CERTIFIED APARTMENT MANAGER (CAM) EXAM
QUESTIONS AND ANSWERS | VERIFIED
/ What percentage of Americans lives in rental housing? - Answer-Over 1/3
/.When renters decide where to rent, what three primary factors of location do they
consider? - Answer-Proximity to work, schools, stores, etc.
walkability
proximity to public transportation
/.When renters decide to rent, what 2 primary factors of life circumstances do they
consider? - Answer-Flexibility & ability to move easily
Reluctance to maintain a house
/.As a CAM, what do your knowledge, skills, and decisions directly contribute to? -
Answer-The financial success and value of a property.
/.What term describes an investment to increasing in value? - Answer-Growth
/.What other factors impact investments? - Answer-Risk
income
liquidity
/.The possibility of losing some of an initial investment. - Answer-Risk
/.The expected financial return from an investment. - Answer-Income
/.The ease with which an asset can be converted to cash. - Answer-Liquidity
/.When playing the role of an investor advocate, who is included? - Answer-Owners
investors
lenders
/.When playing the role of an resident advocate, who is included? - Answer-Residents
Prospects
Neighbors
Employees
/.What is the key to advocating for all groups? - Answer-Maintain ethics and balance
/.What types of affordable housing are available? - Answer-Section 8
Low Income Housing Tax Credit
Workforce Housing
,/.What types of senior housing are available to people over 55? - Answer-Independent
Living
Assisted Living
Full Service or continuing Senior care
/.In what type of housing do residents own a "share" of the property and occupy a unit
as if they were owners? - Answer-Co-op
/.What are the differences among mid, low, and high rise apartment buildings? -
Answer-A low rise has 4 stories or fewer
A mid rise has 5-10 stories
A high rise has more than 10 stories
/.What is a corporate apartment? - Answer-A fully furnished apartment equipped with all
necessary amenities.
/.4 stories or fewer - Answer-A low rise
/.Has 5-10 stories - Answer-A mid rise
/.More than 10 stories - Answer-A high rise
/.What information do you need in order to complete an financial analysis on a property?
- Answer-The income statement
/.When doing a financial analysis, why do you need to identify the GPR first? - Answer-
all other income & expenses are measured and evaluated as a percentage of GPR
/.What are the three primary types of income you will look for/calculate? - Answer-
Effective Gross Income (EGI)
Net Operating Income (NOI)
Cash Flow (CF)
/.What is a chart of accounts? - Answer-a list of accounts to which revenue and
expenses are posted and show up on the general ledger
/.What is used to generate an income statement? - Answer-Entries in the general ledger
/.List some benefits of minimizing financial loss. - Answer-Increases the financial
success of a property
Improves property performance
Makes your job easier
/.What are the main types of financial loss you should work to prevent? - Answer-1.
Vacancy Loss
, 2. Offline and nonrevenue units
3. Bad Debt
4. Concessions & discounts
/.During the rent collection process, what things should you consider before occupancy?
- Answer-1. the screening process
2. Rent collection policy
3. inclusion of the policy in the lease, orientation materials, etc
/.During the rent collection process, what is the purpose of resident communication
efforts? - Answer-To facilitate the rent collection process
/.Why would you want to create a buffer for rent collection? - Answer-To help you
remain on good terms with the residents.
To ensure timely and complete payments.
/.What are some of the characteristics of Variable Expenses? - Answer-Vary as
conditions change
Many are associated with occupancy
/.What are Capital Expenses? - Answer-Costs for large improvements that have an
economic useful life beyond 1 year
/.Describe cost-benefit analysis. - Answer-Process of weighing a potential expense
against a potential benefit.
/.What is the most important thing to keep in mind when developing a budget? -
Answer-The owners property objectives and investment goals.
/.What are the steps to the budget development process? - Answer-Identify goals
gather information
assign numerical values
/.When would you develop Rehap or Renovation budget? - Answer-When a property is
being rehabbed or undergoing retrofitting/modification.
/.What are the 3 tips to developing budgets covered today? - Answer-Be prepared
Use historical numbers
Seek input
/.What is extrapolation/annualization? - Answer-Estimating future information by
extending known information.
/.How do you analyze variances? - Answer-Compare budget to actual numbers.
