

The Government’s Business Finance Guarantee Scheme is a collaborative approach between the banks and the government to support businesses

INSIDER 113 JUNE / JULY 2020

with additional funding to cover any cash losses that are built up during COVID-19 recovery.

The scheme is available if you have an annual revenue between $250,000 and $80 million. You can apply to your bank for a loan up to $500,000, for up to three years.

These loans will be expected to be repaid when your business is back on its feet and trading profitably or is back to similar financial performance prior to COVID-19.

To access this funding, banks will require this information to support an application: l the last three years of financials showing business viability and profitability prior to COVID-19. l your cash-flow budget for 12 months showing funding needs during and after COVID-19. l a Statement of Position that lists your personal assets and liabilities.

3

SUPPORT FROM YOUR BANK

Your bank’s care packages should be your first port of call and considered in advance of the government guarantee option. The programmes on offer include: l an increased temporary overdraft facility for up to three months l discounted interest rates l principal holidays and a move to ‘interest only’ loans l asset finance loans to help fund key items such as plant/machinery/ vehicles l trade finance extension of repayment terms.

4

INSOLVENCY RELIEF

The Government is introducing urgent law changes to the Companies Act to give directors temporary relief from potential personal liability

when the business faces significant liquidity problems. The changes will not cover serious breaches of duty.

The temporary changes include: l giving directors of companies facing significant liquidity problems because of COVID-19 a ‘safe harbour’ from insolvency duties under the Companies Act. l enabling businesses affected

by COVID-19 to place existing debts into hibernation until they are able to start trading normally again. l allowing the use of electronic signatures where necessary due to COVID-19 restrictions. l giving the Registrar of Companies the power to temporarily extend deadlines imposed on companies, incorporated societies, charitable trusts and other entities under legislation. l giving temporary relief for entities that are unable to comply with requirements in their constitutions or rules because of COVID-19.

5

INCREASED BUSINESS SUPPORT

Government announced a further $25 million in funding for the Regional Business Partner Network (RBPN).

Approximately $4 million will go to help strengthen call centres to ensure more people can access the service quickly.

Roughly $20 million will be invested in the direct business consultancy services to ensure that a wider range of businesses can get the support they need.

To find out what support is available for your business, visit the Regional Business Partner Network website (continued on page 42)

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SE L F-S TOR AGE DESIGN A ND C ONS T RUC TION Architectural Design Engineering Permits Building Structures Storage Unit Construction Building Conversions Turn Key Solutions

CONTACT:

info@regisbuilt.com.au

1300 388 224 regisbuilt.com.au

36 | HR HELP DESK

Better HR management in a paperless office

By Cath Grawe, HR Central Communications Officer

L

et’s face it, HR management means a lot of forms and paperwork. Thankfully most of us are moving to some form of document management technology that both supports a paperless system and is cloud based.

So how about your business document management? Let’s focus specifically on the often-large proportion of documentation that relates to the Human Resources (HR) component of your business.

These could be employment contracts, position descriptions, investigations, employee letters, performance issues and disciplinary procedures to name a few.

These are important for your recordkeeping and management of staff, and you need to keep most of these documents for seven years in Australia or six years in New Zealand.

There are many benefits of moving to a paperless system such as; one central location for HR documents, monetary savings on paper and printing costs, manual labour efficiency and even increasing your corporate social responsibility.

INSIDER 113 JUNE / JULY 2020

The great thing about document management technology is that it can also integrate with other great, compatible technology, including payroll solutions. When you link systems, you can have them talk to each other and work together to provide a total business solution.

The right system is the one that suits your business needs.

Most systems will be highly customisable, but it’s important to choose the system that suits your needs and desired outcomes.

HR systems can also include leave workflows, induction procedures, policies and templates and other elements specific to your HR process.

So it’s essential that you plan out your HR management requirements, and then do your research.

And finally, while there are immediate benefits, there can be procedural challenges down the track if the management of the system has not been thought out or is poorly managed.

Once you choose a system for your business, here are some steps that you can take to ensure your road to a paperless workplace is a success.

1

SET SECURITY LEVELS AND PERMISSIONS

Being consistent can also assist with your folder structure and retention procedures.

3

THINK ABOUT A RETENTION PROCEDURE

4

REVIEW YOUR FOLDER STRUCTURE

If you were to be audited tomorrow, do you have all the HR management documents that you need and how much of what you have do you even need to keep? Creating a retention procedure can alleviate document clutter allowing you to manage your documents.

