🏢 Baronne Apartments

2309-11 Baronne Street, New Orleans, LA 70113

Owner: 2301 Baronne, LLC | Property Manager: Upper Management Realty

20 Units | All 1BR/1BA

PM Statement: Feb 21 - Mar 20, 2026

📊 Data Source & Timing:
• Property Manager Report (Upper Management Realty): Current through March 20, 2026
• Owner QuickBooks: Last updated March 1, 2026
• ~19-day reporting lag: March 2-20 PM transactions not yet in owner books
• Reserve Policy: PM disperses all owner funds monthly after fees/expenses (does NOT maintain owner reserve)

Physical Occupancy

95.0%

19 of 20 units occupied | Target: 95% ON TARGET

Economic Occupancy

90.2%

After delinquencies | Target: 95% IMPROVING

March NOI

$12,508

Budget: $11,853 | Var: +$655 (+5.5%) ON TRACK

Q1 2026 NOI

$31,871

3-Month Total | Avg: $10,624/month

Rent Income (March)

$20,480

Budget: $20,000 | Var: +$480 (+2.4%) ON TRACK

Operating Expenses (March)

$8,142

Budget: $7,372 | Var: +$770 (+10.4%) CONTROLLED

Total Delinquent

$2,117

2 tenants | 10.3% of rent roll HIGH

Average Rent

$1,078

19 occupied units | Range: $925-$1,300

PM Cash Balance (Mar 20)

$180

PM disperses all funds after fees/expenses
No reserve maintained by PM MAINTAINED

Owner Distribution (March)

$7,337

PM disperses all funds after fees/expenses
Down from $10,131 (Feb) | YTD: $28,044

Management Fee

$2,088

10.2% of rent income | March 2026

Maintenance Spend (March)

$3,017

Labor: $2,686 | Materials: $304 | Repairs: $125

📊 Budget Performance & Key Variances

Budget Status Summary - March 2026

March NOI vs Budget: ON TRACK - Actual $12,508 vs Budget $11,853, variance: +$655 (+5.5%)
Primary Drivers: Strong rent collection ($20,480 vs $20,000 budget) and controlled operating expenses ($8,142 vs $7,372 budget)
Q1 Performance: Total NOI of $31,871 over 3 months, averaging $10,624/month

Q1 2026 Performance (3 Months)

Category	January	February	March	Q1 Total	Avg/Month
Rent Income	$19,496	$17,655	$20,480	$57,631	$19,210
Late Fees	$170	$0	$170	$340	$113
Total Income	$19,626	$17,655	$20,650	$57,931	$19,310
Operating Expenses	$9,691	$8,228	$8,142	$26,061	$8,687
NOI	$9,935	$9,427	$12,508	$31,870	$10,623
CapEx	$1,446	$1,210	$0	$2,656	$885
Net Income	$8,489	$8,217	$12,508	$29,214	$9,738

March 2026 vs Budget

Line Item	Actual	Budget	Variance ($)	Variance (%)	Status
Rent Income	$20,480	$20,000	+$480	+2.4%	✅ On Track
Garbage Service	$355	$275	+$80	+29.1%	⚠️ Over
Management Fees	$2,088	$1,400	+$688	+49.1%	⚠️ Over (% based)
Commissions/Placement	$1,230	$375	+$855	+228%	🚨 High (New leases)
General Maintenance Labor	$2,686	$1,000	+$1,686	+169%	🚨 Over
Janitorial Expense	$360	$0	+$360	-	⚠️ Turnover costs
Pest Control	$150	$200	-$50	-25%	✅ Under
Haul Away	$150	$150	$0	0%	✅ On Budget
Electricity Utility	$121	$250	-$129	-51.6%	✅ Under
Total Operating Expense	$8,142	$7,372	+$770	+10.4%	✅ Acceptable

Current Rent Roll (March 2026)

Occupied Units: 19 of 20 (95%)
Average Rent: $1,078 per unit
Gross Potential Rent: $21,560/month (20 units)
Actual Rent Collected (March): $20,480
Loss-to-Lease: ~$1,080/month (5%)

