NAA CAM cheat sheet

Net Operating Income (NOI) = Effective Gross Income − Operating Expenses; NOI excludes debt service, capital expenditures, depreciation, and income taxes.

Effective Gross Income = Gross Potential Rent − Vacancy and Collection Loss + Other Income (fees, parking, laundry, pet rent).

Operating Expense Ratio = Operating Expenses ÷ Effective Gross Income; a lower ratio indicates more efficient operations.

Economic Occupancy = Collected Rent ÷ Gross Potential Rent; Physical Occupancy = Occupied Units ÷ Total Units - economic occupancy captures concessions and delinquency.

Cap Rate = NOI ÷ Property Value; rearranged, Value = NOI ÷ Cap Rate, so a 50-basis-point cap rate compression raises value materially.

Cash-on-Cash Return = Annual Pre-Tax Cash Flow ÷ Total Cash Invested; Debt Service Coverage Ratio = NOI ÷ Annual Debt Service, with lenders commonly requiring 1.20x or higher.

Budget variance analysis compares actual to budget monthly; flag line items exceeding roughly 5% or a fixed dollar threshold and explain the driver.

Delinquency Rate = Total Past-Due Balance ÷ Total Rent Billed; track 0-30, 31-60, 61-90, and 90+ day buckets separately.

Turnover cost per unit combines lost rent during vacancy, make-ready labor and materials, leasing commissions, and advertising.

Cost Per Lease = Total Marketing Spend ÷ Number of Leases Signed; evaluate each channel separately to allocate budget.

Fair Housing marketing rules: advertise the unit and amenities, not a preference for families, religion, national origin, or disability status; avoid phrases like "perfect for young professionals."

Occupancy Percentage = Occupied Units ÷ Total Units; Economic Occupancy adds collection and concession effects.

Lead-to-Lease Conversion = Leases Signed ÷ Qualified Leads; benchmark traffic sources by conversion, not just volume.

Required advertising content typically includes rent, deposit, unit size, and material conditions; omit only where a unit is clearly exempt.

Concession cost is amortized over the lease term: a one-month free concession on a 12-month lease reduces effective monthly rent by roughly 7.7%.

Net Effective Rent = (Total Rent Collected over Lease Term − Concessions) ÷ Lease Term in Months.

Guest card data must be captured consistently: source, unit type, budget, move-in date, and follow-up disposition.

Renewal Rate = Units Renewed ÷ Units Expiring during the period; track by unit type and lease expiration month.

Lease expiration management spreads expirations across months to avoid seasonal vacancy concentration and pricing pressure.

Fair housing applies to resident interactions: consistent screening criteria, uniform enforcement of rules, and documented responses to accommodation requests.

Reasonable accommodation/modification requests for disability must be evaluated case-by-case; documentation of the decision is required.

Response time standards should be written into policy (for example, 24-hour acknowledgment of complaints) and logged in the property management system.

Retention cost is generally lower than acquisition cost; compare turnover cost per unit against renewal increases when setting renewal pricing.

Security deposit disposition must follow state statute timelines and itemized deductions; keep photos and invoices in the resident file.

Notice to vacate, move-out inspection, and forwarding address collection should follow a standard checklist to reduce deposit disputes.

Employee turnover rate = Separations ÷ Average Headcount for the period; compare voluntary versus involuntary separately.

Onsite staffing ratios vary by unit count and property type; document the workload basis (units per leasing consultant, units per maintenance tech) rather than a fixed rule.

Fair Labor Standards Act: nonexempt employees must be paid overtime at 1.5x the regular rate for hours over 40 in a workweek; overtime must be pre-approved per policy.

Job descriptions should list essential functions, physical requirements, and reporting relationships to support ADA and hiring defensibility.

Documented progressive discipline typically follows verbal warning, written warning, final warning, termination, with consistent application across staff.

On-call and emergency response pay must comply with state wage rules; some states require minimum call-out pay.

Fair housing and harassment training should be documented with dates and signatures for every team member, including temporary staff.

Fair Housing Act prohibits discrimination based on race, color, religion, sex (including sexual orientation and gender identity per HUD interpretation), national origin, familial status, and disability.

The 55+ housing exemption requires that at least 80% of occupied units have at least one occupant 55 or older and that the property publish and follow verified policies.

Habitability and repair obligations: respond to habitability issues (heat, water, security) within statutory timeframes, often 24-72 hours depending on jurisdiction.

Lead-based paint disclosure is required for pre-1978 housing; provide the EPA pamphlet and disclose known hazards, with a 10-day buyer/renter acknowledgment period.

Mold, bed bug, and pest incidents should be documented with inspection records, treatment invoices, and resident notification letters.

Incident reports should be completed the same day, factual and non-conclusory, and retained per record retention policy.

