Jacksonville Update7/23/2014

June Performance for Financials

• R&M:• R & M Spend (12 wk). $1275• % work by 3rd Party Contractors (12 wk). 50%• Work order aging. 17 % (KPI 7/18/14)• Maintenance Satisfact’s score. 4.30%• Maintenance Confirmation Rate. 54% (74% 7.18.14)• Leasing:• Renewal Rent increase: 4% trending up• Turn rent increase 5.6% (T-3) trending up• Physical Occupancy 89.6% (Budget 85.3)• % Leased Vs. Leasable 95.9%• NER. 1.5% over under-written –( 3% )• Days from Move-out to Move-in 27 days• Financials:• NOI 49.3% (target 50.1%)• Net Cash Flow. 42.1% (target 41.5%) • Total A.R. Delinquency rate 5.2% (June 2014)• Rehab:• Days to complete Rehab. 37• 1.9 Avg. Days / $1000. • Move-in related work-orders/home 11% (17 total)• Turn. Committed spend/property $2008• Turn. Days to complete 7 days

Scorecard

4 Week Average as of 7.18.14

JAX Facts

• The economy of Jacksonville, FL is the driving force behind north Florida’s economy.

• The city of Jacksonville comprises all of Duval County; IH Jacksonville buys homes in Duval and the surrounding counties: St. Johns, Clay and Nassau.

• Jacksonville job growth is at 4.29% over the most recent 12 months and the June unemployment rate was 5.9%.

• The largest population is employed in sales/office/admin; management/business/finance; and production/transportation/material moving.

• The average weekly wage for Jacksonville MSA, Florida in 3rd quarter, 2013 was $819. This would be equivalent to $20.48 per hour or $42,588 per year, assuming a 40-hour week worked the year around.

• The fastest growing occupations in Jacksonville MSA is expected to be in the construction industry, oil/mining, genetic counseling and solar energy.

Market Overview

• The 2013 population of Jacksonville MSA, Florida was estimated at 1,394,624. This represents a 24.22 percent increase from 2000.

• IH Jacksonville housing market is typically a 3 bedroom sfr, which is represented by the majority of properties in our portfolio.

• A rated St. Johns County is ranked the third best school district in Florida,• Jacksonville offers world-class health care, home of one of only three Mayo

Clinic campuses.

Market Overview Continued

Acquisitions Projections

• IH4 is purchasing 1995 and newer, 9.7% yield, “A” areas, <$22,000 rehab budget, 3 or 4 bedrooms. We are budgeted to purchase 35 homes per month in Fund IV

• 1813 high quality homes purchased since October 29, 2012• Well located, high quality homes with an average age of 1998• Efficient, disciplined and analytical buying strategy has allowed IH Jacksonville to acquire an

excellent portfolio of single family residences• Acquisition vendors are communicated with weekly and late invoicing is not an issue • Brokers are expected to set appointments for inspections, WDO, roof inspections and budget

walks; utilities are expected to be on at all properties. If not, bw cannot be done and broker will pay a $50 trip fee

Acquisitions

180 Properties Aug - Dec (27,983k)

12/15/2

012

1/14/2

013

2/13/2

013

3/15/2

013

4/14/2

013

5/14/2

013

6/13/2

013

7/13/2

013

8/12/2

013

9/11/2

013

10/11/2

013

11/10/2

013

12/10/2

013

1/9/2

014

2/8/2

014

3/10/2

014

4/9/2

014

5/9/2

014

(blank)0.6

0.65

0.7

0.75

0.8

0.85

0.9

0.72

0.65

0.74

0.77

0.81

0.75

0.72

0.76

0.72

0.68

0.82

0.71

0.84

0.71

0.75

0.8

0.69

0.82

Percentage Escrow Closed

75% Avg. Escrow to Close

Mar Apr May Jun2014

24,559

22,614

15,70314,625

23,74323,114

15,586 15,533

Mar Apr May2014

1,446

1,453

1,430

1,4541,451

1,444

Expected

Actual

Expected

Actual Actual

Expected

Expected Rehab: $19,375Avg. Actual Rehab: $19,949

Expected Rent: $1443Avg. Actual Rent: $1450

Expected

Expected

Expected

Expected

Actual

Actual

Actual

Actual

We are right in line with our rehab expectations. We have exceeded rent expectations.

