Property Update (06/28/2026):

Inspection Report HTML

Inspection Report PDF

Property is now undergoing necessary turnover repairs for rent or sale

Owners may submit a new proposal to re-lease and hold, re-lease and sell, or keep vacant and sell

Sale is subject to broker fees, closing costs, and 1.5% Transaction Coordination Fee to ECO Systems

Property Update (05/12/2026):

Owner-Proposed Governance Results for 665 Chapman St:

The Governance Voting results are back for the owner-proposed vote.

The winning vote is:

Yes [change property managers to ECO Systems LLC]

This option received 1,227/1,242 votes which is equal to 99% of the total votes.

The voting results can be found on chain here or by searching the application ID: 3554368579

Property Update (05/08/2026):

Owner-Proposed Governance Vote for 665 Chapman St:

An Owner with the following wallet address is proposing a governance vote.

This owner holds 49 shares in this property.

The owner's reasoning is below, word-for-word:

*Because this is an owner proposed vote, Lofty cannot change the content. It’s up to owners to verify the accuracy of the claims below.

I propose we change property managers from Whalec to ECO Systems which already manages 26 Lofty properties.

When Whalec took over, this property was paying out (though rent wasn't always paid on time). Shortly after he took over, the tenants completely stopped paying rent. On 9/15/2035, Alec said we have an eviction lawyer and we can start the eviction process. Obviously nothing has happened over the past 8 months and numerous attempts have been made on discord to get an update from Alec and he hasn't replied. Earl from ECO systems has never gone dark from discord and has always answered questions in a timely manner. We need someone new to take over so we can assess what is going on with our property and what we need to do to move forward. I am sure our roughly $10,000 OR has been burned through these past 8 months via taxes, insurance, etc. Let's not waste more time and money sticking with a PM that doesn't have our best interests in mind

The winning vote will be determined by a Supermajority of 60%+ and the results will be sent to owners on Tuesday, May 12th, once the voting period ends.

Property Update (03/03/2026):

Owner-Proposed Governance Results for 665 Chapman St:

The Governance Voting results are back for the owner-proposed vote.

The winning vote is:

List property for sale at earliest possible date for maximum price. Since our operating reserve is positive I think we should be patient about getting the best price.

This option received 720/898 votes which is equal to 80% of the total votes.

The voting results can be found on chain here or by searching the application ID: 3466431013

Property Update (02/23/2026):

Owner-Proposed Governance Vote for 665 Chapman St:

An Owner with the following wallet address is proposing a governance vote.

This owner holds 314 tokens in this property.

The owner's reasoning is below, word-for-word:

*Because this is an owner proposed vote, Lofty cannot change the content. It’s up to owners to verify the accuracy of the claims below.

Hi, I own 314 tokens in 665 Chapman St. I would like to propose selling the property when possible. With the main reason being the properties market price is significantly lower than its fair price. Another reason being lack of transparency.

Yes, the options I would like to have listed are

1. List property for sale at earliest possible date for maximum price. Since our operating reserve is positive I think we should be patient about getting the best price.

2. Vote to not list the property for sale.

Thank you!

The winning vote will be determined by a Supermajority of 60%+ and the results will be sent to owners on Tuesday, March 3rd, once the voting period ends.

Property Update (07/27/2025):

Meyer Property Management confirmed that the tenant did not come into the office on 7/10 to submit the full payment as previously promised.

Since then, the property has transitioned to Whalec Property Management, who also confirmed that the unpaid rent balance has not been received.

The new property manager noted that a due date of July 25th has been entered into the tenant portal, and their rent remediation team will be following up with the tenant to ensure the balance is paid.

Property Update (07/09/2025):

Owner-Proposed Governance Results for 665 Chapman St:

The Governance Voting results are back to determine whether to change property managers.

The winning vote is:

Vote YES – Replace Meyer with Whalec Property Management LLC and adopt the management terms listed above

This option received 1,212/1,524 votes which is equal to 80% of the total votes.

The voting results can be found on chain here or by searching the application ID: 3108514369

Property Update (07/06/2025):

As of July 2, 2025, the tenant has an outstanding balance of $3,000, which includes rent for both June and July.

The property manager noted that while June’s rent was initially received, the payment was later reversed due to insufficient funds.

Note from the property manager:

"With this being a recurring issue, we’re requiring the tenant to submit a certified payment. I spoke with them today, and they are making arrangements. They also owe July’s rent.”

