Maintenance and Capital Improvements Flashcards
6 cards from real CAPS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Maintenance and Capital Improvements flashcards as text
Under the Americans with Disabilities Act (ADA) and Fair Housing Act, what is a 'reasonable modification' in an existing apartment?
Answer: A structural change a resident can request at their expense to accommodate a disability
A reasonable modification is a physical change to a unit or common area that a resident with a disability may request and generally pays for to accommodate their needs.
What is the role of a preventive maintenance (PM) schedule in reducing long-term capital expenditures?
Answer: Regular PM extends equipment life, delaying costly replacements and reducing emergency repair frequency
Consistent preventive maintenance extends the useful life of major systems, reducing both emergency repair costs and the frequency of full replacements.
A portfolio property has aging elevator systems requiring replacement. How should the CAPS manager fund this capital project?
Answer: Draw from established capital reserves or arrange a capital improvement loan
Pre-funded capital reserves exist specifically to cover large-ticket replacements like elevators, and capital loans are an alternative when reserves are insufficient.
What is the difference between a 'unit renovation' and a 'value-add renovation' in multifamily portfolio strategy?
Answer: Value-add renovations are specifically designed to justify rent premiums and improve asset value; unit renovations may be purely cosmetic or maintenance-driven
Value-add renovations are strategic upgrades intended to drive rent premiums and NOI growth, while unit renovations may simply restore a unit to good condition.
What is the purpose of a warranty management program in a multifamily portfolio?
Answer: To track and exercise manufacturer and contractor warranties, ensuring repairs are completed at no cost during the warranty period
A warranty management program systematically tracks coverage periods and ensures defects are reported and remediated before warranties expire.
How does a scope of work (SOW) document protect a CAPS manager during a capital improvement project?
Answer: It defines exactly what work will be done, enabling apples-to-apples vendor bids and accountability during execution
A detailed SOW specifies materials, methods, and deliverables, enabling competitive bidding and providing a benchmark for contractor performance.