CAPS Marketing and Leasing Strategies

Question 1

What does 'net absorption' measure in multifamily market analysis?

Accepted Answer

The net change in occupied units over a given period, indicating demand relative to supply

Answer

Net absorption measures the difference between units newly occupied and units newly vacated, reflecting how well the market is absorbing available supply.

Question 2

What is a 'lease-up' strategy in new apartment development?

Accepted Answer

A marketing and pricing plan to fill units in a newly constructed property to stabilized occupancy

Answer

Lease-up strategy refers to the plan for attracting initial residents to a newly developed property until it reaches a stabilized occupancy target (typically 93–95%).

Question 3

Which leasing metric measures how effectively a leasing team converts property inquiries into actual tours?

Accepted Answer

Lead-to-Tour Conversion Rate

Answer

Lead-to-Tour Conversion Rate tracks what percentage of prospect inquiries result in a scheduled and completed property tour.

Question 4

What is the purpose of revenue management software in a large apartment portfolio?

Accepted Answer

To dynamically adjust rents based on occupancy, demand, and market conditions to maximize revenue

Answer

Revenue management systems use algorithms to set optimal rents in real time by analyzing vacancy, move-in demand, competitor pricing, and market trends.

Question 5

How does 'concession burn-off' affect a property's financial performance?

Accepted Answer

As upfront concessions expire, effective rent rises toward face rent, improving revenue without new leasing

Answer

When lease concessions (e.g., one month free) expire and are not renewed, the effective rent a resident pays increases to full face rent, boosting income.

CAPS - Certified Apartment Portfolio Supervisor Practice Test

CAPS - Certified Apartment Portfolio Supervisor Practice Test

CAPS Marketing and Leasing Strategies