REPORTS AND REPORT REVIEW

In addition to reports and report review in this manual, you will find reports and report review requirements in the following manuals: Accounting Manual Safety Manual Service Manual Standard Sales Process 1

Management Report As dictated by the monthly calendar, a management report should be emailed to your Regional Manager. This report should include, but not be limited to, items such as: Staffing New developments in your area Community news such as property taxes, newly created jobs, layoffs, and business closings Incidents occurring in your community that might escalate into something more serious Service issues Resident concerns Any additional information not accessible through OneSite. 2

Concessions/Specials Proposal Form Track the history of all concessions and move-in specials (including rent and any waived fees and/or deposits) by completing the sections listed below on the Concessions/Specials Proposal Form (Exhibit H-1): Community Name Date Prepared Prepared By Unit Type Total # Unit Type Total Vacant Available # of Undecided Renewals for Current Month # of Undecided Renewals for Following Month Total On-Notice Available Current Market Rent Current Concessions/Specials Date and Time Concession Special Started (typically 9:00 a.m.) Date and Time Concession Stopped (typically 6:00 p.m.) Proposed Concessions/Specials Proposed Start Date and Time (typically 9:00 a.m.) Proposed Stop Date and Time (typically 6:00 p.m.) Additional Comments: Section is for adding up-front costs being waived such as security deposit, reduced application fees, etc. Do not implement any proposed concessions until Regional Manager approval is received. Save to My Documents. When a concession/special is proposed, open the document. Complete all columns/sections above. Save your changes and email to the Regional Manager for approval. 3

File Review/Approval for Monthly Bonuses August 1, 2010 Ensure office team members have complied with the established file procedures for all new move-ins or renewals prior to bonuses being submitted for payment. Community Manager is responsible for review of each file prior to leasing/renewal bonuses being submitted for payment to ensure all documents are complete and have all required signatures. Review should be completed prior to Community Manager signing Apartment Lease Contract. Verify all lease information has been entered correctly into OneSite. As part of the approval review, ensure all documents in resident file are completed in their entirety, properly signed by appropriate parties and management. All documents are in correct order and initialed on checklist. If resident file is found to be complete and accurate, Community Manager will sign and date the top of Resident File Checklist at CM File Approval at Move-In. If Community Manager finds the file to be in the incorrect order or incomplete in anyway, bonuses are not submitted. Community Manager returns the incomplete files to team member for corrections. If corrections are made, the team member may resubmit the following month for review and approval. If file is found to be accurate and complete, bonus will be paid at half the rate. If file is still inaccurate or incomplete, the file will be returned to the team member for correction and resubmitted for review; however, no bonus will be paid. Commencing with move-ins after August 1, 2010, Community Manager is held accountable for any bonuses paid on incomplete or inaccurate files. For every approved file that is found to be incomplete or inaccurate (via various reviews: CMR, internal audit, external audit, etc.), $35 will be deducted from their next semi-annual financial bonus. 4

Leasing/Renewal Bonus Forms The following reports are to be used to ensure office team members are eligible for leasing bonuses, have fulfilled requirements to be earned, and bonuses are processed timely for payment. Leasing Activity Report (Exhibit H-2) Each Leasing Consultant and Assistant Manager is responsible for keeping track of his/her own Apartment Lease Contracts throughout the month. Community Managers are not eligible for leasing bonuses and may not award bonuses for their leases to Leasing Consultants or Assistant Managers. Leasing bonuses are paid to Leasing Consultant or Assistant Manager who closes the sale and are not to be split. Leasing bonuses will be paid on a monthly basis after the resident has moved in. Complete the form, totaling the bonus amount column. The Community Manager will approve and forward to the Regional Manager and Human Resources no later than the 10 th of each month and should only include those move-ins from the prior month (example: July move-ins would be paid in August). Renewal Activity Report (Exhibit H-3) The Leasing Consultant and Assistant Manager are responsible for tracking Apartment Lease Contract renewals throughout the month and completing this form. When the resident(s) signs his/her new Apartment Lease Contract, the renewal should be added to this form. Please note, in order to be eligible for a renewal bonus, the resident must sign a new Apartment Lease Contract prior to the expiration of their current Apartment Lease Contract. At the end of the month, total the bonus. Divide the total by the number of eligible team members. Add all eligible team member names to the list at the bottom of the page with their bonus amount and the grand total. The Community Manager will approve and forward to the Regional Manager and Human Resources no later than the 10th of each month and should only include those renewals from the prior month (example: July renewals would be paid in August). Percentages are calculated based on team member s level of employment, as follows: Full-time - 1.0 Mezzanine -.75 Part-time -.50 For example: Your team consists of 2 full-time team members, one mezzanine team member and one part-time team member. Based on the percentages listed above, your total team is 3.25 team members. The total bonuses for the month is $500.00. Divide the total bonus amount by the total team to find the dollar amount per team member ($500.00 divided by 3.25 equals $153.85). Multiply this amount by the percentage for each level. The two full-time team members would receive $153.85 each; the mezzanine team member would receive $115.39 ($153.85 x.75); and the part-time team member would receive $76.93 ($153.85 x.50). 5

