1|Page
CERTIFIED APARTMENT MANAGER (CAM)
ACTUAL EXAM PREP 2026 ALL QUESTIONS
AND CORRECT DETAILED ANSWERS ALREADY
A GRADED WITH EXPERT FEEDBACK |NEW
AND REVISED
What is a corporate apartment? - ANSWER- A fully furnished
apartment equipped with all necessary amenities.
What information do you need in order to complete a financial analysis
on a property? - ANSWER- The Income Statement
When doing a financial analysis, why do you need to identify the GPR
first? - ANSWER- All other income & expenses are measured and
evaluated as a percentage of GPR.
What are the three primary types of income you will look for/calculate?
- ANSWER- Effective Gross Income (EGI)
Net Operating Income (NOI)
Cash Flow (CF)
What is a Chart of Accounts? - ANSWER- A list of accounts to which
revenue and expenses are posted and show up on the General Ledger.
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What is used to generate an Income Statement? - ANSWER- Entries in
the General Ledger
List some benefits of minimizing financial loss - ANSWER- Increases
the financial success of a property
Improves property performance
Makes your job easier
What are the main types of financial loss you should work to prevent? -
ANSWER- Vacancy loss
Offline and nonrevenue units
Bad Debt (delinquency and collections)
Concessions and discounts
During the rent collection process, what things should you consider
before occupancy? - ANSWER- The screening process
Rent collection policy
Inclusion of the policy in the lease, orientation materials, etc.
During the rent collection process, what is the purpose of resident
communication efforts? - ANSWER- To facilitate the rent collection
process
Why would you want to create a buffer for rent collection? - ANSWER-
To help you remain on good terms with residents
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To ensure timely and complete payments
What are some characteristics of Variable Expenses? - ANSWER- Vary
as conditions change
Many are associated with occupancy
What are Capital Expenses? - ANSWER- Costs for large improvements
that have an economic useful life beyond one year
Describe a Cost Benefit Analysis - ANSWER- Process of weighting a
potential expense against a potential benefit
What is the most important thing to keep in mind when developing a
budget? - ANSWER- The owners property objectives and investment
goals
What are the steps to the budget development process? - ANSWER-
Identify Goals
Gather Information
Assign numerical values
When would you develop a Rehab or Renovation budget? - ANSWER-
When a property is being rehabbed or undergoing
retrofitting/moderization
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What are the three tips to developing budgets covered today? -
ANSWER- Be prepared.
Use historical numbers.
Seek input.
What is Extrapolation/Annualization? - ANSWER- Estimating future
information by extending known information
How do you analyze variances? - ANSWER- Compare budget to actual
numbers.
Look at events on the property or in your submarket or region.
Are increased expenses favorable or unfavorable variances? -
ANSWER- Unfavorable
Once you've analyzed and can explain variances, What should you do
next? - ANSWER- Determine what, if any, action to take
What is the benefit to the investor resulting from an investment -
ANSWER- Return; the financial benefit
What is the purpose of measuring performance? - ANSWER- Shows if
goals are met and drives investment decisions
CERTIFIED APARTMENT MANAGER (CAM)
ACTUAL EXAM PREP 2026 ALL QUESTIONS
AND CORRECT DETAILED ANSWERS ALREADY
A GRADED WITH EXPERT FEEDBACK |NEW
AND REVISED
What is a corporate apartment? - ANSWER- A fully furnished
apartment equipped with all necessary amenities.
What information do you need in order to complete a financial analysis
on a property? - ANSWER- The Income Statement
When doing a financial analysis, why do you need to identify the GPR
first? - ANSWER- All other income & expenses are measured and
evaluated as a percentage of GPR.
What are the three primary types of income you will look for/calculate?
- ANSWER- Effective Gross Income (EGI)
Net Operating Income (NOI)
Cash Flow (CF)
What is a Chart of Accounts? - ANSWER- A list of accounts to which
revenue and expenses are posted and show up on the General Ledger.
,2|Page
What is used to generate an Income Statement? - ANSWER- Entries in
the General Ledger
List some benefits of minimizing financial loss - ANSWER- Increases
the financial success of a property
Improves property performance
Makes your job easier
What are the main types of financial loss you should work to prevent? -
ANSWER- Vacancy loss
Offline and nonrevenue units
Bad Debt (delinquency and collections)
Concessions and discounts
During the rent collection process, what things should you consider
before occupancy? - ANSWER- The screening process
Rent collection policy
Inclusion of the policy in the lease, orientation materials, etc.
During the rent collection process, what is the purpose of resident
communication efforts? - ANSWER- To facilitate the rent collection
process
Why would you want to create a buffer for rent collection? - ANSWER-
To help you remain on good terms with residents
,3|Page
To ensure timely and complete payments
What are some characteristics of Variable Expenses? - ANSWER- Vary
as conditions change
Many are associated with occupancy
What are Capital Expenses? - ANSWER- Costs for large improvements
that have an economic useful life beyond one year
Describe a Cost Benefit Analysis - ANSWER- Process of weighting a
potential expense against a potential benefit
What is the most important thing to keep in mind when developing a
budget? - ANSWER- The owners property objectives and investment
goals
What are the steps to the budget development process? - ANSWER-
Identify Goals
Gather Information
Assign numerical values
When would you develop a Rehab or Renovation budget? - ANSWER-
When a property is being rehabbed or undergoing
retrofitting/moderization
, 4|Page
What are the three tips to developing budgets covered today? -
ANSWER- Be prepared.
Use historical numbers.
Seek input.
What is Extrapolation/Annualization? - ANSWER- Estimating future
information by extending known information
How do you analyze variances? - ANSWER- Compare budget to actual
numbers.
Look at events on the property or in your submarket or region.
Are increased expenses favorable or unfavorable variances? -
ANSWER- Unfavorable
Once you've analyzed and can explain variances, What should you do
next? - ANSWER- Determine what, if any, action to take
What is the benefit to the investor resulting from an investment -
ANSWER- Return; the financial benefit
What is the purpose of measuring performance? - ANSWER- Shows if
goals are met and drives investment decisions
