NAA CAPS flashcards
NAA CAPS · Build recall with a focused review session.
32 cards. Read the term and the definition here. The deck at the top of this page is optional.
- Net Operating Income (NOI)
- Income after operating expenses but before debt service, capital expenditures, depreciation, and income taxes; key measure of property profitability.
- Effective Gross Income
- Potential gross income minus vacancy and collection losses plus other income; represents realistic income for the property.
- Operating Expense Ratio
- Operating expenses divided by effective gross income; indicates efficiency but varies by property type and age.
- Economic Occupancy
- Collected rent divided by potential rent; reflects concessions, delinquency, and vacancy, giving a truer revenue picture than physical occupancy.
- Preventive Maintenance
- Scheduled inspections and servicing to prevent breakdowns; reduces emergency repairs and extends equipment life.
- Portfolio Diversification
- Spreading investments across property types, locations, and tenants to reduce unsystematic risk.
- Capitalization Rate
- NOI divided by property value; used to estimate value or compare investment returns. Value equals NOI divided by cap rate.
- Gross Rent Multiplier
- Property price divided by gross annual rent; a quick comparison tool that ignores operating expenses and financing.
- Cash-on-Cash Return
- Annual pre-tax cash flow divided by total cash invested; measures return on equity for income-producing property.
- Debt Service Coverage Ratio
- NOI divided by annual debt service; lenders typically require 1.20x or higher to approve a loan.
- Loan-to-Value Ratio
- Loan amount divided by appraised value; lower LTV reduces lender risk and may lead to better loan terms.
- Internal Rate of Return
- Discount rate that makes net present value of all cash flows equal zero; used to evaluate total return including sale proceeds.
- Budget Variance Analysis
- Comparing actual results to budgeted amounts; investigate significant variances to understand causes and adjust forecasts.
- Break-Even Occupancy
- Occupancy level at which income covers operating expenses and debt service; calculated as (operating expenses + debt service) divided by potential gross income.
- Situational Leadership
- Adjusting leadership style (directing, coaching, supporting, delegating) based on follower competence and commitment.
- SMART Goals
- Specific, measurable, achievable, relevant, and time-bound objectives used for performance management and planning.
- Progressive Discipline
- Stepwise process from verbal warning to written warning, suspension, and termination; each step documented.
- Fair Housing Act
- Federal law prohibiting discrimination in housing based on race, color, religion, sex, national origin, familial status, or disability.
- Quid Pro Quo Harassment
- Harassment where submission to unwelcome conduct is made a condition of employment or used as basis for employment decisions.
- Hostile Work Environment
- Harassment severe or pervasive enough to create an intimidating, hostile, or offensive work environment.
- Delegation
- Assigning responsibility and authority to a subordinate while retaining accountability; requires clear expectations and resources.
- Conflict Resolution
- Separating people from the problem, focusing on interests, generating options, and using objective criteria to reach agreement.
- Property Management Agreement
- Contract specifying scope of services, fees, authority, reporting, and termination; defines relationship between owner and manager.
- Fiduciary Duty
- Legal obligation of an agent to act in the principal's best interest, including loyalty, disclosure, confidentiality, and accounting.
- REIT
- Real Estate Investment Trust must distribute at least 90% of taxable income and derive 75% of income from real estate.
- Asset Management
- Focuses on long-term value creation through strategic planning, capital allocation, and performance monitoring.
- Reserve Study
- Analysis estimating replacement costs and timing of major components; used to set reserve funding levels.
- Property Tax Appeal
- Process to challenge assessed value; requires evidence such as comparable sales or independent appraisal.
- Risk Management Process
- Identify, assess, control, monitor, and review risks to minimize potential losses and maximize opportunities.
- Risk Control Techniques
- Avoidance, reduction, transfer (insurance), and retention; used to manage identified risks.
- Reasonable Accommodation
- Fair housing requirement to modify rules, policies, or procedures for a person with a disability, absent undue hardship.
- Lead-Based Paint Disclosure
- Federal requirement for pre-1978 housing to disclose known lead paint hazards and provide EPA pamphlet to buyers or tenants.