Lasata Heights experienced a 32% turnover
rate in 2005. Although this was up from 27% in 2004, we were
able to maintain our goal of 97% occupancy. The turnover of 19
apartments involved 23 residents (three of the apartments were
occupied by couples.) Those tenants who terminated their
residency did so for the following reasons: 9 moved into Lasata
Care Center, 6 tenants moved into assisted living facilities, 4
died, 2 transferred from one apartment to another within the
building and one couple moved into an apartment in another
community.Anticipating a higher than average winter vacancy
rate, we responded with increased marketing efforts including
additional advertising and our first ever Open House for the
public. We offered tenants a rent credit for referring someone
who moves in and a winter rent special for anyone signing a
Rental Agreement by March 31, 2006. We will continue to adapt
our marketing plan based on vacancy levels and the on-going
evaluation of the effectiveness of our marketing expenditures.
Projects completed during the year included the painting of
the exterior trim on the building, installation of new of
carpet/vinyl in 8 apartments, replacement of 12 stoves and 14
refrigerators and the conversion of 7 bathtubs to showers. The
18 year-old dining room chairs were replaced with half the total
cost being paid in 2005 and the remainder to be paid in 2006.
An average of 28 residents a day took advantage of the daily
meal offered in the dining room. The monthly rent include 15
meals, additional meals are $5.50 each. Tenants pay $40.00/month
for garage parking – the garage was 88 % occupied during the
year. Housekeeping services were utilized by 21 tenants at
$15.00/hour. The monthly rents paid in 2005 for the four sizes
of apartments were $897; $997; $1,117 and $1,267.
At year-end, revenues were slightly over budget by $4,724 and
totaled $715,850. Expenditures totaled $442,687 for an
un-audited year-end operating surplus of $273,163. The principal
payment on the long-term debt for Lasata Heights in 2005 was
$400,000. The final payment of $420,000 will be made in March of
2006.
