Bryan Smith: Yes, I believe that’s the case. We’ve had improvements in execution and improvements in appreciation for that value proposition.
Michael Goldsmith: And as a follow-up question, have you seen any changes in consumer behavior? Are they pushing back on rent increases? Are you seeing more price sensitivity around signing new leases or more move-outs due to rent increases in the last several months?
Bryan Smith: Yes, I think the easiest way to look at it is the health of the applicants coming in. We’ve seen incomes, as an example, in Q3, 23 versus 22, increase more than the rents for the homes that they were applying for. So there’s really good health there. The story is there’s so much demand for our product that health is really, really continuing. In terms of existing residents negotiating more than they have in the past, if you look at the improvements, I talked about the difference between today and pre-pandemic in terms of the movement of that bell curve. Keep in mind that our retention is way up from where it was pre-pandemic. So these existing residents are renewing at a higher rate, even though their rents have increased more than they had in the past.
Operator: Our next question is from Adam Kramer with Morgan Stanley. Please proceed.
Adam Kramer: Hey, guys. Thanks for the question and good morning out there. I wanted to ask on the disposition side. When you’re selling homes, to the extent that you get a sense for it, who are the end buyers? Are you selling homes on the MLS to kind of end users? Obviously, that’s a tight market, so it would seem like there’d be good opportunities there. Are you selling other institutions to maybe mom-and-pop who subsequently rent out the homes? We’re just interested to kind of get an opinion on the housing market to hear about, learn about what’s happening on the disposition side.
David Singelyn: Yes, Adam, it’s Dave. Yes, I would agree with your premise. We’re selling today entirely on the MLS to end users and selling the homes when they’re vacant. Today, the demand from other operators, other managers is significantly less than we have seen in the past. But the demand for homes with the lack of supply on the MLS makes the demand very, very strong. We are selling homes that we identified through our asset management process. The time on market is short. We’re selling at 99% of asking price, and we’re selling them at prices that are yielding mid threes today. And so, very, very attractive source of capital, and it’s a good recycling of the portfolio to keep expenses where we want them in the future.
Adam Kramer: Thanks, Dave. And then maybe just a follow up. I think it’s been kind a while that you reported that a peer of yours is looking into getting into third-party management of other people’s assets. I know it’s something that you guys have talked about in the past, although probably haven’t heard about it from you guys in a few quarters at this point. Wondering if it’s something that you would look at if you are looking at, or maybe kind of with developments and obviously running kind of the internal portfolio, maybe it’s just something kind of not high on the list [Ph].
David Singelyn: Yes. Adam, we have looked at this. If you go back a couple of years, I think there was a little bit of talk on these calls about evaluating third-party that we talked about, that it was an evaluation mode. Initially, we thought the program was very, very compelling. It was going to be able to generate a lot of incremental income without committing much of our balance sheet to the program. So, we evaluated it for more than two years. We have tested it with a number of institutional relationships. And what we found was this. The margins that we were getting were a lot lower than what we were expecting going into the program. There was a significant amount of incremental cost to manage the owners, to produce the unique reporting that they desired.
