Risk mitigation is at the forefront of how we go through the process of what we’re acquiring. So, it’s it’s two things: it’s risk mitigation and value creation opportunity.
So, we look at an asset and we say, here’s where we’re acquiring it, what is our downside and how do we mitigate that downside?
Whether it’s are we acquiring at an attractive price or are we not overpaying? And then secondarily, how are we putting in value creation components that mitigate risk?
So, attracting the top five percent of tenants allows us that during a downturn that we’re getting high credit quality tenants that won’t have to be evicted will be on timely with their payments and overall adding to a community versus causing problems, which does happen in apartment communities across the United States.
So, those are some of the concepts we look at from a mitigate risk. The other things we do is we try to figure out where can we drive additional revenue streams other than just rental income from a tenant.
And we do that in multiple ways, whether it’s iPhone controlled laundry, internet, EV charging, dog park stations. And there’s many other ways that we drive ancillary revenues. And all of these things create a better community, but it also mitigates our risk.