Changing Air Filters

Why It Matters More Than You Think by Blake Koch We often think of air filters as simple, routine maintenance items in our homes, something to be checked every few months, but generally out of sight and out of mind. In single-family rental properties, where tenants typically have more autonomy than in multi-family buildings, providing a simple process/solution or even a guide on how to change air filters can go a long way toward ensuring air filters are changed regularly by the residents. For property managers, the importance of air filters cannot be overstated. From improving air quality to reducing maintenance costs and enhancing tenant retention, air filters are an integral part of keeping properties running smoothly. Let’s explore the benefits of air filters for property managers and why investing time and resources in this area can have far reaching impact for both the property owner and the residents. 1 // Improved Indoor Air Quality Indoor air is often more polluted than outdoor air. At the most fundamental level, air filters are designed to trap airborne particles like dust, pollen, pet dander, mold spores, and bacteria. When the filter becomes clogged or dirty, its ability to capture these particles diminishes, leading to poorer air quality. This can potentially exacerbate respiratory issues, especially for people with allergies or asthma. A clean filter promotes better airflow, reducing the chance of airborne pollutants accumulating and impacting overall health and comfort. By ensuring that air filters are regularly replaced and maintained, as a property manager, you are taking proactive steps to maintaining a comfortable living environment for your residents. 2 // Energy Efficiency and Cost Savings One of the hidden financial benefits of air filters is their impact on the energy efficiency of a home or building’s HVAC system. When air filters become clogged with dirt, dust, and other particles, the HVAC system must work harder to circulate air. This leads to increased energy consumption, higher utility bills, and greater wear on the system. By changing air filters regularly — typically every 1-3 months for residential properties — you can significantly improve the energy efficiency of the HVAC system. A clean filter ensures adequate airflow, allowing the system to operate at peak efficiency, which in turn reduces energy consumption. The U.S. Department of Energy estimates that replacing a clogged filter can reduce energy consumption by 5-15%. This improvement in energy efficiency not only helps lower monthly utility costs for tenants but also reduces the strain on the property owner’s HVAC system, leading to fewer repairs and longer service life. 3 // Prolonged Equipment Life Given that HVAC systems are one of the most expensive components of home/building maintenance, prolonging their lifespan through proper air filter maintenance can lead to substantial savings over time. Much like any other machine, HVAC systems require proper maintenance to run efficiently and last longer. A dirty air filter puts unnecessary strain on the equipment, potentially leading to overheating, wear and tear on components, and even costly breakdowns. When airflow is restricted, it can cause the system’s motor to work harder, increasing the risk of mechanical failure. By staying on top of air filter maintenance, property managers can prevent these issues from arising in the first place. Regular air filter replacement helps keep the HVAC system functioning smoothly, reducing the likelihood of system failures and extending the life of the equipment. This proactive approach to maintenance not only saves money and reduces maintenance calls but also helps maintain a high level of service for tenants while protecting the owner’s investment. 4 // Happy Tenants Happy tenants are more likely to renew their leases, refer friends and family, and leave positive reviews about your property. Ensuring that air filters are regularly changed creates a cleaner, healthier and happier living environment. When tenants feel that their well-being is a priority and the task of changing air filters is simplified and supported, you add value and better the living experience. This can lead to increased tenant retention rates, fewer complaints, and a more positive reputation for your property. While many landlords and property managers are proactive about the maintenance of HVAC systems, it is equally important to educate tenants on the significance of air filter maintenance. Tenants who understand how to check and change air filters are more likely to complete the task. In single-family rental properties, providing filters to the tenants so that they have the correct filter[s] when it is time to change them is an efficient way to check the task off the to do list. Simplify the Air Filter Replacement Process Property managers can offer a proactive service, such as providing filter replacements during regular property inspections or even bundling air filter replacement into the lease agreement and utilize a subscription service. FilterTime simplifies the air filter replacement process by drop-shipping filters directly to residents on the behalf of property managers. When the filter arrives, the resident is reminded to change the filter. By making filter maintenance a standard part of the leasing process, landlords can avoid the pitfalls of neglecting air quality, energy efficiency and system protection. By simplifying air filters, property managers ensure that their homes/buildings operate efficiently, tenants remain healthy and happy, and the property’s long-term value is preserved.

