CHPA Industry Terms Exam 107 Questions with Verified Answers
Additional Living Expense (ALE) Coverage - CORRECT ANSWER A type of insurance included
... [Show More] within homeowners' policies. ALE coverage reimburses the insured for the cost of maintaining a comparable standard of living following a covered loss that exceeds the insured's normal expenses prior to the loss. For example, additional living expense insurance would cover an insured's motel bill while fire damage to the home is being repaired, the home is replaced, or until the insured moves to a permanent residence. ALE coverage is subject to a limit equal to 30 percent of the dwelling limit under forms HO-2, HO-3, and HO-5. For form HO-8, ALE is 10 percent of the dwelling limit. Under the tenant's policy (HO-4), ALE is 30 percent of the personal property limit, while under the condominium unit owners policy (HO-6), the limit of ALE is 50 percent of the personal property limit. Also, see Fair Rental Value.
Affiliate/Alliance Partner - CORRECT ANSWER An Affiliate/Alliance Partner is another corporate housing company that corporate housing companies engage with to rent apartments from to fulfill needs, and vice versa. These partnerships are ongoing and often are continued through a service level agreement (SLA). Normally all of an Affiliate/Alliance Partner's inventory is fully furnished and includes utilities.
Apartment Set-Up - CORRECT ANSWER The process includes all of the steps required to transform a vacant unit to a corporate apartment including securing the unit with a lease, setting up utilities, delivery of furniture and housewares.
Available Unit - CORRECT ANSWER A unit that is leased from a landlord is considered available if it is on lease during the dates being reported.
Average Daily Rate (ADR) - CORRECT ANSWER The average daily rate is calculated by dividing the total month's rental revenue by the total number of occupied unit nights for the month.
Baby Boomers - CORRECT ANSWER The term used to define individuals born between the years 1946-1964.
Backfill - CORRECT ANSWER An apartment that is currently on a long-term lease, as a core unit, that is occupied and will be filled by a new client/guest upon move out of existing client/guest. This will continue during the entire length of the lease.
Benefit Period - CORRECT ANSWER The specified duration of time in which the client agrees to cover charges of goods and/or services provided by a supplier.
Bi-Monthly Service Rotation - CORRECT ANSWER A service that occurs on a routine basis every other month.
Bi-Weekly Service Rotation - CORRECT ANSWER A service that occurs on a routine basis every other week.
Branding - CORRECT ANSWER The process of creating and maintaining a consistent image of a product or service Client- The contact that is securing/negotiating the lease on behalf of the occupant.
Channel Manager - CORRECT ANSWER Channel Management is the process of managing online distribution channels in order to sell hotel/furnished apartment inventory to various agents across the globe. Channel management allows you to partner with large agents, such as OTAs, as well as smaller retail agents in different markets.
Client Master Agreement - CORRECT ANSWER An agreement with a client that encompasses one or multiple units combined with a reservation confirmation.
Close-Out Procedures - CORRECT ANSWER The process includes all of the steps required to transform a corporate apartment to a vacant unit including giving the required notice to vacate, removal of all furniture and housewares, as well as disconnecting all of the utilities.
Core (Corporate) Units - CORRECT ANSWER Units that you have signed a lease directly with the property or in a building that you lease/own.
Corporate Housing - CORRECT ANSWER Corporate housing is defined as a furnished apartment, condominium or house, made available for rent or let on a temporary basis, primarily for 30 days or more. Corporate Housing typically includes the following features: Furniture, full kitchen, private bath, linens, housewares, electronics and utilities.
Corporate Housing Industry - CORRECT ANSWER The Corporate Housing Industry is a segment of the lodging industry that provides products, services and support of furnished, temporary housing.
Corporate Housing Provider - CORRECT ANSWER A corporate housing provider is a business that receives direct compensation for providing corporate housing, as defined, and holds a lease with a property or tenant.
Corporate Mission Statement - CORRECT ANSWER A mission statement is a statement of the purpose of a company or organization. The mission statement should guide the actions of the organization, spell out its overall goal, provide a path, and guide decision-making. It provides "the framework or context within which the company's strategies are formulated."
Credit Card Authorization Form - CORRECT ANSWER A written authorization giving the corporate housing company permission to charge a credit card, from the person responsible for payment, including rent, deposits, damages, or utilities. The authorization may be recurring or one time.
