Keith Kimmel: Rich, it’s Keith. When we look at the numbers that came in, in January, they are impacted very little, frankly, by the 2021 number that came – or the 2021 population as far as it goes as the new lease rates or the blended rates. While they’re impactful, they weren’t the thing that drove it. What we really saw was strength in places like Miami, Los Angeles, D.C. And frankly, San Diego would be another one that I would point out, in which we were able to continue to press rates and we had residents who are just continuing to stay with us and put us in that position. Now of course, 2021 will earn in even further as we – or the Class of 2021 will earn it further as we get into the balance of this year, and we think it will – just as you pointed out, that 1% will be for the full year, but not in particular around January’s results.
Rich Anderson: Okay. The other outlier for you guys is bad debt running at 50 basis points. That’s also eventually better. Can you give some color behind that, why you’re doing so much better on that number? And maybe a related comment on how San Francisco is moving along these days in your eyes? Thanks.
Paul Beldin: Hi, Rich, good to hear from me. This is Paul. On the bad debt question, what we have seen as we looked at our bad debt experience through the quarter is that our bad debt expense has trended down. But I think a very important distinction to make is what is the net bad debt expense and what is the gross bad debt. And the difference between the two relates to government assistance payments or collections from former residents. And so what we have seen that our gross bad debt has trended down quarter-by-quarter from about 240 basis points in the first quarter down to roughly 150 basis points in the fourth. And then if you look into that detail a little bit further, our fourth quarter, 150 basis points of bad debt, is made up of 100 bps of bad debt related to residents that Keith mentioned that are more than two months delinquent.
And our confidence in lower bad debt experience next year is driven by the fact that whereas we had 1,000 of these residents in the beginning of the year, we only have 250 today. And most of those are in eviction process, and we’re optimistic that we’ll be able to re-lease those units to rent paying customers in the relatively near future. And so that’s really what is driving our opportunity and our expectations going forward for next year.
Rich Anderson: Okay. And then –
Terry Considine: Hi Rich, I would just add to that Paul is too modest to say so, but our accounting has been quite conservative, and we basically reserved uncollected bad rent. So the noise about collections is almost always going to be a good guide to us in terms of reported bad debt. But the metric we focus on is what Paul mentioned, which is run rate and bad debt, is happening today. And as the economy has healed and the restraints on normal collection have ended, we’re getting back to sort of an AIR standard of 50 bps or lower.
Rich Anderson: Okay. And any quick comment on San Francisco trending?
Terry Considine: It’s really not particularly material to us, particularly different, if you’re talking about the city of San Francisco.
Keith Kimmel: Rich, can you just clarify your question on San Francisco?
Rich Anderson: Bay Area, excuse me.
Keith Kimmel: But is it – just how is the Bay are you doing in general or it’s been –
Rich Anderson: Yes.
