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!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

Which term refers to the total rental income potential when all units are rented at market rate?

Gross Profit Revenue
Gross Potential Rent
Gross Income Potential
Gross Property Revenue

The correct answer is: Gross Potential Rent

The term that refers to the total rental income potential when all units are rented at market rate is Gross Potential Rent. This term specifically captures the maximum amount a property could generate in rental income if all units are occupied and rented at the established market rates, without accounting for vacancies, concessions, or any rental losses. Understanding this term is crucial for property management and real estate professionals, as it helps them evaluate the maximum income a property is capable of producing. It serves as a benchmark for performance measures and helps in setting goals for actual rental income, as well as in managing expectations regarding financial performance. In contrast, other terms mentioned may relate to income generation but do not specifically define the maximum potential rental income derived from renting all units at market rates.