Monthly Financial Reports After Corporate Accounting closes the books for a particular month, an email will be sent to the Community Manager of each community within the next few business days. This email will contain the Income/Expense Report downloaded from OneSite Accounting into Excel for the prior month (Exhibit H- 4). This will be your only copy; therefore, store this report in a folder on your computer. Once you receive this report, please do the following: Create a folder on the c: drive. Label it Monthly Reports. Open the Excel spreadsheet. Save as yymonth.xls (09September.xls) in the Monthly Reports folder. There will be actual, budget and variance columns for the month and calendar year to date. The variance column for the month will have various cells highlighted in yellow. These are the line items in which you are to respond with an explanation in the comment line. The explanation should state why you are over or under budget on a particular line item. Please use the following reports to answer your variances: - Transaction Detail by Code Report This report shows a breakdown of transactions grouped together by transaction code. It is a great report for all revenue accounts when the charges were generated in OneSite Leasing and Rents. This report is generated by doing the following: Go to the Reports, SDE & Tasks Tab in OneSite Leasing and Rents Choose Leasing and Rents Reports Choose Accounts Receivable Go to page 2 and generate the report Transaction Detail by Code Choose the month The format selected should be Details and Summary Under Select By, choose Transaction Codes. - Lost Rent Summary Report This report provides a listing of market rents, lease rents, rent charges along with losses, gains, vacancy and concessions. This report is useful when trying to determine Gain/Loss to leases or variances in the gross potential. To generate this report: Go to the Reports, SDE & Task Tab in OneSite Leasing and Rents Choose Leasing and Rents Reports Choose Accounts Receivable On page 1, generate the Loss Rent Summary Choose the month. - General Ledger Report This report contains the detail in each account for a specific period. This is sent as attachment from Accounting along with the Income and Expense Report. The Memo/Description line will contain any information entered in the Product/Description line on the invoice in the Purchasing section of OneSite Leasing and Rents. - Trend Ledger This report is also sent as an attachment from Accounting with the Income and Expense Report. The Trend Ledger contains your actual numbers month by month through the current month end along with budgeted numbers for months in the 6

future. This report is useful in locating missing charges or items out of the norm. It readily shows where monthly postings are missing and months containing more than one charge. This is especially helpful in the preliminary review of your monthly financial reports. It is also the basis for forecasting where you stand as you progress through the year. There will be certain line items on the Income and Expense Report that Corporate Accounting will explain. These will be filled in before you receive the report. There may still be a portion of the variance that needs explanation. Once you have completed answering all of the variances highlighted in yellow, save a copy and email it to your Regional Manager for approval. Regional Managers will review and coordinate any adjustments that need to be made. These must be completed within three business days of receiving this report from Corporate and sent to Regional Manager. In March, June, September and December, you will be expected to explain year-to-date variances in addition to month-to-date. 7

