CPM Certified Property Manager Exam
(Core) With Actual Questions & Verified
Answers, Plus Explained Rationales/Expert
Verified For Guaranteed 100% Pass
2026/Latest Update/Instant Download Pdf
1. Which of the following is the primary goal of property
management?
A. Maximizing tenant turnover
B. Increasing operating expenses
C. Preserving and enhancing asset value
D. Reducing occupancy
Answer: C. Preserving and enhancing asset value
Rationale: Property managers focus on maintaining and improving
the property's value while maximizing returns for owners.
2. A property's Net Operating Income (NOI) is calculated by:
A. Gross income minus debt service
B. Gross income minus operating expenses
C. Gross income plus reserves
D. Effective gross income minus taxes only
Answer: B. Gross income minus operating expenses
Rationale: NOI equals income generated by the property after
operating expenses but before debt service and taxes.
3. Which financial statement shows assets, liabilities, and owner's
equity?
,A. Income Statement
B. Rent Roll
C. Balance Sheet
D. Cash Flow Report
Answer: C. Balance Sheet
Rationale: The balance sheet provides a snapshot of financial position
at a specific point in time.
4. Vacancy loss refers to:
A. Rent increases
B. Income lost from unoccupied units
C. Capital expenditures
D. Insurance costs
Answer: B. Income lost from unoccupied units
Rationale: Vacancy loss reflects unrealized rental income due to
empty spaces.
5. Effective Gross Income (EGI) equals:
A. Gross Potential Income minus vacancy and collection losses plus
other income
B. NOI plus expenses
C. Gross Potential Income plus debt service
D. Cash flow before taxes
Answer: A. Gross Potential Income minus vacancy and collection
losses plus other income
Rationale: EGI measures actual income expected after accounting for
losses and ancillary income.
, 6. Which federal law prohibits housing discrimination based on race,
color, religion, sex, disability, familial status, and national origin?
A. ADA
B. Fair Housing Act
C. OSHA
D. Sherman Act
Answer: B. Fair Housing Act
Rationale: The Fair Housing Act establishes protected classes and
prohibits discriminatory housing practices.
7. What is the primary purpose of a budget?
A. Eliminate all expenses
B. Predict and control financial performance
C. Increase vacancies
D. Avoid maintenance
Answer: B. Predict and control financial performance
Rationale: Budgets provide a financial roadmap for operations and
performance evaluation.
8. Preventive maintenance is best described as:
A. Repairs after equipment failure
B. Scheduled maintenance to avoid failures
C. Cosmetic improvements only
D. Emergency repairs
Answer: B. Scheduled maintenance to avoid failures
Rationale: Preventive maintenance extends equipment life and
reduces costly breakdowns.
9. A capital expenditure typically:
, A. Is a routine operating expense
B. Extends the useful life of an asset
C. Covers utility payments
D. Includes office supplies
Answer: B. Extends the useful life of an asset
Rationale: Capital expenditures improve or extend property assets
and are generally capitalized.
10. What is the purpose of a rent roll?
A. Track maintenance requests
B. List tenants, rents, and lease details
C. Prepare tax returns
D. Record inspections
Answer: B. List tenants, rents, and lease details
Rationale: Rent rolls provide essential leasing and occupancy
information.
11. Which leadership style encourages employee participation
in decision-making?
A. Autocratic
B. Democratic
C. Laissez-faire
D. Authoritarian
Answer: B. Democratic
Rationale: Democratic leadership involves team members in the
decision process.
12. What is tenant retention primarily intended to achieve?
(Core) With Actual Questions & Verified
Answers, Plus Explained Rationales/Expert
Verified For Guaranteed 100% Pass
2026/Latest Update/Instant Download Pdf
1. Which of the following is the primary goal of property
management?
A. Maximizing tenant turnover
B. Increasing operating expenses
C. Preserving and enhancing asset value
D. Reducing occupancy
Answer: C. Preserving and enhancing asset value
Rationale: Property managers focus on maintaining and improving
the property's value while maximizing returns for owners.
2. A property's Net Operating Income (NOI) is calculated by:
A. Gross income minus debt service
B. Gross income minus operating expenses
C. Gross income plus reserves
D. Effective gross income minus taxes only
Answer: B. Gross income minus operating expenses
Rationale: NOI equals income generated by the property after
operating expenses but before debt service and taxes.
3. Which financial statement shows assets, liabilities, and owner's
equity?
,A. Income Statement
B. Rent Roll
C. Balance Sheet
D. Cash Flow Report
Answer: C. Balance Sheet
Rationale: The balance sheet provides a snapshot of financial position
at a specific point in time.
4. Vacancy loss refers to:
A. Rent increases
B. Income lost from unoccupied units
C. Capital expenditures
D. Insurance costs
Answer: B. Income lost from unoccupied units
Rationale: Vacancy loss reflects unrealized rental income due to
empty spaces.
5. Effective Gross Income (EGI) equals:
A. Gross Potential Income minus vacancy and collection losses plus
other income
B. NOI plus expenses
C. Gross Potential Income plus debt service
D. Cash flow before taxes
Answer: A. Gross Potential Income minus vacancy and collection
losses plus other income
Rationale: EGI measures actual income expected after accounting for
losses and ancillary income.
, 6. Which federal law prohibits housing discrimination based on race,
color, religion, sex, disability, familial status, and national origin?
A. ADA
B. Fair Housing Act
C. OSHA
D. Sherman Act
Answer: B. Fair Housing Act
Rationale: The Fair Housing Act establishes protected classes and
prohibits discriminatory housing practices.
7. What is the primary purpose of a budget?
A. Eliminate all expenses
B. Predict and control financial performance
C. Increase vacancies
D. Avoid maintenance
Answer: B. Predict and control financial performance
Rationale: Budgets provide a financial roadmap for operations and
performance evaluation.
8. Preventive maintenance is best described as:
A. Repairs after equipment failure
B. Scheduled maintenance to avoid failures
C. Cosmetic improvements only
D. Emergency repairs
Answer: B. Scheduled maintenance to avoid failures
Rationale: Preventive maintenance extends equipment life and
reduces costly breakdowns.
9. A capital expenditure typically:
, A. Is a routine operating expense
B. Extends the useful life of an asset
C. Covers utility payments
D. Includes office supplies
Answer: B. Extends the useful life of an asset
Rationale: Capital expenditures improve or extend property assets
and are generally capitalized.
10. What is the purpose of a rent roll?
A. Track maintenance requests
B. List tenants, rents, and lease details
C. Prepare tax returns
D. Record inspections
Answer: B. List tenants, rents, and lease details
Rationale: Rent rolls provide essential leasing and occupancy
information.
11. Which leadership style encourages employee participation
in decision-making?
A. Autocratic
B. Democratic
C. Laissez-faire
D. Authoritarian
Answer: B. Democratic
Rationale: Democratic leadership involves team members in the
decision process.
12. What is tenant retention primarily intended to achieve?