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REI INK at IMN West

Co-Hosted by RCN Capital & REI INK Sponsored by The Home Depot Pro, BCHH, Genstone, and ZVN Properties Grillin and Chillin Another great culinary networking event with our wonderful friends, clients, and supporters.

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Help Safeguard Your Investments

Understanding Seller Impersonation Fraud by Radian Title Services Seller impersonation fraud is a growing risk in real estate. Do not let your hard-earned profits fall victim to this sophisticated scam. It is crucial for investors to stay one step ahead of fraudsters. Let’s dive into the reality of seller impersonation fraud and help equip you with the knowledge to help protect your investments. Growing Real Estate Fraud in the US In 2023, the FBI reported 9,521 real estate fraud victims, which includes loss of funds from a real estate investment or fraud involving a rental or timeshare property, with losses totaling over $145 million.  While this number encompasses internet crime in totality, and not only seller impersonation fraud, it helps to demonstrate the high number of fraudulent activities happening within the real estate industry. Additionally, according to a study by the American Land Title Association, 28% of title insurance companies experienced at least one seller impersonation fraud attempt in 2023. These studies paint a nefarious picture, demonstrating significant fraudulent activity in the real estate industry. Read on to see how you can help safeguard your investments. How Seller Impersonation Fraud Works Understanding how seller impersonation fraud happens may be your first line of defense. Some scammers may operate by:  »            Identifying vulnerable properties (e.g., vacant, inherited, or owned by absent landlords)  »            Gathering information about the rightful owner  »            Creating fake IDs and documents  »            Listing the property for sale, often at below-market prices to attract quick offers  »            Rushing through the closing process to avoid detection  »            Vanishing with the proceeds Unfortunately, these ploys are getting more sophisticated, using social engineering tactics, which involve deceiving a victim to steal personal or financial information, as well as advanced technology to pull off the schemes. Red Flags You Can’t Afford to Miss Stay vigilant throughout your transactions and watch out for these warning signs:  »            Unusually low asking prices  »            Pressure to close quickly or exclusive use of digital communications  »            Reluctance to meet in person or allow property tours  »            Inconsistencies in property ownership history  »            Requests for unusual payment methods If a deal seems too good to be true, it probably is. Trust your instincts and dig deeper. The Power of Title Insurance and Settlement Services Having the right legal and financial protections is vital to protecting your investments. Title insurance can be a powerful defense against the consequences of seller impersonation fraud, offering coverage for losses stemming from forged deeds or other title defects. Settlement services also play a key role in your protection – thorough verification processes may help detect inconsistencies or red flags before a fraudulent transaction is completed. Work with reputable title companies offering these services, like Radian Title Insurance and Radian Settlement Services, to help you identify potential red flags that might indicate seller impersonation fraud. Your Action Plan Take additional proactive measures to help protect your portfolio and mitigate vulnerability to becoming a victim of seller impersonation fraud. Consider the following steps to help safeguard your investments: Verify // Confirm the seller’s identity through multiple channels. Do not rely solely on emails or phone calls. Leverage Technology // Use advanced identity verification tools to add an extra layer of security. Educate Your Team // Ensure everyone involved in your transactions is aware of the risks and knows how to spot red flags. Stay Informed and Stay Ahead Staying informed about seller impersonation fraud is another great defense. Make it a priority to:  »            Regularly attend industry seminars on fraud prevention  »            Subscribe to real estate security newsletters  »            Network with other investors to share experiences and strategies Stay vigilant and informed, do not let seller impersonation fraud interfere with your real estate goals. The content presented is intended to convey general information and is for informational purposes only and does not constitute legal or accounting advice or opinions. An attorney or accountant should be consulted for specific information.

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Home Affordability Worsens Again in Q4