Fund 4 Rehab Fund 4 Rent

RISKS• Economic Downturn: • Increased Rehab costs: • The increase in A quality Apartments:

Opportunities• Economic Downturn:

Inventory Analysis

Prior 7-12 Months07/16/2013 - 01/15/2014

Prior 4-6 Months01/16/2014 - 04/15/2014

Current - 3 Months04/16/2014 - 07/16/2014

Total # of Comparable Sales (Settled)

857 360 507

Absorption Rate (Total Sales/Months)

142.83 120.00 169.00

Total # of Active Listings 311 (Active on 01/15/2014)

438 (Active on 04/15/2014)

541 (Active on 07/16/2014)

Months of Housing Supply (Total Listings / Ab. Rate)

2.18 3.65 3.2

Median Sale & list Price, Dom, Sale/List % Prior 7-12 Months Prior 4-6 Months Current - 3 Months

Median Comparable Sale Price

184,500 179,900 190,103

Median Comparable Sales DOM

38 53 46

Median Comparable List Price

194,900 209,900 214,450

Median Comparable Listings DOM

138 105 54

Median Sale Price as % of List Price

98 % 97 % 98 %

Supply and Demand

• Median sales price in markets that IH Jacksonville buys +6.22 % / YTD ending March 2014 perFHFA.gov

• Months of Inventory is 3.2 which indicates an undersupply of housing• Median sales price in IH Jacksonville markets is $185,000; IH Jacksonville average

sales price is 14% below the median; IH4 average acquisition price is $156,554, 15% below median

• IH Jacksonville bank owned market typically sells at 10.6% below market value which indicates we negotiate a greater discount

• IH Jacksonville short sales market typically sells at 12% below market value, also indicating a greater discount

REVENUE

Competitive Landscape-Rental rate/Vacancy

Q1

• Average rent growth (Renewal/Turn)– IH: .6%– Jacksonville (SFR): 3%– Multifamily: 1.8%

• Leased occupancy– IH: 93%

• Physical occupancy– IH: 79.3%– Multifamily (Jacksonville): 92.6%

• Economic occupancy (% of GPR minus gain/loss to lease and concession divided by GPR)– IH: 99.61%

Q2

• Average rent growth (Renewal/Turn)– IH: 3.5%– Jacksonville (SFR): 1.5%– Multifamily: 2% (expected)

• Leased occupancy– IH: 94.9%

• Physical occupancy– IH: 89%– Multifamily (Jacksonville): 92% (estimate)

• Economic occupancy (% of GPR minus gain/loss to lease and concession divided by GPR)– IH: 99.5%

Pricing• IH Jacksonville expects a minimum of 3% rent growth for turns and renewals

• Rent may trend downwards after peak leasing season (September through December)

• Pricing responsibility• Director of Leasing, RVP and VP of Acquisitions• Utilizes the Scheduled M/O next 30 days-with eviction report for premarketing purposes• Pricing set 30 days in advance and all premarketed homes publish to the website 25 days

prior to lease expiration

Forecasting/Goal SettingPricing• Premarket turns 5-10% above CMA or U/W (whichever is greater)• Hold pricing for 3-4 weeks during premarketing phase• If not leased at Rehab completion, rent decreased to 3%-5% above CMA or U/W (whichever is

greater)• If on the market 3-4 weeks with minimal traffic, a new CMA is prepared and the rent is decreased

slightly below CMA or U/W (whichever is greater)

Lease Expiration Management/Lease Term:• Invest in a Revenue Management system to effectively manage lease terms and maximize

revenue for shorter term leases (RentMaximizer available through Yardi)• Manage lease start dates to avoid the 1st of the month and the last day

• Each lease will begin on the occupy date (not necessarily on the 1st or last day of the month)

RevenuePreleasing

• 100% of turns are preleased (2.7% of total inventory)• Each resident is expected to take possession within 10 days or less from an

approved application• Exceptions up to 30 days for relocations from out of state

Risks/OpportunitiesRisks• New construction of single family homes (70% homeownership in Jacksonville)• Less restrictions on underwriting by banks and mortgage lenders• Lack of significant competition from major institutional investors (may limit

Opportunities• Above average job growth• Low purchase prices (below national median) and high rent averages (exceeds national

average gross)• IH brand more recognizable after more than a year in the market (excellent market

footprint through ILS, MLS and local Realtors)

Performance to Underwriting

Q1

• Leased properties: -4.3%• Rolling 30: -6.1%

**Utilized NER reports month ending**

Q2

• Leased properties: -3.3%• Rolling 30: 2.1%

**Utilized NER reports month ending**

Performance to Underwriting (cont.)