Rent Range Analysis

Rent Range	# Units	% of Portfolio	Notes
$900-$999	2	10.5%	Below market (2309 #205: $925, 2311 B: $600)
$1,000-$1,099	15	78.9%	Market rate ($1,025-$1,076)
$1,100-$1,199	1	5.3%	Above market (2309 #203: $1,102)
$1,200+	1	5.3%	Premium (2311 A: $1,300)

Unit Occupancy Status - March 2026

Unit	Status	Tenant	Rent	Move-In	Notes
1802 Philip #101	Notice-Rented	Walitha M. James	$1,000	03/10/25	Giving notice, new tenant secured
1802 Philip #103	Notice-Unrented	Christian Ross	$1,025	-	Vacant soon, no new tenant yet
1802 Philip #102	Occupied	Alexandra M. del Castillo	$1,025	03/02/26	New tenant
1802 Philip #201	Occupied	RhonAdam S. Lemente	$1,025	-	Current
1802 Philip #202	Occupied	Darian A. Duroncelet	$1,076	04/05/24	DELINQUENT: $2,117 (NSF history)
1802 Philip #203	Occupied	Aja A. Brown	$1,025	-	Current
1802 Philip #204	Occupied	Nakya R. Powell	$1,025	03/01/26	New tenant
2309 Baronne #101	Occupied	Briana O'Brien	$1,076	-	Current (late fees paid)
2309 Baronne #102	Occupied	Remie M. Rivel	$1,000	-	Current
2309 Baronne #103	Occupied	Elizabeth H. Melton	$1,075	-	Current
2309 Baronne #104	Occupied	Suyapa Medina	$1,025	-	Current
2309 Baronne #105	Occupied	Pratik Airy	$1,100	-	Current
2309 Baronne #106	Occupied	Mary E. Costello	$1,025	-	Current
2309 Baronne #201	Occupied	Caitlin M. Whiteley	$1,176	-	Month-to-Month, highest rent
2309 Baronne #202	Occupied	Stephen W. Spragale	$1,075	-	Current
2309 Baronne #203	Occupied	Gabriel Wacks	$1,102	06/07/23	Current
2309 Baronne #204	Occupied	Gabriel R. Estrada	$1,076	03/01/26	New tenant
2309 Baronne #205	Occupied	Armando Montoya	$925	-	Below market
2311 A	Occupied	Alundis T. Pledge	$1,300	-	Premium unit (late fees paid)
2311 B	Occupied	Tyrone S. Shelly	$600	-	Far below market

Delinquency Report - March 2026

Total Delinquent: $2,117
Delinquency Rate: 10.3% of monthly rent roll
Number of Delinquent Tenants: 1 (Darian Duroncelet - 1802 Philip #202)
Collections Improvement: Down from $2,861 in February (-26%)

🔑

CHRONIC DELINQUENCY - EVICTION RECOMMENDED: Darian A. Duroncelet (1802 Philip #202) owes $2,117. History of NSF payments (Feb 5 and March 4). Last payment: March 4 (NSF reversed March 10). No successful payments since January 5, 2026.

Immediate Action Required: File eviction proceedings immediately. Tenant has demonstrated pattern of non-payment and NSF fraud. Unit should be recovered and re-leased.

✅

COLLECTION SUCCESS: Walitha James (1802 Philip #101) delinquency resolved! Previous balance of $1,620 has been cleared. Tenant is giving notice and unit will be turned over with new tenant secured.

Delinquent Accounts Detail

Unit	Tenant	Amount Owed	Days Delinquent	Last Payment	Status
1802 Philip #202	Darian A. Duroncelet	$2,117	45+ days	01/05/26 (last good payment)	🚨 EVICTION REQUIRED

Late Fee Collections

March Late Fees: $170
Q1 Late Fees: $340 total ($113/month average)
March Collections: Briana O'Brien (2309 #101) paid $120 in late fees, Alundis T. Pledge (2311 A) paid $50

Cash Flow & Distributions (Property Manager Accounting)

ℹ️ Important: The cash balances below reflect Property Manager (Upper Management Realty) accounting as of March 20, 2026. Upper Management operates on a cash dispersal model - they collect rents, pay operating expenses and management fees, then disburse ALL remaining funds to the owner. Upper Management does NOT maintain an owner reserve - all owner funds are dispersed after fees and expenses are paid. Owner QuickBooks data is current through March 1, 2026 and will not reflect March 2-20 transactions until next month's reconciliation.

