Applications Skill Checks
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1 Applicatins Skill Checks Use these questins t understand hw t extract key issues and apply ptential slutins that will be similar t the Part II CAM exam. Present Cnditin Sample 1: A new prperty in the neighbrhd is in lease-up. This is the first new prduct t the area in years. Yur prperty has always cmpeted well with ther apartment cmmunities, but nw the pressure is n. The market s far has been strng with increasing ccupancies and rents. Yur wner likes t take advantage f ther prperties raising rents first and then yur prperty quickly fllws. 1. What are the verall issues? 2. List the market issues. 3. What areas f the physical prperty need t be addressed? 4. Assess first impressins Natinal Apartment Assciatin 1
2 5. Assess staff perfrmance. 6. Assess reputatin and custmer satisfactin Natinal Apartment Assciatin 2
3 Present Cnditin Sample 2: The third quarter is cmplete and year-t-date financials reflect significant negative variances in perating expenses. Incme levels are within acceptable variance range. Yur team has nt earned the NOI incentive bnus all year and nw the asset manager is lking fr answers. As the year ends, it will be critical that the prperty get back n track and clse the year with as little negative expense variance as pssible. 1. What are the verall issues? 2. Identify perating expense verages. 3. Review perfrmance t incme budget. 4. Ensure staff is infrmed and engaged. 5. Engage asset manager Natinal Apartment Assciatin 3
4 Present Cnditin Sample 3: The prperty wner is cncerned with the 90-day trend and the lw prperty clsing rati. A large percentage f prspects have leased at neighbring cmmunities wh have upgraded interirs yet cmparable rent. The leasing team claims they are having a hard time vercming bjectins t ld cuntertps and appliances. Present Cnditin Sample 4: The cmmunity amenity package includes 24-hur cncierge service, 24-hur self-serve cffee bar, 25,000 sq. ft. state-f-the-art exercise center and lap pl, mvie theater, cmmunity sundeck and barbecue area and cmmunity garden. The wner wants t begin t charge an amenity fee fr residents. What are the issues here? 2016 Natinal Apartment Assciatin 4
5 Present Cnditin Sample 5: A few market cmparables have invested heavily in exterir renvatins. Hw wuld yu analyze whether yur prperty shuld d the same? Present Cnditin Sample 6: Which applicant screening plicies shuld be cnsidered fr change in rder t increase the quality f the resident prfile? 2016 Natinal Apartment Assciatin 5
6 Present Cnditin Sample 7: Happy Hills clsed ut the year at 8.1% delinquency, 14.5% vacancy, 50% team member turnver, and a 70% resident turnver. The prperty did nt achieve its budgeted annual ttal incme and exceeded budgeted ttal perating expenses by 10%. What questins wuld yu ask? Present Cnditin Sample 8: Yur prperty ffers the same amenities, cmparable rents, and larger verall units than ne f yur cmpetitrs. But yur vacancy rate is 10% and yur cmpetitr s is 5%. What steps might yu take t find ut hw t slve? 2016 Natinal Apartment Assciatin 6
7 Present Cnditin Sample 9: Of the ten upcming ntices t vacate, eight have expressed dissatisfactin with the prperty as the primary reasn fr vacating. Hw might yu respnd? Present Cnditin Sample 10: A cmmunity is lcated in a hidden spt ff f any main rads. What wuld yu cnsider fr directing prspective residents t yur lcatin? 2016 Natinal Apartment Assciatin 7
8 Present Cnditin Sample 11: At XYZ Apartments, all utilities are included in the rent. The prperty manager has recmmended t the wner that every tilet and shwer head be retr-fitted. What factrs are invlved in this decisin? 2016 Natinal Apartment Assciatin 8
9 Practice Identifying Issues List pssible prblems r issues that culd be causing these cnditins. 1. Operating expenses exceed budget 2. Older prperty is lsing traffic and leases t new highly amenitized cmpetitrs 3. A casualty lss has ccurred n the prperty 4. Staff turnver is excessive with sme psitins turning ver twice in ne year 2016 Natinal Apartment Assciatin 9
10 5. Staff perfrmance levels are lw and gals nt met 6. The prperty buildings and equipment are deterirating 2016 Natinal Apartment Assciatin 10
11 Tip fr respnding t a scenari-based questin Dig ut the rt f the questin: WHAT are yu being asked t slve? WHO is invlved r affected r shuld be? WHAT plicies r laws are applicable? Think abut. Fair husing Marketing techniques Persnnel Maintenance f prperty Payrll Safety WHEN did the incident/expense/prblem ccur? WHAT time perids are given in the prblem? Are they the same in the ptential answers? WHAT numbers must be used t calculate rates/ratis/results? 2016 Natinal Apartment Assciatin 11
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