Current• Leased properties: -3.2%• Rolling 30: 1.7%

• PTU for leased properties remains negative due to initial lease up discounts for aged inventory; however, this number continues to trend upward based on focused price increases for 2nd generation leases

Same store comparison• Leased properties improved by

16% (.6%+)• Rolling 30 improved by 185%

(3.7%+)

**Current compared to the average for Q1 and Q2**

Commission StrategyHistorical

• 45% paid to In House Agent if leases own listing• 30% paid to In House Agent if another In House

Agent leases the home• 45% paid to 3rd Party Selling Broker (if listed with

IH in the past) and 30% to the In House Listing Agent

• 30% paid to In House Listing Agent and 10% paid to Outside Realtor (if haven’t listed with IH in the past)

• 5 month average of $136,394 paid out to Agents, 3rd Party Brokers and outside Realtors

Proposed• Pay 30% of 1st full month’s rent to the Selling

Agent (In House Agents)• Pay $100 finders fee to any 3rd Party Broker or

Outside Realtor

• New structure would account for approximately $33,300 paid out per month, would save $103,094 per month and $721,658 for the remainder of the year (based on comparison to current structure)

**Based on 75 move ins per month with an average commission of $444 and average rent of $1,480 per sold listing**

Goals for Balance of Year (Leasing)• Increase physical occupancy by 1% each month• Decrease left to lease by 1% per month• Resize In House Leasing team between 5-6 for market needs• Increase gross potential and NOI through the following areas of focus:

• Increase maximum physical occupancy• Maintain low leasing and renewal concessions (higher NER)• Decrease current Agent commissions (modify current commissions structure)• Shorter days on market (less vacancy loss)• Maximize renewal rents and 2nd generation lease rates

Revenue: Current Occupancy

Occupancy Trends

Revenue: Current Occupancy (Turn Times)

Revenue: Current Occupancy (Days to Lease)

Revenue: Current Occupancy (Renewal Rate Trends: Current)

Revenue: Current Occupancy (Renewal Rate Trends vs. Budget)

Revenue: Current Occupancy (Skip/Eviction %)

Skip/Eviction %

Revenue: Lease Expirations Lease Spreading

Revenue: Rate Increases (Current)

Rent Increases

Rental Rates

Revenue: Rate Increases (Jan to June)

Regional Comparison

Revenue: Concessions

Concessions (% of Revenue)

Collections: Delinquency % (Previous End of Month)

Delinquency %

Collections: Delinquency % (End of Month Trending)

Expenses: Turn Costs

Expenses: Repair and Maintenance Costs

Expenses: Repair and Maintenance Costs

Expenses: Utility Expenses

Net Utilities

Renewals• For the 1st half of the year, we renewed 232 leases or 56.3% at an

average rate increase of 4%• The “Eligible” Renewals were at 65.5%• Of those that did not renew:

• 27% Purchased a new home• 14% Relocated out of Jacksonville• 13% No Reason Given• 12% Lost Roommate/Divorced/Death• 9% Lost Job/Personal Finances• 7% Eviction/Skip• 6% Preferred Better Location/Crime Issue• 5% Needed More/Less Space• 4% Transferred to another IH Home• 2% IH Decided to Not Renew• 1% Unsatisfied – Maintenance/Management

A/R• For the 1st half of the year, we had a delinquency rate of 5.4%

– We improved this from 5.8% in Q1 to 5.1% in Q2

January February March April May June0.00%1.00%2.00%3.00%4.00%5.00%6.00%7.00%8.00% 7.20%

4.50%5.80%

5.60%

4.50%

5.20%

Delinquency by Month

Delinquency

NOI

• For the 1st half of the year, our actual NOI was 51.8%. Our budgeted NOI was 50.1%.

January Febraury March April May June0.00%

10.00%20.00%30.00%40.00%50.00%60.00%70.00%

Actual NOI vs Target NOI

Actual NOI Target NOI

NCF

• For the 1st half of the year, our actual NCF was 42.1%. Our budgeted NCF was 41.5%.