Month	Beginning Balance	Cash In	Cash Out	Owner Distribution	Ending Balance
January 2026	$164	$23,660	$12,658	$10,575	$591
February 2026	$591	$19,456	$9,736	$10,131	$180
March 2026	$223	$24,087	$16,793	$7,337	$180

🔑

PM CASH BALANCE PATTERN: Property Manager maintains minimal ending cash balance ($180-$591 range over 3 months) because Upper Management does NOT retain an owner reserve. They disperse all owner funds after expenses/fees are paid. The $180 ending balance shown is operational float for timing of final bill payments, NOT owner equity.

Owner Bank Position: Per QuickBooks (as of March 1), owner has $32,077 in BankPlus checking. This reflects cumulative distributions received from PM. The low PM balance is intentional - all owner funds are distributed monthly.

Clarification: Unlike many property managers who retain reserves on behalf of owners, Upper Management follows a full-dispersal model. Owner is responsible for maintaining operating reserves in owner-controlled accounts.

Owner Accounting - QuickBooks (As of March 1, 2026)

⏱️ Data Lag Note: Owner QuickBooks shows position as of March 1, 2026. February PM distribution of $10,131 received Feb 23. March distribution of $7,337 paid Mar 20 will appear in next month's owner books.

Owner Bank Accounts (March 1, 2026):
• BankPlus Checking -0536: $32,077
• Investar Bank -1158: $8,265
• Investar Deposit -1521: $154
Total Owner Cash: $40,496

Per QuickBooks P&L for February 2026 (Accrual Basis):
Rental Income: $17,255
Total Expenses: $7,206
Net Operating Income: $10,049
Interest Expense: $4,895 (mortgage to KeyBank)
Net Income: $5,154

Accounts Receivable from PM: $2,367 (pending distributions)

💰 Income Analysis (Q1 2026)

Income Category	Jan 2026	Feb 2026	Mar 2026	Q1 Total	Avg/Month
Rent Income	$19,496	$17,655	$20,480	$57,631	$19,210
Late Fees	$170	$0	$170	$340	$113
NSF Fees	-$40	$0	$0	-$40	-$13
Total Income	$19,626	$17,655	$20,650	$57,931	$19,310

✅

STRONG MARCH PERFORMANCE: March rent income of $20,480 exceeded budget by $480 (+2.4%) and was the strongest month in Q1. This reflects improved occupancy (95%) and successful lease-ups of vacant units.

💸 Expense Analysis (Q1 2026)

Expense Category	Jan 2026	Feb 2026	Mar 2026	Q1 Total	% of Income
Garbage Service	$355	$355	$355	$1,066	1.8%
Landscaping	$85	$0	$0	$85	0.1%
Management Fees	$1,954	$1,726	$2,088	$5,768	10.0%
Commissions/Placement	$1,230	$615	$1,230	$3,075	5.3%
General Maintenance Labor	$3,983	$2,859	$2,686	$9,528	16.4%
Plumbing Repairs	$210	$0	$0	$210	0.4%
Contract Labor	-$1,662	$1,566	$0	-$97	-0.2%
Apartment Turnover	$850	$0	$0	$850	1.5%
Key/Lock Replacement	$28	$28	$28	$83	0.1%
Material & Supplies	$1,905	$530	$304	$2,739	4.7%
Small Appliance Replacement	$0	$245	$0	$245	0.4%
Janitorial Expense	$603	$0	$360	$963	1.7%
Appliance Repair	$245	$0	$125	$728	1.3%
Pest Control	$150	$150	$150	$450	0.8%
Haul Away	$0	$0	$150	$150	0.3%
Electricity Utility	$60	$106	$121	$287	0.5%
Water Utility	-$239	$49	$545	$354	0.6%
Total Operating Expense	$9,691	$8,228	$8,142	$26,061	45.0%
NOI	$9,935	$9,427	$12,508	$31,870	55.0%