Rethinking your folder structure from where documents are saved to what is being saved can revolutionise your folder structure making it much easier for you and your colleagues to find and identify gaps in HR documentation.

If you adhere to the above tips to make your document management a no fuss, beneficial process, you will find that you will save time, increase your productivity and take the stress out of searching through piles and piles of paper to find your HR documentation. l

When it comes to HR documentation, security levels and permissions need to be set for each type of document.

Can everyone see this document?

Is the document confidential?

Setting the permissions on types of documentation can help you set up your folder structure also.

2

CREATE OR FOLLOW EXISTING NAMING GUIDELINES

Be consistent with your naming guidelines. This will allow you and colleagues to identify documents quicker.

If you would like any further information call the SSAA Helpdesk 1300 017 722.

Advice.

Awareness.

Connect.

Collaborate.

HR HELPDESK 1300 01 SSAA / 1300 017 722

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SSAA SERVICE MEMBER PROFILE | 37

PODIUM We’re proud to announce Podium is now officially a Service Member of SSAA. Podium is a communication platform that enables local businesses to drive online reviews as well as send and receive SMS text messages with customers.

They are headquartered out of the United States and opened their Australian office in Melbourne last year. The local Australian office has about 50 Aussie employees to ensure the best support and customer service for Australian and New Zealand businesses.

Podium’s mission is to change the way local business gets done. Whether it’s messaging your leads and customers, chatting in context with your team, or getting reviews and actionable feedback to improve your business, Podium is here to handle every interaction, all in one powerful inbox. No more phone tag or unanswered emails; Podium powers interactions through simple messaging, so you’ll meet your leads and customers where they’re at.

Podium was founded in 2014 as a way for local businesses to more easily gather online reviews from their customers just by sending a simple text. Since then, the platform has grown to include Webchat, Feedback, and Teamchat— every essential business interaction powered by messaging. In 2019 Podium was named as one of Forbes’ Next Billion-Dollar Startups and one of FastCompany’s Most Innovative Companies.

To learn more about Podium or, request a demo head to the website www.podium.com/reviews/ to see how Podium’s efficient, mobile process can help your business collect 15x more reviews than traditional platforms. This will, in turn, improve local SEO and ultimately boost revenue.

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BEACH CONSTRUCTIONS Celebrating 30 years as a commercial builder, Beach Constructions NSW is very proud to be a service member of the SSAA. Beach Constructions is a boutique builder that provides self storage owners with design and construct solutions for their storage facilities across Sydney. As demand for off-site storage continues to grow, so does the demand for self storage builders and Beach is seen as an expert in industrial and self storage design and construction projects. They work with family owned businesses, developers, large corporates and property funds who are looking to build on new sites or re-use existing spaces no matter the difficulty, Beach is equipped to handle it. These projects vary in size from small facelifts through to major industrial estates comprising multiple levels, storage units and warehouses with mezzanine offices.

Beach has an expert industrial team to help clients develop bespoke solutions for difficult sites or projects with limited access. Their technical skills and knowledge of materials and their applications within the self storage sector is second to none. They are of course supported by a wide network of suppliers and subcontractors that are able to quickly source both standard and niche products and work to Beach’s high standards of safety and quality They have developed a business model that ensures their clients are treated like a VIP and SSAA members can access the following services: l Early stage budgeting services to help assess project feasibility. l Construction only on fully documented projects. l Design Development & Construct (DD&C) l Design and construct packages (D&C). l Construction management.

If you are thinking of expanding, upgrading or building a new storage facility, Beach Constructions can step you through the process from early stage budgeting through to construction and maintenance.

www.beach.com.au

JUNE / JULY 2020 INSIDER 113

DEAR LEGAL HELP DESK Q

A Storer has requested to have their storage fees reduced because they cannot access their goods, due to COVID-19. Do I have to do this?

A

(Australian Members):

The storage relationship is governed by the storage agreement (and of course other laws).

The storage agreement makes it clear that the only service provided by the facility is a licence to use the space provided for the sole purpose of storing goods and no other services are provided. Here you are continuing to allow the storage of goods – being the service you agreed to provide

A

(NZ Members):

The storage relationship is governed by the storage agreement (and of course other laws). The storage agreement does not provide for any reduction in fees or similar during a no access period such as in a pandemic. The storage agreement makes it clear that the only service provided by facility is a licence to use the space provided for the sole purpose of storing goods and no other services are provided. Here you are continuing to allow for the storage of goods – being the service you agreed to provide.

