Linda Tsai : Got it. And then just in terms of getting units back in a low demand period where it’s more negative for you, like what are some of the determinants for the timing of when you do get those units back and how do you forecast that to the extent you can?
Angela Kleiman : Linda, that’s the $64,000 question of the day. When do we get these darn units back? And for us, it would be great to get them back as soon as possible. The challenge here is that once a unit is in eviction. When we looked at the fourth quarter, the majority of those tenants just leave. So what that means is, for us, normally, in a normal environment, we have noticed that a tenant is going to vacate. We can pre-lease these units. We can plan for a turnover and of course, coordinated marketing efforts and our site personnel is ready for the move out, move-ins and all those logistics. In a situation where we have a certain number of evictions in play, and we don’t know how many are going to come back or when, that’s the part that creates that pressure when it comes to pricing and it’s very difficult to predict.
Linda Tsai: Thank you.
Operator: Our next question is from Buck Horne with Raymond James. Please proceed with your question.
Buck Horne: Thanks. Appreciate the time. was wondering if going to the delinquency issue, if you could maybe add a little color if you’re seeing any systemic application fraud or upticks in just application fraud or identity fraud or other types of misrepresentations by tenants? Is this something that’s kind of spreading on social media that’s becoming more of a structural issue?
Angela Kleiman: Buck, it’s Angela here. We have been — our team has done a great job staying on top of these potential issues. And when we look at the fraud instances, it has not ticked up or become elevated. And in some instances, say, if it’s a building specific issue, we immediately remedied those. And so that really hasn’t been a driver for whether it’s behavior or impact to our financials. It really is driven by the core processing time. So, I’ll give you an example. When the tenant goes delinquent, pre-COVID, it only took us about, say, two months on average to evict this tenant. Because of the court delays, it’s six months plus, right, or eight months if you’re in LA. And so that’s the time that’s getting accumulated. And so we normally have a level of delinquency in our portfolio, but it’s elevated now because it’s just taking longer.
Buck Horne: Got you. Got you. Okay, that’s helpful. I appreciate the color there. And just as it relates to your future investment opportunities? Or kind of how you think about capital allocation between urban core or suburban assets and opportunities in your core markets? You’re saying there’s a lot of upside still yet to be achieved in the West Coast markets and some significant recovery potential. Do you think that applies to the downtown urban cores of L.A., San Fran and Seattle? Is that where you would look to allocate additional dollars first? Or do you think the suburban submarkets would continue to outperform.
Rylan Burns: Buck, it’s a good question. Obviously, investment returns driven by what you pay. So we are paying attention to everything that’s coming to market, and we’ll keep an open mind to any investment. A major consideration for us is also making sure that we are acquiring near our existing footprints, given our unique operating model. We think we can add a lot of value when it’s purchased when we buy something near an existing asset collection. Now as you know, the majority of those assets happen to be in the suburban market, and that is where we’re primarily focused. They also have fewer quality of life issues currently. So, a simple answer is we are very focused in our suburban footprint, but we will keep an open mind to anything that crosses our broader markets.
Buck Horne: Appreciate it. All right, thanks guys. Good luck.
Operator: Thank you. There are no further questions at this time. This does conclude today’s conference. You may disconnect your lines at this time. Thank you for your participation.
Barb Pak: Goodbye.