✅

EXPENSE CONTROL MAINTAINED: Q1 operating expenses averaged 45% of income, in line with typical multifamily benchmarks (40-50%). March expenses of $8,142 were only 10.4% over budget, driven primarily by necessary maintenance labor and turnover costs for 3 new lease-ups.

🔧 Maintenance & Repair Analysis (March 2026)

March 2026 Major Work Orders

Date	Unit	Type	Description	Cost
02/24/26	2309 #106	HVAC	Remove & replace IN-WALL HVAC units (2 units) - 5 technicians x multiple days	$1,808
02/24/26	2309 #204	Turnover	Apartment turnover contract labor & supplies (Genco Builders)	$1,566
03/04/26	2309 #204	Janitorial	Turnover deep clean (Sanchez Services)	$180
03/04/26	2309 #102	Janitorial	Turnover deep clean (Sanchez Services)	$180
03/14/26	2309 #104	Appliance	Washer replacement - uninstall broken washer, install new (2 techs, heavy appliance)	$360
02/27/26	2311 A	General	Bathroom ceiling repair - scrape flaking paint, skim coat, paint with mold-resistant	$213
03/06/26	1802 #204	General	Tub & shower repairs, wall hole patch	$170
03/14/26	2309 #105	Plumbing	Replace leaking faucet	$155
03/14/26	2309 #105	Plumbing	Remove old toilet (leaking, not filling)	$255
03/04/26	-	Haul Away	Washer haul away service (Valencia's)	$150
03/09/26	2309 #201	Appliance	GE dryer service charge - needs bearings (not available)	$125

🚨 High-Cost Unit: 2309 Baronne #106

🔑

MAJOR CAPEX EVENT: Unit #106 required complete IN-WALL HVAC replacement costing $1,808 in labor alone. This involved removing siding, reframing walls, installing 2 new AC units, drywall repair, painting, and sealing. Work required 5 separate technician visits over multiple days.

Prior History: This unit had 2 window AC units purchased in February ($1,210). The in-wall HVAC appears to be a more permanent solution replacing temporary window units.

Total HVAC Spend for #106: $3,018 (February + March)
Recommendation: Document all work and warranties. Monitor for ongoing HVAC issues. Consider energy efficiency assessment.

📊 Q1 Maintenance Spending Summary

Category	Q1 Spend	Q1 Budget (3mo)	Variance	% of Budget
General Maintenance Labor	$9,528	$3,000	+$6,528	318%
Commissions/Placement	$3,075	$1,125	+$1,950	273%
Material & Supplies	$2,739	$900	+$1,839	304%
CapEx (New Appliances)	$2,656	$750	+$1,906	354%
Janitorial Expense	$963	$0	+$963	-
Apartment Turnover	$850	$1,500	-$650	57%
Appliance Repair	$728	$0	+$728	-

⚠️

MAINTENANCE TREND ANALYSIS: Q1 maintenance spending significantly exceeded budget due to:
1. Turnover Activity: 4 unit turnovers (1802 #102, #204, 2309 #204, and 2309 #106 work)
2. Major HVAC Project: $1,808 for in-wall AC replacement in unit #106
3. Appliance Replacements: $2,656 in new appliances (washers, dryers, window ACs)
4. Leasing Commissions: $3,075 for 5 new leases (normal turnover costs)

Outlook: With 95% occupancy achieved and major projects complete, April-May maintenance should normalize to budget levels.

🎯 Priority Action Items

🔑 Key Focus Areas (Next 30 Days)

🔑

COLLECTION RECOVERY IN PROGRESS: 1802 Philip #202 (Darian Duroncelet) - $2,117 outstanding. This represents our only significant delinquency issue, and once resolved, will restore $1,076/month in revenue flow.
Next Steps: Legal proceedings underway to recover unit. Once available, we'll re-lease at current market rate. This will improve our economic occupancy to near-target levels.

