Explanation of Services

Entrada takes a systematic and analytical approach to revenue and expense management in order to maximize the operating performance of each asset. Historically, Entrada’s principals have been able to achieve an NOI improvement of 19.9% within the first 12 months after taking over the management of an apartment community. 81% of this NOI improvement has come from the decrease in variable expenses. Additionally, Entrada has deep rooted beliefs in using the latest technology to bring discipline and accountability to all aspects of property management.

• Revenue Management

• Detailed trend analysis in order to identify, in advance, opportunities and future risks related to income. Rental pricing and concessions are adjusted on a real time basis based on a variety of key performance indicators such as amount of traffic, closing percentages, occupancy and availability by unit type and by unit groupings.
  
  
• Entrada maintains reports and monitors the following items on a weekly basis:
• Current month rental collections and outstanding delinquency
• Occupancy and availability by unit type and unit groupings
• Move-ins and move-outs
• Traffic, conversion and cost per lease by marketing source
• Work orders called in, completed and still pending by maintenance department
• Existing resident renewal program
  
  
• Entrada maintains reports and monitors the following items on a monthly basis:
  • Actual versus budgeted collections with variance explanations and action plans
  • Current month performance compared to prior year period and prior month’s performance
  • Effective rent trend
    
    
• After reviewing key reports and metrics, Entrada adjusts the following key variables on a real-time basis:

• Pricing and concessions based on occupancy, availability and market trends
• Other income items (i.e. unit premiums, view charges, fees, deposits, etc.)
• Renewal strategy based on recent history
• Marketing sources based on traffic and conversion


• Constant monitoring and collection of outstanding delinquent rents
  
  
• Stagger lease maturities to minimize turnover risk in a single month

• Expense Management

• Incentivizing property employees to maximize NOI and not just revenue
  
  
• Line by line analysis of General Ledger to discover and eliminate unnecessary expenditures
  
  
• Re-bid and negotiate service contracts
  
  
• Staffing optimization by bringing key maintenance work in-house and basing staffing decisions on property pecific metrics. Staffing decisions and recommendations are based on the particular property, work orders, and an-hours calculations.
  
  
• Elimination of excess administrative costs
  
  
• Key focus on marketing costs
  
  
• All expense line items are compared to key benchmark metrics for other large apartment operators