Month End Reclass Spreadsheet After reviewing the financial reports each month, errors in posting of invoices or journal entries that are found need to be communicated to Corporate Accounting. This communication should be in the form of the Month End Reclass Spreadsheet (Exhibit H-5). The information provided on the spreadsheet should be concise but include enough information to provide for an accurate review and correction of the posting to be made by Corporate Accounting. The Reclass Spreadsheet should be completed as follows: Save a copy of the Month End Reclass Spreadsheet in your Monthly Reports folder. It is suggested that you save this with the label Month End Reclass Template. Open the Excel spreadsheet. Save as yymonthreclass.xls (09Septemberreclass.xls) in the Monthly Reports folder. Enter the Community Name and Month Ending in the appropriate cells at the top of the worksheet (example: Joe s Apartments, September 2009). Under the Transaction Date column, enter the posting date of the original transaction that is being corrected. Under the Account From column, enter the posting account where the error is currently located. Under the Account To column, enter the posting account where the error in question should have been posted to. Under the Vendor/Description/Invoice No. column, enter the vendor name, description that shows in the Memo/Description field on the General Ledger and the invoice number. All of this information is used by Corporate Accounting when reviewing the requested reclass for accuracy. Under the Amount column, enter the exact dollar amount of the posting that is being changed. Rounded dollar amounts are not acceptable. Be sure to include any amount of sales tax if applicable. Reclass purchases by any corporate team members (i.e. visa purchases) to proper coding. Once complete and saved on your computer, email a copy of the spreadsheet to both your General Ledger Analyst in Corporate Accounting and your Regional Manager. 8

Rent and Renewal Statistics Community information must be current and accurate for monthly review of rent roll and prepaid and delinquent reports (Exhibit H-6). Initially, all fields must be completed in their entirety with current detailed information. Review and update monthly to verify all information is current. Shadow/highlight any cells which had revisions in the current month. Save document and email to Residential Operations Manager and Regional Manager as directed on the monthly conventional calendar. 9

Rent History/Rental Increase Proposal Form To effectively track the history of rent increases and propose new rent increases, open the Rental History/Rental Increase Proposal Form (Exhibit H-7) and complete the sections listed below: Community Name Date Prepared Prepared By Unit Types Total of Type Currently Available First column under Rental History Effective Dates, inserting today s date and current rents for each unit type Under Proposed Rent column, type in the date new rents will take effect and the amounts of the new rents that correspond to the unit types in column 1. Save the changes and email the Regional Manager. Once approved, the new rent amounts should be moved to Rental History Effective Dates. Insert in the next available column the date and new prices. Save to appropriate file in My Documents. 10

Delinquent and Prepaid The Delinquent and Prepaid report should be printed every morning. Community Managers should note their comments/explanations on their delinquency report when warranted. Community Managers should update in detail the delinquency status such as filed eviction, filed writ, awaiting sheriff, etc., including date of action. Review of the Delinquent and Prepaid report should include the following: Every resident with a positive or negative balance should have a comment. All residents with unpaid rent balances who have had the eviction process initiated should have been charged attorney fees. All residents with credit balances should have comment stating the date credit letter was sent. All residents with outstanding balances should have comment stating date balance due letter was sent or explanation why not paid. All former applicants should have FAS completed and would, therefore, not be on this report. All comments must be updated, added or removed per current status, and every unpaid amount should have comments. 11

Rent Roll As dictated by the monthly calendar, the Rent Roll should be printed and reviewed every Thursday and prior to month end close. Thoroughly review the Rent Roll for the following: All new residents have been moved-in. All vacated residents have been moved-out. Market rents are current and accurate. All residents whose Apartment Lease Contracts have expired are at market rent and are being charged appropriate month-to-month fee. All short-term Apartment Lease Contracts have premium rent assigned. Verify there are no duplicate charges. Verify charges to potential has the correct figure. Verify no resident has both premium rent and month-to-month fee. Verify appropriate amenity code has been assigned, if applicable. Section 8 HAP voucher charges are accurate. 12

Security Deposit Audit Regularly review the Security Deposit Audit to identify and correct errors and omissions. The Security Deposit Audit should be run each month on the date listed on the monthly conventional calendar. Applicants, Former Residents and Current Residents should be used. The report should be generated as it comes up in OneSite (using all as the criteria). Identify each outstanding deposit as listed in the far right hand column of the report. Research the situation and determine the following: - Unpaid amount by an applicant confirm this will be paid prior to move-in. - Deposit on hand for former applicant/resident determine if charge needs to be put up and deposit applied or amount needs to be refunded. - Unpaid amounts for current residents determine if still owed and work to collect or review payment history and determine if miss-posted. - Current resident with more on hand than required determine if overpaid and should be refunded or if initial charge is erroneous, put up additional charge or review payment history for miss-post. Always utilize HelpDesk if unsure how to correct. 13

