Marketing and Leasing Strategies 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 Marketing and Leasing Strategies flashcards as text
What is 'market rent' versus 'asking rent' in competitive multifamily analysis?
Answer: Market rent is derived from competitor analysis; asking rent is what a specific property advertises
Market rent is established by surveying what comparable properties in the submarket are actually leasing for, while asking rent is a single property's advertised price.
What is a 'renewal rate' and why is it important for portfolio financial stability?
Answer: The percentage of expiring leases that are renewed, directly reducing turnover costs and vacancy exposure
Renewal rate measures resident retention; high renewal rates minimize costly turnover (make-ready, vacancy loss, leasing commissions) and stabilize income.
Which Fair Housing Act provision is most relevant to apartment advertising and marketing?
Answer: Advertising cannot express a preference, limitation, or discrimination based on any protected class
The Fair Housing Act prohibits any advertising language or imagery that indicates a preference for or against prospective residents based on protected class characteristics.
What is the purpose of a 'competitive set analysis' in multifamily portfolio management?
Answer: To benchmark a property's rents, occupancy, and amenities against comparable competitors in the submarket
A competitive set analysis surveys comparable properties to inform pricing strategy, identify product gaps, and benchmark operational performance.
How does a 'lease expiration matrix' help a CAPS manager minimize portfolio vacancy risk?
Answer: It tracks when leases expire to stagger renewals and avoid large simultaneous vacancies
A lease expiration matrix shows the distribution of lease end dates across the calendar, allowing managers to proactively stagger expirations and prevent vacancy spikes.
What is 'gross potential rent' (GPR) and how is it used in portfolio analysis?
Answer: GPR is the maximum rent a fully occupied property could collect if all units rented at current market rates
Gross potential rent represents 100% occupancy at current asking or market rents, serving as the benchmark from which vacancy loss and concessions are subtracted to reach EGI.