John Pawlowski: Okay. Thanks for the time.
Marguerite Nader: Thanks, John.
Operator: Please stand by for our next question. Our next question comes from the line of Michael Goldsmith with UBS. Your line is open.
Michael Goldsmith: Good morning. Thanks a lot for taking my question.
Marguerite Nader: Good morning, Michael.
Michael Goldsmith: Good morning, Marguerite. Maybe just to wrap up the conversation on weather, we’ve talked a lot of different things about forecasting and marketing driven off of that, but I guess just to sum it up is, was this a particularly weaker transient season because the weather was less favorable and that potentially creates a more favorable set-up for transient in 2024? Am I interpreting that right?
Patrick Waite: I think it’s pretty clear that the weather was very challenging this summer. How that plays out next year is obviously entirely dependent on the weather patterns next year. But yes, it was an extremely challenging year in 2023.
Michael Goldsmith: Thanks for that. And my follow-up question is about the conversations that you’ve had with residents on the 2024 rent increases. I was wondering if there were areas where you were getting the most pushback from residents. Are the residents understanding kind of the moving pieces of this is a moderating CPI environment, but insurance costs are up, elevated costs are up. I’m trying to size like for the last year, you weren’t able to push rent as hard as expenses were elevated. I’m just trying to better understand like, how residents reacted to this and the ability to kind of for rents to continue to outpace expenses going forward?
Patrick Waite: Yeah. Well, let me start by saying that it’s shaping up to be very similar to our historical practices and our historical feedback. And particularly with the rates that have just recently gone out, we’ll have more conversations with residents and homeowners associations. I’ve referenced before, in Florida, there’s a kind of a well-organized statutory process for a review and a discussion of rate increases. We take that opportunity to have a conversation with our homeowners and broader resident base on priorities for the properties in addition to the rent increase. So, it’s a little early in the process to give you a full view, but what’s shaping up so far is pretty typical with our historical experience.
Michael Goldsmith: Got it. And just one final clarification from me. We talked quite a bit about properties turning over and then getting a 13% increase, which I think takes some — which kind of commences in the start of 2024. Did you provide what percentage of properties are turning over that are going to receive that?
Paul Seavey: It’s the resident turnover. And across our portfolio, generally, we have about 10% turnover.
Marguerite Nader: Individual residents, not properties.
Paul Seavey: Right.
Michael Goldsmith: Yeah. Got it. So, about 10% of your MH residents will be receiving — are going to see something so much of that 13% increase upon the start of the year?
Paul Seavey: Over the course of 2024, that will happen.
Marguerite Nader: Right.
Paul Seavey: Specific to Florida, it’s effective January 1. But in the other states it happens throughout the course of the year.
Michael Goldsmith: Super helpful. Thank you very much. Good luck in the fourth quarter.
Paul Seavey: Thank you.
Marguerite Nader: Thanks, Michael.
Operator: Thank you. Since we have no more questions on the line, at this time, I would like to turn the call back over to Marguerite Nader for closing remarks.
Marguerite Nader: Thank you for joining us today. We look forward to seeing you all at NAREIT. Take care.
Operator: Ladies and gentlemen, this concludes today’s conference call. Thank you for your participation. You may now disconnect. Everyone, have a wonderful day.
