CERTIFIED APARTMENT MANAGER EVALUATION EXAM
QUESTIONS AND ANSWERS GRADED A+
✔✔List three factors that affect rental income - ✔✔Percent occupancy and collection
percent
✔✔What factors affect rental rate - ✔✔Supply and demand economic conditions
housing trends competitors offerings and property features
✔✔Explain the impact of concessions on rent - ✔✔Anytime confessions are provided
the property will collect less rent than in the residents were paying scheduled market
rent this is called effective rent on that rent
✔✔Name three ways to manage lease expiration - ✔✔Stagger monthly expiration date
stagger expiration dates different pricing for different lease terms
✔✔State the purpose of a replacement reserve account - ✔✔This account is like a
special savings account into which money is deposited on a monthly quarterly or
annually basis so that the future funds are available for large capital projects
✔✔What is debt service - ✔✔The mortgage or loan
✔✔What two things are you looking at when you perform a cost benefit analysis -
✔✔Potential expenses and potential income or benefits
✔✔What is important to remember when trying to down prey in vacancy -
✔✔Remember that the goal is not 100% occupancy income
✔✔Before adjusting rent it is a must to analyze the four peas - ✔✔People product
promotion price
✔✔What considerations should be used when increasing rents - ✔✔When the floor plan
is 95% or more occupied or that they are full when property turnover average is below
55% when rents fail below levels indicated by the market comp analysis anytime the
community is full or part owner request
✔✔What is the turnover ratio and how is it determined - ✔✔Turnover ratio is the total
number of move out in a given. Usually annualized divided by the total number of
apartments
✔✔Why do most companies use some form of a budget control log - ✔✔To minimize
financial statement shock at the end of the month when unexpected expenses
overbudget appear on the financial statement report
, ✔✔What is an asset - ✔✔Economic resources the benefit and investment assets in but
include real or personal property and catch up on
✔✔What is liability - ✔✔Economic obligations to non-owners
✔✔What does a balance sheet represent and what three sections are included -
✔✔Balance sheet is a re-presentation of the financial status of the property at an instant
of time. assets liabilities and equity
✔✔What does income statement measure - ✔✔Performance for a span in time a-month
quarter or longer
✔✔Define cash flow - ✔✔Cash flow is the amount of money left after all sources of
income are collected and operating expenses capital expenses including replacement
reserve payments if required and debt services have been paid
✔✔What is gross potential rent - ✔✔It combines the sum of occupied units at current
lease rates plus vacant unit at market rate
✔✔Vacancy - ✔✔The total value of rent lost from vacant units concessions given
collection losses as a result of writing off Bad debt and the total amount of rent loss from
any nonrevenue units
✔✔Effective gross rent EGI - ✔✔Effective Gross income is the amount of GPR less
vacancy session and collection loss effective gross income may also be called net
rental income or total rental income
✔✔Gross potential rent minus vacancy equals - ✔✔EGI effective gross rent
✔✔Gross operating income GOI - ✔✔The sum of the effective gross income and other
income stated in other manner it is simply total revenue
✔✔EGI + OI = - ✔✔GOI
✔✔Net operating income and NOI - ✔✔Income is GLOI or total revenue last 0E
✔✔GOI - OE = - ✔✔NOI
✔✔What is the operating expense ratio and how is it calculated - ✔✔The ratio
calculates the percentage of the GPR that is being used to pay operating expenses the
ratio depends on the age of the property it's location type and what expenses are
included
OE + DS = x / GOI
QUESTIONS AND ANSWERS GRADED A+
✔✔List three factors that affect rental income - ✔✔Percent occupancy and collection
percent
✔✔What factors affect rental rate - ✔✔Supply and demand economic conditions
housing trends competitors offerings and property features
✔✔Explain the impact of concessions on rent - ✔✔Anytime confessions are provided
the property will collect less rent than in the residents were paying scheduled market
rent this is called effective rent on that rent
✔✔Name three ways to manage lease expiration - ✔✔Stagger monthly expiration date
stagger expiration dates different pricing for different lease terms
✔✔State the purpose of a replacement reserve account - ✔✔This account is like a
special savings account into which money is deposited on a monthly quarterly or
annually basis so that the future funds are available for large capital projects
✔✔What is debt service - ✔✔The mortgage or loan
✔✔What two things are you looking at when you perform a cost benefit analysis -
✔✔Potential expenses and potential income or benefits
✔✔What is important to remember when trying to down prey in vacancy -
✔✔Remember that the goal is not 100% occupancy income
✔✔Before adjusting rent it is a must to analyze the four peas - ✔✔People product
promotion price
✔✔What considerations should be used when increasing rents - ✔✔When the floor plan
is 95% or more occupied or that they are full when property turnover average is below
55% when rents fail below levels indicated by the market comp analysis anytime the
community is full or part owner request
✔✔What is the turnover ratio and how is it determined - ✔✔Turnover ratio is the total
number of move out in a given. Usually annualized divided by the total number of
apartments
✔✔Why do most companies use some form of a budget control log - ✔✔To minimize
financial statement shock at the end of the month when unexpected expenses
overbudget appear on the financial statement report
, ✔✔What is an asset - ✔✔Economic resources the benefit and investment assets in but
include real or personal property and catch up on
✔✔What is liability - ✔✔Economic obligations to non-owners
✔✔What does a balance sheet represent and what three sections are included -
✔✔Balance sheet is a re-presentation of the financial status of the property at an instant
of time. assets liabilities and equity
✔✔What does income statement measure - ✔✔Performance for a span in time a-month
quarter or longer
✔✔Define cash flow - ✔✔Cash flow is the amount of money left after all sources of
income are collected and operating expenses capital expenses including replacement
reserve payments if required and debt services have been paid
✔✔What is gross potential rent - ✔✔It combines the sum of occupied units at current
lease rates plus vacant unit at market rate
✔✔Vacancy - ✔✔The total value of rent lost from vacant units concessions given
collection losses as a result of writing off Bad debt and the total amount of rent loss from
any nonrevenue units
✔✔Effective gross rent EGI - ✔✔Effective Gross income is the amount of GPR less
vacancy session and collection loss effective gross income may also be called net
rental income or total rental income
✔✔Gross potential rent minus vacancy equals - ✔✔EGI effective gross rent
✔✔Gross operating income GOI - ✔✔The sum of the effective gross income and other
income stated in other manner it is simply total revenue
✔✔EGI + OI = - ✔✔GOI
✔✔Net operating income and NOI - ✔✔Income is GLOI or total revenue last 0E
✔✔GOI - OE = - ✔✔NOI
✔✔What is the operating expense ratio and how is it calculated - ✔✔The ratio
calculates the percentage of the GPR that is being used to pay operating expenses the
ratio depends on the age of the property it's location type and what expenses are
included
OE + DS = x / GOI
