Key Decision Considerations for Clients

• LRO is designed by Multifamily for Multifamily
• LRO has 5+ years production experience
• LRO fully deployed “non-sponsoring” clients
• Two large consulting firms validated model and results
• Quadratic Program Solver designed exclusively for Multifamily
• What company will bring forth the “most” in the coming years?

• High demand periods are leveraged for higher effective rents
• Uses power of computers to forecast systematically
• Stops “managing by looking in the rearview mirror”
• Proactively identifies softening market and reacts
• Discipline is added to the pricing process
• Drives consistency: makes decisions the same way, “7x52”
• Embeds corporate strategy into pricing decisions
• Corporate processes are improved
• Enhances understanding of the market
• Enforces pricing policy compliance

• Seasonality (based on as much as 3 years’ history)
• Recent demand level (de-seasonalized)
• Lease application lead times
• Traffic – ILS & guest cards
• Differences by lease term
• Differences by “week type” (i.e. beginning vs middle vs end of month)
• Renewal demand behavior separate from new demand
• Future supply based on expiration profile
• Early termination adjustments (skips, evictions and other lease breaks)
• Unit type granularity

• Community exposure and lease velocity
• Demand and supply forecasts at unit type granularity
• Expiration management
• Costs include vacancy loss and make ready
• New vs. renewal demand
• Competitor rents
• Corporate strategy on concessions vs. net pricing
• Corporate strategy on renewals in up and down markets
• Amenitization