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

What should you track to assess turnover trends in an apartment portfolio?

1. Occupancy numbers

2. Monthly rental payments

3. Utilities costs

4. Marketing strategies

The correct answer is: Occupancy numbers

Tracking occupancy numbers is essential for assessing turnover trends in an apartment portfolio because occupancy rates directly reflect how many units are rented versus how many are vacant over time. A decrease in occupancy can indicate higher turnover rates, suggesting that tenants are leaving the property more frequently. By monitoring these numbers, property managers can identify patterns, such as seasonal fluctuations or the impact of external factors influencing tenant retention. In contrast, monthly rental payments, utilities costs, and marketing strategies do not provide direct insight into tenant turnover. Rental payments are more indicative of cash flow than turnover, utilities costs relate to operational expenses, and marketing strategies focus on attracting new tenants rather than assessing how many are leaving. Therefore, prioritizing the tracking of occupancy numbers offers the most relevant data for understanding turnover trends in the portfolio.