CHART OF OPERATING ACCOUNTS - Milestone …

1 Revised 12/21/2010 Page 1 of 8 Account NumberAccount TitleAccount DescriptionRental Income41110-0000 Gross Potential RentValue of all Apartments at their Current Market to LeaseDifference between Lease Rate and Market Rate of occupied to VacanciesRental value loss from apartments that are unoccupied during the UncollectablesCharges to vacated residents remaining unpaid after application of all Debt CollectionsCollections made after the resident has vacated the apartment and the move-out report has been completed are credited back to this to ModelsRental value loss from apartments used as models41150-0000 Associate DiscountRental value loss from discounts on associate to Other MonthsAdjustments made to the Rent Roll because of prior and future month Insurance ProceedsRental income recorded from insurance reimbursement for lost SubsidiesRental income from government subsidies paid for all or portion of a resident s monthly ConcessionsResident rental charges for which payment is abated (not owed) in consideration for signing a lease or other unusual circumstances with the rental apartments.

2 Upfront free rent onlyMiscellaneous Income41210-0000 Retained DepositsThe remaining balance of a security deposit which after application to unpaid charges is retained rather than refunded to the resident. This includes deposits from prospects who cancel after being approved and deposits forfeited if a resident breaks their ChargesCharges billed to residents for cleaning or damages to the apartment. This includes all cleaning and damage charges that are billed on the move-out report when a resident moves out and payments from residents for damage done to the community ( : broken window, etc.).41230-0000 Late/NSF FeesFees billed to residents for late payment of rent or the return of personal check by a bank as FeesFees billed to residents for processing applications or transfers between RentThe non-refundable portion of the pet fee.

3 If the collected funds will be used to offset future cleaning or repairs, the total amount must be coded to account 22001-Resident Security & LocksCharges for additional keys or keys not returned at time of move out, lock change fees, or fees for installation of resident requested additional locks or safety devices in the Income - CableCable television Control RecoveryPest Control related damages billed to the Income - Local TelephonesLocal telephone Income - Long Distance TelephoneLong Distance telephone Income - Bundled ServicesCombination of local and long distance OF OPERATING ACCOUNTS - Milestone ManagementRevised 12/21/2010 Page 2 of 8 Account NumberAccount TitleAccount DescriptionCHART OF OPERATING ACCOUNTS - Milestone Management41270-0060 Ancillary Income - VendingAll receipts from vending companies or on-site collections obtained from vending

4 Equipment. This includes candy & drink machines, pay telephones, and other vending equipment Income - Internet/DataInternet Income - In-Apt Laundry RentalsIncome earned from rental of washer and dryer units. See acct #51155 for the expense account Income - Laundry Room CommissionAll receipts of laundry revenue from service companies or on-site operation of laundry equipment and revenue from the sale of laundry tokens, soap, Income - OtherAll other ancillary income not categorized in the preceding ChargesCharges for covered parking, garage, carport and additional or preferred parking AmenityCharges billed to residents for corporate unit Fees ChargedAll legal fees billed to a current resident for eviction proceedings and any other legal feeCharges billed to residents for changing the interior decorations of an Taxes Resident billings to cover the appropriate city System ChargesCharges for individual apartment alarm Electric ChargesCharges billed to residents for electrical usage through sub-metering of a master metered ReimbursementCable and other companies pay our on-site staff a bonus to sign up residents for their services.

5 Milestone pays this bonus to on-site personnel, then the company reimburses Milestone for the payment made on its behalf. This account tracks the reimbursements and offsets account # ChargesAll corporate and guest apartment income such as washer/dryer, cable television, linens, furniture, phone, RentCharges billed to residents for rent through the end of the lease FeeCharges billed to residents for breaking a lease. This fee is equal to a certain percentage of the monthly Miscellaneous ReceiptsAll charges to residents, which are not able to be categorized in the preceding & Sewer RevenuesIncome from Resident Utility Billings for Water and RevenueIncome from Resident Utility Billings for RevenueIncome from Resident Utility Billings for Control RubsIncome from Resident Billings for Pest Service FeesIncome from Resident Utility Billings for RUBS service Income - OtherIncome earned from interest bearing ACCOUNTS and Expenses51110-0000 Credit Bureau ServicesCost of credit research and resident screening services for verification of resident , Subs & MembershipsCost of periodicals, publications, subscriptions.

