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CAM Sample Test Questions

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1. From the most recent demographic reports, the leasing professional of XYZ Apartments observes that 40% of the prospective residents work at the local Air Force base, 20% work in the metropolitan downtown area, 10% work in law firms, 20% work in government offices, and 10% are unknown/other. Where would be the best place for XYZ Apartments to focus marketing outreach efforts? (Choose only one.)

  1. Local military base
  2. Nearby colleges/universities
  3. Government Internet site
  4. Local law firms
Reveal answer

3. Government Internet site

2. Which marketing method is the least cost effective for traffic generation?


Method Cost Per Month Traffic Per Month Leases Per Month
Radio advertisement $1,200 27 6
Online locator website $150 4 1
Unlicensed sign $1,200 16 3
Resident referral $800 4 2

  1. Online locator website
  2. Radio advertisement
  3. Unlicensed sign
  4. Resident referral
Reveal answer

4. Resident referral

3. Market conditions are driving current rents down by an average of 10%, and properties are experiencing an increase in the number of current residents giving notice to vacate. As a result, which of the following is most likely to occur? (Choose only one.)

  1. Increased economic occupancy
  2. Increased use of concessions
  3. Decreased economic occupancy
  4. Decreased use of concessions
Reveal answer

2. Increased use of concessions

4. The cost to upgrade 25 units will be $3,500 per unit. The owner wants to scale back by replacing only refrigerators instead of all appliances, reducing the cost to $2,800. What is the payback period if the additional market rent is now $54 per month? (Choose only one.)

  1. 52 months
  2. 31 months
  3. 39 months
  4. 45 months
Reveal answer

1. 52 months

5. The following table contains unit type, rent, date vacated, made-ready date, and move-in date information for five units at XYZ Apartments.


Apt. No. Unit Type Rent Vacated Made Ready Move In
104 1/1 $850 Nov. 3 Nov. 8 Nov. 9
107 1/1 $975 Nov. 6 Nov. 19 Nov. 19
212 2/2 $1,450 Nov. 22 Nov. 30 Dec. 5
435 2/2, Den $1,855 Nov. 17 Nov. 23 Nov. 26
513 2/2 $1,565 Nov. 11 Nov. 16 Nov. 17

Which unit lost the most rent? (use a 30-day month)?

  1. 104 lost $170
  2. 107 lost $423
  3. 212 lost $628
  4. 435 lost $556
Reveal answer

3. 212 lost $628

6. XYZ Apartments is a 250-unit high-rise community. Two months into the new fiscal year, news is posted that the largest employer in the area is transitioning its business overseas. The market is saturated with newer multi-family construction while existing home ownership is declining due to more stringent lending standards. The choice to rent is overshadowing the desires of homeownership. Employees at the aforementioned company occupy 60% of the property's units.

  1. Reforecast the budget for the year
  2. Conduct a market survey
  3. Start a new aggressive resident referral program
  4. Hold a strategic meeting with the owner
Reveal answer

4. Hold a strategic meeting with the owner

7. XYZ Apartments consists of 363 one-, two-, and three-bedroom units. Property amenities include a swimming pool, a pet park, a lighted tennis court, a fitness center, a playground, and three barbeque and picnic areas. The community also has 375 parking spaces and an on-site laundry care center with six washers and dryers. The resident profile is a blend of families, singles, and couples, with children present in more than half of the apartments. A majority of residents are upper blue collar to white collar workers in largely administrative and professional roles.

What resident event would most likely be a success?

  1. A wine tasting party
  2. A barbeque cook-off and pot-luck
  3. A bridge game competition
  4. A tour bus trip to casinos in the next state
Reveal answer

2. A barbeque cook-off and pot-luck

8. A property owner is concerned with the 60-day trend and low property closing ratio. Many prospective residents have leased at neighboring communities that have upgraded interiors but comparable rents (price per square foot). Leasing team members claim that they are having a hard time overcoming objections to old countertops and appliances. Your supervisor schedules a meeting to meet with the owner to discuss the best response. In preparing for the meeting, which of the following is most essential?

  1. Complete and recheck the year to date owner’s reports for accuracy
  2. Review leasing agent closing ratios for previous months to find problems
  3. Recheck market comps with calls and undercover shops
  4. Aggressively work renewals
Reveal answer

3. Recheck market comps with calls and undercover shops

9. The table below illustrates the rent schedule for an apartment community:


Unit Type Number of Units Square Feet per Unit Total Square Feet Monthly Rent per Unit Total Monthly Rent Rent per Square Foot
1x1 80 467 37,360 $489 $39,120 $1.04
1x1 100 580 58,000 $559 $55,900 $0.96
1x1 100 685 68,500 $599 $59,900 $0.87
2x1 120 911 109,320 $739 $88,680 $0.81
Total 400   273,180   $243,600  

Which unit type would have the highest impact if rents were changed across the board?

  1. Small 1x1
  2. Large 1x1
  3. Medium 1x1
  4. Two bedrooms
Reveal answer

4. Two bedrooms

10. XYZ Apartments is a 400-unit apartment community with 350,000 total square feet. The following operating statement for XYZ Apartments is for the period ending August 31. XYZ Apartments has experienced 140 move-outs as of August 31.


Account MTD Actual MTD Budget $ Variance YTD Actual YTD Budget $ Variance Annual Budget
Revenue
Rent 476,018 504,082 -28,064 3,706,704 3,816,507 -109,802 5,905,291
Vacancies -83,409 -35,286 -48,123 -723,651 -372,784 -350,867 -518,999
Other Revenue 7,028 3,452 3,576 43,288 27,616 15,672 41,424
Total Revenue 399,637 472,248 -72,612 3,027,350 3,471,339 -443,989 5,427,716
Expenses
Renting Expenses 12,160 11,730 -430 61,878 96,640 34,762 143,860
Management Fee 15,348 15,348 0 112,458 112,819 361 176,401
Administrative Expenses 7,638 6,080 -1,558 84,852 47,660 -37,192 71,100
Electric 1,276 8,100 6,824 52,047 48,500 -3,547 68,700
Gas and Oil 2,014 7,700 5,686 229,868 203,800 -26,068 269,500
Water & Sewer -51 18,600 18,651 146,156 148,800 2,644 223,200
Maintenance 34,901 17,054 -17,847 200,427 170,760 -29,667 254,472
Salaries & Related Expenses 35,020 37,182 2,162 334,298 335,542 1,243 512,311
Taxes 27,048 27,048 0 219,275 216,383 -2,892 324,574
Insurance 8,853 8,853 0 72,342 70,825 -1,517 106,238
Total Operating Expenses 155,509 169,203 13,694 1,584,090 1,522,943 -61,147 2,257,952
Net Operating Income (NOI) 244,127 303,045 -58,917 1,443,260 1,948,396 -505,136 3,169,764

The 2013 NAA Income and Expense Report notes an average operating expense for market garden apartments at $4.81per square foot. What is the XYZ operating expense per square foot?

  1. $4.53 per square foot
  2. $4.35 per square foot
  3. $6.45 per square foot
  4. $6.79 per square foot
Reveal answer

4. $6.79 per square foot