Customer Relationship Management (CRM) - CORRECT ANSWER Customer relationship management (CRM) is a widely-implemented strategy for managing a company's interactions with customers, clients and sales prospects.
Deposit - CORRECT ANSWER A deposit that is paid to the property to be applied towards damages beyond normal wear and tear. Corporate housing companies may also require a refundable deposit to be used in the event of damages from their clients.
Direct Expenses - CORRECT ANSWER Expenses which include apartment rent paid to landlords, furniture rental, operating stock expense, housekeeping labor, housekeeping supplies, and utility expense (including electric, gas, water and sewage, local telephone, cable television). In addition, unit repairs and maintenance, and other fees (referral fees and commissions, parking expenses, key expense, auxiliary warehouse rent expense, consumable expense, welcome bag expense, etc) are included in this figure.
Extended-Stay Hotel - CORRECT ANSWER A hotel with a fully equipped kitchenette in each guest room, and which accepts reservations and does not require a lease.
Extended-Stay - CORRECT ANSWER A stay of five consecutive nights or longer.
Fair Housing - CORRECT ANSWER A federal law, passed in1968 and subsequent amendments, that protects the seven protected classes against discrimination in regards to access to housing. The seven protected classes are race, national origin, color, religion, familial status, handicap and sex.
Final Cleans - CORRECT ANSWER The housekeeping procedure is performed once the corporate housing company removes all of the furnishings and is preparing to return the unit back to the property management company.
Furniture Rental - CORRECT ANSWER The process of utilizing a company partner that will rent furniture to Corporate Housing Providers to utilize as part of their set up of a furnished apartment. Rental time frames can vary.
General Manager - CORRECT ANSWER The primary purpose is to direct and manage the region's operational performance by identifying risk, trends, and growth opportunities to ensure profitability and exceptional customer service. The position motivates and gives guidance to all team members.
Generation X - CORRECT ANSWER The term used to define individuals born between the years 1965 and 1981.
Generation Z - CORRECT ANSWER The term used to define individuals born after 2000.
Global Distribution System (GDS) - CORRECT ANSWER Worldwide computerized reservation network used as a single point of access for reserving airline seats, hotel rooms, rental cars, and other travel-related items by travel agents, online reservation sites, and large corporations. Also called an automated reservation system (ARS) or a computerized reservation system (CRS).
Gross Profit - CORRECT ANSWER Gross profit is calculated by subtracting all direct expenses from the total revenue billed for the month. Total revenue includes all sources of revenue, including long-distance telephone calls and any other extra charge posted to a guest or client account.
Gross Profit % - CORRECT ANSWER The gross profit percentage (%) is calculated by subtracting direct expenses from the total revenue, then dividing the number by the total revenue.
(Total Revenue - Direct Expenses) / Total Revenue
Guest Services - CORRECT ANSWER The primary purpose is to support the reservation throughout the entire process to ensure the highest level of guest satisfaction. This role is responsible for the coordination of the setup and the teardown of all furnishings in each corporate apartment and provides administrative support to the region.
Holdover Tenant - CORRECT ANSWER A holdover tenancy is a situation when a tenant of real estate continues to occupy the premises without the landlord's consent after the original lease or rental agreement between the landlord and the tenant has expired. A tenant in this situation is also referred to as a tenant at sufferance. The tenant is responsible for payment of the monthly rental at the existing rate and terms, which the landlord may accept without admitting the legality of the occupancy. If a holdover tenant does not leave after a notice to quit (move out), he/she is subject to a lawsuit for unlawful detainer. A holdover differs from a tenant at will in that the latter has the permission of the landlord to stay beyond the expiration date of the agreement, while the holdover tenant does not.
Housewares - CORRECT ANSWER Housewares are all the necessities for the kitchen, dining room, bedrooms, bathrooms and living room of a furnished apartment. These include items such as cookware, dishes, kitchen appliances, vacuum cleaners, ironing boards, pillows, sheets, towels, shower curtains, trash cans, and many other home-convenience necessities.
IFB - CORRECT ANSWER Invitation for Bid
Internal Tracking System (ITS) - CORRECT ANSWER In-house computer system that allows for complete management and tracking of all apartment inventory. The ITS houses accounting, service tickets, notice to vacate and rental tracking.
