All apartment properties incorporate certain recognizable, rent-sensitive characteristics - some subject to functional obsolescence, others to change in relative value resulting from development market dynamics.

Determination of an apartment property's improvements rating requires an understanding based on constant review of existing properties in relation to apartment inventory additions. New, state-of-the-art, characteristics included in each generation of properties added to the rental housing supply require continuing reassessment of rating standards.

Loss (as opposed to obsolescence) of function, or cosmetic impairment due to physical deterioration, are not considered in Yardi Matrix's patented Context® rating process. Improvement ratings do not consider property physical condition.

As example, if a community possesses physical characteristics expected of a "B" rated community, but appearance-related physical deterioration has resulted in property operations at a lower level than is expected of a "B" category community, no accommodation is made to that condition in assessing improvements ratings. The below standard "B" rated property remains a "B", attaching added-value potential.