Storers have been temporarily denied access by the restrictions imposed by the government but they are still getting storage.

The position might be different if a storer has genuinely reached the end of its term and wanted to remove goods from storage – as the storer would otherwise not have continued incurring

INSIDER 113 JUNE / JULY 2020

storage fees. Members would want to avoid a complaint to the Commerce Commission that might lead to the Commerce Commission considering how much facilities can charge over the lockdown period.

We are of the view that each facility should consider each request from storers on a case-by-case basis and consider what is fair. These are unprecedented times and there is at least a moral imperative to support storers who may be facing hard times.

In the absence of any applicable rules, the Association and members may wish to consider for themselves what is a fair and reasonable position to take during the lockdown, and whether storers ought to have some form of voluntary reduction. At the very least it would seem to be the best approach to show empathy towards storers and those in financial difficulties. The Association and members may wish to consider how to deal with those who find themselves in the hard times that are forecast for many people.

Q

We are seeking assistance with the announcement on 29/3/2020 relating the Tenancy Relief Principles.

A

(Australian Members):

This announcement relates to commercial and residential leases.

The SSAA storage agreements do not grant storers a lease of the space.

The only service provided by a storage business is the facilitation of the storage of goods by the storer in the space. Therefore, our position remains that it does not apply to self storage.

Members will need to develop their own procedures and deal with requests from storers who are unable to pay their storage fees. Each request will need to be assessed on a case-by-case basis, keeping in mind the tough times we all find ourselves in now.

A

(NZ Members):

As at 24 April 2020, the NZ Government has not provided any relief for commercial leases. However, if the Government does introduce such relief, it would not apply to storage agreements as they are licences, not leases (so the position is the same as that in Australia). Our comments above also apply here.

Q

We’d like to reach out for your opinion on selling secondhand boxes. We’re focused on being environmentally responsible and would like to consider the life cycle of our products and potentially offer our customers the opportunity to buy used boxes as well as sell their boxes back to us for resale.

A

(Australian Members):

The Facility can sell secondhand storage boxes, however like selling any goods, your facility needs to comply with various requirements under the Australian Consumer Law. First, your facility needs to disclose to the potential buyers that the storage boxes have been used.

Secondly, your facility must make sure the boxes are still of sound quality, by ensuring that the boxes: l are of acceptable quality;

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DEAR LEGAL HELP DESK | 39

l are fit for any disclosed purpose; l if supplied by description, match the description given to the consumer; and l if supplied based on a sample or demonstration model, correspond with the quality, state or condition of the sample or demonstration model and are free from any defects not apparent in the sample or model.

The risk of not complying with the above requirements is that your facility is likely responsible for any loss and damage caused. For example, if a used box sold by your facility cracks in the middle of being used to carry other goods and causes damage to carried goods, your facility is likely to be required to compensate the damages.

Under the Australian Consumer Law, there is no fixed set of criteria to assess whether the goods sold are of acceptable quality or fit for any disclosed purpose. The test is more based on the knowledge and level of sophistication of the consumer.

In order to minimise your risk, we recommend the Facility: l thoroughly check every storage box to be sold; l removes and does not sell any storage box that appears faulty; and l uses reasonable signage and verbal advice to ensure any consumer is aware that the products are second hand.

A

(NZ Members):

Your consumer law obligations when selling used boxes in NZ are the same as when you sell new boxes, the only difference is consumers cannot expect the same quality as new boxes.

So, all used boxes that you sell need to: l be fit for purpose l be safe l be free from defects l look acceptable l last for a reasonable amount of time.

Whether the used boxes are of acceptable quality depends on how

much you charge for them, what you tell consumers about them and the general condition of the boxes.

As with new boxes, if the used boxes are faulty, you will be required to replace, repair or refund the consumer (at their option). You may also have to pay them damages for any reasonable costs they incurred because of the fault.

Q A

How long do agreements need to be kept?

(Australian Members):

We recommend that you retain copies of storage agreements for 7 years after termination. Generally, a Storers’ personal information, which is contained in storage agreements, is not permitted to be stored if it is no longer required for the purposes for which it was collected by the Facility. Retaining agreements may, however, be required for the following reasons; l where the Facility uses agreements for tax purposes, it needs to store them for 5 years; or l where the Facility uses agreements to verify financial statements, it needs to store them for 7 years.