Look at events on the property or in your submarket or region.
QUESTIONS AND ANSWERS | VERIFIED
/ What percentage of Americans lives in rental housing? - Answer-Over 1/3
/.When renters decide where to rent, what three primary factors of location do they
consider? - Answer-Proximity to work, schools, stores, etc.
walkability
proximity to public transportation
/.When renters decide to rent, what 2 primary factors of life circumstances do they
consider? - Answer-Flexibility & ability to move easily
Reluctance to maintain a house
/.As a CAM, what do your knowledge, skills, and decisions directly contribute to? -
Answer-The financial success and value of a property.
/.What term describes an investment to increasing in value? - Answer-Growth
/.What other factors impact investments? - Answer-Risk
income
liquidity
/.The possibility of losing some of an initial investment. - Answer-Risk
/.The expected financial return from an investment. - Answer-Income
/.The ease with which an asset can be converted to cash. - Answer-Liquidity
/.When playing the role of an investor advocate, who is included? - Answer-Owners
investors
lenders
/.When playing the role of an resident advocate, who is included? - Answer-Residents
Prospects
Neighbors
Employees
/.What is the key to advocating for all groups? - Answer-Maintain ethics and balance
/.What types of affordable housing are available? - Answer-Section 8
Low Income Housing Tax Credit
Workforce Housing
,/.What types of senior housing are available to people over 55? - Answer-Independent
Living
Assisted Living
Full Service or continuing Senior care
/.In what type of housing do residents own a "share" of the property and occupy a unit
as if they were owners? - Answer-Co-op
/.What are the differences among mid, low, and high rise apartment buildings? -
Answer-A low rise has 4 stories or fewer
A mid rise has 5-10 stories
A high rise has more than 10 stories
/.What is a corporate apartment? - Answer-A fully furnished apartment equipped with all
necessary amenities.
/.4 stories or fewer - Answer-A low rise
/.Has 5-10 stories - Answer-A mid rise
/.More than 10 stories - Answer-A high rise
/.What information do you need in order to complete an financial analysis on a property?
- Answer-The income statement
/.When doing a financial analysis, why do you need to identify the GPR first? - Answer-
all other income & expenses are measured and evaluated as a percentage of GPR
/.What are the three primary types of income you will look for/calculate? - Answer-
Effective Gross Income (EGI)
Net Operating Income (NOI)
Cash Flow (CF)
/.What is a chart of accounts? - Answer-a list of accounts to which revenue and
expenses are posted and show up on the general ledger
/.What is used to generate an income statement? - Answer-Entries in the general ledger
/.List some benefits of minimizing financial loss. - Answer-Increases the financial
success of a property
Improves property performance
Makes your job easier
/.What are the main types of financial loss you should work to prevent? - Answer-1.
Vacancy Loss
, 2. Offline and nonrevenue units
3. Bad Debt
4. Concessions & discounts
/.During the rent collection process, what things should you consider before occupancy?
- Answer-1. the screening process
2. Rent collection policy
3. inclusion of the policy in the lease, orientation materials, etc
/.During the rent collection process, what is the purpose of resident communication
efforts? - Answer-To facilitate the rent collection process
/.Why would you want to create a buffer for rent collection? - Answer-To help you
remain on good terms with the residents.
To ensure timely and complete payments.
/.What are some of the characteristics of Variable Expenses? - Answer-Vary as
conditions change
Many are associated with occupancy
/.What are Capital Expenses? - Answer-Costs for large improvements that have an
economic useful life beyond 1 year
/.Describe cost-benefit analysis. - Answer-Process of weighing a potential expense
against a potential benefit.
/.What is the most important thing to keep in mind when developing a budget? -
Answer-The owners property objectives and investment goals.
/.What are the steps to the budget development process? - Answer-Identify goals
gather information
assign numerical values
/.When would you develop Rehap or Renovation budget? - Answer-When a property is
being rehabbed or undergoing retrofitting/modification.
/.What are the 3 tips to developing budgets covered today? - Answer-Be prepared
Use historical numbers
Seek input
/.What is extrapolation/annualization? - Answer-Estimating future information by
extending known information.
/.How do you analyze variances? - Answer-Compare budget to actual numbers.
Look at events on the property or in your submarket or region.
