20 Evaluating the Property Practice Questions & Answers

1. 1. A 300-unit apartment community reports 279 units occupied and 288 units leased on the same day. Which explanation BEST accounts for the difference between physical occupancy and leased percentage?

   • A.Nine residents rolled to month-to-month at expiration and drop out of the occupied unit count.
   • B.Nine units are offline for capital renovation and are removed from the occupied unit count.
   • C.Nine occupied units have given notice to vacate, so they are leased but no longer occupied.
   • D.Nine vacant units have signed leases with future move-in dates, so they are leased but not occupied.✓ Answer

   Physical occupancy counts units with a resident living in them, while leased percentage counts units under a signed lease, including vacant units already preleased for a future move-in date. A preleased vacant unit is therefore leased but not occupied, which is exactly why leased percentage runs ahead of occupancy and warns of performance before occupancy shows it. Units on notice are still occupied and still leased, so they do not open a gap between the two figures.

   Source: NAAEI CAM V2 Exam Blueprint — evaluating the property: occupancy and leased positionReport a problem with this question

2. 2. A 240-unit community has 18 vacant units and 12 occupied units on notice to vacate. Seven of the vacant units are preleased and five of the notice units are preleased. Using the standard leased-unit calculation, how many units are leased?

   • A.217 units
   • B.222 units✓ Answer
   • C.210 units
   • D.229 units

   Leased units equal total units minus vacant units minus units on notice, plus vacant preleased units plus notice preleased units: 240 - 18 - 12 + 7 + 5 = 222. The preleases are added back because a unit with a signed future lease is committed revenue even though it is vacant or about to be, which is why leased position reads higher than physical occupancy.

   Source: NAAEI CAM V2 Exam Blueprint — leased-unit calculation and unit status reportingReport a problem with this question

3. 3. A regional manager tells a community manager to watch leasing exposure more closely than current occupancy. Why does exposure warn of a leasing problem EARLIER than occupancy does?

   • A.Exposure measures the share of leases expiring in one month, so it flags the risk of a crowded expiration month.
   • B.Exposure divides annual move-outs by total units, so it shows how fast the resident base is replaced each year.
   • C.Exposure removes down units from the denominator, so it reports a truer occupancy figure than the rent roll.
   • D.Exposure counts vacant units plus units on notice, so it shows the gap before those residents move out.✓ Answer

   Exposure adds the units already vacant to the units on notice that are not yet preleased and states that total against the unit count, so it measures vacancy the property has not yet felt. Occupancy only moves after a resident physically vacates, which can be weeks after the notice arrives, so a rising exposure figure gives the manager time to adjust pricing and traffic before occupancy actually drops.

   Source: NAAEI CAM V2 Exam Blueprint — evaluating operating activity: leasing exposureReport a problem with this question

4. 4. Which sequence correctly describes the operating status of an apartment unit as it turns over from one resident to the next?

   • A.Occupied, then on notice, then vacant not ready, then make-ready complete, then occupied.✓ Answer
   • B.Occupied, then vacant not ready, then on notice, then make-ready complete, then occupied.
   • C.On notice, then occupied, then make-ready complete, then vacant not ready, then occupied.
   • D.Occupied, then make-ready complete, then on notice, then vacant not ready, then occupied.

   A resident gives notice while still living in the unit, so notice always precedes vacate; the unit then becomes vacant and not ready, moves through make-ready to rent-ready, and only becomes occupied again when a new resident takes possession. Managers track each of these statuses separately because the days spent in each one are where vacancy loss is created or avoided.

   Source: NAAEI CAM V2 Exam Blueprint — unit status transitions from notice through vacate and make-readyReport a problem with this question

5. 5. A 320-unit community recorded 96 move-outs over the past 12 months. Ownership has set a turnover goal of 25% for next year. Based on these figures, how many of the 96 move-outs would have had to be prevented to reach that goal?

   • A.24 move-outs
   • B.16 move-outs✓ Answer
   • C.20 move-outs
   • D.30 move-outs

   Turnover is move-outs divided by total units: 96 divided by 320 equals 30%. A 25% turnover rate on 320 units allows 80 move-outs, so 96 minus 80 means 16 move-outs would have had to be saved. Framing a retention goal as a specific number of households, rather than a percentage, is what makes it actionable for the on-site team.

   Source: NAAEI CAM V2 Exam Blueprint — turnover rate calculation and retention targetsReport a problem with this question

6. 6. A manager compares four floor plans: Plan A is 750 square feet at $1,125; Plan B is 980 square feet at $1,323; Plan C is 1,150 square feet at $1,472; Plan D is 620 square feet at $992. Which plan earns the HIGHEST rent per square foot?