The property manager will provide further updates as they become available.

Property Update (06/05/2025):

Owner-Proposed Governance Vote for 665 Chapman St:

An Owner with the following wallet address is proposing a governance vote.

This owner holds 40 tokens in this property.

The owner's reasoning is below, word-for-word:

*Because this is an owner proposed vote, Lofty cannot change the content. It’s up to owners to verify the accuracy of the claims below.

Governance Proposal – 665 Chapman St, Edwardsville, IL 62025

TL;DR

This vote proposes to replace Meyer Property Management with Whalec Property Management LLC due to subpar performance, under-market rent pricing, and limited communication. Analysis posted in the DAO Discord shows we could be achieving $100+/month more in rent, which would significantly improve Cash-on-Cash Return (CoCR). Whalec offers stronger service, transparent communication, and proactive issue resolution—all for only 2% more in management fee than Meyer.

Current PM Issues

Meyer is not adjusting rents to reflect market conditions, causing suppressed returns.

A rent analysis posted in Discord demonstrates the property could earn $100+ more/month.

Communication and response times have been lacking, with little transparency on tenant or repair updates.

Why Whalec Property Management?

Proven track record of higher responsiveness, tenant management, and DAO-aligned decision-making

Active in DAO Discord with fast answers to questions and transparent repair updates

Demonstrated commitment to proactively addressing issues before they affect cash flow

Currently manages 50+ DAO properties, including some of Lofty's best performers

Proposed Property Manager:

Whalec Property Management LLC

Key Terms:

Management Fee: 8% of Gross Monthly Rent (currently 6% under Meyer for far less service)

Tenant Placement Fee: Equal to First Month’s Rent (only when a new tenant is placed)

Renewal Fee: $0 – No charge for lease renewals or re-leasing to existing tenants

Maintenance Upcharge: None – All maintenance billed at actual cost through Hemlane

Transparency: All invoices and repair documentation will be posted in the DAO Discord

Voting Options

Vote YES – Replace Meyer with Whalec Property Management LLC and adopt the management terms listed above

Vote NO – Retain Meyer as property manager

Please submit your vote via the DAO governance platform or according to the LLC's operating procedures.

For questions or clarification, feel free to reach out to @Whalec in the DAO Discord.

Thank you for your time and support,

Alec VanBeek

Whalec Property Management LLC

The winning vote will be determined by a Supermajority of 60%+ and the results will be sent to owners on Tuesday, July 8th, once the voting period ends.

Property Update (05/13/2025):

Owner-Proposed Governance Results for 665 Chapman St:

The Governance Voting results are back to determine whether to change property managers.

The winning vote is:

No [Do not change property managers to Whalec Property Management]

This option received 898/1263 votes which is equal to 70.3% of the total votes.

The voting results can be found on chain here or by searching the application ID: 2990385825

Property Update (05/04/2025):

Owner-Proposed Governance Vote for 665 Chapman St:

An Owner with the following wallet address is proposing a governance vote.

This owner holds 26 tokens in this property.

The owner's reasoning is below, word-for-word:

*Because this is an owner proposed vote, Lofty cannot change the content. It’s up to owners to verify the accuracy of the claims below.

Hello 665 Chapman investors,

I, Alec VanBeek (@Whalec) on the Lofty Discord, am proposing a vote to switch to Whalec Property Management given the slower responses we have received from the current PM. I am one of the largest owners in 665 Chapman and very much believe this property could be performing even better. Whalec Property Management have successfully onboarded 14 properties with significant improvements to providing updates in the discord chat. We also manage two of the most successful properties of Lofty for 440 Louden Ave and 1580 Andover Dr. I have outlined my terms below:

To approve the transition of property management services from Meyer Properties to Whalec Property Management

Proposed Property Manager:

Whalec Property Management

Key Terms:

Management Fee: 10% of Gross Monthly Rent

Tenant Placement Fee: Equal to First Month’s Rent (only when a new tenant is placed)

No Renewal Fees: $0 for lease renewals or re-leasing to existing tenants

No Maintenance Upcharge: All maintenance costs are billed at actual cost with no markup directly on Hemlane (All invoices and repairs will be shared transparently in the discord)

Maintenance Threshold: The maintenance threshold will be set during the transition for emergency and non-emergency repairs (Ex. $500 threshold for emergency repairs and $150 threshold for non-emergency repairs) (If these thresholds are not met the repairs will be made automatically)

Thank you and please reach out to me (@Whalec) on the Lofty Discord if you have any questions or concerns.

