Darrin: [00:00:08] I wonder if you could you could speak to what you see as one of the biggest risks you face. And if you could describe how you guys go about managing that risk. [00:00:17][9.3]
Vinney: [00:00:17] I would love to love to Darrin. I think in the apartments business especially because we are dealing with so many residents and different lives of residents and their capability of paying rents and everything. The biggest risk I find is the occupancy going down. I mean that is a huge factor. Because if the occupancy goes down buddy when 3 percent or 5 percent or 10 percent that's going to cut the cash flow quite a large amount and the bottom line. Because other fixed costs are the same. Other operation costs are but the same. You know, it's just that once the rents are lowered. Oh my gosh that hits the pocketbook. So I would say the biggest risk in apartments is the occupancy going down. Second risk I find is the delinquency. I mean we need to hit it hard right. Right. Neck into it you know and then make sure that we are finding why the residents are not paying. You know, why the delinquency is higher. We need to change that right away. We really do. Is it the criteria that we have of getting the residents to come in to a 2.5 percent of the rent is their income or three times it should be three times their income? Are we bringing any, like risk fees, it is called in our language. Risk fees where somebody is denied to come into your community but they end up paying three hundred extra money or five hundred extra money this fee to come into it you know. So those are really positive risks. The other risk I think is insurance related which is like some resident tripping and falling from the staircase. If we don't fix it properly if it's slanted or something is not. Or the walkways the trip hazards you know. Have we painted them yellow or have we grounded them to make them you know make sure. Those kind of risks are there and we try to protect them of course by you know taking care of them right away first of all. And you can only do it if somebody is looking at that asset with outside eyes. See the thing is the property manager is so overwhelmed with everything. [00:02:41][143.3]
Darrin: [00:02:42] Right. [00:02:42][0.0]
Vinney: [00:02:43] You know, and we just need to make sure that we are there to teach them and coach them and counsel them and then make decisions fast. The biggest advantage I think by us managing our own assets, is that we can act fast. We can decide quickly we can change the course quickly rather than waiting for a month meeting when the problem has gravitated the red flags small has become a big red flag now. [00:02:43][0.0]
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