Community Name Date Prepared: 2/1/2006 Palms at Wyndtree Concessions/Specials Proposal Form Prepared by: Debby Prianos Regional Manager Approval: Unit type Total # Unit Type Total Vacant Available # of Undecided Renewals for Current Month # of Undecided Renewals for Following Month Total on Notice Available Current Market Rent Current Concessions/Specials Date and Time Conc. Special Started Date and Time Conc. Special Stopped Proposed Concessions/Specials Proposed Start Date and Time Proposed Stop Date and Time 1B1B 36 $715 Bee-back Specials $50 off of 1 st full month s rent. Must return application within 24 hour 48 hours of tour. 12/01/05 9:00 am 12/31/2005 6:00 pm None 01/01/2006 9:00 am 01/31/2006 9:00 am 2B1B 24 $815 Bee-back Specials $50 off of 1 st full month s rent. Must return application within 24 hours 48 hours of tour. Same Same None 01/01/2006 9:00 am 01/31/2006 9:00 am 2B2B 168 1 $855 Bee-back Specials $50 off of 1 st full month s rent. Must return application within 24 hours 48 hours of tour. Same Same None 01/01/2006 9:00 am 01/31/2006 9:00 am 3B2B 60 1 $1,020 Bee-back Specials $50 off of 1 st full month s rent. Must return application within 24 hours 48 hours of tour. Same Same None 01/01/2006 9:00 am 01/31/2006 9:00 am Grand Totals 288 2 Additional Comments: 1. Current administrative fee is $100 per apartment.. 2. Reduce application fee to $15. 3. Garage rental rates are $85 per month. Total number of garages is 80 (one garage exception renting for $65). 4 garages with 25% Employee discount. 4. Offer Look and Lease special of $100 off first month s rent if leased within 24 hours of tour. 5. 6. 7. 8. Exhibit H-1

MONTHLY LEASING ACTIVITY REPORT Team Member Name: Community Name: Month Ending: Community No. Apt. # Lease Dates Market Rate Rental Rate Concession (if any) Bonus Amount (Full) Bonus Amount (Half) Bonus Amount (Lost) TOTAL BONUS TO BE PAID $ $ Community Manager Approval Date Regional Manager Approval Date Exhibit H-2

MONTHLY RENEWAL ACTIVITY REPORT Community Name: Community No.: Month Ending: # Team Members Eligible: Apt. # Date Renewal Signed Lease Dates Market Rate Rental Rate *Cost of Retention Bonus Amount TOTAL BONUS $ TEAM MEMBER NAME TOTAL BONUS PER TEAM MEMBER 1. $ 2. $ 3. $ 4. $ 5. $ 6. $ GRAND TOTAL (should equal Total Bonus above) $ Community Manager Approval Date Regional Manager Approval Date * Ceiling fan(s), Carpet clean, etc. Exhibit H-3

Exhibit H-4

Community Name: XYZ Apartments Month Ending: 6/30/2010 General Ledger Reclass Entries Transaction Date Account From Account To Vendor/Description/Invoice No. Amount 6/25/2010 651300 651310 SpongeBob Pool Supplies / Chlorine Pump / 411146207 $223.55 6/30/2010 651300 651310 SpongeBob Pool Supplies / Chlorine Pump / 411141258 $447.11 Total to be Reclassed $670.66 Exhibit H-5

Exhibit H-6

Rental History/Rental Increase Proposal Form 01/01/2012 Proposed Rent Effective Date: Community Name: WAVERLEY PLACE Date Prepared: 1/17/2006 1/18/2006 Approved by: Prepared by: Jessy Hernandez Regional Manager Sandi Bishop Corporate Studio Rental History Proposed Rent Total Currently Effective Dates: Effective Date: Unit Type of type Available* 1/22/2003 2/16/2004 2/15/2005 4/15/2005 8/22/2005 1/18/2006 1B1B 96 1 665 675 685 700 725 740 1B1B w/loft 1B1B w/amenities 2B1B 32 0 715 720 755 775 800 815 2B1B w/loft 2B1B w/amenities 2B2B 142 0 745 755 785 815 840 855 2B2B w/loft 2B2B w/amenities 3B2B 30 0 875 885 905 935 960 975 3B2B w/amenities 3B3B Grand Total 300 1 Exhibit H-7