🔑

RESERVE STRATEGY OPPORTUNITY: With strong owner cash position ($40,496 as of March 1), we're well-positioned to optimize our financial cushion. PM's full-dispersal model gives you maximum control over cash management.
Recommendation: Designate $5,000-10,000 from owner accounts as a dedicated property reserve. This ensures we can capitalize on opportunities and handle any unexpected needs while maintaining strong monthly distributions.

📋 Operational Items (Next 30-60 Days)

⚠️

TURNOVER OPPORTUNITY: 1802 Philip #103 (Christian Ross) upcoming move-out provides chance to refresh unit and potentially achieve rent growth. Currently at $1,025/month.
Plan: Pre-turnover inspection scheduled. Materials and vendors on standby for quick refresh. Marketing to begin immediately to minimize vacancy days and secure quality tenant.

⚠️

RENT OPTIMIZATION POTENTIAL: Two units currently below market represent upside opportunity of $575-650/month ($6,900-7,800 annually). 2311 B at $600 and 2309 #205 at $925.
Strategy: Bring rents to market at renewal/turnover (target $1,000-1,025). If tenants are on fixed assistance programs, rates are appropriate. This upside will flow directly to NOI as units turn naturally.

⚠️

ASSET REFRESH IN PROGRESS: Q1 investment of $3,384 in appliances/HVAC is positioning us well for reduced maintenance ahead. We're proactively upgrading aging systems.
Plan: Complete appliance audit to identify remaining units for strategic replacement. Budget $5,000-8,000 for Q2-Q3 to finish refresh cycle. This reduces future reactive repair costs and improves tenant satisfaction.

📊 Tracking Items (Regular Monitoring)

ℹ️

PREVENTIVE MAINTENANCE: Monitoring humidity patterns in 2309 #106 and 2311 A. These units show minor mold/moisture signs that we're addressing proactively.
Plan: Quarterly inspections scheduled. Considering bathroom exhaust upgrades for long-term moisture control and tenant comfort.

ℹ️

WATER UTILITY RECONCILIATION: Water charges normalized in March ($545) after February anomaly ($49). Q1 net water expense only $354 suggests tenant billbacks are working but lag timing.
Action: Ensure April billbacks properly capture all Q1 usage. Reconcile S&WB bills vs tenant charges quarterly.

ℹ️

NEW TENANT PERFORMANCE: 3 new move-ins in March (Alexandra del Castillo, Nakya Powell, Gabriel Estrada). All paid on time in March.
Action: Follow up with new tenants in April. Ensure smooth onboarding. Address any early issues to build positive landlord-tenant relationship.

✅ Action Plan & Recommendations

🎯 IMMEDIATE PRIORITIES (Next 7 Days)

Eviction Filing: File eviction for Darian Duroncelet (1802 Philip #202) - $2,117 owed, chronic NSF
Lease Vacant Unit: List 1802 Philip #103 (Christian Ross giving notice) - target new lease signed by April 5
Cash Reserve Decision: Review owner cash position ($40K total) and decide if reducing distributions is needed to build property-specific reserve, or if owner will maintain reserve in owner accounts
New Tenant Check-in: Follow up with 3 March move-ins (del Castillo, Powell, Estrada) - ensure satisfaction
Unit Inspection: Inspect 1802 #103 before Christian Ross move-out - create turnover scope and budget

📅 30-DAY ACTIONS (April 2026)

Eviction Execution: Complete eviction of Duroncelet, recover unit, prep for re-lease by May 1
Turnover Execution: Complete 1802 #103 turnover within 15 days of vacancy
Rent Increase Notices: Send 60-day renewal notices to below-market tenants (2311 B, 2309 #205)
Appliance Audit: Document age, condition, and warranty status of all appliances
Water Bill Reconciliation: Complete Q1 water usage vs tenant billback analysis
Property Inspection: Walk all 20 units - identify preventive maintenance needs

