CPM cheat sheet

NOI = effective gross income − operating expenses; it excludes debt service, income taxes, depreciation, and capital expenditures.

Value = NOI ÷ cap rate; cap rate = NOI ÷ value.

Effective gross income = potential gross income − vacancy and collection losses + other income.

Cash-on-cash return = before-tax cash flow ÷ equity invested.

DSCR = NOI ÷ annual debt service; a lower DSCR indicates less cushion for lenders.

Operating expense ratio = operating expenses ÷ effective gross income.

Replacement reserves are funded from NOI and are typically budgeted per unit per year or as a percentage of EGI.

Hold-versus-sell analysis compares the IRR of continued ownership with the after-tax proceeds of sale reinvested at the required return.

PV = FV ÷ (1 + r)^n; FV = PV × (1 + r)^n.

NPV = Σ CF_t ÷ (1 + r)^t − initial investment; accept a project when NPV > 0.

IRR is the discount rate at which NPV = 0; accept when IRR ≥ required return.

Loan constant = annual debt service ÷ original loan amount.

Fixed-rate mortgage payment: PMT = P × [i(1 + i)^n] ÷ [(1 + i)^n − 1], with i = periodic rate and n = number of payments.

DSCR = NOI ÷ annual debt service.

Positive leverage occurs when the property's return on assets exceeds the cost of debt; negative leverage occurs when it does not.

Break-even occupancy ≈ (operating expenses + debt service) ÷ gross potential income.

Longer amortization lowers the periodic payment but increases total interest paid.

FLSA exempt employees are salaried, meet duties tests, and are not entitled to overtime; nonexempt employees are entitled to overtime.

Title VII of the Civil Rights Act prohibits employment discrimination based on race, color, religion, sex, or national origin.

ADA requires reasonable accommodation for qualified individuals with disabilities unless it causes undue hardship.

FMLA provides eligible employees up to 12 weeks of unpaid leave in a 12-month period for qualifying reasons, with job protection.

Workers' compensation insurance covers work-related injuries and is generally the exclusive remedy against the employer.

Turnover rate = departures during the period ÷ average headcount during the period.

Cost per hire = total recruiting costs ÷ number of hires.

Progressive discipline typically proceeds from verbal warning to written warning to suspension to termination.

Situational leadership adapts style-directing, coaching, supporting, or delegating-to follower competence and commitment.

Transformational leadership builds commitment through vision and development; transactional leadership uses rewards and punishments.

SMART goals are specific, measurable, achievable, relevant, and time-bound.

Delegation transfers task authority but the manager retains accountability for results.

Maslow's hierarchy: physiological, safety, social, esteem, and self-actualization needs, in that order.

Herzberg: hygiene factors prevent dissatisfaction; motivators produce satisfaction.

Effective feedback is timely, specific, behavior-focused, and directed at observable performance.

Five conflict modes are competing, collaborating, compromising, avoiding, and accommodating.

Gross lease: landlord pays operating expenses; net lease: tenant pays some or all operating expenses.

Triple net (NNN) lease: tenant pays base rent plus its share of taxes, insurance, and maintenance.

CAM reconciliation compares estimated CAM charges with actual expenses; the tenant pays its proportionate share of the difference.

Load factor = rentable area ÷ usable area; rentable area = usable area × load factor.

Percentage rent = (gross sales − breakpoint) × percentage rate.

Effective rent = face rent minus concessions amortized over the lease term.

A lease abstract records key dates, rent escalations, options, exclusives, and tenant and landlord obligations.

Security deposits are governed by state law and typically equal one to two months' rent.

Preventive maintenance is scheduled before failure; reactive maintenance occurs after failure.

A work order records the request, priority, assignment, completion, and cost of maintenance work.

CMMS means computerized maintenance management system, used to schedule and track work orders and assets.

MTTR = total repair time ÷ number of repairs; MTBF = operating time ÷ number of failures.

Deferred maintenance raises life-cycle cost and increases the risk of emergency failures.

Life-cycle costing includes initial, operating, maintenance, and disposal costs over the asset's useful life.

Priority classifications typically separate emergency, urgent, and routine work orders.

HVAC filters are commonly changed quarterly or according to manufacturer specifications.

Trust funds must be kept in a separate account from operating funds and reconciled monthly.

Trust reconciliation compares bank balance, book balance, and tenant ledgers, explaining outstanding checks, deposits in transit, and fees.

The management agreement defines scope of services, term, fee, authority, and termination provisions.

Management fees are often a percentage of collected income or effective gross income.

Variance = actual − budget; a revenue variance below budget is unfavorable, while an expense variance above budget is unfavorable.

Common KPIs include occupancy, delinquency, NOI per unit, and work-order completion time.

Errors and omissions (professional liability) insurance covers negligent acts in providing management services.

Fiduciary duties include loyalty, obedience, disclosure, confidentiality, and accounting.

The marketing mix is product, price, place, and promotion; services add people, process, and physical evidence.

A target market is defined by demographics, psychographics, geography, and behavior.

AIDA: attention, interest, desire, action.

Cost per lead = marketing spend ÷ leads generated.

Conversion rate = leases signed ÷ qualified leads.

Renewal rate = renewals ÷ leases eligible to renew.

Fair housing advertising must avoid words or images that indicate preference based on protected class.

Marketing return on investment = (gross profit from campaign − campaign cost) ÷ campaign cost.

Risk = probability × impact; treatment options are avoid, reduce, transfer, and retain.

Common property coverages include property, general liability, umbrella, errors and omissions, and workers' compensation.

Indemnification and hold-harmless clauses shift specified liabilities by contract.

A certificate of insurance verifies coverage, limits, and additional insured status.

Business income insurance replaces lost net income and continuing expenses after a covered loss.

Subrogation is an insurer's right to recover paid losses from a responsible third party.

Premises liability exposure is reduced by documented inspections and correction of unsafe conditions.

Emergency preparedness follows a cycle of planning, training, drilling, and evaluation.

The triple bottom line evaluates performance across people, planet, and profit.

Energy Star score benchmarks energy performance from 1 to 100 against similar buildings.

LEED certification levels are Certified, Silver, Gold, and Platinum.

Green lease clauses address energy data sharing, cost recovery, alterations, and operating standards.

Life-cycle assessment evaluates environmental impacts from raw material extraction through disposal.

Water conservation measures include low-flow fixtures, leak detection, and irrigation controls.

Indoor environmental quality covers ventilation, volatile organic compound reduction, and daylighting.

Retro-commissioning tunes existing building systems to improve performance and reduce energy use.