CCRM ( CALIFORNIA CERTIFIED
RESIDENTIAL MANAGER) EXAM
principal - ANSWERS-principal is the amount lent of borrowed to
buy a property , no including the interest.
types of budgets - ANSWERS-lease-up budget , retrofit budget and a
property stabilization budget
primary elements of budget - ANSWERS-revenue, expenses, non-
operating expenses, capital expenses and debt service.
organizing a budget - ANSWERS-organizing a budget ,accrual basis
accounting method reports income when earned and expenses when
incurred . this is a system that anticipates the income even though
money may not have yet changed hands.
(GPR) gross potential rent - ANSWERS-gross potential rent is a total
of all current market rents for each unit . take the total number of unit
rents and multiply that number by 12 for an annual gross revenue
projection.
(GAR) gross actual rent - ANSWERS-gross actual rent is a total of all
current actual rental rates for occupied units and current market rents
for vacant units (multiply that number by 12 for a yearly calculation )
this formula is use to calculate revenue for budgeting purposes
,(EGI) effective gross income - ANSWERS-effective gross income is
the measurement of all property's income (rent and other income )
minus vacancy and collection allowance . the EGI is an intermediate
step for estimating net operating income (NOI) the formula for the
EGI is GROSS POTENTIAL RENT +OTHER INCOME VACANCY
AND BAD DEBT.
Current rents - ANSWERS-current rents is the rent that the residents
are paying at the time of creating the budget, current rents are
necessary to complete the revenue since of a budget.
revenue portion of a budget - ANSWERS-the revenue portion of a
budget should also include ancillary income items.
budget variance report - ANSWERS-a budget variance report
examines the fluctuations that vary between the budget and actual
numbers.
inventories - ANSWERS-inventories should be evaluated for life
expectancy in order to anticipate the cost of replacement for personal
property when it becomes obsolete and /or unusable.
NOI - ANSWERS-NOI helps determine the value of the property and
is a critical element of the income statement , cash flow statement and
return calculations.
, how calculate ( NOI ) net operating income - ANSWERS-NOI is
typically calculated by subtracting operating expenses ( the direct cost
of doing business ) from taxable income (revenue) the resulting
number is the net operating income NOI
NOI - ANSWERS-GROSS OPERATING INCOME - EXPENSES
=NOI
make sure to deduct the following items from revenue or taxable
income - ANSWERS-security deposits received
reimbursements
transfers from savings accounts
depreciation - ANSWERS-depreciation is not an expense that is
deducted from income revenue to calculate NOI
capitalization rate - ANSWERS-the capitalization rate is the ratio of
yearly net income to the property value .
NOI+CAP RATE =VALUE - ANSWERS-NOI+CAP RATE =
VALUE
late fees - ANSWERS-late fees are forms of revenue
RESIDENTIAL MANAGER) EXAM
principal - ANSWERS-principal is the amount lent of borrowed to
buy a property , no including the interest.
types of budgets - ANSWERS-lease-up budget , retrofit budget and a
property stabilization budget
primary elements of budget - ANSWERS-revenue, expenses, non-
operating expenses, capital expenses and debt service.
organizing a budget - ANSWERS-organizing a budget ,accrual basis
accounting method reports income when earned and expenses when
incurred . this is a system that anticipates the income even though
money may not have yet changed hands.
(GPR) gross potential rent - ANSWERS-gross potential rent is a total
of all current market rents for each unit . take the total number of unit
rents and multiply that number by 12 for an annual gross revenue
projection.
(GAR) gross actual rent - ANSWERS-gross actual rent is a total of all
current actual rental rates for occupied units and current market rents
for vacant units (multiply that number by 12 for a yearly calculation )
this formula is use to calculate revenue for budgeting purposes
,(EGI) effective gross income - ANSWERS-effective gross income is
the measurement of all property's income (rent and other income )
minus vacancy and collection allowance . the EGI is an intermediate
step for estimating net operating income (NOI) the formula for the
EGI is GROSS POTENTIAL RENT +OTHER INCOME VACANCY
AND BAD DEBT.
Current rents - ANSWERS-current rents is the rent that the residents
are paying at the time of creating the budget, current rents are
necessary to complete the revenue since of a budget.
revenue portion of a budget - ANSWERS-the revenue portion of a
budget should also include ancillary income items.
budget variance report - ANSWERS-a budget variance report
examines the fluctuations that vary between the budget and actual
numbers.
inventories - ANSWERS-inventories should be evaluated for life
expectancy in order to anticipate the cost of replacement for personal
property when it becomes obsolete and /or unusable.
NOI - ANSWERS-NOI helps determine the value of the property and
is a critical element of the income statement , cash flow statement and
return calculations.
, how calculate ( NOI ) net operating income - ANSWERS-NOI is
typically calculated by subtracting operating expenses ( the direct cost
of doing business ) from taxable income (revenue) the resulting
number is the net operating income NOI
NOI - ANSWERS-GROSS OPERATING INCOME - EXPENSES
=NOI
make sure to deduct the following items from revenue or taxable
income - ANSWERS-security deposits received
reimbursements
transfers from savings accounts
depreciation - ANSWERS-depreciation is not an expense that is
deducted from income revenue to calculate NOI
capitalization rate - ANSWERS-the capitalization rate is the ratio of
yearly net income to the property value .
NOI+CAP RATE =VALUE - ANSWERS-NOI+CAP RATE =
VALUE
late fees - ANSWERS-late fees are forms of revenue
