Certified Apartment Portfolio Supervisor (CAPS) Practice Exam - Module 2

What might indicate that more move-outs than budgeted have occurred?

1. Improved tenant satisfaction surveys

2. Increased vacancy rates

3. Higher rental rates than competitors

4. New marketing strategies implemented

The correct answer is: Increased vacancy rates

Increased vacancy rates serve as a clear indicator that more move-outs than budgeted have taken place. When the number of vacant units rises above expectations, it suggests that residents are leaving the community at a higher rate than anticipated. Vacancy rates are a crucial metric in property management, as they directly reflect the ability of a property to retain tenants and generate income. High vacancy rates can be caused by a variety of factors, including tenant dissatisfaction, increased competition from other properties, or changes in the local market environment. By tracking these rates, property managers can assess the effectiveness of their tenant retention strategies and take corrective action when necessary. Understanding vacancy trends allows property supervisors to respond proactively, perhaps by enhancing tenant amenities or adjusting marketing efforts, rather than merely reacting after financial damage has occurred. This aligns directly with effective property management, which relies on anticipating trends to maintain occupancy levels and keep revenue stable.