The reposition equation.

Much of the success that any apartment company or independent rental owner (IRO) experiences can be boiled down into a few financial and probability equations. For example, there is a basic financial equation that determines whether or not a rehabilitation succeeds. Companies examine their original investments, obtain fair estimates for the work to be done, secure proper financing for the project and estimate the additional income generated by the new improvements to determine a satisfactory return on investment.

However, sometimes not nearly as much thought goes into planning and executing the actual rehab. An improper rehab plan can cost time, money, aggravation and loss of trust with residents. Mike Beirne provides Lessons in Sunk Costs on page 18, a guide to keep your next reposition from sinking.

A poorly performing rental property often appears to be a hopeless cause. But one owner's decision to sell can be a boon to an IRO who has learned the secrets of a successful value play. Del Walmsley proves that with a well-executed value play, a smart buyer can transform an underachieving property into a lucrative gem. Read A Diamond in the Rough, page 24.

In Tom Wilkes' Change at the Top, page 28, Post Properties reveals its strategies for renovation and repositioning class A communities in high barrier to entry markets.

Renters-turned-homeowners are now returning to the rental market in the wake of a mortgage meltdown. Having just defaulted on a home loan, these consumers are flooding apartment managers with applications and leaving managers wondering what kind of residents will they be. Apartment managers must decide whether to welcome back these ex-homeowners--or to send them packing. In Homeless Homeowners: Are You Ready for Them? Jake Harrington explores the sub-prime market on page 32.

Sandy John visited the Atlanta Apartment Association as it highlighted the achievements of six groundbreaking executives during its "The Ladies, the Leaders" forum. Read about these Pioneering Women on page 41.

Compounding an industry-wide shortage of talent, overall employee turnover rates hover around 30 percent. On page 50, Christopher Lee uncovers the eight cornerstones of an effective employee recruitment and retention program in Should I Stay or Should I Go?

To entice highly qualified job applicants, mass advertising the position is not enough. Turn to page 56 to read Valerie Glassford's Search and Employ before you look for your next employee.

Knowing who is signing that lease is not only smart business, but it is a requirement under the U.S. Patriot Act. Jorge Baldor explains what is an acceptable form of identification and what isn't in Identity Crisis, page 62.

An increasing number of municipalities are enacting rental property inspection ordinances. For owners who have many units, these fees can be substantial. What can an owner do? Steven M. Williams, Esq., explains in The Codes Inspector Cometh, page 66.

Over the past 10 years, most of the concentration documented by the NMHC 50 rankings has been among apartment owners. That changed last year with the emergence of a growing number of medium to large firms among the nation's apartment managers. Find out which companies made the list in Management Firms Grow While Owners' Holdings Shrink, page 72.

With more than 600 booths, the 2007 NAA Education Conference & Exposition is the largest national gathering of buyers and sellers in the apartment industry. See page 75 to get a sampling of What's New on the Trade Show Floor.

In March, more than 450 NAA members gathered in Arlington, Va., for the 2007 NAA Capitol Conference. Read the review of the conference and find out how we're Making Our Voices Heard, on page 89.

from NAA's Chairman of the Board, Dave Watkins, CAPS