Certified Apartment Portfolio Supervisor (CAPS) Practice Exam 2025 - Module 2 Mastery: Your All-in-One Guide to Success!

When analyzing why rental income is down, reviewing actual move-ins and move-outs versus what was budgeted is crucial. This involves understanding tenant turnover rates and how they compare to initial projections. If the number of actual move-ins is lower than expected or the number of move-outs is higher, it directly impacts occupancy rates and thus rental income. A mismatch between budgeting and actual performance can reveal issues such as ineffective marketing, tenant dissatisfaction, or external market factors affecting demand.

By focusing on this aspect, property managers can identify specific trends in tenant behavior and occupancy that may be driving the decline in income. For instance, if too many tenants are leaving and not enough are moving in, this signals a potential problem that may need to be addressed, thereby providing actionable insights for improving revenue.