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 established by surveying what comparable properties in the submarket are actually leasing for, while asking rent is a single property's advertised price.

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

Renewal rate measures resident retention; high renewal rates minimize costly turnover (make-ready, vacancy loss, leasing commissions) and stabilize income.

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

The Fair Housing Act prohibits any advertising language or imagery that indicates a preference for or against prospective residents based on protected class characteristics.

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

A competitive set analysis surveys comparable properties to inform pricing strategy, identify product gaps, and benchmark operational performance.

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

A lease expiration matrix shows the distribution of lease end dates across the calendar, allowing managers to proactively stagger expirations and prevent vacancy spikes.

CAPS - Certified Apartment Portfolio Supervisor Practice Test

CAPS - Certified Apartment Portfolio Supervisor Practice Test

CAPS Marketing and Leasing Strategies 3