Further, a Storer may commence legal proceedings for a breach of contract 6 years from the date of the alleged breach. If this were to happen, the Facility may need to rely on the terms of the agreement. While the Facility may have separate invoices that it uses for tax purposes and to verify financial statements, the combination of the above reasons makes it prudent to retain the agreements for 7 years. Again, this can be as hard or soft copies.

A

(NZ Members):

A similar position applies in NZ. NZ tax law requires you to keep records in relation to business matters for 7 years for tax purposes. Facilities and storers can also bring claims against each other for a breach of contract

for up to 6 years after the date of the breach. You should therefore keep copies of agreements for at least 7 years after the agreement has terminated, to support any tax queries of claims for breach of contract you may receive.

However, it is also important to remember that under privacy law, you can only hold personal information about storers (i.e. names, contact details, ID details) for as long as is required for the purpose that you collected it for. So, while you can keep copies of the storage agreements, any personal information you keep can only be kept and used in relation to tax or legal claims you may receive. You should delete any personal information from storers from contact and marketing databases etc.

Q

Is there a prescribed method to manage or store agreements?

A

(Australian Members):

A

(NZ Members):

There is no prescribed method to manage or store agreements, however it is important that the Facility protects private information to avoid being in breach of the Australian Privacy Principles (APP). The Facility should have a system to prevent misuse, loss or unauthorised access to Storers’ personal information. The Facility should implement its own procedures to ensure security.

The same position applies in NZ. You can manage or store agreements however you like, but you need to ensure that it is stored securely in accordance with NZ privacy law. This means you must ensure all agreements and personal information is protected by security safeguards that are reasonable for the circumstances to protect against loss, unauthorised use or disclosure, or other misuse. l

Disclaimer: The information contained in these answers is of a general nature and is not intended as legal advice. It is important that you seek legal advice that is specific to your circumstances. Please refer to the SSAA’s website for more information on the SSAA’s Legal Help Desk.

www.selfstorage.org.au

JUNE / JULY 2020 INSIDER 113

40 | TRADE DIRECTORY – TRUSTED SUPPLIERS TO THE SELF STORAGE INDUSTRY ACCESS CONTROL, FIRE & SECURITY AD-TECH Security Adrian Rostirolla T: 1300 30 60 90 E: sales@ad-tech.com.au www.ad-tech.com.au –––––– AlarmQuip Security Systems Evan Richardson T: +61 7 5492 3242 E: evan@alarmquip.com.au www.alarmquip.com.au –––––– PTI Australasia Pty Ltd Ben Parsad T: +61 7 3216 5524 E: sales@ptiaustralasia.com www.pti.com.au –––––– QueAccess Pty Ltd Kevin Hannagan T: +61 488 279 918 E: kevin@queaccess.com.au www.queaccessw.com.au –––––– Sentinel Australasia Jason Keane T: +61 3 9988 2035 / 1300 852 117 E: jason@storagesecurity.com.au www.storagesecurity.com.au

ANCILLARY SERVICES PACKAGING VISY BOXES & MORE Ralph Inglese T: +61 3 9554 5600 E: vbm_vic@visy.com.au www.visyboxesandmore.com.au Branches across Australia and New Zealand

CLEANING Sweepers Australia Michelle Maxwell & Vaughan Rose T: +61 3 9562 7533 E: michelle@sweepersaustralia.com.au www.sweepersaustralia.com.au

FREIGHT Jetta Excess Baggage Pty Ltd Lyle Honess T: 1300 300 688 E: sales@jetta.com.au www.jettaexcessbaggage.com.au

LOCKS ASSA ABLOY Peter McLean T: +61 2 8745 7016 E: peter.mclean@assaabloy.com www.assaabloy.com.au –––––– Lock Distributors Australia Martin Coote T: 1800 28 77 24 E: service@lockdistributors.com.au www.lockdistributors.com.au

INSIDER 113 JUNE / JULY 2020

PRINTING Homestead Press Joe Barbaro T: +61 2 6299 4500 E: printing@homesteadpress.com.au www.homesteadpress.com.au

STORAGE AUCTION iBidOnStorage Brennan McLoughlin T: +61 2 4302 0605 E: info@ibidon.com.au www.ibidonstorage.com.au

TELECOMMUNICATION URL Networks Ashley Breeden T: 1300 331 178 E: support@url.net.au www.url.net.au