   • A.Plan A, at $1.50 per square foot
   • B.Plan D, at $1.60 per square foot✓ Answer
   • C.Plan B, at $1.35 per square foot
   • D.Plan C, at $1.28 per square foot

   Rent per square foot is rent divided by square footage: Plan A is $1.50, Plan B is $1.35, Plan C is $1.28 and Plan D is $1.60, so the smallest plan is the most efficiently priced. Highest total rent and highest rent per square foot are usually different plans, and a floor-plan analysis uses the per-foot figure because it is the only way to compare plans of different sizes on the same basis.

   Source: NAAEI CAM V2 Exam Blueprint — floor-plan analysis and rent per square footReport a problem with this question

7. 7. An owner asks which community amenities actually support a rent premium. Which finding BEST distinguishes an amenity that drives rent from one that only drives resident satisfaction?

   • A.Residents rate the feature highly on satisfaction surveys and mention it often in their reviews.
   • B.The feature exists at every competitor in the submarket and touring prospects already assume it is there.
   • C.Prospects consistently choose units carrying the feature and pay more than for identical units without it.✓ Answer
   • D.The installation of the feature cost more than any other capital project completed in recent years.

   A rent driver is proved by demonstrated willingness to pay: prospects select the units that carry the feature and the premium holds against identical units without it. Survey scores and review mentions measure satisfaction, which shows up in renewals rather than in asking rent; installation cost is a sunk expense the market does not have to honor; and a feature every competitor offers is table stakes rather than a premium.

   Source: NAAEI CAM V2 Exam Blueprint — amenities and features and their effect on leasing and satisfactionReport a problem with this question

8. 8. A 200-unit community has 60 one-bedroom units at 700 square feet, 120 two-bedroom units at 1,000 square feet, and 20 three-bedroom units at 1,300 square feet. What is the average square footage per unit?

   • A.940 square feet✓ Answer
   • B.1,000 square feet
   • C.880 square feet
   • D.1,060 square feet

   Total square footage is 60 x 700 plus 120 x 1,000 plus 20 x 1,300, or 42,000 plus 120,000 plus 26,000, which equals 188,000; dividing by 200 units gives 940 square feet. Averaging the three plan sizes instead gives 1,000 and is wrong because it ignores unit mix, and unit mix is what makes the property's average square footage and its rent per square foot meaningful.

   Source: NAAEI CAM V2 Exam Blueprint — unit mix and average square footage per unitReport a problem with this question

9. 9. An asset manager refers to the community as a Class C property. Which description BEST fits that classification?

   • A.A property of moderate age and condition with some amenities, renting near the submarket average.
   • B.An older property with dated finishes and few amenities, renting below the submarket average.✓ Answer
   • C.A property in poor condition needing major structural repair, renting at the bottom of the market.
   • D.A recently built property with extensive amenities, renting at the top of the submarket.

   Property classes describe age, condition, amenity level and rent position relative to the submarket rather than any fixed dollar figure. Class A is the newest product with the deepest amenity package at top-of-market rents, Class B is average in age and condition at about the market average, Class C is older with dated finishes and below-average rent, and Class D is the poorest condition at the bottom of the market.

   Source: NAAEI CAM Reference Guide — property classification A through DReport a problem with this question

10. 10. A community built in the 1990s has held steady occupancy for several years, but rent growth has flattened, curb appeal has slipped, and the property is drawing more price-sensitive households than it once did. Which stage of the property life cycle does this pattern indicate?

    • A.Revitalization, where completed capital work repositions the asset in the market.
    • B.Decline, where the asset loses competitive position and needs reinvestment.✓ Answer
    • C.Growth, where demand for the asset is still building and rents can be pushed.
    • D.Stability, where the asset performs steadily and the operating plan continues.

    The property life cycle runs from growth to stability to decline and, if the owner reinvests, to revitalization. Flat rent growth, slipping curb appeal and a resident profile drifting toward price sensitivity are the early markers of decline even while occupancy still looks healthy, because occupancy is a lagging indicator that only falls after the property has already lost competitive position.

    Source: NAAEI CAM V2 Exam Blueprint — property life cycle: growth, stability, decline, revitalizationReport a problem with this question

11. 11. Several new communities have delivered in the submarket at once. Concessions are widening, absorption has slowed, and occupancy is drifting down even though local employment is still growing. Which phase of the real estate cycle does this describe?