January Febraury March April May June0.00%

10.00%20.00%30.00%40.00%50.00%60.00%

Actual NCF vs Target NCF

Actual NCF Target NCF

RenewalsQ1

• Total Leases - 122• Leases Renewed - 72• Renewal Rate – 59.02%• “Eligible” Renewal Rate – 66.67%• Rate Increase – 3.3%

Q2• Total Leases - 290• Leases Renewed - 160• Renewal Rate – 55.17%• “Eligible” Renewal Rate – 65.04%• Rate Increase – 3.9%

A/RQ1

• Delinquency Rate – 5.8%• Evictions/Skips – 6

– $27,251.75

Q2• Delinquency Rate – 5.1%• Evictions/Skips – 9

– $27,421.09

NOIQ1

• Actual NOI – 47.6%• Target NOI – 52.7%

Q2• Actual NOI – 52.2%• Target NOI – 45.2%

NCFQ1

• Actual NCF – 35.9%• Target NCF – 46.2%

Q2• Actual NCF – 37.3%• Target NCF – 35.3%

Risks/Opportunities• Risks– Home Buying– Emerging/Changing Platform

• Opportunities– Better utilization of technology and resources

• Revenue Management System– Open Rent Maximizer available in Yardi Voyager allows for the

management of leases and leased Market Rents

– Emerging/Changing Platform

Goals for Balance of Year• Complete the reorganization and implementation of the Community PODS;

– Develop each team to work as their own business with each meeting their business metrics

– Provide improved service to our customers– Continue to reduce costs and improve NOI/NCF

• Reduce AR – Decrease our delinquencies on an average below 3.5% for the remainder of the year

• Continue to increase our rate growth and renewal %– Increase our renewal rates by 4% in Q3 and Q4

• Reduce GA– Office expenses

Concession Strategy• Concession Percentage by Category YTD - $27,111

– Move In – 2%– Other* – 28%– Rehab – 7%– Renewal – 41%– Maintenance – 21%

• Total Concessions as a % of Rental Income – 0.27%* We no longer use this Concession Code. In January and February, we used “Other” for all of the concessions.

Concession Strategy• We have been consistently below the national average in our use

of concessions. • Opportunities

– We have significantly reduced the renewal concessions. We are no longer offering a concession to all renewals. We now utilize these to close the deal with difficult renewals.

– Our maintenance concessions will continue to decline. We have increased our communications with residents regarding their work orders. We have daily and weekly meetings to discuss open work orders. Also, as the pod is rolled out, we will continue to make strides in communicating issues or delays with the resident.

COLLECTIONS

Collections• Current Delinquency and Trend

– We ended Q2 at 5.2%.– We our trending in the right direction. We are on pace to have our lowest delinquency yet in July.

We are expecting a delinquency below 3.5%.– We reduced our delinquency by 12% from Q1 to Q2 by reaching out to delinquent residents earlier

and more often during the month– We should see higher decreases than that in Q3 and Q4 as we continue to improve and fine tune

our processes.• We are having weekly “Call-A-Thons” to reach out to all delinquent accounts. • We have shut down Rent Café after the 5th to all residents that are late. We will open up Rent Café and allow

the resident to pay online if they provide us proof they have the funds in their bank account and pay while we are on the phone with them. We use this as a negotiating tool to have them pay immediately.

• We are working closely with our attorneys to get the evictions completed much quicker than before. We have an APM that is working closely with the attorneys to place an emphasis on getting the evictions completed and off of the books as soon as possible. This month, we expect to have all of the delinquencies over 60 days evicted and out of the home.

Collections Continued

• Bad Debt– Our bad debt YTD was 0.86% of income. This is well below our target.– Our bad debt increased in June because we worked closely with our

attorneys to move the existing evictions through.– Just 35% of the security deposits that we receive are being forfeited.– We are trying to collect these debts in house now.

• At the end of the month, we call the resident and let them know they have an outstanding balance.

• We try to work out a payment arrangement with the resident. • We negotiate the amount of time that we will allow them to pay it off before we

file it against their credit. • We are working with our in house attorney to establish best practices and a

policy to officially implement this process.

EXPENSES

CURRENT R&M COST• 4 Week average - $1394

– The trending variance has been approximately ±4% per week. • Highest categories of spending:

• HVAC ($832)1. Equipment Failures2. Normal Wear and Tear3. Resident caused damages 4. Previous week’s annualized cost per home $171

• Landscaping ($212) 1. HOA Violations2. Routine Maintenance 3. Resident caused damages4. Previous week’s annualized cost per home $119

HVAC COST REDUCTION STRATEGIES• Equipment Failure

– Changing of replacement guidelines for newly acquired homes.• Changed the replacement criteria from pre 2004 to pre 2008.• All units are inspected by a licensed HVAC Contractor and decisions are made off of those inspections.