DESIGN & CONSTRUCTION STORCO STORAGE SYSTEMS Jonathan Layton T: +61 2 6391 2800 E: jonathan.layton@storco.com.au www.storco.com.au UNIVERSAL STORAGE CONTAINERS (USC) Shay McQuade T: +61 438 256 541 E: shay.mcquade@universalstorage containers.com www.universalstoragecontainers.com A-Line Construction Jerry Garton T: +64 1 1242 0063 E: jerry@alineconstruction.co.nz www.alineconstruction.co.nz Austra Energy Project Kek Koh T: +61 3 9314 4746 E: info@austraenergy.com.au www.austraenergy.com.au –––––– Beach Construction NSW Pty Ltd Skye Reardon T: +61 2 9550 9199 E: sreardon@beach.com.au www.beach.com.au –––––– B & D Australia James Tyson T: +61 7 3883 0248 M: +61 417 702 636 E: james.tyson@bnd.com.au www.bnd.com.au –––––– Corporate Construction Group Matthew Moulsdale T: +61 2 9231 3691 E: admin@corporateconstruction.com.au www.corporateconstruction.com.au –––––– G&M Stor-More Michael Watson T: +61 2 4733 5048 E: michael@gmstormore.com.au www.gmstormore.com.au

Gliderol Garage Doors Tom Ainscough T: +61 8 8360 0000 E: tainscough@gliderol.com.au www.gliderol.com.au –––––– Kiwimark Construction Ltd Travis Morgan T: +64 7 576 5494 T: +64 7 576 5491 E: travis@kiwimark.net.nz www.kiwimark.net.nz –––––– RegisBuilt Group Anthony Regis T: 1300 388 224 E: anthony.regis@regisbuilt.com.au www.regisbuilt.com.au –––––– Steel Storage Pty Ltd Stephen Boxall T: +61 7 3865 1600 E: sales@steelstorage.com.au www.steelstorage.com.au –––––– Storcad Pty Limited Javier Rezzonico T: +61 447 566 988 E: info@storcad.com.au www.storcad.com.au –––––– Taurean Door Systems Adrian Valente T: +61 3 9721 8366 E: adrian.valente@taureands.com.au www.taureands.com.au –––––– Total Construction Pty Ltd Steven Taylor T: +61 2 9746 9555 E: stevet@totalconstruction.com.au www.totalconstruction.com.au

FINANCIAL SERVICES Bishop Collins Pty Ltd Phillip Keenan T: +61 2 4353 2333 E: mail@bishopcollins.com.au www.bishopcollins.com.au –––––– Moore Markhams Sam Bassett T: + 64 9 306 7103 E: sam.bassett@markhams.co.nz www.markhams.co.nz

HR SERVICES HR Central Cath Grawe T: 1300 717 721 E: cath.grawe@hrcentral.com.au www.hrcentral.com.au

INSURANCE SERVICES AON Risk Services Darren Clauscen E: darren.clauscen@aon.com T: +61 2 9253 8350 www.aon.com.au/storage –––––– AON Risk Services NZ Jeffery Nathan T: +64 9 362 9535 E: jeffery.nathan@aon.com www.aon.co.nz

www.selfstorage.org.au

TRADE DIRECTORY | 41 Midland Insurance Brokers Gilda Mihran T: 1300 306 571 E: storage@midlandinsurance.com.au www.midlandinsurance.com.au –––––– Wallace McLean Ltd Insurance Brokers and Risk Advisers Simon Keenan T: +64 9 358 7233 E: simon@wallacemclean.co.nz www.wallacemclean.co.nz

LEGAL SERVICES Hunt & Hunt Lawyers Graeme Armstead T: +61 3 8602 9200 E: garmstead@huntvic.com.au www.hunthunt.com.au

LIFTS & HOISTS SOUTHWELL LIFTS AND HOISTS David Head T: +61 2 4655 7007 E: sales@southwell.com.au www.southwell.com.au Orbitz Elevators T: 1300 851 554 E: info@orbitzelevators.com.au www.orbitzelevators.com.au –––––– Safetech Lifts & Hoists Tony Krlevski T: +61 3 5127 4566 E: sales@safetech.com.au www.safetech.com.au