6 Apartment association memberships, annual designation dues. Code Homeowners Association dues to account Association DuesDues paid to the Homeowners / Court CostsLegal and court fees for processing resident evictions. Includes lawsuits and 12/21/2010 Page 3 of 8 Account NumberAccount TitleAccount DescriptionCHART OF OPERATING ACCOUNTS - Milestone Management51140-0000 Licenses, Fees & PermitsPayments imposed by local authorities for registration or permission to conduct business activities, such as building permits, boiler permits, business licenses, pool permits, trash removal & dumping permits, inspection fees, alarm permits, Furniture, Fixtures & Equipment Rent and RepairCost of renting, leasing or repairing office furniture and machines (copiers) including plant rental.

7 Also includes the purchase of office furniture and equipment and plant rental. Excludes Computer repairs which are coded to RentalCosts to rent, lease, or repair washer and dryer units. Account #41270-80 is the offset Supplies & FormsCost of office supplies and forms. Printing and duplicating not of an advertising nature. (Leases, applications, clicks, etc.)51170-0000 Employee Travel & ReimbursementCost incurred by site associates in conducting community related or rental of work clothes or uniforms for associates as required by Ads & FeesCost incurred in the recruitment of on-site associates and employment agency Education & EventsCompany approved and authorized education for on-site associates in the enhancement of job skills and knowledge, and company authorized functions for associates.

8 Includes Grace Hill training and other webinar sessions. Includes ELLIS shop program51177-0000 Employee Background ChecksCost incurred to do employee background Employee CostsAny employment cost not able to be categorized in the preceding & DeliveryCost of postage, freight and express delivery AdministrativeAny administrative cost not able to be categorized in the preceding ACCOUNTS ( bank charges).51200-0000 Sales/Occupancy TaxesAny applicable tax expense for sales taxes and occupancy taxes. 51220-0000 Computer Repairs/SuppliesCost to repair computers and miscellaneous computer of all computer software packages. YARDI51250-0000 Software Maintenance AgreementFees for licensing usage of a software package.

9 HANDYTRAK and BLUEMOON Advertising and Promotion52010-0000 Apartment Locator ServicesFees paid to brokerage agencies for referral of prospective residents who lease apartments. Includes online locators like - Direct MailCost of advertising programs directed to the public through postal - Flags & BannersCost of flags, banners and signs for display to attract attention of the public. Includes cost of temporary signs and - Print and Internet MediaCost of all advertising in print or online directed to the - OtherAll other advertising and promotion expense not categorized in the preceding ACCOUNTS . This includes services or products that augment advertising like, SEM, V-Flyer, photography, video, and call Apartment CostsCost of d cor in full and mini model including furniture rental, linen and other 12/21/2010 Page 4 of 8 Account NumberAccount TitleAccount DescriptionCHART OF OPERATING ACCOUNTS - Milestone Management52060-0000 Printed MaterialsCost of printing brochures, site maps, business cards, marketing flyers, and other advertising AllowancesFee paid to resident for referral of prospective residents who lease Social FunctionsCost of events sponsored by community for the benefit and goodwill of residents.

10 Includes annual and monthly events such as annual pool party, annual holiday party, monthly breakfast on the run, renewal parties, quarterly community awareness, advertising and promotion cost not able to be categorized in the preceding ACCOUNTS . This includes open houses, locator parties and outside marketing costs52100-0000 Resident RetentionCost of resident retention programs, surveys, and items purchased as resident gifts or retention tools. This includes move-in or renewal gifts, drinks, cookies, coffee service, popcorn or other food items, video rental services, newsletter, water coolers, and Guest Corporate and guest apt. costs such as washer/dryer rental, utilities, cable television, linens, furniture, phone, and Maintenance-Site54110-0000 LandscapingCost of landscaping, including sod, mulch, tools, plants, shrubs, color changes, trees and landscaping, timbers or stones.