Thanks,

Alec

The owner submitting the governance vote is the owner of Whalec Property Management.

The winning vote will be determined by a Supermajority of 60%+ and the results will be sent to owners on Monday, May 12th, once the voting period ends.

Property Update (04/28/2025):

Governance Results:

The Governance Voting results are back to determine whether to renew the current tenant's lease or find a new tenant.

The winning vote is:

Renew current tenants at $1,800/month

This option was declared the winner in Round 4 via the Ranked Choice Voting method with 1,919 token votes.

The voting results can be found on chain here or by searching the application ID: 2960050216

Property Update (04/24/2025):

The PM confirmed the tenant cleared their balance to $0.

Property Update (04/21/2025):

Governance Vote:

The property manager provided the following update.

"I hope that you’re doing well! Believe it or not, it is time for us to start discussing plans for rental rates and renewals for the 2025 season.

The first thing we do is look at the quality of the tenant currently in the property, and decide if we even want to offer them a renewal.

At this point, your tenants haven’t adhered to the terms of their lease and continue to pay rent late. So, I wouldn’t recommend offering them a renewal on their lease.

The next thing we do is establish two separate rental rates – one that we will offer the current tenant if they elects to renew, and one that we will advertise to the general public if the tenants do not renew.

665 Chapman (expires 7/31/25)

Current Rent: $ 1,800

Renewal Rate: $ 1,900

Advertised Rate: $1,900

Please think these figures over and let me know your thoughts. And as always, if you have any questions or concerns, please don’t hesitate to give me a call."

The tenant made a partial payment of $858 on 4/3/25 and now owes an unpaid rent balance of $431.50.

Owners will now have the opportunity to decide next steps.

The winning vote will be determined by a Supermajority of 60%+ and the results will be sent to owners on Friday, April 28th, once the voting period ends.

Property Update (03/23/2025):

The tenant submitted three partial payments totaling $1,971, fully covering their past due balance, including March rent, late fees, and late insurance (January–March).

The tenant now has a $0 balance.

Property Update (03/15/2025):

Note from PM:

"Your tenants have not paid their monthly rent for March, and have not reached out to me with any further communication.

I dropped off a 5 day demand of rent and notice of termination today. This gives them 5 days to pay the rent in full, if not we can proceed to the eviction process."

Property Update (03/08/2025):

The property manager advised that the tenant paid their February balance late.

Note from PM:

"I received an email from your tenant on 3/4:

"Hey it’s *******, just keeping you updated on the situation, I’m paying $1,580 today which will bring the balance to $1800 for the newest month of rent and I get paid my big paycheck on this Friday and will have more than enough to cover the $1800 that is owed left and will do that payment then so then account will be at zero, sorry again about the late payments and what not. I know it’s annoying from your side"

Note from PM:

"We also received a payment from one other tenants on Friday for $500. I’ll let you know tomorrow if their other payment comes through."

The property manager confirmed that the tenant has submitted a payment of $1,580 as promised.

The tenant now has a remaining unpaid rent balance of $1,178.50 for March.

The tenant has assured that the remaining balance will be paid by Friday, 3/8/25.

The property manager advised that they did not receive the payment, and will check again on Monday to confirm.

Property Update (02/10/2025):

The property manager confirmed that the tenant has fully paid their January rent balance.

Additionally, they have made a $341 payment toward February’s rent, leaving a remaining balance of $1,459.

The tenant informed the property manager that they planned to pay the remaining balance by this past weekend. The PM will follow up with an update asap.

Property Update (02/01/2025):

The tenant owes an unpaid rent balance of $3,600 for January and February's rent.

The PM provided the following information:

"Your tenants still haven’t made their rent payment as of yet. I did call one of them over the weekend to discuss the situation. They had told me, “having issues coming into to our office to make a payment, because of work schedule”. They’re aware that they can pay by credit card, debit card, or e-check through the portal. So, I’m not sure what the true issue could be.

I’d recommend waiting a few more days, if you can. If we don’t receive a payment from there. Either discuss an early termination of lease with them or file an eviction."

"I requested the tenants to come into my office to discuss their situation, normally this helps with a better understanding what is going on, I’m still waiting to hear back from them.

At this point, I have already served them with a (5) day notice. The next step would be file an eviction. This is something I let owners decide what they would like to do, we could give them some more time, but not 100% sure this will help.

