Lockbox Transition

1
Lockbox Transition

• Options, Issues, and Input

Managing Broker Meeting July 18, 2008
2
Overview

• A group of 21 local associations from DC, MD and
  VA formed a consortium to negotiate group terms
  and pricing for lockboxes.
• Members include DAAR and all of its surrounding
  neighbors.
• Earlier this year, the consortium chose NARs
  Sentrilock platform as its future lockbox
  solution.

3
Todays Meeting

• DAARs BoD has convened this meeting to inform
  you of the options, opportunities and issues
  facing the association and its members.
• More importantly, we are seeking your input. We
  want to ensure the BoD has considered all aspects
  of the issue and is aware of the memberships
  views before it decides how to proceed.

4
Conversion Timetable
5
Other Consortium Members
6
Supra Sentrilock
Product Comparison
7
Supra Sentrilock
8
Supra Key Sentrilock
9
Supra Sentrilock
10
Supra Sentrilock
11
Financial Considerations
12
Other Considerations

• DAAR must sign an agreement with Sentrilock by
  mid-September to benefit from the consortium
  pricing.
• DAARs BoD has decided that we cannot move to
  Sentrilock if by doing so it requires us to pay
  to buyout our current contract. Financial
  assistance may be available to avoid this cost.

13
Issues

• If DAAR remains with Supra, members may need to
  purchase a key only membership to a neighboring
  association to have access to all listings in the
  area.
• The cost of a key only membership has not been
  determined, but may be avoidable thru the use of
  one day codes.
• Members of neighboring associations will also
  need to buy a key only membership to DAAR to
  have access to our listings.

14
Issues, cont.

• No matter which platform DAAR ultimately chooses,
  members will need to have 2 keys to continue
  covering all service areas.
• The requirement to have multiple keys may impact
  property showings.
• A move to Sentrilock will require DAAR to finance
  up to 500K for an upfront purchase of the
  Sentrilock hardware.

15
Request for Input

• Both lockbox manufacturers have provided detailed
  product presentations to the DAAR BoD.
• While Supra is a better, more feature-rich
  technical solution, other factors (e.g.
  cross-border compatibility, cost and other
  financial impacts, risk tolerance, etc.) must be
  considered when making the final decision.
• The BoD needs your input to know how to evaluate
  all these factors when we choose the best overall
  lockbox solution for DAAR members.