FRED Newsletter - October 2023 - Volume 5, Issue 10

SPENDING & SAVING IN 2023

Reducing Controllable, Fixed, and Capital Expenses

First, it is hard to believe we are three quarters through the year. I would like to thank everyone in the company who has had a role in the fantastic year that Property Management is having in 2023.

At the beginning of the year, one of property management’s initiatives for 2023 was reducing controllable, fixed, and capital expenses. With expenses continually increasing, it is so important that we are mindful of what we are buying, the vendors we are using, and the cost of the products being purchased. As an example, property insurance increased by 46% in 2023. We have also seen big increases in property taxes, supply costs, and vendor costs. All these things have a significant impact on the property budgets as it relates to budgeted NOI. This in turn affects what we can spend on the individual assets.

One of our mottos this year has been that we do not have any preferred vendors. We are using the vendor that gives us the best price for a quality product. There are countless examples of what you are doing to make this initiative so successful. We are buying in bulk when the opportunity arises. We found a vendor this spring that had wall sleeve air conditioners on sale and had multiple properties buy these units in bulk for their properties which resulted in substantial savings for the properties. Jeff Leamy’s team was able to buy all the budgeted golf carts in a bulk purchase which resulted in a large savings. Asset management has also played a key role in reducing controllable expenses. For example, bulk purchasing of pet waste bags and dog stations. They are also doing analysis to help find areas where we can reduce expenses. The property teams and team members are taking the time to compare prices with different vendors which has also resulted in savings. There are so many other examples.

I am incredibly pleased to say that as of August 31st, 2023, we had a favorable variance of 5.03% on operating expenses. A special thank you to our property management teams, maintenance teams, and asset management team. Looking forward to a strong finish to 2023.

PROPERTY MANAGEMENT

2023 Entrata Summit

By Heidi Kivi, Director of PM Operations

Industry experts and innovators gathered at Entrata Summit in Salt Lake City, Utah in September to share new perspectives on multifamily accounting, marketing, resident tools, and more. Keynote speakers including New York Times best-selling author, Mel Robbins, American marketer and businessman, Mav Carter, actress and writer, Rashida Jones, interior designers, Studio McGee, and US economist, David Mericle gave personal and professional insight. There were also numerous breakout sessions and networking opportunities to improve our experience in the Entrata platform. They mixed in some fun with Weezer, comedian Nate Bargatze, and casino night. FRED represented well in finance, training, marketing, and operations with attendees Kristi Peirce Andy McDonald Erin Ball Eric

Maverick Carter, CEO of LRMR Management Company

View of Salt Lake City from the Conference Center

David Mericle, Chief US Economist at Goldman Sachs

Eric, Kristi, Erin, Heidi, and Andy before Weezer concert

WHAT OUR RESIDENTS ARE SAYING

“We thoroughly enjoy living in this community. The management consistently organizes engaging activities for residents, such as contests, ice cream carts, and community cookouts, creating a strong sense of community. The pool is excellent, the apartments are very nice, and the hallways are generally maintained in a tidy condition. Maintenance requests are promptly addressed, although we did experience a slight delay with one particular order. However, upon contacting the office, we were promptly assisted by Randi and Corey, who resolved the matter right away for us. We genuinely appreciate their swift response and attentiveness once the issue was brought to their attention.”

- Allison K., Barrington Place

"I just moved into a 2 bed, 2 bath upper unit and the amount of space is amazing! I love how both bedrooms have huge walk in closets and the appliances in the kitchen are up to date and modern! From the time I applied for a unit to move in day, Michaela has been frequently in contact and quick to respond to any and all questions I had. The grounds are well maintained and beautiful and I can tell I made a great decision moving here!"

- Katherine C., Drexel Ridge

"I want to start by saying that the service has been great from the start of our journey until the end. Allie and Brianna have been amazing with answering questions via email, in person, and over the phone. Now that I’m settled in the new place I must say it’s very peaceful and serene. My view is wonderful and just the overall atmosphere is welcoming. I’m glad I picked Seasons at Franklin to be my new home!"

- Katrina R., Seasons at Franklin

"Madelyn at Seasons put together a really exciting wellness event in their clubhouse this week with good food, creative games, interesting health topics, and great company! It really shows how Seasons goes above and beyond to provide healthy entertainment and fun community gatherings for their residents and staff. Good times!"

- Tom S., Seasons at Mount Pleasant

What Makes Them Shine

By Sarah Harrington, Regional Property Manager

To celebrate our incoming residents at Domain, we host an end-ofsummer Pool Party to show our appreciation. Unfortunately, it rained that day, so we celebrated in the newly-remodeled clubhouse, located on the 11th floor, with a beautiful view of Lake Monona and the tip of our Capital. Delicious authentic Hispanic food was catered from Compadres and a DJ from High Energy DJs made sure our night was full of fantastic music. Residents had Pool Table Tournaments and enjoyed the variety of beverages available. From July through August, Domain welcomed over 100 new residents, and while the end-of-summer party is a wonderful way to welcome them, it is not all we plan to do! We also plan to host a Grab and Go Breakfast, a Halloween Costume Contest, and of course a Holiday Party to end the year. We look forward to getting to know our new residents and to helping them claim their Domain!

PROPERTY SPOTLIGHT

EMPLOYEE SPOTLIGHT

THOMAS WITZEL Corporate Counsel

Corporate

Growing up, I spent a significant amount of time on the water, often with my grandparents. After retiring, my grandparents lived on boats (full-time for a period), cruising the Great Lakes and Mississippi River, among other waterways. I would join them in the summer months, of which I have fond memories. As they aged, they downsized boats, and their last boat was a small replica tugboat named the Morning Star, which they kept in Florida. When Hurricane Ian struck in September 2022, the Morning Star washed up on shore, landing blocks away in someone’s driveway – thankfully with very little damage! I took it upon myself to save the Morning Star, and after much effort, I had her delivered to Wisconsin. Keep an eye out for her cruising around the area!

JERRY BLISS August Winner

Maintenance Tech | Seasons at Mount Pleasant

Jerry is our tech 2 and has been such a great addition to the team No job is too small or big for Jerry - and he gets it done with no complaining but will probably crack a joke in light. All of his work order reviews are ALWAYS positive and speak to how friendly and easy to talk to he is and how well the job was. Jerry keeps the pool looking great and does all of the poop stations and garbage by himself. I think he deserves a shout out and I think he would really appreciate it!

FIRST PITCH CONTEST

On August 18th, the Marketing Department held its third annual "First Pitch Contest" to determine who would represent FRED by throwing the first pitch at the Brewers game on September 14th. This year’s virtual contest was made up of two rounds. "Round 1" consisted of submitting a spirit photo and walk-up song to participate in "Round 2". "Round 2", Brewers Trivia, was a battle between Jamie Graham and Earl VanderWielen After covering a board filled with trivia questions, down to a tie-breaker, a winner was named: Jamie Graham!

We are so excited for Jamie to have had this opportunity (as seen on this newsletter's cover) and are grateful for our Brewers Partnership again this season! Go Brewers!