DC PROPERTY MANAGER EXAM 2025 UPDATED ACTUAL EXAM WITH CORRECT
SOLUTIONS.
Management Plan - (ANSWER)This describes in detail the subject property's current use along with its
physical condition, fiscal projections, and any operational issues. It also includes an analysis of the
market (both regional and neighborhood), the competing properties, as well as potential improvements
or alternative uses for the subject property.
Market Analysis - (ANSWER)This focuses on both a regional and neighborhood evaluation, which
includes the demographic conditions, geographic features, governmental prospective, existing real
estate supply, potential future developments, and tenant/resident demand.
Analysis of Alternatives - (ANSWER)This looks at the theoretical costs and corresponding increase in
rents by making different improvements, even the subject property's redevelopment.
Capital Expenditures - (ANSWER)Work performed on properties that are occupied and operational with
the goal of trying to prevent the property from declining and becoming obsolete.
Physical Obsolescence - (ANSWER)A status characterized as a condition of aging (i.e. wear and tear) or
deferred maintenance. Examples are worn carpets, peeling paint, a leaking roof, or dead landscaping.
Functional Obsolescence - (ANSWER)A status characterized by old or outdated designs or building
systems. Examples include equipment that is not repairable because parts or no longer manufactured;
single pane window systems because they waste a large amount of energy; outdated bathroom fixtures
because of changing designs and tastes.
Economic Obsolescence - (ANSWER)A status that represents a loss in value due to outside forces (i.e.
location, market conditions). An example would be an office building, located in a small town, where the
major employer closes. This may result in both lower demand and rental rates.
Depreciation - (ANSWER)The process by which properties begin to deteriorate as soon as they are
completed. It represents the loss in value from the various forms of obsolescence.
Depreciated Value - (ANSWER)The amount value that a property loses per year due to the various forms
of obsolescence. Ex: $12,000,000 x 2.5% (0.025) = $300,000 per year
SOLUTIONS.
Management Plan - (ANSWER)This describes in detail the subject property's current use along with its
physical condition, fiscal projections, and any operational issues. It also includes an analysis of the
market (both regional and neighborhood), the competing properties, as well as potential improvements
or alternative uses for the subject property.
Market Analysis - (ANSWER)This focuses on both a regional and neighborhood evaluation, which
includes the demographic conditions, geographic features, governmental prospective, existing real
estate supply, potential future developments, and tenant/resident demand.
Analysis of Alternatives - (ANSWER)This looks at the theoretical costs and corresponding increase in
rents by making different improvements, even the subject property's redevelopment.
Capital Expenditures - (ANSWER)Work performed on properties that are occupied and operational with
the goal of trying to prevent the property from declining and becoming obsolete.
Physical Obsolescence - (ANSWER)A status characterized as a condition of aging (i.e. wear and tear) or
deferred maintenance. Examples are worn carpets, peeling paint, a leaking roof, or dead landscaping.
Functional Obsolescence - (ANSWER)A status characterized by old or outdated designs or building
systems. Examples include equipment that is not repairable because parts or no longer manufactured;
single pane window systems because they waste a large amount of energy; outdated bathroom fixtures
because of changing designs and tastes.
Economic Obsolescence - (ANSWER)A status that represents a loss in value due to outside forces (i.e.
location, market conditions). An example would be an office building, located in a small town, where the
major employer closes. This may result in both lower demand and rental rates.
Depreciation - (ANSWER)The process by which properties begin to deteriorate as soon as they are
completed. It represents the loss in value from the various forms of obsolescence.
Depreciated Value - (ANSWER)The amount value that a property loses per year due to the various forms
of obsolescence. Ex: $12,000,000 x 2.5% (0.025) = $300,000 per year
