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

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Prepare for the Certified Apartment Portfolio Supervisor (CAPS) Exam with a focused quiz based on Module 2. Enhance your learning with multiple choice questions designed to reinforce your understanding of the CAPS material and boost your confidence for the test.

Practice this question and more.


Which of the following describes fixed expenses?

  1. Costs that vary with occupancy levels

  2. Costs that are controllable by management

  3. Costs that remain constant regardless of occupancy

  4. Costs that include variable rates for services

The correct answer is: Costs that remain constant regardless of occupancy

Fixed expenses refer to costs that do not fluctuate in relation to the occupancy levels of a property. This means that regardless of how many units are rented or how many residents occupy the apartments, these expenses remain stable and must be paid. Typically, fixed expenses include items such as property taxes, insurance, and salaries for management staff, which are incurred irrespective of the property’s occupancy status. Understanding fixed expenses is crucial for financial planning and stability in property management, as they represent a consistent portion of a property's operating budget.