CAM Data Analysis and Interpretation 4

Question 1

A manager compares the property's average asking rent to the average effective rent. A large gap between these two figures most likely indicates:

Accepted Answer

Heavy concession use such as free rent or move-in specials

Answer

Strong demand with no need for concessions

Answer

Accurate rent collection with minimal delinquency

Answer

High cap rate performance

Question 2

Which statistical measure is most resistant to distortion by a few extremely high or low maintenance costs in a data set?

Accepted Answer

Median

Answer

Mean (average)

Answer

Range

Answer

Sum

Question 3

A manager wants to determine whether a recent rent increase caused a decline in renewals. Which analysis technique is most appropriate?

Accepted Answer

Regression analysis comparing rent changes to renewal rates over time

Answer

A pie chart of current resident demographics

Answer

A balance sheet review

Answer

Capital reserve fund projection

Question 4

Which metric directly measures how much revenue a property loses because of units that are occupied but not paying at full market rate?

Accepted Answer

Loss to lease

Answer

Physical vacancy rate

Answer

Bad debt expense

Answer

Concession rate

Question 5

A property manager receives a report showing month-over-month rent growth of 0.5% but year-over-year growth of 8%. Which interpretation is most accurate?

Accepted Answer

Recent growth has slowed from earlier in the year but the annual trend remains strong

Answer

Rent growth has completely stalled and is a major concern

Answer

The property performed poorly all year

Answer

Month-over-month data is more reliable than annual data

Question 6

When evaluating capital expenditure (CapEx) vs. operating expense (OpEx) classification, which principle is most important for accurate financial reporting?

Accepted Answer

Costs that extend asset life or add value are CapEx; routine repairs are OpEx

Answer

All expenses over $500 must be capitalized

Answer

CapEx is always preferable because it reduces taxable income immediately

Answer

OpEx items never appear on a balance sheet

Question 7

A manager is reviewing a rent roll and notices 12 units with month-to-month leases representing 18% of the portfolio. What financial risk does this data highlight?

Accepted Answer

Higher revenue volatility and unpredictable vacancy risk

Answer

Increased maintenance cost exposure

Answer

Reduced property tax obligation

Answer

Lower insurance premium requirements