– Looking at system repair vs. system replace.• Age of the unit vs. cost of repairs vs. cost of replacement.• How many times has it been repaired? How much have we already spent?

• Normal Wear and Tear– Conducting repairs In-House.

• Dispatchers or technicians asking questions to try and solve the problem over the phone.• Sending a technician before sending a vendor.

– Renegotiating pricing with vendors• Standardizing labor rates and prices with vendors• Looking at alternatives to OEM repair parts when possible.

• Resident Caused Damages • Charging residents for damages or neglect.

• Billing residents for repairs related to misuse, lack of resident responsibility maintenance or resident caused damage.

• Educating residents on their responsibilities and proper maintenance.• Showing residents what they are responsible for and how to maintain it at the time of Orientation.• Sending out a seasonal newsletter addressing resident’s responsibilities and how to perform those tasks such as filter

replacement and cleaning a drain line.

LANDSCAPING COST REDUCTION STRATEGIES• HOA Violations

– Reaching out to HOA’s to determine an acceptable course of action for both parties.• Approximately 95% of our homes are governed by an HOA.• There are approximately fifty management companies that manage the associations. We are building trust relationships with them.

– Utilizing alternatives to sod such as Xeriscaping, Weed and Feed treatments, or seeding.• State statutes for Florida Friendly landscaping (Xeriscaping) over rule HOA Covenants and Restrictions.• When allowed or practical we are choosing to Weed and Feed, seed or sod with less costly grasses.

• Routine Maintenance– Reducing the frequency of lawn maintenance on vacant homes to every other week.

• The current schedule was bi-weekly during the non-growing season and weekly during growing season.• Given the current amount of homes in rehab and vacant this could save $100,000 based on an 8 month growing season.

– Performing landscaping repairs in-house.• We have been able to complete some tree removals and a few large drainage jobs which saved approximately $8,000 last month.• We are also scheduling more irrigation work in house.

• Resident Caused Damages • Holding residents responsible for violations.

• This is dependent on when the violation was created, how long the home was occupied and what the lawn looked like at time of move in.

• Holding resident’s responsible for unmaintained landscaping at time of move out. • Resident’s deposits are being used to cover maintenance as required.

• Educating residents on the proper care and maintenance of their lawn.• We are currently creating a piece for the next news letter that covers lawn maintenance.

GENERAL COST REDUCTION STRATEGIES• Materials

– Purchasing materials with better or extended warranties.• Products such as Moen or Glacier Bay which have limited lifetime warranties or Frigidaire or Lennox that have extended

warranties beyond the standard term.– Purchasing materials that are of a better quality and can be repaired instead of replaced.

• Products such as Moen or Delta which are easier to repair and utilize a smaller pool of repair parts keeping costs lower.– Purchasing parts in bulk to leverage savings.

• Purchasing bulk packs for products like toilet flappers or light bulbs.

• In-House Maintenance– Problem solving over the phone.

• Having Dispatchers or technicians try and help the resident repair issues over the phone.– Sending technicians before vendors.

• Dispatch technicians whenever possible.– Continuous education of staff.

• Utilize programs such as Leasehawk, mentoring, cross training, and shadowing to increase skill levels.

• Continuous Improvement– We are continuing to utilize the R&M Spending Tracker looking for ways to reduce spending. – The Resource Manager, Vendor Manager, Director of Maintenance, Regional Vice President, and Regional President

continuously review pricing and push vendors to reduce their prices.

R&M GOALS• Thoughts/Assumptions

– Improved Quality Control during Rehab would reduce R&M Spend.• 20% of the total R&M Spend was within 30 days after lease start.

– More robust budgeting during Initial Rehab to reduce future R&M CapEx expense. • What is the best course of action for the long term benefit of the asset?

– Q4 CapEx spending should decrease due to an anticipated reduction in seasonal issues .• R&M Expense

– Q1 Annualized $ 383– Q2 Annualized $ 304– Goal $ 300

• R&M CapEx– Q1 Annualized $ 1435– Q2 Annualized $ 1039– Goal $ 700

Jacksonville Turn CostQ1

• Average – $3,648.00• Days - 19

Q2• Average – $2,145.00• Days - 7

Budget and the Turn Process• Budgets: We meet at a turn home each week with the Superintendent that

prepared the budget, and a representative from each department to create standards that are acceptable to all. Budgets are reviewed to ensure standardized costs, and the best course of action with repairs or replacement.