I’ll give you an update if I hear from them or receive a payment."

Property Update (08/03/2024):

The tenant reported that the AC unit was not working.

The PM dispatched an HVAC vendor and they replaced the fan motor.

The cost of the repair was $501.57 ($455.98 + 10% PM fee).

Repair Invoice

The tenant also reported that the fridge was showing a "Er dH" code.

An appliance vendor arrived and disassembled the evaporator fan motor and reassembled it.

They vendor checked back in 4 days and the fridge has not thrown any more codes.

The cost of repair for the refrigerator is $132 ($120 + 10% PM fee).

Repair Invoice

Property Update (06/15/2024):

The tenant has signed a 12-month lease renewal at $1,800, a $50 increase from the previous lease of $1,750.

The new lease term is from 08/01/2024 to 07/31/2025.

The tenant will be responsible for all utilities.

The lease renewal agreement is being redacted and will be uploaded to the property's Dropbox folder once the redaction is complete.

Property Update (11/30/2023):

The City of Edwardsville came out and took a look at the pond and fence.

They are not requiring a fence for the pond, but will require either the fence be removed or repaired.

The PM advised it would be much less expensive to simply remove the fence.

The PM received two estimates for the removal of the wood fence via text message from their two contractors.

Zach Bowles: Dispose the wood fence for $850.

Davis Home Services: Dispose the wood fence for $1,200.

The PM recommends Zach Bowles because of the lower cost.

A property tax payment of $2,286.54 was due and paid. These funds were deducted from the Operating Reserve.

Property Update (11/10/2023):

The tenants have asked for permission to have a pet cat.

The cat is a 1 year old male, neutered, with up-to-date shots.

The PM recommends approving the request and adding the additional fees:

$25 per month (pet rent)

$250 non-refundable pet fee

Property Update (11/04/2023):

The previous tenants skipped, and a TPP (Tenant Protection Plan) claim was subsequently filed.

The insurance carrier approved the claim for one month's skip of rents, amounting to $1,000.

To proceed with the claim process, a Proof of Loss form was provided, which was signed, notarized, and returned.

The adjuster submitted their final report, along with the request for payment, to the carrier and the claim was paid out on 11/02, in the amount of $1,000.

The notary fee for the POL form was $25, which has been deducted from the $1,000 payout.

These funds have been added to the property's Operating Reserve, which will be reflected on the property page on November 14th, once October's rent begins being paid out.

The PM confirmed the new tenants moved in successfully on 11/01.

Property Update (10/26/2023):

The three roommates have been approved and will move in on 11/01/2023.

The tenants signed a 9-month lease at $1,750.

The tenants will pay a security deposit of $1,750.

The PM does not charge a new lease fee.

The tenant will be responsible for all utilities.

The lease term is 11/01/2023 - 07/31/2024.

Having the lease expire on 07/31/2024 allows the PM to approach the tenants in early May for a renewal (as long as everything is going well) or put the unit on the market during prime leasing season.

The lease agreement is currently being redacted and will be uploaded to the property's Dropbox folder once the redaction is complete.

Property Update (10/13/2023):

The PM received an application from three roommates.

Two of the roommates passed the credit and criminal background check, and do not have any accounts in collections.

One of the roommates has a lower credit score and an account of $158 in collections.

This applicant is starting a new job and the PM is waiting on proof of employment from their manager.

The PM recommends to approve this set of applicants, as all three will be responsible for the lease together.

They plan to move in on 11/01 and the lease term will be 11/01/2023 - 07/31/2024.

Having the lease expire on 07/31/2023 allows the PM to approach the tenants in early May for a renewal (as long as everything is going well) or put the unit on the market during prime leasing season.

Property Update (10/07/2023):

The applicants who promised to pay 10 months of rent upfront backed out and decided to move to another city.

The PM is currently reviewing the next set of submitted applications.

They are waiting on additional information from a few of the applicants before moving forward with a lease offer.

Property Update (10/04/2023):

The listing had 5 showings in the last 7 days. The PM also has 8 additional leads scheduled for showings this week.

The PM received 3 total applications, 2 of them have not completed their information and 1 is completed.

The PM reviewed the completed application and they passed the credit, criminal background, and rental history checks. There are 0 delinquent accounts and 0 collection accounts.

However, the applicants are not currently employed, but they are willing to pay rent for the 10-month lease at move in.

The applicants also informed the PM that they are selling their house and moving to be close to family with a baby on the way.