MANAGEMENT SERVICES Kennards Self Storage Management Services Fiona Harding T: +61 2 9764 9815 E: fiona@kss.com.au www.kss.com.au –––––– Pioneer Performance 1/1 Pioneer Avenue Tuggerah 2259 NSW T: +61 438 021 944 E: admin@pioneerperformance.com.au www.pioneerperformance.com.au –––––– Storage King Management Services Martin Richards, Australia/ New Zealand T: +61 2 9460 6660 E: martin@storageking.com.au www.storageking.com.au –––––– StorAssist Sally Chodan T: +61 403 533 640 E: sally@storassist.com.au www.storassist.com.au –––––– StoreLocal Mark Greig T: 1300 099 022 E: partners@storelocal.com.au www.storelocal.com.au

www.selfstorage.org.au

OHS SERVICES OHS Action Consulting Craig Salter T: +61 409 772 499 E: craig.salter@actionohs.com.au www.actionohs.com.au

REAL ESTATE & VALUERS Box Commercial Estate Agents Robert Stanley-Turner T: +61 4 1898 2000 E: rob@boxcom.com.au www.boxcom.com.au –––––– Colliers International Holdings (Aust) Ltd Dylan Adams T: +61 2 9257 0222 E: dylan.adams@colliers.com www.colliers.com.au –––––– Collins & Associates Malcolm Collins T: +61 3 8456 5134 E: malcolm@malcolmcollins.com www.malcolmcollins.com –––––– Fallon Valuers Martin Fallon T: +61 3 9674 0374 E: martin@fallonvaluers.com.au www.fallonvaluers.com.au –––––– Highway Frontage Specialist Estate Agents Matt Walsh T: 1300 661 950 +61 3 9944 9350 E: matt@highwayfrontage.com.au www.selfstoragerealestate.com.au –––––– Jones Lang LaSalle Paul Ben-Nathan T: +64 9 366 1666 E: paul.bn@ap.jll.com www.ap.jll.com –––––– m3property Strategists Jeremy Hoffman T: +61 7 3620 7912 E: jeremy.hoffman@m3property.com.au Ross Perkins T: +61 7 3620 7901 E: ross.perkins@m3property.com.au www.m3property.com.au –––––– Urbis Linda Sharkey M: +61 410 902 116 E: lsharkey@urbis.com.au www.urbis.com.au

SOFTWARE SOLUTIONS EZIDEBIT T: +61 7 3124 5500 E: sales@ezidebit.com.au www.ezidebit.com STORMAN AUSTRALIA Andy Shaw T: +61 7 3319 1522 E: sales@storman.com www.storman.com STORMAN NEW ZEALAND Andy Shaw T: +64 9 280 3393 E: sales@storman.com www.storman.com Centreforce Technology Group Pty Ltd Dallas Dogger T: +61 7 3889 9822 E: sales@centreforceit.com.au www.centreforceit.com.au –––––– Podium Level 22, 120 Spencer Street Melbourne 3000 VIC T: +61 478 180 191 E: taylor.cutler@podium.com www.podium.com –––––– Sitelink Michael Dogger, General Manager T: +61 7 3889 9822 E: support@sitelinksoftware.com.au sitelinksoftware.com.au

STORAGE CONTAINERS BOS Containers Australia Elise Kelsey T: +61 3 9720 4455 E: ekelsey@aimhire.com.au www.aimhire.com.au –––––– Flex Box Ltd Lene Nielsen T: 852 2881 0856 E: ln@flex-box.com www.flex-box.com –––––– Quickbuild Containers & Sheds Phil Tindle T: +64 7 9250394 E: sales@quickbuild.co.nz www.quickbuild.co.nz –––––– Royal Wolf Trading Craig Baker T: +61 2 9482 3466 E: removals@royalwolf.com.au www.royalwolf.com.au

WEBSITE DESIGN Big Budda Boom Pty Ltd Andy Pudmenzky T: 1300 660 937 E: info@bigbuddaboom.com.au www.bigbuddaboom.com.au –––––– R6 Digital Michael Dogger T: +61 7 3889 9822 E: sales@r6digital.com.au www.r6digital.com.au

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42 | NEW MEMBERS FACILITY MEMBERS Corowa Self Storage 134 Theiss Road Corowa 2646 NSW T: +61 2 6033 2488 E: rentals.crre@iinet.net.au –––––– Craiglie Self Storage 34-40 Beor Street Craiglie 4877 QLD T: +61 419 514 519 E: sdservices@bigpond.com –––––– Kaiapoi Mill 35 Ranfurly Street Kaiapoi 7630 North Canterbury, NZ T: +64 3 327 8195 E: kaiapoimill@xtra.co.nz –––––– Our Storage Place 12 – 14 Gray Street Kilkenny 5009 SA T: +61 8 8268 2733 E: frank@npa.com.au –––––– Satellite Storage Limited 4 Du Pont Lane Upper Hutt 5018 Wellington, NZ T: +64 4 527 8350 E: office@sjroofing.co.nz

