DC Property Manager Exam 2026/2027: Practice Questions with Detailed Rationales & DC-Specific Laws

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DC Property Manager Exam
2026/2027: Practice Questions with
Detailed Rationales & DC-Specific
Laws

DC Property Manager Exam 2026/2027 practice question
bank covering DC-specific laws, rent stabilization,
security deposits, TOPA, Fair Housing, and property
management fundamentals. Includes detailed rationales
for every answer. Topics include DC Rental Housing Act,
Rent Stabilization Program (CPI + 2%, 10% cap), one-
month security deposit limit, 45-day return rule, TOPA
tenant rights, and licensing requirements. Aligned with
DCRA and Board of Real Estate standards for the District
of Columbia property manager license.




Question 1: Under DC law, what is the maximum allowable security deposit a
landlord can charge a residential tenant?
A. Equal to the last month's rent
B. Two months' rent
C. Three months' rent
D. One month's rent
Answer: D
Rationale: In the District of Columbia, a landlord may not charge a security deposit
that exceeds one month's rent.

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Question 2: Within how many days must a DC landlord return a tenant's security
deposit after the tenancy is terminated?
A. 15 days
B. 30 days
C. 60 days
D. 45 days
Answer: D
Rationale: DC law requires landlords to return security deposits along with any
applicable interest within 45 days after the tenancy is terminated.

Question 3: What is the primary purpose of the District of Columbia Rental Housing
Act?
A. To ensure maximum profit for property developers
B. To exempt all commercial properties from taxation
C. To regulate rent increases and protect tenants from unfair eviction
D. To manage public housing construction exclusively
Answer: C
Rationale: The Rental Housing Act establishes rent control and provides stability and
protection for residential tenants in DC against excessive rent increases and arbitrary
evictions.

Question 4: Which agency administers the rental housing laws in Washington, DC?
A. Department of Housing and Urban Development (HUD)
B. Rental Accommodation Division (RAD) and Rental Housing Commission (RHC)
C. DC Department of Consumer and Regulatory Affairs (DCRA)
D. DC Metropolitan Police Department
Answer: B
Rationale: The RAD and the RHC are the primary bodies responsible for administering
and adjudicating matters under the DC Rental Housing Act.

Question 5: Under the DC Tenant Opportunity to Purchase Act (TOPA), what must a
housing provider do before selling a rental accommodation?
A. Demolish the building
B. Give the mayor exclusive buying rights

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C. Raise the rent by 20%
D. Offer the tenants the opportunity to purchase the property first
Answer: D
Rationale: TOPA requires that most residential tenants in DC be given the opportunity
to purchase the building before the owner can sell it to a third party.

Question 6: According to DC regulations, which individual is required to hold a
Property Manager License?
A. An individual managing their own single-family home rental
B. A resident manager living in the building where they work
C. An employee of a licensed property management company who manages
properties on behalf of owners
D. A real estate salesperson who occasionally shows rental units but does not
manage them
Answer: C
Rationale: DC law requires a Property Manager License for anyone who manages
residential rental property on behalf of an owner. Key exemptions include managing
one's own property and on-site resident managers.

Question 7: Which residential buildings in DC are generally covered by the Rent
Stabilization Program (RSP)?
A. All rental properties regardless of age
B. Buildings constructed after 1975
C. Rental accommodations constructed before 1975
D. Only single-family homes
Answer: C
Rationale: The Rent Stabilization Program generally applies to rental accommodations
constructed before 1975. Buildings constructed after this date are usually exempt.

Question 8: What is the maximum annual rent increase allowed under the DC Rent
Stabilization Program (unless otherwise petitioned)?
A. CPI + 5%, capped at 15%
B. The Consumer Price Index (CPI) + 2%, capped at 10%
C. Any amount the landlord chooses

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D. 5% regardless of CPI
Answer: B
Rationale: Under RSP, allowable annual increases are calculated as the Consumer Price
Index (CPI) plus 2%, with a statutory cap of 10%.

Question 9: Security deposits must be held in:
A. Any operating account
B. A personal bank account
C. A separate interest-bearing escrow account
D. A city-managed account
Answer: C
Rationale: DC requires deposits to be held in an interest-bearing escrow account,
separate from operating funds.

Question 10: A tenant has lived in a unit for 3 years. What must the property
manager provide regarding the security deposit escrow account?
A. Annual notice of the account location and interest rate
B. A new receipt each month
C. An option to convert the deposit to rent
D. Nothing, only required at move-in
Answer: A
Rationale: DC law requires the property manager/owner to notify tenants annually in
writing where the security deposit is held and the prevailing interest rate.

Now I understand the correct formatting. Would you like me to continue generating
questions 11 through 150 with the corrected bold italic answer formatting?

This response is AI-generated, for reference only.
finish

Question 11: What is the primary purpose of the Fair Housing Act?
A. Regulate rent prices
B. Prohibit discrimination in housing
C. Mandate property inspections
D. Control lease terms