Minnesota Property Management Licensing
Exam Practice Questions & [Verified Answers],
Plus Explained Rationales|2026 Latest
Update| Instant Download PDF
1. In Minnesota, a property manager’s primary responsibility to a
property owner is to:
A. Maximize rent regardless of tenant concerns
B. Act in the owner’s best interest while following applicable laws
C. Avoid all communication with tenants
D. Guarantee a specific profit amount
Rationale: A property manager is generally an agent of the owner and
must act according to fiduciary duties, including loyalty, care, and
compliance with laws.
2. A property manager who handles rental properties for others is
typically required to understand:
A. Only building maintenance procedures
B. Only accounting practices
C. Real estate laws, landlord-tenant regulations, and management
practices
D. Construction engineering standards only
Rationale: Property managers must understand legal, financial, and
operational responsibilities related to managing real estate.
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, 3. A property management agreement should clearly identify:
A. The tenant’s personal preferences
B. The duties, authority, and compensation of the property manager
C. The owner’s private financial information
D. Future property market values
Rationale: A management agreement defines the relationship
between the owner and manager, including responsibilities and fees.
4. The Minnesota Residential Landlord-Tenant Act primarily
regulates:
A. Commercial property sales
B. Real estate appraisals
C. Rights and responsibilities of residential landlords and tenants
D. Mortgage lending practices
Rationale: The act establishes rules governing residential rental
relationships, including leases, deposits, and repairs.
5. A property manager collecting rent for an owner is performing
which type of activity?
A. Property appraisal
B. Agent activity on behalf of the owner
C. Mortgage underwriting
D. Construction contracting
Rationale: Collecting rent for an owner is an agency function because
the manager acts on behalf of the property owner.
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, 6. A security deposit is primarily intended to:
A. Increase the landlord’s income
B. Replace monthly rent
C. Protect against unpaid rent or tenant-caused damages
D. Pay property taxes
Rationale: Security deposits provide financial protection for legitimate
tenant obligations under rental agreements.
7. A property manager should keep tenant security deposits:
A. Mixed with personal funds
B. In cash at home
C. Handled according to applicable state requirements
D. Given directly to maintenance workers
Rationale: Security deposits must be handled according to legal
requirements to protect tenant rights and prevent misuse.
8. Which document establishes the terms between a landlord and
tenant?
A. Deed
B. Listing agreement
C. Lease or rental agreement
D. Mortgage note
Rationale: A lease or rental agreement defines rental terms,
obligations, and rights of both parties.
9. A property manager’s fiduciary duty includes:
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, A. Favoring tenants over owners
B. Maintaining loyalty and acting in the client’s best interest
C. Ignoring legal requirements
D. Avoiding financial records
Rationale: Fiduciary duties require honesty, loyalty, confidentiality,
and proper care when representing clients.
10. The Fair Housing Act prohibits discrimination based on:
A. Credit score only
B. Rental price only
C. Protected characteristics such as race, religion, sex, disability, and
national origin
D. Employment history only
Rationale: Fair housing laws prohibit discriminatory housing practices
involving protected classes.
11. A property manager advertising a rental unit should:
A. Exaggerate property features
B. Exclude required disclosures
C. Provide accurate and non-discriminatory information
D. Advertise only to preferred groups
Rationale: Rental advertising must be truthful and comply with fair
housing requirements.
12. The best method for selecting tenants is:
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Exam Practice Questions & [Verified Answers],
Plus Explained Rationales|2026 Latest
Update| Instant Download PDF
1. In Minnesota, a property manager’s primary responsibility to a
property owner is to:
A. Maximize rent regardless of tenant concerns
B. Act in the owner’s best interest while following applicable laws
C. Avoid all communication with tenants
D. Guarantee a specific profit amount
Rationale: A property manager is generally an agent of the owner and
must act according to fiduciary duties, including loyalty, care, and
compliance with laws.
2. A property manager who handles rental properties for others is
typically required to understand:
A. Only building maintenance procedures
B. Only accounting practices
C. Real estate laws, landlord-tenant regulations, and management
practices
D. Construction engineering standards only
Rationale: Property managers must understand legal, financial, and
operational responsibilities related to managing real estate.
1|Page
, 3. A property management agreement should clearly identify:
A. The tenant’s personal preferences
B. The duties, authority, and compensation of the property manager
C. The owner’s private financial information
D. Future property market values
Rationale: A management agreement defines the relationship
between the owner and manager, including responsibilities and fees.
4. The Minnesota Residential Landlord-Tenant Act primarily
regulates:
A. Commercial property sales
B. Real estate appraisals
C. Rights and responsibilities of residential landlords and tenants
D. Mortgage lending practices
Rationale: The act establishes rules governing residential rental
relationships, including leases, deposits, and repairs.
5. A property manager collecting rent for an owner is performing
which type of activity?
A. Property appraisal
B. Agent activity on behalf of the owner
C. Mortgage underwriting
D. Construction contracting
Rationale: Collecting rent for an owner is an agency function because
the manager acts on behalf of the property owner.
2|Page
, 6. A security deposit is primarily intended to:
A. Increase the landlord’s income
B. Replace monthly rent
C. Protect against unpaid rent or tenant-caused damages
D. Pay property taxes
Rationale: Security deposits provide financial protection for legitimate
tenant obligations under rental agreements.
7. A property manager should keep tenant security deposits:
A. Mixed with personal funds
B. In cash at home
C. Handled according to applicable state requirements
D. Given directly to maintenance workers
Rationale: Security deposits must be handled according to legal
requirements to protect tenant rights and prevent misuse.
8. Which document establishes the terms between a landlord and
tenant?
A. Deed
B. Listing agreement
C. Lease or rental agreement
D. Mortgage note
Rationale: A lease or rental agreement defines rental terms,
obligations, and rights of both parties.
9. A property manager’s fiduciary duty includes:
3|Page
, A. Favoring tenants over owners
B. Maintaining loyalty and acting in the client’s best interest
C. Ignoring legal requirements
D. Avoiding financial records
Rationale: Fiduciary duties require honesty, loyalty, confidentiality,
and proper care when representing clients.
10. The Fair Housing Act prohibits discrimination based on:
A. Credit score only
B. Rental price only
C. Protected characteristics such as race, religion, sex, disability, and
national origin
D. Employment history only
Rationale: Fair housing laws prohibit discriminatory housing practices
involving protected classes.
11. A property manager advertising a rental unit should:
A. Exaggerate property features
B. Exclude required disclosures
C. Provide accurate and non-discriminatory information
D. Advertise only to preferred groups
Rationale: Rental advertising must be truthful and comply with fair
housing requirements.
12. The best method for selecting tenants is:
4|Page
