Importance of Monthly Investor Update

Every month we send out into a monthly update to our investors just to keep them updated where our progress is what's going in line with our projections what we're still working on just to size up what's been happening and where we're going from here. So now at this point we also had our quarterly payouts happen for the first quarter this month and then we just basically broke it down into a number of different points mainly focusing on general items leasing items and maintenance. So we're over a third of the building is now paying the new market rents so obviously our when we acquired the property one of the first items to tackle was a rent raise strategy so we're a third of the way there actually over a third of the way there so that's good that we've been able to do that within the first quarter of owning the property construction is almost complete we should have our construction inspection by middle of September so all those items are just getting finished up right now the vacant units as we turn them are getting turned very quickly and we were happy to see in the month of August the vacant units as they're turning are getting a lot of activity we had 19 applications during the month of August and that we're really excited about that and that's actually we've taken a position where we've done moderate advertising of those 19 applications I probably about 75% of them have been walking traffic so it's densely populated it's a desirable area for the tenant class that we're looking for and at this point it hasn't deemed necessary to push out on other means.

We have simple Craigslist add some stuff up on apartments and a few of the other sites in the area but nothing major out there besides really signs and flyers that are out in the area bringing in enough foot traffic so that's great to see great to see people are out there bringing an application just making sure that of the 19 just finding tenants that are actually qualified and find the right tenants to come into the building because this building when we took it over there's about six hundred units in the area ours being 90 for our building stood out as one of the will say problem buildings so we're trying to do is keep all the tenants who are of course good tenants good paying tenants and I want to make the property better and slowly turnover the tenants that that were problem tenants and area really as most things you have a couple people causing most of the trouble we're trying to move them out and bring in new tenants to make just a better area for people to live so right now we're on a lot of month-to-month leases we're providing weekly progress trying to transition all of those into lease renewals for our market rents or if they're not interested in renewing at the new rent rate then they will be out and moved to a to new place it will be filling those units as we turn them up into the market rate.

We had storage fires that are going out for our storage that should be completed at months and in the middle of September we are now also identifying a few units that were grossly under market and given them the option to either bringing in market or take on a unit that's been basically turned for rent ready and given them the option to move into a new unit but they would be upmarket rate and we've also installed lease locked least lock is a good item because if people are conditional in their application at least lock covers us where if they come in and ended up not performing as expected paying they're paying their monthly payments or just move out early the least I could cover us and also cover sun damage and they would cover us lease to pay us the least amount through the least term whether it be a year you want to go back and maintenance. We're sticking to a pretty aggressive renter strategy and we have just one thing to know we have seen just a little bit of a spike in vacancy at different occupancy because of that but we haven't wanted to kind of slow that down at all because we do we've given that we've got a third of the building already at the new rents we want to keep that aggressive position moving forward and we're doing things and we're excited about the storage units because we think that'll increase appeal but also give folks some stickiness they have some additional items there at the building they might stay a little bit longer they have personal items that they can store there and that's additional income for us so we're excited about that we're also excited once construction is done to potentially start to realize the decrease expenses some of the stuff that because it's an owner paid property for water and for energy being able to have the new boilers that are higher efficiency boilers and being able to replace all of the toilets to bring the water bill down we're excited to see that start to impact our expenses.

People think okay I'm going to buy this apartment building and I can if the rents are below market I can just raise the rents can you just do that it doesn't sound like you're not just raising the rent you're actually adding value to the property to make the to make sense. Imagine as a tenant that if new owners took over and just ultimately just jacked up the rent on you would feel slighted, so what we're doing is we're improving the property where we're adding value to the property we increase in the landscape we're tree trimming we're putting up new signs were going into units fixing there was a ton of deferred maintenance where the last owner was just not doing the maintenance repairs so we had a maintenance guy on staff that was doing a great job he was doing a good job but he was moving at a snail's pace so we've just currently put in two in place a new man his guy and he's been crushing the repairs just knocking him out and that's we want the tenants to feel happy that if they come down and say listen I have an issue on my unit that we're going to go out there and fix it and we're going to put priority on getting them back and make them feel good and with that they have to understand that we are going to raise rents and we're going to raise rents because we're doing all these things that make this property better we want a better property for them to live but it's also going to be incomparable to where all the other properties are in the area.

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