Week 3 Quiz

Question 1

What are considered “other” income?

Answer 1

Pet fee
Parking
Late Charges
Laundry
- Any fees to residents that are not rent (comes from services offered)

Question 2

Credit Loss and Vacancy are the same thing. True or False?

Answer 2

False

Question 3

What is credit loss?

Answer 3

Money loss due to residents not paying rent or paying it on time

Question 4

What is vacancy?

Answer 4

Money loss due to unit not being occupied

Question 5

Which of the following formulas would you use to show compound growth for a revenue or an expense item over the course of a few years?

Answer 5

Prior Year *(1+ Growth Rate)

Question 6

What is the best way to determine a vacancy rate?

Answer 6

Market Reports
Property Comps
Consult a Broker
Look @ Historic Data
(all of them)

Question 7

What is Management Fee calculated off of?

Answer 7

EGI (effective gross income)

Question 8

Generally speaking, what is the largest Operating Expense?

Answer 8

Real Estate Taxes

Question 9

NOI can only be increased by higher rents. True or False?

Answer 9

False

Question 10

What does “above the line” refer to?

Answer 10

Net Operating Income
NOI

Question 11

What is EGI (effective gross income)?

Question 12

What are some operating expenses?

Answer 12

Real Estate Taxes
Insurance
Payroll
Utilities
Management Fees

Question 13

How can you increase NOI/

Answer 13

Higher rents
Lower expenses