Intranet - CORRECT ANSWER An internal website that is only accessible by employees of the host company.
KPI - CORRECT ANSWER Key Performance Indicators, a type of performance measurement.
Landlord Law - CORRECT ANSWER Statutes and common law that provide rules for leaseholds and tenancies.
Landlord Obligations - CORRECT ANSWER The responsibilities of the landlord as set forth in the lease and at law.
Lease - CORRECT ANSWER A written agreement in which the owner of the property (either real estate or some object like an automobile) allows the use of the property for a specified period of time (term) for specific periodic payments (rent), and other terms and conditions. Leases of real property describe the premises (often by address); penalties for late payments, termination upon default of payment or breach of any significant conditions; increases in rent based on the cost of living or some other standard; inclusion or exclusion of property taxes and insurance in rent; limitations on use (for a residence for the family only, no pets); charges for staying on beyond the term (holding over); any right to renew the lease for another period; and/or a requirement for payment of attorneys' fees and costs in case of the need to enforce the lease (including eviction). A lease is distinguished from a mere renting of the premises on a month-to-month basis and cannot exceed a year unless agreed to in writing.
Lease Agreement - CORRECT ANSWER The lease document that is signed between the corporate housing provider and the property, as well as between the corporate housing provider and the client.
Lease Matrix - CORRECT ANSWER A report that illustrates lease expiration dates. Also known as a lease expiration report.
Long Distance Block - CORRECT ANSWER A process that prohibits access to long-distance services on the telephone.
Lump Sum Relocation Coverage - CORRECT ANSWER A relocation package that provides an employee with a specific dollar amount to cover the relocation needs of the employee and their family that they are free to use at their discretion.
Master Community Lease - CORRECT ANSWER An agreement with a community that encompasses one or multiple units.
Millennials - CORRECT ANSWER The term used to define individuals born between 1981-2000.
Mirroring a Lease/Lease Matching - CORRECT ANSWER The policy in which the individual who is receiving the product must sign or is obligated in writing to the same length of lease that the service provider is required to commit in order to obtain or solidify the transaction.
Number of Units - CORRECT ANSWER The number of units is the average number of available apartments in inventory, by market, for the month. Included in this number are:
• Units with a lease start date before the end of the period.
• Units with a lease drop date during the month and after the end of the period.
• Lease start date and lease drop date are the key dates, not the setup, lease-end and tear down dates.
• If a lease end date is shown but not the drop date, the unit is considered to be available, even though the lease end date may have already passed.
The average number of units is calculated by summing the total number of units in inventory each day of the month and dividing by the number of days in the month.
[ (# units Day 1) + (# units Day 2) + (# units Day n) ] / n
Where n = number of days in the month.
Net Income - CORRECT ANSWER The Net Income is calculated by subtracting Total Expenses (including all overhead, taxes, debt and insurance) from Total Revenue.
Total Revenue - Total Expenses
Net Income % - CORRECT ANSWER The Net Income percentage is calculated by dividing the Net Income by Total Revenue
(Total Revenue - Total Expenses) / Total Revenue
Net Income Variance - CORRECT ANSWER The Net Income Variance is calculated by subtracting the budgeted net income from the actual net income, then dividing that amount by the budgeted net income.
(Actual Net Income - Budgeted Net Income) / Budgeted Net Income
Notice to Vacate - CORRECT ANSWER A written notice to inform of intent to vacate the unit. It could be completed by the client to give notice to the corporate housing company or completed by the corporate housing company to give notice to the apartment community. Occupant - The individual or family that is occupying the unit.
Occupancy % - CORRECT ANSWER The occupancy percentage is calculated by dividing the number of occupied unit nights for the month by the total number of available unit nights for the month. Units on out-of-order status are included in the available apartment count. A unit may not have more than 100% occupancy during a month.
Occupant Agreement - CORRECT ANSWER A contracted rental agreement between the client (the lessee) and Corporate Housing Provider (the lessor).
Occupied Unit - CORRECT ANSWER A unit that is rented to a guest or client is considered occupied if there is a signed lease for it during the dates being reported. This includes all reservations at full rate, discounted rate or having a complimentary rate code. The number of guests or reservations assigned to the unit during the month is not considered.
