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

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Prepare for your Certified Apartment Portfolio Supervisor (CAPS) exam with our comprehensive quiz, designed to test your knowledge and readiness. Get insights and practice questions to enhance your confidence for the exam!

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Which term refers to the total rental income potential when all units are rented at market rate?

Gross Profit Revenue
Gross Potential Rent
Gross Income Potential
Gross Property Revenue

The correct answer is: Gross Potential Rent

The term that refers to the total rental income potential when all units are rented at market rate is Gross Potential Rent. This term specifically captures the maximum amount a property could generate in rental income if all units are occupied and rented at the established market rates, without accounting for vacancies, concessions, or any rental losses. Understanding this term is crucial for property management and real estate professionals, as it helps them evaluate the maximum income a property is capable of producing. It serves as a benchmark for performance measures and helps in setting goals for actual rental income, as well as in managing expectations regarding financial performance. In contrast, other terms mentioned may relate to income generation but do not specifically define the maximum potential rental income derived from renting all units at market rates.