CAM Data Analysis and Interpretation 5

Question 1

A property's net operating income is $540,000 and comparable properties in the market are trading at a 6% cap rate. What is the estimated property value?

Accepted Answer

$9,000,000

Answer

Value = NOI / Cap Rate = $540,000 / 0.06 = $9,000,000.

Question 2

Which trend in a property's delinquency data should prompt the most immediate management action?

Accepted Answer

Delinquency rising from 2% to 7% over three months

Answer

A rapid three-month climb from 2% to 7% signals an accelerating collection problem that requires immediate intervention before it compounds further.

Question 3

A manager compares a property's cost per lead to cost per lease signed. The cost per lead is low but cost per lease is very high. What does this indicate?

Accepted Answer

Marketing is reaching many prospects but the leasing conversion process is weak

Answer

Low cost-per-lead with high cost-per-lease means marketing generates traffic but something in the leasing funnel — tours, follow-up, or pricing — is failing to convert prospects.

Question 4

A manager reviews year-end data showing utility expenses increased 18% while occupied unit count stayed flat. Which analysis should be conducted first?

Accepted Answer

Review individual unit utility meter readings and compare to prior year by unit type

Answer

Disaggregating utility usage by unit type and meter reveals whether the increase is from rate changes, equipment inefficiency, or specific problem units.

Question 5

What does a negative variance in a budget-versus-actual report for operating expenses indicate?

Accepted Answer

Actual expenses exceeded the budget, an unfavorable result

Answer

In expense reporting, a negative variance means actual spending went over budget, which is unfavorable and requires explanation and corrective action.

(CAM) Certified Apartment Manager Practice Test

(CAM) Certified Apartment Manager Practice Test

CAM Data Analysis and Interpretation 5