DC PM License Exam UPDATED ACTUAL
Exam Questions and CORECT Answers
Why do we develop a Management Plan? - CORRECT ANSWER - To understand and
implement the owner's objectives
Market Analysis - CORRECT ANSWER - Provides demographic conditions, geographic
features, governmental perspective, real estate supply and other information regarding a given
area.
Competitive Property Analysis - CORRECT ANSWER - Provides information on several
buildings in a given market including vacancy, condition, asking rents, etc.
Highest and Best Use - CORRECT ANSWER - This is determined by conducting both a
Market Analysis and Competitive Property Analysis to ascertain the strengths and weaknesses of
a given property
Analysis of Alternatives - CORRECT ANSWER - Is developed by looking at the
theoretical costs and corresponding increase in rents by making improvements.
Capital Expenditures - CORRECT ANSWER - Projects that help extend a property's
useful life
Physical Obsolescence - CORRECT ANSWER - The condition of aging of a property, or
deferred maintenance. Otherwise called wear and tear
Functional Obsolescence - CORRECT ANSWER - Is characterized by old or outdated
designs or building systems.
Economic Obsolescence - CORRECT ANSWER - Represents a loss in value due to
outside forces including location or market conditions.
, Depreciation - CORRECT ANSWER - Condition that states a property begins to
deteriorate as soon it is completed.
Investment Value - CORRECT ANSWER - Property value determined by EITHER
calculating the NOI and applying a Cap rate, or from Cash Flow by determining ROI
Assessed Value - CORRECT ANSWER - Property value used by government tax
assessment offices.
Market Value - CORRECT ANSWER - Property value agreed upon between buyer and
seller
Depreciated Value - CORRECT ANSWER - Property value used for income tax purposes
List Price - CORRECT ANSWER - The price an owner has offered to sell a property for
Management Agreement - CORRECT ANSWER - The formal agreement between a
building owner and management company.
Comparison Analysis - CORRECT ANSWER - Conducted to identify physical differences
as well as streghts and weaknesses to determine value and make rental adjustments as necessary.
Gross Potential Rental Income - CORRECT ANSWER - Maximum amount of income that
a property can generate from all sources.
Pass Throughs/Expense Reimbursements/Recoveries - CORRECT ANSWER - Portion of
Operating Expenses you can charge back to your tenants
Exam Questions and CORECT Answers
Why do we develop a Management Plan? - CORRECT ANSWER - To understand and
implement the owner's objectives
Market Analysis - CORRECT ANSWER - Provides demographic conditions, geographic
features, governmental perspective, real estate supply and other information regarding a given
area.
Competitive Property Analysis - CORRECT ANSWER - Provides information on several
buildings in a given market including vacancy, condition, asking rents, etc.
Highest and Best Use - CORRECT ANSWER - This is determined by conducting both a
Market Analysis and Competitive Property Analysis to ascertain the strengths and weaknesses of
a given property
Analysis of Alternatives - CORRECT ANSWER - Is developed by looking at the
theoretical costs and corresponding increase in rents by making improvements.
Capital Expenditures - CORRECT ANSWER - Projects that help extend a property's
useful life
Physical Obsolescence - CORRECT ANSWER - The condition of aging of a property, or
deferred maintenance. Otherwise called wear and tear
Functional Obsolescence - CORRECT ANSWER - Is characterized by old or outdated
designs or building systems.
Economic Obsolescence - CORRECT ANSWER - Represents a loss in value due to
outside forces including location or market conditions.
, Depreciation - CORRECT ANSWER - Condition that states a property begins to
deteriorate as soon it is completed.
Investment Value - CORRECT ANSWER - Property value determined by EITHER
calculating the NOI and applying a Cap rate, or from Cash Flow by determining ROI
Assessed Value - CORRECT ANSWER - Property value used by government tax
assessment offices.
Market Value - CORRECT ANSWER - Property value agreed upon between buyer and
seller
Depreciated Value - CORRECT ANSWER - Property value used for income tax purposes
List Price - CORRECT ANSWER - The price an owner has offered to sell a property for
Management Agreement - CORRECT ANSWER - The formal agreement between a
building owner and management company.
Comparison Analysis - CORRECT ANSWER - Conducted to identify physical differences
as well as streghts and weaknesses to determine value and make rental adjustments as necessary.
Gross Potential Rental Income - CORRECT ANSWER - Maximum amount of income that
a property can generate from all sources.
Pass Throughs/Expense Reimbursements/Recoveries - CORRECT ANSWER - Portion of
Operating Expenses you can charge back to your tenants
