NAA CAM flashcards

33 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. It excludes debt service, capital expenditures, depreciation, and income taxes, making it the standard measure for comparing property performance.

Cap Rate

Net operating income divided by property value. Rearranged, value equals NOI divided by cap rate, so a lower cap rate implies a higher valuation for the same income stream.

Economic Occupancy

Collected rent divided by gross potential rent. Unlike physical occupancy, it reflects vacancy loss, concessions, and delinquency, so it shows real revenue performance.

Debt Service Coverage Ratio

Net operating income divided by annual debt service. Lenders commonly require 1.20x or higher, meaning income must exceed loan payments by a safety margin.

Operating Expense Ratio

Operating expenses divided by effective gross income. A lower ratio signals more efficient operations, but ratios vary widely by property type, age, and utility structure.

Cash-on-Cash Return

Annual pre-tax cash flow divided by total cash invested. It measures the return on equity actually contributed, after debt service, rather than the return on total property value.

Delinquency Aging Buckets

Past-due balances grouped by days outstanding, typically 0-30, 31-60, 61-90, and 90-plus. Aging reveals collectability risk better than a single total balance figure.

Cost Per Lease

Total marketing spend divided by leases signed, calculated per channel. It lets managers shift budget toward sources that produce leases rather than raw traffic.

Net Effective Rent

Total rent collected over the lease term minus concessions, divided by the number of months. It normalizes deals with free rent so pricing can be compared fairly.

Lead-to-Lease Conversion

Leases signed divided by qualified leads for a period. Tracking it by source and by leasing agent shows where the funnel leaks and where coaching is needed.

Fair Housing Advertising Rule

Ads must describe the property, amenities, and lease terms, not the preferred resident. Phrases implying preference by family status, religion, or national origin create discrimination exposure.

Guest Card

The record capturing a prospect's contact information, traffic source, budget, unit type, and desired move-in date. Consistent capture enables follow-up and conversion analysis.

Renewal Rate

Units renewed divided by units expiring during the period. It is the core retention metric and should be reviewed by unit type and expiration month.

Lease Expiration Management

Spreading lease expirations across months so vacancy and pricing pressure are not concentrated in a single season. It supports steadier occupancy and renewal pricing.

Reasonable Accommodation

A change in rules, policies, or services needed by a resident with a disability. Requests must be evaluated case by case, and the analysis and outcome documented.

Security Deposit Disposition

Returning the deposit with an itemized list of deductions within the state's statutory deadline. Photos and invoices should support each deduction to withstand disputes.

Move-In Inspection

A documented walkthrough of unit condition at move-in, signed by the resident. It reduces later disputes over damage and clarifies maintenance responsibility.

Employee Turnover Rate

Separations divided by average headcount for the period. Voluntary and involuntary separations should be reported separately because they signal different management issues.

FLSA Overtime Rule

Nonexempt employees must receive 1.5 times their regular rate for hours over 40 in a workweek. Employers should require pre-approval and track hours accurately.

Progressive Discipline

A documented sequence of warnings escalating to termination, applied consistently across staff. Each step should be written, dated, and acknowledged by the employee.

On-Call Pay Compliance

Compensation for after-hours availability and emergency call-outs must follow state wage rules, which may require minimum call-out pay or hours-worked treatment.

Essential Functions

The core duties a job requires, listed in the job description with physical requirements. They support hiring defensibility and accommodation analysis under disability law.

Fair Housing Protected Classes

Federal protections cover race, color, religion, sex including sexual orientation and gender identity, national origin, familial status, and disability. State and local laws often add classes.

Housing for Older Persons Exemption

The 55-and-over exemption requires at least 80 percent of occupied units to have an occupant 55 or older, plus published and consistently followed verification policies.

Lead-Based Paint Disclosure

Sellers and landlords of pre-1978 housing must disclose known lead hazards and provide the EPA pamphlet. Renters get a 10-day period to test, which can be waived in writing.

Adverse Action Notice

Required notice when a consumer report leads to denial or adverse terms. It must identify the reporting agency and explain the applicant's dispute rights.

Certificate of Insurance

Proof that a vendor carries required coverage, naming the property as additional insured. It should be collected and verified before any work begins on site.

Work Order Priority Levels

Emergency items involve habitability or safety and get immediate response; urgent items typically 24-48 hours; routine requests 3-7 days. Priorities should be written in policy.

Preventive Maintenance Calendar

A scheduled list of recurring tasks such as filter changes, inspections, and equipment servicing. Completion rates are tracked against the annual plan to prevent emergency failures.

Make-Ready Timeline

The sequence of paint, cleaning, carpet, and repairs needed to turn a vacated unit. Days-to-ready is measured against budget and directly affects vacancy loss.

Capital Versus Operating Expense

Replacements that extend useful life are capitalized and depreciated; routine repairs are expensed in the period. Misclassification distorts NOI and capital planning.

Life Safety System Inspections

Fire alarms, extinguishers, sprinklers, and elevators require scheduled inspections by licensed vendors under local code. Records of each inspection should be retained.

Utility Benchmarking

Comparing utility cost per unit or per square foot against prior periods and peers. It reveals abnormal consumption, leaks, and savings opportunities in energy and water.