DC PROPERTY MANAGER EXAM
QUESTIONS WITH 100% CORRECT
ANSWERS L LATEST VERSION 2025/2026.
Management Plan - ANS 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 - ANS 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 - ANS This looks at the theoretical costs and corresponding increase
in rents by making different improvements, even the subject property's redevelopment.
Capital Expenditures - ANS 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 - ANS 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Functional Obsolescence - ANS A status characterized by old or outdated designs or building
systems. Examples include equipment that is not repairable because parts or no longer
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, manufactured; single pane window systems because they waste a large amount of energy;
outdated bathroom fixtures because of changing designs and tastes.
Economic Obsolescence - ANS 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 - ANS 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 - ANS 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
Investment Value - ANS An amount that is frequently determined either by calculating the
Net Operating Income and applying a Capitalization Rate to it or from Cash Flow by determining
the Return on Investment.
Assessed Value - ANS This is the value used by government tax offices. Since it is frequently
determined using sophisticated mathematical models that are applied to many similar types of
properties over a geographic area, it can be less accurate and produce results that are higher or
lower than other types of "values".
Market Value - ANS This is the value that is agreed to between a buyer and seller. It
represents the "meeting of the minds".
Depreciated Value - ANS This is used for income tax purposes and affects a property's tax
basis. In the past, the Federal Government has implemented accelerated depreciation programs
to help promote economic growth. It's one way people like Donald Trump can claim to be losing
money every year.
List price - ANS This is the price that the owner has offered to sell a property for.
Responsibilities and Limitations - ANS • Loyalty to the client
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
QUESTIONS WITH 100% CORRECT
ANSWERS L LATEST VERSION 2025/2026.
Management Plan - ANS 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 - ANS 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 - ANS This looks at the theoretical costs and corresponding increase
in rents by making different improvements, even the subject property's redevelopment.
Capital Expenditures - ANS 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 - ANS 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 - ANS A status characterized by old or outdated designs or building
systems. Examples include equipment that is not repairable because parts or no longer
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, manufactured; single pane window systems because they waste a large amount of energy;
outdated bathroom fixtures because of changing designs and tastes.
Economic Obsolescence - ANS 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 - ANS 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 - ANS 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
Investment Value - ANS An amount that is frequently determined either by calculating the
Net Operating Income and applying a Capitalization Rate to it or from Cash Flow by determining
the Return on Investment.
Assessed Value - ANS This is the value used by government tax offices. Since it is frequently
determined using sophisticated mathematical models that are applied to many similar types of
properties over a geographic area, it can be less accurate and produce results that are higher or
lower than other types of "values".
Market Value - ANS This is the value that is agreed to between a buyer and seller. It
represents the "meeting of the minds".
Depreciated Value - ANS This is used for income tax purposes and affects a property's tax
basis. In the past, the Federal Government has implemented accelerated depreciation programs
to help promote economic growth. It's one way people like Donald Trump can claim to be losing
money every year.
List price - ANS This is the price that the owner has offered to sell a property for.
Responsibilities and Limitations - ANS • Loyalty to the client
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
