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Accounting Success – Water Bill Anomaly

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MONTHLY UTILITY BILLING AUDITS IDENTIFY ANOMALIES

Recently, while completing the Monthly Utility Bill Analysis Module, an Asset in Indiana was found to have been invoiced over 106% more than the average bill.

Utility waste in the US is at an all-time high with ~60-80% of the energy consumption being attributed to waste and errors (source below)

This anomaly was noted and investigated by AFI staff and the following errors were discovered:

  1. Human data-entry error: The technicians at the utility company entered the meter data incorrectly (scrivener error).
  2. Meter Change: A new meter was installed at the property by the utility company further complicating data collection and reporting.

The total savings for this error? $14,657.52

Had the utility bill not been audited, it is unlikely the invoice would have been corrected by the utility company due to the complex nature of the error.

HOW CAN ERRORS IN UTILITY BILLING BE AVOIDED?

  1. All utility bills should be managed at a single location to allowing for data aggregation and institutional knowledge to develop.
  2. All utility bills should be handled by a single team to ensure that consistent monthly KPIs are utilized. For example, AFI has a single team analyzes trailing cashflow and consumption data each month on a per unit basis.
  3. Utility data is analyzed on a global basis to allow for highlighting anomalies. Anomalies can be not only data-entry errors, but also might include leaks, incorrectly set HVAC systems, power drains, etc. By completing a global analysis, a granular comparison is able to be created cross-systems to highlight outliers. Additionally, by aggregating data, a larger comparison group is created. AFI, for example, analyzes ~250 meters and 5000 units. The more data available, the better.

Consider implementing a utility analysis system today of your own to prevent errors and waste. Not only are invoice errors expensive, they are potentially wasteful to energy resources and money.

https://www.erc-co.org/spooky-statistics-about-energy-and-water-waste/

FACT: One drop per second from a leaky faucet could equate 2,700 gallons a year.

Colin CosbyAccounting Success – Water Bill Anomaly
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Employee Celebration – July

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AFI Property Manager, Katina, recently celebrated her one-year work anniversary in style as she finished last month at FULL OCCUPANCY with several units PRE-LEASED!

Originally from Texas with an extensive background in both sales and leasing, Katina was eager to get back down South as quickly as possible. When an opportunity arose for Katina to takeover an asset just South of Dallas, we knew she was the obvious choice!

Katina has been a wonderful addition to our team and we look forward to many more years of success to come!

Colin CosbyEmployee Celebration – July
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AFI Reduces Property Taxes by 31%!

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Recently, at an AFI asset in Texas, the Owners saw tax savings of over $18,000!

Here at AFI, we have seven Core Values that are at the forefront of our minds at all times. Two of these Core Values are Collaboration and Efficiency. Through effectively managing vendor relationships, AFI was able to help the property appeal a previously proposed assessment and further increase NOI for our stakeholders.

We pride ourselves on of course achieving fantastic results for our Owners, but also on having the opportunity to work with like-minded individuals that share in our values and commitment to excellence!

Colin CosbyAFI Reduces Property Taxes by 31%!
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Good Luck, Joe!

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Last week, AFI wished a fond farewell to former Accounting Specialist, Joe.

Joe had been with AFI for over three years beginning with the company as an Accounting Intern during his time in Columbia at the University of Missouri. Since first joining AFI, Joe graduated from Mizzou with both his Bachelor’s, and Master of Accountancy degrees.

Joe will be relocating outside of Missouri to now begin a new chapter in his professional career. Joe has proven his value time and time again during his tenure with AFI and we are confident that he will replicate his success in any future endeavor.

Colin CosbyGood Luck, Joe!
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Columbia Asset CRUSHES Monthly Income Record!

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AFI Property Manager, Tim Trower, recently oversaw the addition of 16 new units on a Columbia-based property. With these new units came several additional challenges and an increased workload for Tim, but also an opportunity to further increase profitability on the asset.

Through Tim’s leadership, this property CRUSHED it’s previous monthly income record by almost $10,000!

Tim is currently managing his third asset with AFI and has proven, no matter the obstacle, his ability to hold tenants accountable and maximize revenue. Tim is the embodiment of the AFI system at work which has resulted in an excellent return for the Property Owner.

Great work, Tim!

 

Colin CosbyColumbia Asset CRUSHES Monthly Income Record!
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Employee Celebration – June

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Please join us in saying, “THANK YOU,” to AFI Property Manager, Ethan Denum! Ethan recently celebrated his one-year work anniversary with AFI and has proven to be an excellent onsite leader.

Ethan has made Kansas his home for the past year with his wife and two children. Over the course of Ethan’s tenure as Property Manager, he has maintained a high occupancy rate year-round and CRUSHED global income records.

We look forward to Ethan’s continued success in his current role and are excited to reward him with new opportunities in the future!

Colin CosbyEmployee Celebration – June
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Laundry Room Earns 30% ROI!

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AFI recently oversaw the completion of two laundry room renovation projects totaling almost $130,000 at two Texas-based assets.

These improvements proved to be extremely lucrative ventures as we can now report an average ROI of over 30%! With completion of this project, we have a happier Onsite Manager, happier tenants, and an absolutely delighted Owner!

This is just another example of AFI accomplishing our Mission to PROSPER ALL STAKEHOLDERS.

Colin CosbyLaundry Room Earns 30% ROI!
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AFI Accounting Innovation!

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Here at AFI, we pride ourselves on developing robust processes that not only address current issues, but are also flexible enough to adapt to anomalies that may arise.

Evidence of our prowess in creating such processes is possibly no more apparent than in our Accounting Department.

In October of 2017, our team began recording any accounting-related issue that could not be resolved in an eight hour work day as an “Accounting Ticket.” At close of business on that day in October, AFI reported having 150 open Accounting Tickets.

At the time, clearing out these items may have seemed like an impossible task. Once this task was completed, it was imperative that the proper systems were in place to ensure an issue of this magnitude did not occur again.

As of close of business yesterday, June 20th, AFI reported only 11 open Accounting Tickets! An almost 93% reduction that was achieved through INNOVATION, one of AFI’s Core Values.

Way to go, AFI Accounting!

Colin CosbyAFI Accounting Innovation!
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Success: AFI L&C Breaks Multiple Income Records!

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Our Leasing & Collections team has been putting in an immense amount of effort this quarter that culminated in record-breaking accomplishments at several AFI assets.

Over the trailing three months, 11 AFI properties achieved new T-3 Top Line Income Records! These new records equated to over $20,000 in additional income for 2019 versus 2018.

This in itself would have been a tremendous accomplishment; however, we did not stop there. In addition to setting 11 new T-3 Income Records, another six (6) assets achieved new Monthly Income Records for May!

This was not done overnight and was accomplished through the development of robust procedures by our L&C team, and flawless execution by our Onsite Staff.

We look forward to developing new/improving upon current processes in order to replicate this kind of success as our portfolio continues to grow!

Colin CosbySuccess: AFI L&C Breaks Multiple Income Records!
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