ARM (IREM) cheat sheet

Management agreements typically define services, authority, fees, owner reporting, term, termination, and owner obligations.

Occupancy rate = occupied rentable units ÷ rentable units × 100.

Economic occupancy = rent collected ÷ gross potential rent × 100.

Turnover rate = move-outs in period ÷ average unit count × 100.

Average days vacant = total vacant unit-days ÷ number of move-ins.

Owner statements report income, expenses, net operating income, cash flow, reserves, occupancy, and delinquency.

Assistance animals are not pets; pet fees and pet deposits do not apply, but damage charges may apply.

Retention periods for leases, applications, and work orders are set by law and company policy.

Closing ratio = leases signed ÷ qualified prospects toured × 100.

Cost per lease = marketing spend ÷ leases signed in the same period.

Vacancy loss = vacant unit-days × daily rent.

Net effective rent = total rent collected over lease ÷ lease months after concessions.

Fair housing advertising describes the property and amenities, not preferred resident characteristics.

Screening criteria must be written, applied consistently, and related to rental qualification.

Adverse action notices state the denial reason and required disclosures.

Source tracking asks each prospect how they heard about the property.

NOI = effective gross income − operating expenses.

EGI = gross potential rent − vacancy and credit loss + other income.

Cap rate = NOI ÷ property value; value = NOI ÷ cap rate.

OER = operating expenses ÷ effective gross income × 100.

DSCR = NOI ÷ annual debt service.

Budget variance = actual − budget; expense under budget is favorable, expense over budget is unfavorable.

Delinquency rate = delinquent rent ÷ total rent billed × 100.

Break-even occupancy = (operating expenses + debt service) ÷ gross potential rent × 100.

Emergency work orders include life safety hazards, no heat, no water, and active water leaks.

Preventive maintenance follows manufacturer intervals, code requirements, and equipment history.

Incident reports record facts, time, people involved, witnesses, and immediate actions taken.

Vendors should provide a certificate of insurance before starting work.

Risk transfer uses contracts, indemnification, insurance, and vendor requirements.

Habitability requires working heat, water, sanitation, security, and timely repairs.

Master keys are logged out and in; units are rekeyed after move-out or key loss.

A reserve study estimates timing and cost of capital repairs and replacements.

Federal protected classes are race, color, religion, sex, national origin, familial status, and disability.

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

The IREM Code of Ethics sets obligations to the public, clients, employers, and peers.

Interview questions must be job-related and must not ask about protected classes.

Harassment is unwelcome conduct based on protected characteristics or other legally protected status.

Retaliation against a person who reports discrimination or harassment is prohibited.

Confidential resident, applicant, owner, and employee information is shared only as authorized or required.

Nonexempt employees are entitled to minimum wage and overtime; exempt status depends on duties and salary tests.