CALP (NAA)- EXAM WITH (Q & A)

CALP (NAA)- EXAM WITH
(Q & A)

Which property has the highest physical occupancy?

Property A. 365 of 452 units occupied
Property B. 217 of 302 units occupied
Property C. 265 of 386 units occupied (use whole percentages)

a. property a and b are the same
b. property b
c. property c
d. property a
- CORRECT ANSWER D. Property A

Property A: 365/452=.8075 --> 81%
Property B: 217/302=.7185 --> 72%
Property C: 265/386=.6865 --> 69%

Economic Occupancy Formula
- CORRECT ANSWER Economic Occupancy (EO) = TRR / GPR

Gross Potential Rent (GPR)
- concessions
- vacancy
- bad debt
Equals Total Rent Revenue (TRR)

What is the economic occupancy of a property with?

GPR at $376,500
Concessions totaling $19,500
Bad debt at $2,447
Vacancy of $13,456

a. 95.8%
b. 90.6%
c. 96.4$
d. 94.2%

, - CORRECT ANSWER B. 90.6%

EO = TRR / GPR

376500
-19500
-2447
-13456
Equals: 341, 097 (TRR)

341097/376500 = .906 --> 90.6%

Why does the formula to calculate economic occupancy not include bad debt?
- CORRECT ANSWER Bad debt is already included in the formula

EO = TRR/GPR

GPR
-concessions
-vacancy
-bad debt
equals TRR
Your community has 48 1/1 apartments leasing for a market rent of $1375. Your
manager has approved an incentive of one month free on a 12-month lease. What is the
effective monthly rent of the 1/1 in whole dollars?

a. 1260
b. 1262
c. 1490
d. 1155
- CORRECT ANSWER A. $1260

1375/12= 114.58
1375-114.58= $1260.42 --> $1260

Your manager is considering a leasing incentive on 12 month leases. Which would offer
the higher effective rent - Two weeks free on a 2/1 leasing for $1250 or one month free
on a 2/1 leasing for $1275?

a. the $1250 unit
b. The $1275 unit
c. they are the same
d. No concession would offer the highest effective rent
- CORRECT ANSWER A. The $1250 unit