CAM Math Review

This content is also available as a PDF.

Math is Everywhere

Apartment properties are valued based on their income, and your financials are the “mirror” that reflects the health and strength of that income.

Daily Division

A 650 square foot apartment rents for \$725. What is its rent per square foot?

\$725 divided by 650 = \$1.12

A marketing company agrees to change your ad no less than 17 times in a year. How many times will the ad be changed each month?

17 divided by 12 months = 1.42 times

Multiplication Magnifies

A property has twenty four 650 square foot A-plan apartments. What is the total square footage in Aplan apartments?

24 times 650 = 15,600 sq. ft.

Each week for the last 12 weeks you have had to replace 14 toilet flappers. How many flappers have you replaced? If each costs \$2.42, how much have you spent in total?

12 times 14 = 168 flappers

168 times \$2.42 = \$406.56

Percentages

To find what percent one number is of another, divide the PART by the WHOLE.

Example: 7 is what percent of 48?

7 divided by 48 =.1458333, or 14.6%

Percentage Portions

Vacancy Loss this month is \$2,486. Gross Potential Rent is \$126,106. What is the percent of vacancy loss?

\$2,486 divided by \$126,106 = .0197 or 1.97% or 2.0%

A property has 294 units. 124 are one bedrooms– what percent of the property is TWO bedrooms?

294 – 124 = 170 two bedrooms; 170 divided by 294 = .57823 or 57.8%

Decimal & Percent Problems

Annual Gross Potential Rent is \$826,106. Collections Losses are 1.4% of GPR. How much are Collections Losses?

\$826,106 times .014 (1.4% expressed as a percent) = \$11,565 = Total Collection Losses

Annual Gross Potential Rent is \$826,106. Collections Losses are 1.4% of GPR. How much are Collections Losses?

\$826,106 times .014 (1.4% expressed as a percent) = \$11,565 = Total Collection Losses

64 pieces of traffic from the Internet visited the property last month. If 32% of traffic comes from the Internet, how many total pieces of traffic are there?

64 divided by .32 (32% expressed as a decimal) = 200 pieces of traffic

The rent has been increased on the A-2 from \$685 to \$729. What is the percentage of increase?

\$729 (new rent) minus \$685 (original rent) = \$44 more rent. \$44 divided by \$685 (the original rent) = .0642335 or 6.4%

Daily Operations and the Financial Statement

Understand the Language

\$ per Sq. Ft.

(\$1.08/sq.ft. monthly; \$12.96/sq.ft. annually)

\$ per Unit or per Door

(\$1,214/mo average)

% of GPR

Marketing Expense is 1.5% of GPR

Averages

Annual Utility Costs average \$523/unit

Monthly vs. Annual

Budgets, Variances, Trends and the Owner’s Point of View

Variances

A variance is an amount that varies from a projected amount. It can be a favorable variance or an unfavorable variance. It may be expressed as a variance percentage, a variance dollar or % of GPR.

Sample Variance

EXAMPLE: Other Income is budgeted for the year at \$172,500. Actual Other income for the year is \$164,859. What is the variance to budget?