    • A.Oversupply, where new deliveries outrun absorption and occupancy erodes as demand holds.✓ Answer
    • B.Recovery, where absorption resumes, concessions narrow and occupancy climbs again.
    • C.Expansion, where demand outpaces new supply and rents rise with few concessions.
    • D.Recession, where demand contracts with employment and property income falls off.

    The real estate cycle moves through recovery, expansion, oversupply and recession. Oversupply is distinguished by the fact that demand has not failed — employment is still growing — but new deliveries arrived faster than the market can absorb them, so competitors buy occupancy with concessions and the subject property loses share unless it responds on pricing and product.

    Source: NAAEI CAM V2 Exam Blueprint — real estate cycle: expansion, oversupply, recession, recoveryReport a problem with this question

12. 12. For a lender's property summary the manager must classify the housing type: two- and three-story buildings spread across a landscaped site, with surface parking and no interior corridors or elevators. Which type BEST fits?

    • A.A mid-rise elevator apartment building
    • B.A townhouse-style attached-home community
    • C.A garden-style apartment community✓ Answer
    • D.A high-rise apartment tower building

    Garden-style communities are low-rise buildings of roughly two or three stories set among landscaped grounds with surface parking and entries from the exterior rather than shared interior corridors. Mid-rise and high-rise types are defined by their height and their reliance on elevators and interior circulation, and townhouse product is attached multi-level homes with individual entries, so the described site is garden-style.

    Source: NAAEI CAM Reference Guide — housing types: garden, low-rise, mid-rise, high-rise, townhouseReport a problem with this question

13. 13. A manager is building the rental matrix and must set the premium for third-floor units overlooking the courtyard. What is the BEST basis for the amount of that premium?

    • A.A flat percentage of base rent applied uniformly to every premium feature across the community.
    • B.The construction cost of the feature spread across the expected useful life of the improvement.
    • C.The highest premium that any competing community publishes for a comparable feature in its schedule.
    • D.What prospects in this submarket actually pay for the feature, tested against demand.✓ Answer

    A unit-amenity premium in the rental matrix is a market price, so it is set by what prospects demonstrably pay for that feature and validated by whether the units carrying it still lease at an acceptable pace. Cost to build is a sunk expense the market does not reimburse, a uniform percentage ignores that features differ in value, and copying a competitor's published premium imports their demand conditions instead of measuring yours.

    Source: NAAEI CAM V2 Exam Blueprint — rental matrix and unit amenity pricing under supply and demandReport a problem with this question

14. 14. One floor plan, the 1,150-square-foot two-bedroom, sits at 82% occupancy while every other plan at the community is above 95%. What should the manager do FIRST?

    • A.Shift the advertising budget toward that plan and feature it in every listing until it absorbs.
    • B.Add a unit amenity package to that plan so it can be repositioned above the other two-bedrooms.
    • C.Reduce the asking rent on that plan immediately until its occupancy matches the other plans.
    • D.Compare that plan's rent per square foot and its features against competing plans in the submarket.✓ Answer

    One plan lagging a healthy property by thirteen points is a product or pricing problem specific to that plan, and rent per square foot against the same plan type at competitors is what identifies which of the two it is. Cutting rent, buying advertising or adding amenities all commit money to a remedy before the diagnosis exists, and if the plan is mispriced relative to its size the discount simply becomes permanent.

    Source: NAAEI CAM V2 Exam Blueprint — floor-plan analysis and identifying underperforming plansReport a problem with this question

15. 15. Marketing wants to align the community's features with the residents it actually attracts. Which information describes resident PSYCHOGRAPHICS rather than demographics?

    • A.What residents value in a home, how they spend leisure time and how they prefer contact.✓ Answer
    • B.The count of residents by unit type and the length of tenancy shown on the current rent roll.
    • C.The age, household size and income range residents report on their rental applications.
    • D.The neighborhoods residents lived in before signing and how far those were from the property.

    Demographics describe who residents are in measurable categories such as age, household size, income and prior location, while psychographics describe how they live and what they value, including lifestyle, priorities and preferred channels of communication. Psychographics is what tells the manager which features to feature and where to place the message, which is why the current blueprint language asks for resident psychographics rather than a resident profile.

    Source: NAAEI CAM V2 Exam Blueprint — aligning resident psychographics with property features and marketingReport a problem with this question

16. 16. An owner holding the asset long term wants a better return without a major capital outlay. Which action is MOST likely to raise return in the near term?

    • A.Replace every unit's appliances with premium models and raise renewal rents on all plans.
    • B.Add a resort-style amenity package funded out of this year's property operating budget.
    • C.Shorten the days a vacant unit spends in make-ready so rent-ready units lease sooner.✓ Answer
    • D.Lower asking rents across all plans to lift physical occupancy above the submarket average.

