Overview of Kensington's Philosophy

Kensington's philosophy is to utilize the best property management and leasing available for the specific asset. There are two ways to provide property management, either in-house or through third parties. Our approach is to use whichever method is best for the maximization of value of the specific asset. Therefore, we do not use either method on an absolute basis, however, we do have a higher likelihood of using in-house property management on apartment properties for the reasons explained under Apartment Property Management.

Third party property management offers the following benefits:

• Economies of scale when the individual asset is not large enough to warrant in-house management,
• Marketing clout if third party manager is dominant in a particular location,
• Independent viewpoint to increase information base, and
• Access to acquisition when a seller insists on the possibility of retaining management (of course they still must pass the test of being the best for the management of the asset).

• Control of service,
• Standardization of approach and philosophy,
• Improved integration of property management into overall investment process,
• Ability to execute proprietary management techniques,
• Enhanced communication with asset managers, and
• Elimination of competitive conflicts within a specific sub-markets.