Insurance basics: general liability, property, and umbrella coverage; verify vendor certificates of insurance with additional insured status before work begins.

Data privacy: protect resident PII, limit access to screening and payment data, and follow breach notification laws if a compromise occurs.

Preventive maintenance schedules reduce emergency work orders; track completion rates against the annual PM calendar.

Work order prioritization: emergency (habitability/safety, respond immediately), urgent (24-48 hours), routine (typically 3-7 days).

Make-ready timeline standard: paint, clean, carpet, and repair sequence; target days-to-lease-ready and measure against budget.

Deferred maintenance is a capital planning risk; use reserve studies or capital needs assessments to forecast roof, HVAC, and paving replacements.

Physical condition inspections (unit walks, curb appeal, common area) should be documented with photos and corrective action dates.

HVAC filter changes, water heater flush, and roof/gutter inspections are baseline PM tasks; frequency depends on equipment and climate.

Capital expenditure versus operating expense: replacements that extend useful life are capitalized; routine repairs are expensed.

Vendor management: scope of work, bid comparison, insurance verification, completion sign-off, and invoice matching before payment.

Rent roll accuracy is foundational: reconcile rent roll to general ledger monthly and investigate variances over a set threshold.

Accounts payable controls include purchase order approval, three-way match (PO, receipt, invoice), and segregation of duties between approval and payment.

Cash management: reconcile operating and security deposit accounts monthly; security deposits must be held per state trust account rules.

Budgeting process: start from trailing 12-month actuals, adjust for known contract escalations, insurance renewals, and payroll changes.

Revenue management uses occupancy, exposure, and competitor comps to set asking rents; concessions are a lever when physical occupancy lags.

Utility recovery: RUBS or submetering allocations must comply with state and local rules and be disclosed in the lease.

Monthly financial package typically includes income statement, budget variance, rent roll, delinquency, and occupancy reporting.

Fair housing advertising: avoid words describing the ideal resident; describe the property, amenities, and lease terms instead.

Online reputation management: respond to reviews factually and without disclosing resident information; never confirm tenancy in a public reply.

Model unit and curb appeal drive conversion; photograph the actual unit type being advertised and update listings when pricing changes.

Follow-up cadence: contact each lead within 24 hours, then at defined intervals; log every touch in the CRM.

Application screening criteria must be applied uniformly: income multiple (commonly 2.5-3x rent), credit, rental history, and criminal history per written policy.

Lease terms should specify rent, deposit, late fees, utilities, pet policy, and renewal terms; verify state limits on late fees and deposits.

Resident satisfaction surveys should be tied to action: review results monthly and assign follow-up owners for detractor responses.

Move-in orientation reduces future work orders and disputes; document the condition of the unit with a signed move-in inspection.

Renewal outreach typically begins 90-120 days before expiration; earlier contact improves retention and pricing flexibility.

Communication channels (portal, text, email) must be consistent and documented; verbal promises should be confirmed in writing.

Complaint escalation path should be defined: leasing staff, community manager, regional manager, with timelines for each level.

Transfer and early termination policies should be written, uniformly applied, and consistent with state law and the lease.

Hiring process: consistent interview questions, background and reference checks per policy, and documented selection rationale.

Compensation benchmarking uses local market data; review salaries annually and document the basis for increases.

Performance reviews should be tied to measurable goals (occupancy, delinquency, work order completion) and delivered on schedule.

Leave administration (FMLA, sick leave, state paid leave) requires tracking eligibility, notice, and documentation.

Workplace safety: OSHA recordkeeping applies to employers above size thresholds; report and investigate injuries promptly.

Team meetings and one-on-ones should have agendas and notes to support accountability and defensibility.

Screening and adverse action: if a consumer report drives a denial, provide an adverse action notice with the reporting agency's name and dispute rights.

Fair housing testing and complaints: preserve records, cooperate with investigations, and avoid retaliatory action against complainants.

Reasonable accommodation requests must be processed even without specific legal language; document the request, analysis, and outcome.

Contractor and vendor risk: require W-9, insurance certificates, licenses where required, and written scope before work begins.

Emergency preparedness: maintain evacuation plans, contact trees, and posted emergency numbers; test plans periodically.

Record retention: keep leases, applications, and screening records per state and federal requirements; do not destroy records under investigation.

Work order metrics: track average days to completion, callback rate, and cost per work order to spot efficiency issues.

Inventory control: set par levels for filters, parts, and supplies; reconcile usage monthly against work order volume.

Life safety systems (fire alarms, extinguishers, sprinklers, elevators) require scheduled inspections by licensed vendors per code.

Water intrusion and roof leaks should be addressed immediately; delayed response escalates structural and mold risk.

Turnover scope should be standardized by unit type so make-ready costs are predictable and comparable across properties.

Energy and water benchmarking (utility bills per unit, per square foot) identifies savings and abnormal consumption.