Major Home-Ownership Expenses Consume 34% of National Average Wage by ATTOM Staff ATTOM released its fourth-quarter 2024 U.S. Home Affordability Report showing that median-priced single-family homes and condos remain less affordable in the fourth quarter of 2024 compared to historical averages in 98% of counties around the nation with enough data to analyze. The latest trend continues a three-year pattern of home ownership requiring historically large portions of wages as U.S. home prices keep reaching new heights. The report also shows that major expenses on median-priced homes currently consume 34% of the average national wage. That level marks an increase of more than one percentage point both quarterly and annually, pushing the figure even farther above the common 28% lending guideline preferred by lenders. The downturns in current and historic affordability represent the latest measures of how home ownership remains a financial stretch for average workers around the nation. They come as the national median home price has climbed to $364,750 this quarter and mortgage rates, while declining, remain over 6%. Combined, those forces are helping to keep the ratio of ownership expenses to wages in the unaffordable range. Fourth-quarter trends also have reversed a slight improvement during the third quarter of this year that had signaled a possible step in the right direction for homeowners. The portion of average wages nationwide required for typical mortgage payments, property taxes and insurance now stands almost 13 points beyond a low point reached early in 2021, right before home-mortgage interest rates shot up from the lowest levels in decades. “The U.S. housing market continues to generate great profits for most home sellers but also more and more financial stress for would-be buyers. Average workers now must shell out a larger portion of their wages for major home-ownership expenses than at any time since right before the housing market tanked in the late 2000s,” said Rob Barber, CEO for ATTOM. “Despite recent declines in mortgage rates, down payments on typical home purchases have reached four times the average national wage.” He added that “at some point, something’s got to give, or a growing number of buyers will have no choice but to toss in the towel and wait for home ownership to become more affordable. But we clearly are not there yet.” The latest numbers reflect yet another period when year-over-year changes in major expenses on typical single-family homes and condos have outrun changes in average wages around the country. Expense totals have either grown faster or declined less than wages during 14 of the last 15 quarters dating back to late 2020, pushing affordability in the wrong direction for house hunters. Compared to historical levels, median home ownership costs in 556 of the 566 counties analyzed in the fourth quarter of 2024 are less affordable than in the past. That is virtually unchanged from both the third quarter of 2024 and the fourth quarter of 2023. NATIONAL MEDIAN HOME PRICE UP QUARTERLY AND ANNUALLY The national median price for single-family homes and condos has risen to a record high of $364,750 in the fourth quarter of 2024. The latest figure represents a 2.1% increase over the third quarter of this year and is 11.4% above the typical price in the fourth quarter of 2023. At the county level, the pattern is more varied. Median home prices have increased since the fourth quarter of last year in 503, or 88.9%, of the 566 counties included in the report. Quarterly, however, typical values have risen in only 210, or 37.1% of those markets. That is a sign that the latest jump in national median price may be driven more by larger numbers of sales in markets with bigger increases. EXPENSES CONSUMING LARGER PORTION OF WAGES Despite falling mortgage rates in recent months, the portion of average local wages consumed by major expenses on median-priced single-family homes and condos has risen quarterly in 357, or 63.1%, of the 566 counties analyzed, although it is still down annually in slightly more than half. Nationwide, the typical $2,092 cost of mortgage payments, homeowner insurance, mortgage insurance and property taxes is up 4.6% quarterly and 6.1% annually to a new all-time high. That has outpaced the 1% quarterly and 3.1 annual gains in the average national wage. The latest expense total commonly consumes 34 percent of the average annual national wage of $73,918. That is up from 32.5% in the third quarter of 2024 and from 32.7% in the fourth quarter of last year. The current level is nearly 13 percentage points more than a recent low point of 21.3% hit in the first quarter of 2021. The cost-to-wage ratio exceeds the 28% lending guideline in 436, or 77%, of the counties analyzed, assuming a 20% down payment. That percentage is unchanged from the third quarter of 2024, based on the same group of counties, but is up slightly from 75.4% a year ago. It is far above the 31% figure recorded in early 2021. In about one-third the markets analyzed around the U.S., major expenses consume at least 43% of average local wages, a benchmark considered seriously unaffordable. HOME OWNERSHIP STILL UNAFFORDABLE BY HISTORICAL STANDARDS Home ownership is less affordable in the fourth quarter of 2024 compared to historic averages in 98.2% of the 566 counties analyzed. That is about the same as the level in both the third quarter of 2024 and the fourth quarter of last year, but more than 20 times higher than the 4.6% portion in the first quarter of 2021. Historical indexes have worsened quarterly, mostly by small amounts, in about two-thirds of the counties reviewed. That had dropped the nationwide index to its lowest point since 2007. Counties with a population of at least 1 million that are less affordable than their historic averages (indexes of less than 100 are considered historically less affordable) include:  »            Wayne County (Detroit), MI (index of 61)  »            Fulton County (Atlanta), GA (65)  »            Mecklenburg County (Charlotte), NC (65)  »            Broward County (Fort Lauderdale),

