CLP Property Evaluation & Analysis 3

Question 1

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

Accepted Answer

Occupied units have significant concessions or delinquent residents

Answer

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

Question 2

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

Accepted Answer

Difference between market rent and actual contracted rent

Answer

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

Question 3

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

Accepted Answer

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

Answer

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

Question 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?

Accepted Answer

6.7 months

Answer

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

Question 5

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

Accepted Answer

New competitive deliveries scheduled in the same submarket

Answer

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

(CLP) Certified Leasing Professional Practice Test

(CLP) Certified Leasing Professional Practice Test

CLP Property Evaluation & Analysis 3