7.0

Changes for the Better

Our Mission Statement

• To create a better quality of living while providing a financial benefit to everyone involved including roommates, tenants, managers, property owners, and investors.

• In Roommate Terms: Become the Best Place for Young Professionals to Live!

Our Culture

Delta REP is founded on two core values that may seem bipolar to some, but make perfect sense to us!

Discipline

Discipline has such a negative ring to it, especially for young people…

But it really boils down to doing what needs to be done to get what you want.

Discipline

If you want to be in shape, be disciplined with your diet and your exercise.

If you want to be wealthy, be disciplined with saving and investing.

If you want to live with Delta REP, be disciplined with making payments on time and cleaning up after yourself.

Discipline

Fun

Unless you want to be a sociophobe hermit and live in a one bedroom apartment, you will eventually learn how to have fun in life,

otherwise you’ll just become old and grumpy and have no friends!

Fun

How to Achieve Our Mission

• Acquire and Manage Nice Homes

• Keep them in Good Shape and Ridiculously Clean

• Attract Solid Roommates

• Allow everyone to be on their own individual lease while organizing the chaos of everything that is shared in the house.

• Allow Roommates to HAVE FUN!!!

Unplugging the Information Bottle Neck

• In case you haven’t noticed Cole has been drowned in work! We only manage 10 roommate properties, so the problem isn’t that he’s overworked or understaffed. And he works his ass off, so it’s not that he’s lazy or doesn’t care about you. The problem is he’s the only person people have to contact to get things done!

Unplugging the Information Bottle Neck

• Here’s how we’re fixing the problem…

– Little Things. We will be designating house representatives and getting them company credit cards with a $100 limit which can be used on anything in the house the roommates feel is important.

– Anything spent with this card will get billed proportionately to all the roommates in the house. If someone misuses the card, their lease will be terminated IMMEDIATELY!

– We have to apply for the credit cards first, so please be patient. If we can’t get credit cards, we’ll set up petty cash debit cards.

Unplugging the Information Bottle Neck

• Here’s how we’re fixing the problem…

– Repairs. We are sending all repair issues in the house DIRECTLY to our maintenance specialist, Jim Evans. If you call Cole he will tell you this… SUBMIT A REPAIR REQUEST ON OUR WEBSITE.

– The form can be found under the roommates tab and by clicking on repair request. These requests will be sent directly to Jim and he has the tools, experience, and time available to fix the problem faster than Cole could.

– If it is an unnecessary repair we do have the veto power to halt the repair, or simply do it ourselves, otherwise Jim has a green light to fix anything submitted through the form!!!

STEP ONE:

Go to our site: DeltaREP.com

STEP TWO:

Click on<<< Roommates

STEP ONE:

Go to our site: www.DetlaREP.com

STEP TWO:

Click on<<< Roommates

STEP THREE:

Click on<<< Repair Request

STEP FOUR:

Fill it Out

STEP FIVE:

Hit Submit

STEP SIX:

BE PATIENT PLEASE!!!These forms get

emailed directly to Jim!

Cole also gets a CC of the repair request straight to his blackberry just in case

Chris also gets an email as well to track the Accounts Payable of the Repairs

If It’s an emergency Jim also gets a text message!

All of this happens instantly!!!

So three people see your request at the click of the button.

If it’s an emergency we’ll respond to it right away, otherwise…

PLEASE BE PATIENT!!!

Unplugging the Information Bottle Neck

• Here’s how we’re fixing the problem…

– What if the internet is broken?

– If the internet isn’t working for some reason you need to call Cox Cable. We will be posting the numbers necessary and making sure all roommates have authorization to call in and get help for the cable and internet that is under our company name.

– If there’s emergency repair issues and the internet is down, then you may call Cole (text messages are preferred), otherwise utilize the repair request form if you want something fixed.

– The boy who cried wolf policy will be in effect if you call us about basic repairs when your internet is working fine. If you abuse our policies, we will begin to ignore you, even if the house is burning down.

Unplugging the Information Bottle Neck

• Here’s how we’re fixing the problem…

– If the internet is broken, what’s a Delta REP emergency?

– Water is pouring into the house for some reason

– Come to think of it… that’s the only emergency you should be calling us for first if the internet isn’t working.

– What’s not a Delta REP emergency?

– If the house is burning down… THAT’S A 911 EMERGENCY FIRST!!!

– If you or another roommate is in danger… THAT’S A 911 EMERGENCY FIRST!!!

– If you ran out of toilet paper!!! YIKES!!! That’s a House Rep Emergency

– If you got snowed in. You won’t, we get to the properties in 24 hours.

– If you get locked out. That’s a Locksmith Emergency!!!

Organizing the Chaos

• Operations:

• In the near future, Cole will be meeting with you at your house to improve a few things regarding organization. We’ve noticed a few things could easily be done to organize the chaos of living with roommates.

– General Cleanliness– Dishes– Mail– Shoes– Laundry– Random Clutter– Cleaning, Mowing, and Snow Removal Standards of Quality

Organizing the Chaos

• Finances:

• Chris (the guy that process your monthly payments and pays all the bills) would like to clarify what’s all included in your monthly payment compared to what other options you have out there.

Organizing the Chaos

Since we bill everything in one easy payment, too often roommates get

confused with what’s included and how they’re billed. We wanted to clear that up.

Organizing the Chaos

What normal landlords include– A roof over your head– Heating and Air Conditioning– Most professional landlords do not even

provide Appliances!!!