PROVISIONAL MEMBERS Karamu OB Limited 78 Acacia Heights Drive, RD 5 Taupo 3385 Waikato, NZ T: +64 21 544 259 E: chris@karamuob.nz –––––– Marshalls Removals Pty Ltd 11 Dazin Drive Melton 3337 VIC T: +61 417 310 837 E: marshalls_removals@hotmail.com

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6

COMMERCIAL PROPERTY – BUILDING DEPRECIATION

The Government is reintroducing building depreciation on commercial buildings. This will allow owners of commercial and industrial buildings to immediately start reducing provisional tax payments for the 2020-21 income year. There is no application process as the increased deduction will be available as part of normal tax filing processes.

7

IMMEDIATE TAX DEDUCTIONS FOR LOW VALUE ASSETS Business owners will be able to deduct the full cost of more low-value assets in the year purchased, rather than having to spread the cost over the life of the asset. This will take effect for expenditure made on or after 1 April 2020 for most taxpayers.

Previously you could claim an immediate deduction for the purchase of assets that cost less than $500.

This threshold is being increased to assets that cost up to $5,000, for a year (2020-21 income year). The threshold is being permanently increased to $1,000 (from 2021-22 income year onwards). This will reduce compliance costs for businesses and has the intention of encouraging businesses to continue investing.

8

LOWERING OF PROVISIONAL TAX LEVELS

9

LOSS CARRY-BACK SCHEME

The Government is increasing the threshold for having to pay provisional tax from $2,500 to $5,000. This means applicable businesses have until 7th February following the year they file, to pay their tax instead of having to pay in instalments throughout the year.

Under a new change, businesses expecting to make a loss in either the 2019/20 year or the 2020/21 year can estimate the loss and use it to offset profits in the past year. In other words, you can carry the loss back one year.

This change could mean refund some or all the tax already paid for the year you were in profit, i.e. you could cash out all or some of your loss in 2019/20 or 2020/21. Learn more here.

The Government proposes a permanent loss carry-back scheme, applying to the 2021/22 and later income years. l Sam Bassett is a partner of Moore Markhams Auckland. You can find more information about these options and other business advice around dealing with the impacts of COVID-19 on the Moore Markhams New Zealand website.

Code of Ethics The Self Storage Association of Australasia’s Code of Ethics are fundamental to the values of the SSAA and essential to achieving its mission to lead the storage industry in Australasia by promoting the highest standards of ethics and professional excellence for the ultimate benefit of all members and customers.

4. Members will undertake to report any suspected criminal activities to the relevant authorities.

As a SSAA member, you are required to follow the Code.

6. Members will use a current approved SSAA storage agreement or develop an alternative that delivers the equivalent contractual agreement.

1. Members will ensure that their workplace is a safe environment for employees, customers and other visitors to the site.

5. Members will comply with all relevant local, state and federal government laws and regulations regarding a self storage business.

2. Members will treat all employees, customers and visitors to the site with respect.

7. Members will ensure that staff are competent in their duties and complete appropriate training in current industry practices.

3. Members will promote the positive image of the industry through ethical and honest advertising and business practices.

8. Members will participate honestly, cooperatively and transparently with any investigation by the SSAA into any alleged breach of this Code of Ethics.

INSIDER 113 JUNE / JULY 2020

www.selfstorage.org.au

SSAA CONVENTION 2020 RESCHEDULED E NEW DAT

9 – 11

MARCH 2021

Given the evolving situation and exceptional circumstances surrounding COVID-19, we wish to reach out to you with an update regarding the SSAA Convention 2020 After much consideration from the SSAA Board and convention committee, taking into account the most up to date information from Federal and State government authorities in Australia, we wish to advise that we have rescheduled the SSAA CONVENTION 2020 due to be held in August 2020 to 9-11 March, 2021 We are disappointed that we have had to make this decision, however the safety of our members and the community is our main concern and first responsibility during this time. We have not made this decision lightly as this is our largest event in the SSAA calendar.

Pullman Melbourne On The Park #SSAA2020

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