CAPS Marketing and Leasing Strategies 3

Question 1

What is 'market rent' versus 'asking rent' in competitive multifamily analysis?

Accepted Answer

Market rent is derived from competitor analysis; asking rent is what a specific property advertises

Answer

Market rent is below asking rent by definition

Answer

Market rent is regulated by government; asking rent is not

Answer

They are the same concept applied in different contexts

Question 2

What is a 'renewal rate' and why is it important for portfolio financial stability?

Accepted Answer

The percentage of expiring leases that are renewed, directly reducing turnover costs and vacancy exposure

Answer

The rate at which rents increase upon lease renewal

Answer

The speed at which new leases are processed

Answer

The frequency of lease audits conducted by management

Question 3

Which Fair Housing Act provision is most relevant to apartment advertising and marketing?

Accepted Answer

Advertising cannot express a preference, limitation, or discrimination based on any protected class

Answer

All advertising must include fair housing logos

Answer

Marketing must be conducted in all languages spoken in the community

Answer

Prices must be the same for all prospective residents

Question 4

What is the purpose of a 'competitive set analysis' in multifamily portfolio management?

Accepted Answer

To benchmark a property's rents, occupancy, and amenities against comparable competitors in the submarket

Answer

To identify acquisition targets within the same portfolio

Answer

To evaluate vendor pricing relative to industry standards

Answer

To compare maintenance cost efficiency between owned properties

Question 5

How does a 'lease expiration matrix' help a CAPS manager minimize portfolio vacancy risk?

Accepted Answer

It tracks when leases expire to stagger renewals and avoid large simultaneous vacancies

Answer

It calculates the legal penalties for early lease termination

Answer

It identifies leases that have not been renewed automatically

Answer

It schedules rent increases to align with lease anniversaries

Question 6

What is 'gross potential rent' (GPR) and how is it used in portfolio analysis?

Accepted Answer

GPR is the maximum rent a fully occupied property could collect if all units rented at current market rates

Answer

GPR is the total rent collected after deducting vacancies and concessions

Answer

GPR equals NOI before operating expenses

Answer

GPR is the budgeted rent income for the upcoming fiscal year