CAPS Maintenance and Capital Improvements

Question 1

What distinguishes a capital expenditure (CapEx) from an operating expense (OpEx) in apartment portfolio accounting?

Accepted Answer

CapEx extends a property's useful life or adds value; OpEx maintains current condition

Answer

CapEx is paid annually; OpEx is paid monthly

Answer

CapEx is covered by reserves; OpEx is covered by rents

Answer

CapEx is tax-deductible immediately; OpEx is depreciated

Question 2

Which preventive maintenance practice most effectively reduces HVAC system replacement costs across a large portfolio?

Accepted Answer

Scheduled filter changes and coil cleanings on a set calendar

Answer

Replacing units only after they fail

Answer

Upgrading to smart thermostats in all units

Answer

Performing maintenance only during resident complaints

Question 3

A CAPS manager is prioritizing capital improvements across a 500-unit portfolio. Which framework is most appropriate?

Accepted Answer

Prioritize by safety risk, deferred maintenance impact, and ROI

Answer

Complete improvements alphabetically by property name

Answer

Fund only improvements requested by residents

Answer

Focus solely on the newest properties in the portfolio

Question 4

What is a 'make-ready' process in apartment management?

Accepted Answer

The workflow to prepare a vacant unit for a new resident after the previous tenant moves out

Answer

The process for scheduling annual inspections

Answer

The maintenance request intake procedure

Answer

The vendor onboarding documentation process

Question 5

Which metric measures the average time from a maintenance work order being submitted to its completion?

Accepted Answer

Mean Time to Resolution (MTTR)

Answer

Work Order Backlog Rate

Answer

Maintenance Cost per Unit

Answer

Preventive Maintenance Compliance Rate

Question 6

What is the primary purpose of a Property Condition Assessment (PCA) in portfolio management?

Accepted Answer

To identify existing deficiencies and project future capital needs over a 10–20 year horizon

Answer

To assess tenant satisfaction with current conditions

Answer

To determine whether a property meets ADA standards

Answer

To evaluate the performance of the on-site maintenance team