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CAM Math Review

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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?

Reveal answer

$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?

Reveal answer

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?

Reveal answer

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?

Reveal answer

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?

Reveal answer

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?

Reveal answer

$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?

Reveal answer

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?

Reveal answer

$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?

Reveal answer

$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?

Reveal answer

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?

Reveal answer

$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?

Reveal answer

172,500 – 164,859 = (7,641) negative variance. 7,641divided by $172,500 (budget) = .0442956 or (4.4%) variance to budget.