    Every day a vacant unit sits in make-ready is a day of rent the property can never recover, so compressing turn time converts demand the community already has into collected revenue with little or no capital spent, which lifts net operating income and therefore return. Premium appliances and a resort amenity package spend money for an uncertain premium, and an across-the-board rent cut gives up revenue to buy occupancy the property may not need.

    Source: NAAEI CAM V2 Exam Blueprint — identifying how to maximize return on investmentReport a problem with this question

17. 17. Reviewing lead sources for the quarter, a manager finds source one spent $4,500 and produced 15 leases, source two spent $2,400 and produced 6 leases, and source three spent $3,000 and produced 12 leases. Which source was the MOST effective, and why?

    • A.Source one, because the largest spend reached the widest audience of prospects.
    • B.Source one, at $300 per lease, because it produced the most signed leases.
    • C.Source two, at $400 per lease, because it required the smallest total spend.
    • D.Source three, at $250 per lease, the lowest cost per lease of the three.✓ Answer

    Effectiveness of a marketing tool is judged on cost per lease, which is source spend divided by leases produced: $4,500 divided by 15 is $300, $2,400 divided by 6 is $400, and $3,000 divided by 12 is $250. The source producing the most leases is not automatically the most efficient, and the smallest budget can be the least efficient, so volume and spend on their own tell the manager nothing about where the next dollar should go.

    Source: NAAEI CAM V2 Exam Blueprint — evaluating marketing tools by cost per leaseReport a problem with this question

18. 18. A resident gives notice on March 1 and vacates on March 31. Make-ready work runs April 1 through April 6. A new resident signs on April 3 with a move-in date of April 12, and rent on the new lease begins on the move-in date. How many days of vacancy loss does the unit produce in April?

    • A.11 days✓ Answer
    • B.9 days
    • C.12 days
    • D.6 days

    The unit generates no rent from April 1 through April 11, which is 11 days, because rent on the new lease begins April 12. Make-ready accounts for only the first six of those days: the unit was rent-ready on April 7 and still produced nothing for five more days, which is why turn time and the gap between rent-ready and rent-start are tracked as separate causes of vacancy loss.

    Source: NAAEI CAM V2 Exam Blueprint — unit transitions and vacancy loss from notice through make-readyReport a problem with this question

19. 19. Documenting the physical asset for a property evaluation, the manager separates land components from building components. Which item belongs to the LAND component?

    • A.The roof covering, exterior siding and windows
    • B.The corridors, stairwells and unit interiors
    • C.The site grading, storm drainage and paved parking areas✓ Answer
    • D.The boilers, water heaters and HVAC equipment

    Land components are the site itself and the improvements made to it, including grading, storm drainage, paving, landscaping and site utilities, while building components are the structure and its systems: roof, envelope, interiors and mechanical equipment. The split matters because the two groups age, are inspected and are funded on different schedules, so a property evaluation and a capital plan have to address them separately.

    Source: NAAEI CAM V2 Exam Blueprint — identifying the physical asset: land and building componentsReport a problem with this question

20. 20. A resident survey shows the fitness center is the most-used amenity, while prospects rarely mention it and instead name in-unit washer and dryer connections as the reason they chose their unit. What is the BEST use of this information?

    • A.Remove the fitness center from marketing materials and convert that space into leasable square footage.
    • B.Add connections to every unit and cut fitness center hours to reduce the property's operating expense.
    • C.Feature and price the washer and dryer connections in marketing, and keep the fitness center for retention.✓ Answer
    • D.Raise rents across every unit because both amenities are valued by residents and prospects alike.

    Amenities divide into rent drivers, which prospects will pay for at the point of leasing, and satisfaction drivers, which keep existing residents renewing. The connections belong in pricing and advertising because that is where they earn revenue, while the fitness center earns its keep through retention, so cutting it or hiding it trades away renewals without gaining any leasing advantage.

    Source: NAAEI CAM V2 Exam Blueprint — amenities and features: effect on leasing and on resident satisfactionReport a problem with this question

Practice questions based on the NAAEI CAM V2 Exam Blueprint and standard apartment-management practice. CAM and NAAEI are marks of the National Apartment Association; this site is not affiliated with or endorsed by NAA or NAAEI. The credential itself requires CAM coursework plus 12 months of onsite property management experience, which may be earned while you take the course. Fair housing questions here cover the federal protected classes; landlord-tenant rules, and the protected classes added on top of the federal set, are state and local law and are not covered — check the law where your community sits. Confirm current requirements with NAAEI before testing. About the CAM credential →