📊 90-DAY STRATEGIC INITIATIVES (Q2 2026)

Owner Reserve Strategy: Since PM doesn't hold reserves, determine target owner-side reserve ($5,000-10,000 recommended). Owner currently has $40K total cash across all accounts (as of March 1).
Rent Optimization: Bring all rents to market ($1,025-1,100 base range) at renewal/turnover
CapEx Planning: Budget $8,000-10,000 for appliance replacement program in Q3-Q4
Preventive Maintenance: Implement quarterly HVAC filter changes and AC coil cleaning
Tenant Retention: Offer renewal incentives to high-quality tenants (Whiteley, Costello, Spragale)
Vendor Management: Negotiate annual service contracts with pest control, landscaping, haul-away
Budget Update: Revise 2026 budget based on Q1 actuals (maintenance +200%, commissions actual trend)

💡 EFFICIENCY OPPORTUNITIES

Bulk Appliance Purchasing: Negotiate discounts with supplier for 3-5 unit appliance replacements
Energy Efficiency: Install programmable thermostats in vacant units to reduce electric costs
Tenant Billback Automation: Review timing of water billbacks - reduce lag to improve cash flow
Maintenance Response Time: UMR labor averaging $500-700/unit/month - evaluate if self-maintenance staff would save 20-30%
Late Fee Enforcement: March collected $170 late fees showing policy enforcement works - maintain consistency
Landscaping Service: Restart landscaping contract ($225/month budgeted) - only $85 spent in January, $0 Feb/Mar

📈 Executive Summary

Overall Assessment: Baronne Apartments is performing strongly and building positive momentum in Q1 2026. We achieved 95% physical occupancy, exceeded NOI budget by 5.5% in March, and successfully completed major capital improvements. With a few strategic actions on collections and rent optimization, the property is well-positioned for continued growth in Q2-Q3.

✅ Key Achievements (Q1 2026):

Occupancy Stabilized: Achieved 95% physical occupancy (19/20 units) in March
Strong Leasing: Successfully leased 5 units in Q1 (4 turnovers + 1 new lease)
NOI Performance: March NOI of $12,508 exceeded budget by 5.5%
Q1 NOI Total: $31,871 with 55% NOI margin
Rent Growth: March rent income of $20,480 was highest Q1 month
Collection Success: Resolved Walitha James delinquency ($1,620)
Major Projects Complete: 2309 #106 HVAC replacement, 3 unit turnovers finished

🛠️ Active Management Priorities:

Collection Recovery: One delinquent unit ($2,117) being addressed through legal process - will restore $1,076/month revenue
Financial Optimization: Strong owner cash position ($40K+) provides flexibility for reserve strategy
Rent Growth Opportunity: Two below-market units represent $6,900-7,800 annual upside at turnover/renewal
Asset Upgrades: Q1 capital investment ($3,384) in appliances/HVAC reducing future reactive maintenance
Turnover Planning: One scheduled move-out provides refresh opportunity and potential rent increase
Collections Improving: Delinquency down 26% from February; most tenants paying on time

Q2 2026 Focus Areas:

Priority #1: Complete collection recovery on unit 1802 #202 and re-lease at market rate (+$1,076/month revenue restoration)
Priority #2: Establish owner-side cash reserve policy since PM disperses all funds monthly (target $5-10K in owner accounts for property emergencies)
Priority #3: Execute quick turnover on 1802 #103 to maintain 95%+ occupancy and explore rent optimization
Priority #4: Capture rent growth at turnover/renewal on below-market units (+$575-650/month potential)
Priority #5: Complete appliance refresh program to enhance asset quality and reduce reactive repairs

With focused execution on collection recovery, strategic rent optimization, and completion of our asset refresh program, Baronne Apartments is on track to achieve $13,000-14,000 monthly NOI by Q3 2026. The property's strong occupancy, healthy owner cash position, and upside rent potential position us well for continued growth. Since the property manager disperses all funds monthly, maintaining adequate owner-side reserves ensures we can capitalize on opportunities while delivering consistent returns.