The PM recommends to approve the applicants. The lease will be written up to require the new tenants to pay the 10-month lease by Certified Funds before keys will be released for move-in.

The target move in date is 10/8 and the lease will be $1,750 with an August 2024 expiration date, which is prime leasing season for the market.

The applicants also have a pet and they will pay a one-time non-refundable pet deposit of $250 and monthly pet rent of $25.

Additionally, the City of Edwardsville came out and took a look at the pond and fence.

They are not requiring a fence for the pond, but will require the fence to either be removed or repaired.

The PM recommends to remove the fence, however, they want to review this with the future tenants first because they have a dog.

Property Update (09/28/2023):

The PM confirmed the repairs have been completed.

The property was listed for rent at $1,750.

The PM advised the City is is still looking into whether a fence is required for the property.

Property Listing

The PM is also marketing the property on traditional listing websites like Zillow and Redfin. It can take up to 48 hours for the listing to publish on these websites.

Property Update (09/15/2023):

The PM confirmed all of the personal property has been removed from the property.

The PM checked on the property and the contractor was working on painting.

The contractor should be finished by Tuesday or Wednesday of next week.

The housekeeper and carpet cleaners will be sent on Thursday, so the property should be ready to list by Friday.

The cost for cleaning will be around $400 and carpet cleaning will be around $200.

The PM will list the property for rent at $1,750, $0 change from the previous lease.

A vendor quoted the cost to build a new fence at $1,575.

The PM advised the following, "The vendor will allow us to pay him at a later date, up to 60 days after the job has been complete. I’m waiting on the City of Edwardsville to get back to me about the pond in the back. They’re reviewing the situation to see if a fence is necessary, we may just be able to remove it."

Property Update (09/02/2023):

The property was recently onboarded with the newly elected Property Manager, Meyer Property Group, based on the previous governance vote.

The PM made contact with the tenants and they advised the PM that they had several repairs that were neglected by the previous management company.

The PM personally visited the property and reported a number of issues that must be addressed.

The tenant explained that they had already submitted a vacate notice and will move out on 7/31 due to unresolved issues from previous management, including leaks in the ceiling.

The tenant paid a deposit of $1,750, which will be forfeited due to the early lease termination.

The new PM confirmed the tenant moved out on 7/31.

They advised that the tenant left the property in bad shape

View Move-out Photos

The PM received two bids to trash out the property and they recommend the less expensive Estimate 1. Both bids include a dumpster rental.

Estimate 1: $2,035 ($1,850 + 10% PM markup)

Estimate 2: $2,484.64 ($2,258.76 + 10% PM markup)

The PM also obtained an estimate for the interior repairs at the property.

The interior work includes repairing the sliding latch on the bedroom window, reattaching the sink to the cabinet/countertop, and fixing the threshold between the hallway and bathroom.

The upstairs shower will be unclogged, and safety measures will be enhanced by installing 3 smoke alarms and 3 combined smoke/carbon monoxide alarms.

The total estimate cost for the interior repairs is $715 ($650 + 10% PM markup).

Interior Repairs Invoice

Lastly, the estimated cost for turn repairs is $2,484.64 ($2,258.76 + 10% PM markup).

Turn Repair Invoice

The work includes installing 14 sets of blinds, painting various rooms, and filling holes in walls.

Additional touch-up painting is needed in multiple areas, along with trimming three doors that are rubbing against the floor or trim.

Electrical and plumbing tasks involve replacing burnt-out or missing light bulbs, sealing bathtubs, and installing drain stoppers.

Other miscellaneous repairs include replacing damaged floor registers, cleaning an upstairs faucet drain, replacing a broken door stopper, and removing wasp nests from the front porch.

All required materials are included in the estimated cost.

The Operating Reserve balance before the repairs is $3,743 and the tenant's security deposit is $1,750, which totals $5,493.

The total repair costs are $5,234.64.

The contractor advised that the fence in the yard is in bad shape, and will have to be rebuilt or repaired. The fence surrounds a koi pond which was not maintained by the previous tenants.

This is in line with the City of Edwardsville code, which requires a fence around the pond with a locking gate.

The PM will provide an estimate to repair/replace the fence. They advised the other option is to remove the koi pond, but advised that will be more expensive.

Property Update (06/27/2023):

Governance results:

The Governance Voting results are back for the vote to determine whether to continue using Intersection Property Management for 665 Chapman St, or to switch to another Property Management company.

