Certified Apartment Portfolio Supervisor (CAPS) Practice Exam - Module 2

What is a CAPS responsible for when a property is under receivership?

1. Advising the owner on rental rates

2. Handling hiring freezes and managing unpaid vendors

3. Reorganizing property ownership

4. Managing exterior property renovations

The correct answer is: Handling hiring freezes and managing unpaid vendors

The responsibility of handling hiring freezes and managing unpaid vendors is crucial when a property is under receivership. In this context, receivership typically occurs when a property is in financial distress, and a court appoints a receiver to manage its operations. The receiver's primary goal is to stabilize the property’s financial situation and ensure that it continues to function. Managing unpaid vendors is particularly important as it directly impacts the property's operations. The receiver must navigate financial constraints, which often involve prioritizing certain expenses and potentially freezing hiring to control costs. This financial oversight ensures that the day-to-day functions of the property can continue without exacerbating its financial difficulties. On the other hand, advising the owner on rental rates, reorganizing property ownership, or managing exterior property renovations are not primary responsibilities of a receiver. These tasks may fall outside the immediate scope of a receiver's role, which focuses instead on maintaining stability and addressing urgent financial issues. Thus, the emphasis on managing day-to-day operations and vendor relationships makes handling hiring freezes and unpaid vendors the most relevant responsibility during receivership.