NAA CAM key terms

A property's effective rental income plus other income, minus operating expenses, before debt service, income tax, and capital expenditures. It is the core measure used to compare property performance and estimate value.

A property's net operating income divided by its purchase price or market value, expressed as a percentage. Buyers use it to compare investment returns and to estimate value from income.

Total operating expenses divided by effective gross income. A lower ratio generally signals tighter cost control, but unusually low ratios can indicate deferred maintenance or understaffing that hides future costs.

A monthly comparison of actual income and expenses against the approved budget, showing dollar and percentage differences. Managers investigate large unfavorable variances and explain them to ownership with corrective action plans.

The annual financial plan projecting rental income, other income, and operating expenses by line item for a property. It becomes the benchmark for monthly variance reporting and owner reporting throughout the year.

Recording an expense in the period it was incurred even though the invoice has not yet been paid or received. Accruals keep monthly financial statements accurate and prevent expenses from distorting the wrong period.

Rent and other charges that remain unpaid after the due date, usually expressed as a percentage of total billings. Managers track aging, send notices per policy, and escalate to collection or legal action on schedule.

A report listing every unit with its resident, lease dates, market rent, actual rent, concessions, deposits, and balance owed. It is the primary snapshot of occupancy, income, and collection status.

The percentage of units that are physically occupied, calculated as occupied units divided by total units. It differs from economic occupancy, which compares collected rent to potential rent.

Collected rental revenue divided by potential rent at market rates, capturing losses from vacancy, concessions, delinquency, and non-revenue units. It reveals revenue leakage that physical occupancy figures hide.

A rent reduction or incentive such as free rent, waived fees, or a gift card offered to attract or retain residents. Concessions raise physical occupancy but reduce effective rent and must be tracked in reporting.

The rent a comparable unit would command in the current local market, based on competitor surveys and recent lease signings. It anchors pricing decisions and is compared with actual rent to find loss-to-lease.

The difference between a unit's market rent and the rent actually charged under an existing lease. A growing gap suggests renewal pricing lags the market and that rent increases should be considered.

The rent adjustment offered to an existing resident at lease expiration, typically set below the increase quoted to new applicants. It balances retention against revenue growth and must comply with notice rules.

The percentage of expiring leases that are renewed during a period. It is a leading retention indicator, and managers analyze non-renewal reasons to adjust pricing, service, and outreach.

The deliberate effort to keep current residents through responsive service, fair pricing, community events, and timely communication. Retention lowers turnover costs, vacancy loss, and marketing spend.

The combined expense of a vacancy cycle: lost rent, make-ready labor and materials, advertising, and leasing staff time. High turnover justifies investment in retention and faster make-ready processes.

Federal law prohibiting discrimination in housing based on race, color, religion, sex, national origin, familial status, and disability. It governs advertising, screening, showing, pricing, and resident treatment.

A change in rules, policies, practices, or services needed so a person with a disability can use and enjoy a dwelling. Requests are evaluated case by case and documented, and fees cannot be charged for processing.

A neutral policy or practice that disproportionately harms a protected group, even without discriminatory intent. Screening criteria and occupancy standards are reviewed for this risk under fair housing law.

A written limit on how many people may live in a unit, commonly two per bedroom, applied uniformly to all applicants. Standards must be reasonable and consistently enforced to avoid fair housing claims.

An animal that performs tasks or provides assistance for a person with a disability; it is not a pet and no pet fee or breed restriction applies. Documentation rules differ from those for ordinary pets.

Written procedures for verifying and approving disability-related animals, distinguishing them from pets, and handling conflicts with no-pet rules or allergies. Consistent documentation protects the property in complaints.

Federal law governing consumer reports used in screening, including applicant consent, adverse action notices, and dispute rights. Denials based on a report require a timely written notice to the applicant.

A written notice telling an applicant that a screening report contributed to a denial, identifying the reporting agency and their dispute rights. It must be issued promptly and retained as proof of compliance.

Written, uniformly applied standards for income ratio, credit, rental history, and criminal background used to approve or deny applicants. Criteria must be published, consistently applied, and reviewed for discriminatory effect.

The process of cleaning, repairing, and painting a vacated unit so it is ready to lease. Tracking make-ready days shortens vacancy loss and is a key maintenance performance metric.

Scheduled, recurring service such as filter changes, HVAC inspections, and roof checks intended to prevent failures. It reduces emergency repairs, extends equipment life, and supports budget predictability.

Necessary repairs postponed due to budget limits or neglect, accumulating into larger future costs and safety risks. It lowers property value and often appears in reserve studies and capital budgets.

An analysis projecting the remaining useful life and replacement cost of major building components, used to set reserve funding. It guides capital planning and supports lender and buyer due diligence.

Spending on improvements or replacements that extend a property's useful life, such as a roof or appliance package. It is excluded from operating expenses and depreciated over time.

A written record of a maintenance request capturing the unit, problem, priority, assignment, and completion. A disciplined work order system provides response-time tracking and documentation for disputes.

The landlord's legal duty to keep rental units safe, sanitary, and fit for occupancy, covering heat, water, plumbing, and structural condition. Serious failures can justify rent withholding or lease termination.

Shifting potential loss to another party through insurance, indemnification clauses, or vendor contracts. Managers verify certificates of insurance and named insured status before allowing vendors on site.

A document from a vendor's insurer showing coverage types, limits, and expiration dates. Managers confirm the property is named as additional insured and that coverage remains current.

A written account of an injury, property damage, or security event recorded promptly by staff. Facts only, no opinions or admissions, and prompt escalation to the insurer protect the property's position.

A published schedule assigning after-hours emergency response among maintenance staff. It ensures coverage, fair workload distribution, and documented response times for urgent issues like leaks or no heat.

Federal law setting minimum wage, overtime, child labor, and recordkeeping rules. It determines exempt versus nonexempt status and requires accurate time records for hourly maintenance and leasing staff.

A structured sequence of coaching, written warnings, and termination used to correct performance or conduct issues. Documentation at each step supports consistency, fairness, and defensibility if a termination is challenged.

The structured first weeks of a new hire's employment covering paperwork, policies, systems training, and shadowing. Strong onboarding shortens time to productivity and improves early retention.