• Product Installed: We have narrowed down and standardized our product line from Home Depot to products we have found that have a better performance rate. During the turn process, when possible, we have been going back on the manufacturer’s warranty to cover materials.

• Quality Delivered: We have focused on quality by limiting the amount of vendors we use. These vendors have been graded as far as quality, completion times, and customer service.

Cost and Time Management1. Meeting HOA parameters and time constraints:

– Roof Replacement: Getting roofs approved by the HOA can take additional time. We have selected one color, Weatherwood, that meets all HOA requirements to save time within the Turn process.

– Submitting all required paperwork and documentation to the HOA ARB prior assigning the home to the Superintendent

2. Reduction in material costs: – Standardization of materials: We have narrowed down the lines of products we use to ones that

are easier to maintain or have better warranties.– Paint materials cost: We have utilized Paint Drop by Valspar to perform paint color matching on site.

The cost is approximately 25% less. This has helped to reduce our time in rehab by 1 to 2 days. The paint is ordered at time of budget and is waiting at the home when the turn starts. It reduces the need to travel back to the store in the event the paint does not match. We have reached out to our tenants to use this service to purchase touchup paint prior to move out in an effort to reduce time even more.

3. Pricing: – Vendors: We are aggressively meeting with vendors to get the best pricing and targeting smaller

contractors with potentially less overhead.

Minimizing Budget Variances

• Following all houses with scheduled move in dates, allows for the adjustment of final services when date changes are made which improves tenant satisfaction at move in, and decreases the need for “Oops” gift cards and rent credits. This also helps to minimize HOA violations for the yard.

• As Rehab and TURN completions are happening closer to the move ins, the need for touch up cleans have decreased. When a mess is made after completion and the final clean, it is now easier to determine who made the mess, and charge it back to them, instead of paying for another clean.

• We have transitioned to a “one stop shop” to treat, clean, and guarantee flea eradication instead of separately paying different companies for treatment and cleaning, which in turn saves money for each house being treated.

• Weekly meetings with the PM’s to discuss tenant deposit reconciliations. We were receiving numerous disputes about move out charges. This has helped to create more accurate budgets and tenant charges.

Turn Cost and Speed Goals• The National Goal is Less than $1500.• Jacksonville’s Current Turn Cost is $1658 for a 4 week average. Last week

we were at $1126.• Our current Turn Cost goal is $1000• The National Goal of Turn Speed is Less Than 7 days.• Jacksonville’s Current Turn Speed meets the National Goal, our 4 week

average is 7 days.• Our current Turn Speed Goal is 6 days

TRIP CHARGES• Trip Charge Policy

– Dispatchers inform residents that they need to cancel the appointment 24 hours in advance to avoid a trip charge– If the resident is not home, the technician calls the resident.– If they are unable to contact the resident or they are not available the technician tags the door and notifies Dispatch. – Dispatch notes the work order, selects the appropriate flag, and alerts the Portfolio Manager with an Outlook Task. – The Portfolio Manager accepts the task and enters the trip charge on the Resident’s Ledger.– The Portfolio Manager creates a ledger entry to bill the resident for the trip charge.– Once the above steps are completed the Task is completed.– At the end of the week, the Dispatcher reviews the Tasks. Any open tasks are communicated to the Director of

Maintenance, Senior Portfolio Manager, and Regional Vice President.

• Thoughts– There is not a report that can be pulled easily to verify trip charges have been charged– There is not a system to determine if trip charges have been submitted correctly.

TENANT CAUSED DAMAGES

• Tenant Caused Damage Policy– Technicians note the damage in the work order and upload pictures.– Technicians notify Dispatch, who then marks the work order Tenant Caused, adds the appropriate flag, creates an

Outlook Task for the Portfolio Manager, and notifies the Vendor Manager, Field Operations Manager and the Director of Maintenance.

– The Dispatcher provides the work order number and repair cost to the Portfolio Manager.– Within 24 hours, the Portfolio Manager reviews the charges, the work order documentation, notifies the resident of

the charges and creates a ledger entry.– The Outlook Task is completed once the above steps are finished.

