Practice Test Geeks(CLP) Certified Leasing Professional Practice Test
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Property Evaluation & Analysis Flashcards

7 cards from real CLP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Property Evaluation & Analysis flashcards as text

  1. A property achieves a physical occupancy of 95% but an economic occupancy of 88%. Which scenario BEST explains this discrepancy?

    Answer: Occupied units have significant concessions or delinquent residents

    When physical occupancy exceeds economic occupancy, occupied units are not generating full expected revenue — typically due to concessions or unpaid rent.

  2. A leasing professional is asked to evaluate the 'loss-to-lease' on a property. What does this metric measure?

    Answer: Difference between market rent and actual contracted rent

    Loss-to-lease is the difference between current market rent and the lower rent actually charged on in-place leases, representing unrealized revenue potential.

  3. Which of the following best describes the purpose of a SWOT analysis in property evaluation?

    Answer: Identifying Strengths, Weaknesses, Opportunities, and Threats relative to competitors

    A SWOT analysis helps leasing professionals position the property competitively by identifying internal strengths/weaknesses and external opportunities/threats.

  4. A property manager is evaluating whether to approve a $50,000 amenity upgrade. If the upgrade is expected to increase average rent by $75/month across 100 units, what is the simple payback period in months?

    Answer: 6.7 months

    Monthly revenue increase = $75 × 100 = $7,500; Payback = $50,000 / $7,500 = 6.67 months.

  5. When analyzing a potential lease-up property, which supply-side factor most directly threatens absorption projections?

    Answer: New competitive deliveries scheduled in the same submarket

    New competitive units delivering in the same submarket increase supply and directly compete for the same prospective residents, slowing absorption.

  6. A leasing professional reviews a property's trailing 12-month (T-12) operating statement. What is the PRIMARY purpose of analyzing T-12 data?

    Answer: To understand actual historical revenue and expense performance

    A T-12 operating statement shows actual income and expenses over the past 12 months, providing a realistic baseline of property performance.

  7. In multifamily market analysis, what does the term 'shadow market' or 'shadow supply' refer to?

    Answer: Single-family homes and condos rented by individual owners competing with apartments

    Shadow supply refers to single-family homes, condos, and townhomes rented by individual owners, which compete directly with multifamily communities for renters.