Online Travel Agency (OTA) - CORRECT ANSWER OTAs are online companies whose websites allow consumers to book various travel related services directly via the Internet. They are third-party agents reselling trips, hotels, cars, flights, vacation packages etc. provided/organized by others.
Outsourcing - CORRECT ANSWER To obtain goods and/or services from a supplier outside of your current company's primary function.
Partner - CORRECT ANSWER When a corporate housing company has an agreed partnership with another corporate housing company/supplier to provide services or supplies such as apartments, furniture, housewares, or cleaning services.
PCI Security Standards Council - CORRECT ANSWER The PCI Security Standards Council is an open global forum, launched in 2006, that is responsible for the development, management, education and awareness of the PCI Security Standards, including the Data Security Standard (PCI DSS), Payment Application Data Security Standard (PA-DSS), and PIN Transaction Security (PTS) requirements.
Per Diem - CORRECT ANSWER The allowance for lodging (excluding taxes), meals and incidental expenses.
Portal - CORRECT ANSWER A website that is used as a central source of information; it can be custom designed based on the users' needs and referenced by multiple parties. Also referred to as a platform.
PTE (Permission to Enter) - CORRECT ANSWER Written permission from the occupant or lessee authorizing others to enter an apartment. Also called a key release.
Pet Deposit - CORRECT ANSWER A deposit that is paid to the property to be applied towards damages as a result of the pet. Pet deposits may be non-refundable or refundable.
Pet Rent - CORRECT ANSWER Additional rent due to the property on a monthly basis as long as a pet is in the apartment.
Property Profile - CORRECT ANSWER Description of the property and amenities.
Quality Assurance (QA) - CORRECT ANSWER The process of inspecting a unit prior to guest move-in to ensure that unit is ready.
Quality Control - CORRECT ANSWER The primary role of this position is to inspect apartments prior to guests' move in and after guests' move out and is the essential point for customer service in the region. Additionally, this role supports the coordination of the setup and the teardown of all furnishings in each corporate apartment and provides administrative support to the region as needed.
Referral Fee - CORRECT ANSWER A sum received by the referring party for a lead that results in a booked reservation or the completion of a transaction.
Rental Increase - CORRECT ANSWER An increase in rent owed by the tenant.
Rental Revenue - CORRECT ANSWER The revenue charged to the guest for unit rent. The rental revenue is the rate charged each guest times the number of nights the guest stayed in the unit during the month and is shown in local currency (USD, CAD, GBP, etc.)
Revenue - CORRECT ANSWER Under accrual accounting, it is the rent earned during the period indicated in the heading of the income statement, regardless of when the money is received from the tenant.
Reservation - CORRECT ANSWER The end result of reserving or booking housing accommodations for a relocating individual(s)
Reservation Confirmation - CORRECT ANSWER The document used in conjunction with a client master agreement that lists the specifics regarding a particular occupant's stay (including arrival/departure dates, apartment address, etc.)
Residential Landlord Tenant Act - CORRECT ANSWER Some states have adopted statutes governing residential tenancies. These statutes are often grouped together and known as the state's residential landlord tenant act. Not all states have these.
RFI (Request for Information) - CORRECT ANSWER A formal document requesting general information on a company and/or its services.
RFP (Request for Proposal) - CORRECT ANSWER A formal document used to procure services or goods, which may or may not include pricing. An RFP can include scope of work, service level agreements, length of the agreement, company backgrounds, audited financial statements and references.
RFQ (Request for Quotation) - CORRECT ANSWER A formal document used to procure services or goods, which includes pricing.
RevPar - CORRECT ANSWER Revenue per available unit. A combination of paid occupancy percentage and average daily rate. Unit revenues divided by available rooms (or units) or, alternatively, paid occupancy percentage times average daily rate.
Gross Rental Revenue / Number of Rooms/Units Available OR Occupancy % x ADR
Sales Positions - Inside - CORRECT ANSWER Acts as point of contact for current and potential clients seeking corporate housing need(s) within the region. The primary purpose of this role is to provide sales support to clients by preparing pricing and availability, facilitating new lease paperwork, and ensuring the highest level of customer satisfaction.