What you would pay to them– Rent

Organizing the Chaos

What other roommate options include– A roof over your head– Heating and Air Conditioning– Appliances, Yay!!!– Electric– Gas, Water, and Sewer– Cable and Internet

What you would pay to them– Rent– Utilities

What Delta REP does at our typical house:– A roof over your head– Heating and Air Conditioning– Appliances– Electric Bill– Gas, Water, and Sewer Bill– Cable and Internet Bill– House Supplies (Toilet Paper, Soap, Cleaning Supplies, etc.)– House Cleaning Person (WE LOVE MEGAN!!!)– Lawn Mowing– Snow Removal– Common Area Furnishings (Couches, Table and Chairs, Electronics)– Wear and Tear on Common Areas (Paint touchups, random minor broken stuff)– Everything else that roommates share!!!

What you pay (it all comes out of one simple payment)– Rent– Utilities– CAM (Stands for Common Area Maintenance) – NEW FOR 2010

Organizing the Chaos

That’s a lot of !@$$%^

Stuff Included!!!

Delta REP’s Policy with Rent

• Delta REP has always held the idea that raising rent prices for no reason other than to be mean or greedy is ridiculous and unfair to tenants.

• The following slides outline all the things that are out of our control and affect your monthly payment including a few things we simply never had a budget for.

• Why Not? Because our business was small enough for one person to do all the work for free, now we have to pay them.

What Affects Your Payment?

Rent

How could the rent portion of your payment go up?(just the rent, not including utilities and CAM)

Property Taxes Go UpInsurance Costs Go UpMaintenance and Repair Costs Go UpVacancy and Collection Rates Go Up

(Rooms go empty, people don’t pay)

What Affects Your Payment?

Utilities

How could the utilities portion of your payment go up?(just the utilities, not the CAM)

Gas or Electric Rates Go UpYour Gas or Electric Usage Goes UpWinters get ColderSummers get HotterCable and Internet Rates Go Up

What Affects Your Payment?

CAM (Common Area Maintenance)

How could the CAM portion of your payment go up?(just the CAM not the rent or utilities)

Megan has to spend more time cleaning than budgetedWe spend more money on snow removal than budgetedWe spend more time mowing than budgetedWe buy more cleaning supplies than budgetedWe have to buy extra stuff for the house that’s not already

there

A Few Problems

• As we’ve grown our business from one roommate house to 10, we’ve had volunteers do many of the things included in CAM for free.

• Unfortunately these volunteers have been at the end of the whip for too long and they are no longer working for free.

A Few Problems

• Previously, our budget for lawn care and snow removal had been $0

• Those Greedy Bastards won’t work for free anymore!!!

• Unfortunately we have to start paying for their services now.

What we’ve Promised• From the lease:

14.  Utilities.  Property Manger calculates the per roommate cost of utilities and supplies.  Utilities include gas, water, sewer, electrical, TV, and wireless internet.  Supplies include all basic cleaning supplies needed for the common areas of the house including the laundry room. This total amount of utilities and supplies is divided by the total number of roommates at the property and is already included in the total rental amount as stated in the lease for Roommate's monthly automatic payment.  Any decrease in the number of roommates living at the property, and any price increases from the utility companies shall result in a direct increase in roommate’s total rental amount and automatic payments.

One minor change we made and notified you of in the last few months:

We removed supplies in the laundry room to make room for our $50 per month cleaning budget.

The Bad News

• We are going to have to raise your monthly payment to build in the cost of lawn care and snow removal.

The Good News

• It’s fairly inexpensive per roommate per month and since we have multiple homes we receive a discounted rate compared to what a typical lawn service would charge to service just one address.

Moving Forward

• Our #1 Goal is toKEEP PAYMENTS AS LOW AS POSSIBLE!!!

• We will have to adjust prices slightly to be able to afford lawn care and snow removal.

• But we still need your help on the rest to keep your payments as low as possible!

Here’s How

• Keep the Rent portion of your payment as low as possible.

• Vacancy and Collection rates are in your control!

– If someone is moving out, cooperate with us on filling the opening. Don’t forget about our $50 referral bonus!!!

– If someone is having money problems, let us know. We might be able to help, or might even have a job for them.

Here’s How

• Keep the Rent portion of your payment as low as possible.

• Repair rates are in your control!– Respect the property– Try to fix simple things yourself before submitting a

repair request– Suggest a cheap or easy way to fix a problem if you

see one– Don’t overuse Jim!

Here’s How

• Keep the Utilities portion of your payment as low as possible.

• Electric– Use lights responsibly– Don’t plug in extra fridges or freezers– Don’t leave doors and windows open in the summer

• Gas, Water, and Sewer– Be smart with the heating in the winter!– Be conservative with the fireplace (if it works) you might

as well throw your money in there while it’s burning!!!

Here’s How

• Keep the Utilities portion of your payment as low as possible.

• Cable and Internet– We provide the basic cable channels and normal high

speed cable internet. If you want premium services let us know and we will adjust your payments accordingly. Otherwise…

– Utilize Red Box at Baker’s! $1 a day DVD rentals!– Don’t be a download hog on the internet.

Here’s How

• Keep the CAM portion of your payment as low as possible.

• Cleaning – Keep the house clean so it doesn’t take more than an hour on weekly visits, and more than 2 hours on monthly visits.

• Mowing – Just help us make sure there’s not a bunch of trash, garbage, or sticks in the yard.

• Snow Removal – Pray that we don’t keep getting blizzards!!!

Why All the Hassle?

We’re the bulldozer, not the policeman!

CleaningLawn CareSnow RemovalHouse SuppliesRepairs

The City of Omaha and the people that own your home hired Delta REP to manage their property and REQUIRE us to uphold the houses in a clean and civil manner. We just try to do the things to make that process as easy as possible on the roommates.

City and Homeowners

Roommates Delta REP

Duties

The End

Thank You For Being Awesome Roommates!!!