I'm a paragraph. Click here to add your own text and edit me. It’s easy. Just click “Edit Text” or double click me and you can start adding your own content and make changes to the font. Feel free to drag and drop me anywhere you like on your page. I’m a great place for you to tell a story and let your users know a little more about you.
Our acquisition advantages have allowed us to generate yields higher than those earned by our competitors for comparable properties. We have developed proprietary acquisition software that identifies estimated rents and values of properties based on a proven and evolving algorithm. This gives us the ability to evaluate a greater number of properties more accurately than our competitors, and protect our investments by predicting yield successfully.
Our acquisitions criteria are designed to maximize the net present value of our investments. We target homes that we believe will provide certain minimum yields, that are priced significantly below construction cost, that will benefit inordinately from durable, high-quality restoration, and that will attract long-lasting, creditworthy tenants.
Cost control over initial redevelopment budgeting is a critical objective of our property redevelopment division, which is monitored by in-house personnel, who also monitor the average cost per heated square foot for all of the redevelopment costs associated with each property. We have a variety of policies and procedures in-place to control additional cost requirements that may arise during the redevelopment process; for example, any additional costs or credits are required to be approved by our redevelopment manager using a formalized change-order process. Since initiating operations in 2001, actual redevelopment costs on average have been approximately the same on average as initial contractor estimates.
The Redevelopment team is led by seasoned redevelopment experts and contractors. This team oversees the entire redevelopment decision-making process, beginning with activation of utilities and ending with quality assurance walkthroughs. Each local market has assigned Construction Managers who provide support to general contractors and manage the quality control process. Our network of general contractors has the capacity to manage large volumes of homes.
We actively solicit renters once redevelopment is completed, with the objective of maximizing speed to occupancy. Our leasing team determines asking rents based on a submarket comparables analysis for each existing rental unit using proprietary software, local multiple listing services, tax records, and third-party rental data. Tenant underwriting follows strict internal guidelines focusing on past rental history, credit history, income and employment verification.
We execute all property management functions using internal technology systems and personnel. We seek to ensure tenant satisfaction by providing exceptional tenant services. The Manager’s experienced team and vertically integrated property management platform allows us to control the quality of renovation of a newly acquired home, to supervise leasing activities, to maintain property condition and to sell our assets when appropriate. Our Manager has significant experience in all aspects of acquisition, utilities and inspections, renovation and management of single-family homes. We believe that our ability to improve the homes we acquire, and subsequently our ability to maintain asset quality, increases the useful lives of our homes, decreases turnover costs and contributes to superior tenant retention.