AIC CAC flashcards
AIC CAC · Build recall with a focused review session.
32 cards. Read the term and the definition here. The deck at the top of this page is optional.
- Net Operating Income
- Effective gross income minus operating expenses. Excludes debt service, income taxes, depreciation, and capital expenditures, so it measures property performance independent of financing.
- Effective Gross Income
- Gross potential rent minus vacancy and credit loss, plus other income such as fees, pet rent, and laundry. It is the revenue base used to compute operating expense ratios.
- Management Agreement
- Written contract appointing the manager as the owner's agent. It sets scope of services, fee structure, spending authority, reporting requirements, and termination terms.
- Reserve for Replacement
- Funds set aside from operations for future capital replacement of components like roofs, HVAC, and paving. Sized from a component schedule, not from current repair needs.
- Operating Expense Ratio
- Total operating expenses divided by effective gross income, expressed as a percentage. Used to compare a property against its own history and its competitive set.
- Physical vs Economic Occupancy
- Physical occupancy counts occupied units over total units. Economic occupancy measures rent collected over gross potential rent, capturing concessions and delinquency that physical counts miss.
- Turnover Rate
- Move-outs in a period divided by average units, annualized. High turnover signals pricing, service, or retention problems and drives make-ready cost.
- Traffic-to-Lease Ratio
- Leases signed divided by qualified prospects in a period. A rising ratio points to pricing or closing issues rather than insufficient marketing traffic.
- Concession Amortization
- Spreading the cost of free rent or waived fees across the lease term so effective rent reflects true revenue rather than the face rent on the lease.
- Rent-Ready Days
- Days between move-out and a unit being ready to lease, including cleaning, painting, and repairs. It links maintenance speed directly to vacancy loss.
- Protected Classes
- Categories shielded from housing discrimination. Federal classes are race, color, religion, sex, national origin, familial status, and disability; state and local laws often add more.
- Reasonable Accommodation
- A change in rules, policies, practices, or services so a person with a disability can use and enjoy the dwelling. Example: assigning an accessible parking space.
- Reasonable Modification
- A structural or physical change to a unit or common area, usually at the resident's expense, that allows a person with a disability full use of the premises.
- Familial Status
- A protected class covering households with children under 18, pregnant persons, and persons securing legal custody. Occupancy standards cannot be used to exclude these households.
- Disparate Impact
- A neutral policy that disproportionately harms a protected group and is not justified by business necessity. Screening and occupancy rules must be defensible on objective grounds.
- Reasonable Occupancy Standard
- A limit on residents per unit based on unit size, configuration, and objective factors, applied uniformly. It may not be used to exclude families with children.
- Service Request Tiers
- Written urgency categories with response targets: emergency handled immediately, urgent within 24 hours, routine within three to five business days.
- Renewal Rate
- Renewals divided by leases expiring in the period. Retention is cheaper than turnover, so renewal rate is a primary measure of resident satisfaction and operational health.
- Deposit Accounting Rules
- State law governs how long deposits are held, whether interest accrues, and the deadline and itemization required for refund statements after move-out.
- Complaint Resolution Loop
- A documented cycle: acknowledge the complaint, investigate, take action, confirm resolution with the resident, and log the outcome for trend analysis.
- Move-In Inspection
- A documented walkthrough recording unit condition at move-in. It establishes the baseline for deposit deductions and protects both resident and owner in disputes.
- Variance Analysis
- Comparing actual results to budget and prior year, then labeling each difference as timing, volume, rate, or one-time so the cause is actionable.
- Delinquency Ratio
- Past-due balances divided by total billed rent, tracked in aging buckets of 0-30, 31-60, 61-90, and over 90 days.
- Cash Flow Before Debt Service
- Net operating income minus capital expenditures, debt service, and reserve funding. It shows what remains for owner distributions after all obligations.
- Expense Benchmarking
- Comparing operating costs per unit or per square foot rather than as raw totals, so properties of different sizes can be evaluated on equal footing.
- Gross Potential Rent
- Total units times market rent times twelve, adjusted for the actual rent roll and scheduled increases. It is the starting point of the revenue budget.
- Preventive Maintenance
- Scheduled servicing of equipment and building systems to extend life and prevent failures. Work orders are tracked by category and completion time.
- Habitability Obligation
- The legal duty to keep units safe and functional, including heat, water, plumbing, and common areas. Breach creates repair-and-deduct and liability exposure.
- Certificate of Insurance
- Proof that a vendor carries required coverage and limits, naming the owner as additional insured. Collect before work begins and track expiration dates.
- Emergency Maintenance
- Conditions requiring immediate response: no heat, no water, sewage backup, gas leak, fire damage, or lockout. Document the call, response, and resolution.
- Fiduciary Duty
- The manager's obligation to act in the owner's interest through loyalty, disclosure, confidentiality, obedience within lawful authority, and accurate accounting of funds.
- Trust Fund Commingling
- Mixing resident deposits or owner funds with the manager's operating money. Prohibited; trust funds must sit in a designated account.