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IMN Single Family Rental Industry Awards

A Celebration of the SFR Industry IMN hosted the 3rd Annual SFR Industry Awards on December 2nd, 2024, immediately preceding their 12th Annual Single Family Rental (West) Forum. The Awards Ceremony celebrated and honored the excellence of the SFR industry. Here are the Winners of the 2024 SFR Industry Awards! Congratulations to each and every one of you. Financing BTR/Construction Lender of the Year Genesis Capital Private Equity/Joint Venture Deal or Partnership of the Year CoreVest Finance & CPPIB Fix & Flip/DSCR Lender of the Year RCN Capital Lender of the Year (Portfolios) LendingOne SFR Securitization of the Year Genesis Capital Deals, Projects & Intermediaries BTR Deal of the Year The Dinerstein Companies AEC (Architect, Engineer & Construction) Service of the Year Lifestyle Homes Brokerage of the Year (Investment Sales) Roofstock Law Firm of the Year Alston & Bird Workforce/Affordable Housing Development of the Year Nashville Equitable Housing Cooperative Ratings Agency of the Year Moody’s Ratings Technology & Operations AI Application of the Year Rexera Insurance Company of the Year Steadily Contractor/Rehab Company of the Year BOSSCAT Data Provider of the Year Verifast SFR Online Marketplace of the Year Arrived Landlord/Owner Technology of the Year Toolbelt by Invitation Homes Property Management Company of the Year FirstKey Homes Tenant Facing Technology of the Year Invitation Homes Owners/Operators SFR/BTR Operator of the Year (Regional) ResiBuilt SFR/BTR Operator of the Year (National) Inland Residential Real Estate Services Master Planned Rental Community of the Year ResiBuilt | Mill Creek Springs Special Recognition Best Marketing/Social Media Campaign Greystar ESG Initiative of the Year The Promise Homes Company Excellence in Diversity FirstKey Homes People Minority Operator of the Year Tony Wong // FirstKey Homes Woman Operator of the Year Dawn Jones // FirstKey Homes CEO of the Year Craig Torrence // MCS Asset Manager of the Year Haynes Gallagher // Sylvan Road SFR/BTR Rising Star of the Year (under 35) Chase Midgely // Encore Finance Collin Duffy // Easy Street Capital Danielle Nguyen // John Burns Research & Consulting Giovanni Lago // Precedent Management Nylah Oliver // The Promise Homes Company Kyle Evans // ILE Homes Matthew Wolfer // Avenue One Marc Kerr // Greystar Taylor Owens // Lima One Capital Tyler Swidler // Berkadia Wilky Jean Baptiste // FirstKey Homes

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SFR Market Insights

Reflecting on 2024 and Looking Ahead to 2025 by Radian Real Estate Management The single-family rental (SFR) market has continued to evolve and reinvent itself over the last decade and the last year was no different. In 2024, the industry experienced significant transformation, with institutional investors adapting to a changing landscape of housing demand and investment opportunities. Rising home prices and elevated mortgage rates have pushed some potential homebuyers toward renting, creating sustained demand for single family rental properties. This trend has been particularly noticeable among millennials and younger generations who often prioritize flexibility and affordability over traditional homeownership. As people continue to work remotely, there is also a strong desire to rent larger single-family homes. In addition, adoption of technological innovations is helping to reshape the industry. With portfolio management platforms like the Capital Markets Dashboard, provided by Radian Real Estate Management LLC (RREM), investors can increase efficiencies and save time by streamlining their diligence and valuations processes through a single tool. Looking ahead to 2025, the SFR market is expected to maintain its momentum. Anticipated stabilization of interest rates, continued housing affordability challenges, and demographic shifts will likely maintain the demand while an increase in single borrower SFR, build-to-rent, and other business purpose lending will see continued growth. As Tim Reilly, EVP, Radian Real Estate Management, recently said, “The market continues to create choice for individuals and families who want flexibility in their living arrangements. The combination of changing lifestyle preferences, technological innovation, and market resilience makes the SFR industry an exciting space for investors.” Are you prepared? Remain agile, embrace technology, recognize the continuously evolving industry and help drive your own success in 2025.

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