The winning vote is:

Change Property Managers to Meyer Properties

This option was declared the winner in round 1 with 1,824 votes via the Ranked Choice Voting method.

The other options were eliminated in Round 1:

Kunkel Wittenauer

57 votes

Intersection Property Management (Current PM)

14 votes

Meyer Properties and Intersection will be notified of this change, and the migration will start right away.

Property Update (04/03/2023):

The washing machine had an E3 error code and LO on display.

A vendor was dispatched. After testing and inspection, it was found that the unit had a defective hall sensor located on the main control board.

The main control board part #(DC92-00287E) is no longer available, and therefore, the unit cannot be repaired and must be replaced.

The cost for the service call is $156.

The estimate for a new machine including haul away of the old is $790.78.

The Operating Reserve is now depleted. Owners voted to apply 50% of cash flow to replenish the reserve until it reaches 50% full ($4,750), and then apply 10% of cash flow until the reserve is 100% full ($9,500).

Repair Invoice (does not include PM's maintenance markup)

Property Update (03/01/2023):

The Property Manager has received their full leasing commission of $1,400 for placing the new tenant on 02/01/2023.

The tenant paid a $1,750 Security Deposit.

Lease Agreement

Owners will begin receiving daily rent starting today.

Property Update (01/30/2023):

The tenant changed their move in date to 2/1 due to a family emergency.

The leasing commission for the rental property is $1,400 and will be deducted from the February's rent. Owners will not receive daily rent from 2/6 - 2/28.

We are currently waiting for a copy of the lease from the Property Manager alongside Security Deposit information.

The scope of work for the turn included general repairs and touch-ups, kitchen repairs, living room and dining room repairs, bedroom repairs, bathroom repairs, basement repairs, exterior repairs, garage repairs, and outbuilding repairs.

The total cost for the turn was $6,000.

During the property turn, the crew discovered that the bottom of the hot water tank was rusted. As a result, the tank requires replacement, which will cost $1,980.

The PM agreed to reduce their maintenance fee in half for this repair.

Repair Invoice (Total is $7,980)

Hot Water Tank Pictures

Property Update (12/28/2022):

A family of five has been approved for a rental application

The tenants will sign a 12-month lease at a rate of $1,750 per month

The lease will begin on January 1st, 2023

The tenants plan to move in on the start date of the lease.

The leasing commission for the rental property is $1400 and will be deducted from the January rental payment.

Waiting for copy of lease from Property Manager and Security Deposit information.

Property Update (11/10/2022):

The tenants informed the property manager that they vacated the property on 11/3, instead of on their scheduled move-out date of 11/30

The tenants owe a balance of $1,858.39 for November rent and late fees

The tenants are responsible for rent through their scheduled move-out date of 11/30

If the rent is not paid within 30 days, it will be sent to collections

There is a deposit of $1,500 on hand, which will be applied to turn repairs

The property manager will complete a move-out inspection and obtain a make-ready turn estimate for the property

A full rent credit is being provided for the property until a new lease is signed

Property Update (10/25/2022):

There is a leak coming from the dishwasher and there are signs of water damage on the floors and in the basement

A plumber arrived onsite and advised that the plunger may be clogged in the dishwasher, and will cable the entire line to ensure it is clear

The total cost of repairs is $300, which will be deducted from the Maintenance Reserve

Humidifiers have been installed to accelerate drying for the floors and basement

The tenants have decided not to renew their lease and will move out on 11/30

The target rent for the property is $1,750, which is the same as the current rent

A rent credit of $250/month has been provided until the current lease ends due to a previous issue with an illegal number of tenants living in the property

Property Update (03/31/2022):

The tenants have asked if the owners would be willing to reduce the rent from $2,000/month to $1,500/month so they can continue to live in the property and each pay $500/month

This would decrease the cap rate significantly to 4.5%

The natural remedy would be for the property manager or the tenants to find a fourth roommate, but the city where the property is located does not allow more than three tenants to live in a property at once

The current average rent in the area is around $1,600 - $1,800 if the property were to be re-listed for rent

The seller is not willing to compensate for the lower demand for student rentals, so a rent credit will be provided to maintain the $2,000/month lease until a new lease is signed at that same rate

The property manager will try to increase the rent from $1,500 to $1,750, which would decrease the rental credit from $500/month to $250/month

The cap rate will remain the same and the daily rental payments will not be affected

Lofty will not be listing properties from this seller again in the future