A couple of days ago, I received the monthly investor's accounting report for the apartment complex in Houston via email. About two days later, I received my first quarterly profit distribution. The amount was what I expected - the equivalent of a 9% annual ROI. That was our guaranteed minimum return. The good news is that the occupancy, as predicted, has risen another point to 95%. This is the third month in a row that occupancy has gone up and we've only owned the property for three months. The management team expects occupancy to rise even further due to Hurricane Ike, which did some damage to the complex, but not a whole lot. That might only be a temporary rise though, as people will start moving back into their homes and the hurricane damage is repaired.
Rent concessions were a bit less than double the previous month, coming in at around $10,000, due to market competition, but management has cut them back now and are only offering them on the smaller units. Almost completely offsetting the increase in concessions was an increase in "other income," which includes move-in fees, lease termination fees, pet fees, laundry income, late fees, and tenant screening fees.
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