Schedule Board - CORRECT ANSWER A visual representation of a provider's inventory and reservations.
Security Deposit Refund - CORRECT ANSWER Landlords may make deductions from a tenant's security deposit, provided they do it correctly and for an allowable reason. Many states require landlords to provide a written itemized accounting of deductions for unpaid rent and for repairs for damages and necessary cleaning that exceed normal wear and tear, together with payment for any deposit balance. The deadlines vary from state to state, but landlords usually have a set amount of time in which to return deposits, usually 14 to 30 days after the tenant moves out -- either voluntarily or by eviction.
Service Level Agreement - CORRECT ANSWER An agreement between two corporate housing providers used to ensure the performance of service providers in a third-party or wholesale relationship.
Service Tickets - CORRECT ANSWER Maintenance or upgrade/downgrade requests from a client/guest that is entered and tracked via Internal Tracking System and tracked throughout their active lease term.
Skip-Tracing - CORRECT ANSWER The process of finding a customer who has either moved to avoid paying debts or is trying to avoid payments by making it difficult for the collector to find him/her.
SODA (Statement of Deposit Account) - CORRECT ANSWER A written accounting of the status of a deposit once a unit is vacated. Any charges as a result of damages or unpaid rent are itemized.
Stipend Traveler - CORRECT ANSWER A stipend traveler is a traveling professional that is given an allotted amount of money, typically by the company they are being employed through, to spend on housing costs every month.
Temporary Duty Assignment (TDA) - CORRECT ANSWER Also known as "temporary additional duty" (TAD), "temporary duty travel" (TDT) or "temporary duty" (TDY), refers to a United States Government employee travel assignment at a location other than the employee's permanent duty station.
Temporary Duty Year (Temporary Duty Year) - CORRECT ANSWER Government employee on assignment at more or more locations, away from the permanent duty station (PDS), under orders providing for further assignment, or pending further assignment, to return to the old PDS or to proceed to a new PDS.
Third-Party Client - CORRECT ANSWER A business (example: a relocation consulting company) that facilitates all or part of corporate transferees relocation. They are the go-between the client corporation (the transferee's employer) and the corporate housing company.
Thread Count - CORRECT ANSWER Thread count is simply the number of threads per square inch of fabric.
Total Revenue - CORRECT ANSWER Calculated by adding all charges billed for each unit during the month. This includes all rental revenue, telephone revenue, revenue from extra services, etc. This also includes any fees paid by guests, including early departure, pet cleaning, etc. However, deposits are not to be included in this number.
Touch-Up Clean - CORRECT ANSWER The act of making sure an apartment is ready for arrival. The apartment could have possibly been sitting vacant for longer than expected so you send someone over to touch up the apartment to ensure it is made ready.
Transient - CORRECT ANSWER A short-term guest, typically staying one to four nights.
Turn Clean - CORRECT ANSWER The housekeeping procedure that is performed between occupants.
Unit - CORRECT ANSWER A unit is representative of the inventory managed by corporate housing companies. Units can be defined as an apartment, condo, single-family home, or any other residential style housing provided to a client.
Unit Inventory Management - CORRECT ANSWER The process of managing unit inventory to minimize vacancy loss.
Utility Allowance - CORRECT ANSWER The maximum amount budgeted for utilities in a corporate unit. A utility expense larger than the utility allowance may result in additional expense for the client or occupant.
Utility Cap - CORRECT ANSWER The amount of money a corporate housing provider is going to cover per month of the clients' utilities. If that amount has been exceeded, the rest of the bill will be added to the clients' invoices to be paid by them.
Vacancy Loss - CORRECT ANSWER The period in which the corporate apartment is set up and no rental income is recognized.
Vendors - CORRECT ANSWER Companies that provide goods and services to corporate housing providers.
Wholesaling - CORRECT ANSWER The process of a corporate housing company renting a corporate apartment from another corporate housing company.
Work Orders - CORRECT ANSWER A request to the property to complete maintenance in the unit or common area of the community. May also be called a maintenance request.
Yield Management - CORRECT ANSWER Selling apartments in a way that maximizes total revenues. Before selling a corporate apartment in advance, the corporate provider considers the probability of being able to sell the room to other market segments (or customers) that are willing to pay a higher rate. [Show Less]