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

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Prepare for the CAPS Exam with a comprehensive study of Module 2. Utilize our practice resources filled with flashcards, multiple choice questions, and thorough explanations to ensure your success!

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What would best describe the term “vacancy loss” in property management?

The expected income from unoccupied units
The total expenses incurred while units are vacant
The difference between GPR and actual rent collected
The number of days units remain unleased

The correct answer is: The difference between GPR and actual rent collected

Vacancy loss refers to the financial impact of unoccupied rental units on a property's income. The term specifically describes the gap between the Gross Potential Rent (GPR), which is the total possible rental income a property can generate if all units are leased at full market rates, and the actual rent collected because some units are not rented out. This difference represents the income lost due to vacancies, making it a critical metric for property managers in evaluating the financial performance of a property. Understanding vacancy loss is crucial, as it highlights not only the potential income the property could generate if fully occupied, but also the effectiveness of the marketing and leasing strategies employed. Analyzing this metric helps property managers identify trends, set appropriate rental prices, and implement strategies to minimize vacancies and maximize revenue.