• Thoughts– There is not a report that can be pulled easily to verify tenant caused damage has been charged– There is not a system to determine if tenant caused damage charges have been submitted correctly– Uses same GL code for move out damages.

MAINTENANCE STAFFING AND OVERTIME• Current Staffing

– 1 – Director– 2 – Supervisors– 2 – Dispatchers– 1- Administrative Assistant (Reclassify to Dispatcher)– 7- Technicians (One additional position available)

• Overtime (6% of Total Hours Worked)– On Call Technician (50% of Overtime)

• Overtime is based on the amount of Emergency calls received.• Periods with extreme temperatures tend to show an increase in overtime with HVAC calls counting for 56% of the emergencies.

– Dispatcher/Administrative Assistant/Supervisor (25% of Overtime)• One person works approximately 8-10 hours per weekend depending on call volume. • Two salaried Supervisors share in the rotation to reduce overtime.

– Technicians (25% of Overtime)• Some overtime is necessary in order to complete work orders and not make additional visits.• Emergency calls are assigned to technicians who may have worked an 8 hour day because they are the closest to the call.

• Overtime Reduction Strategy– Currently interviewing to fill vacant technician position.– Looking at weekend call volume and types to determine if weekend dispatching is justified.– Accurately calculating travel time to a technician’s first job and ending their day accordingly to minimize overtime.– Overtime must be approved.

REHAB STAFFING AND OVERTIME• Current Staffing

– 1 – Director– 2 – Construction Managers– 10 –Superintendents– 3- Administrative Assistants– 4- Turn Technicians

• Overtime– 1% of hours worked was overtime

• Overtime Reduction Strategy– Staggered move in dates will allow an even work flow for the month.– Overtime must be approved.

WORK ORDER SURVEYS• YTD Average – 4.12• Areas we do well

– Courteousness and professionalism of the technicians – 4.38– Did the Maintenance Staff clean up – 92%– Did the Maintenance Team ask if there was anything else prior to leaving – 74%

• Assuming a 60% in house work order completion ratio we feel this number is good. It does open the need to ask our contractors to ask the same question and report back any issues to us.

• Areas we need work– Quality of work – 4.08– Were you notified of a delay – 34%– Speed at which the request was handled – 3.86

• Action plan– Continually work with technicians to improve their skill sets.– Contacting residents daily to inform them of the status of work, ensuring they understand the delay.– Push vendors to complete work faster and replace non performing vendors.

• Current Month – 4.24

MOVE IN SURVEYS• YTD Average – 4.29• Areas we do well

– Courteousness and professionalism – 4.67– Orientation Staff Performance– 4.43– Appearance of the interior of the home – 4.43

• Areas we need work– Value received for rent paid– 4.07– Issues fixed prior to move in– 46%– Condition of the yard’s landscaping– 3.70

• Action plan– Increase curb appeal to increase a resident’s idea of value.– Work with Superintendents and contractors to reduce the items at Orientation and develop a sense of urgency to get

items completed.– Work with Landscape contractors to develop a better curb appeal through aggressive watering and fertilization

schedules as soon as the home is acquired or received for turn.

• Current Month - 4.22

MOVE OUT SURVEYS• YTD Average – 3.61 • Areas we do well

– Appearance of the interior of the home – 4.08– Recommend to a friend or family member – 71%– Appearance of the exterior of the home – 3.92

• Areas we need work– Appearance of the yard’s landscaping – 3.00– Were you asked to stay when you put in notice - 36%– Value for the rent you paid – 3.46

• Action plan– Work with Landscape contractors to develop a better curb appeal.– New procedures have In House agents asking the resident to stay when they give notice. – Increase curb appeal to increase a resident’s idea of value.

• Current Month – 4.15

CUSTOMER SERVICE SATISFACTION GOALS

• Work Orders– YTD 4.12– Current 4.24– Goal 4.4 (Current National YTD goal is 4.15 and Satisfacts index is 4.35)

• Move In– YTD 4.29– Current 4.22– Goal 4.4 (Satisfacts Index is 4.34)

• Move Out– YTD 3.61– Current 4.15– Goal 4.0

INSURABLE EVENTS• There was one insurable event with a remediation cost (fire damage) of $17,412.17. Payment

received from the insurance company was $16,230.99.• A further review of potential insurable events showed that the costs involved were below the

amount need to turn in for an insurance claim.