Essex legacy communities: We have adjusted the accounting for employee housing discount charges due to the April 1, 2015 Employee Housing Discount policy change. You don’t have to take any action – this is for your information only.

Any employee who receives a discount has had their Yardi lease charges adjusted to show a grossed up Scheduled Rent and Employee Discount. This adjustment is made where the employee lives, not where they work. For example: Employee A is paying $1,000 rent on a unit with a market rent of $1,500. On April 1, Scheduled Rent will now be reported at $1,500 and a $500 discount will be reported in Employee Discounts. Prior to this rollout, scheduled rent was reported at $1,000 with no discount shown. The employee/tenant will not be effected as they will continue to pay the agreed upon amount per the lease ($1,000). The adjustment was simply made to gross up Scheduled Rent and Employee Discount.

In order to have comparable financial statements, actual adjustment reclasses were made retroactively back to January 2014 and budget adjustments were made prospectively to December 2015. There has been no net impact to rental revenue at any property with adjustments as the change was simply to gross up these line items.