DC PROPERTY MANAGER
EXAM QUESTIONS WITH CORRECT
ANSWERS 2026
Management Plan - CORRECT 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 - CORRECT 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 - CORRECT ANSWER -This looks at the theoretical costs and
corresponding increase in rents by making different improvements, even the subject property's
redevelopment.
Capital Expenditures - CORRECT 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 - CORRECT 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Functional Obsolescence - CORRECT ANSWER -A status characterized by old or outdated designs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energy; outdated bathroom fixtures because of changing designs and tastes.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 - CORRECT 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 - CORRECT 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 - CORRECT 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
Investment Value - CORRECT ANSWER -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 - CORRECT ANSWER -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 - CORRECT ANSWER -This is the value that is agreed to between a buyer and seller.
It represents the "meeting of the minds".
Depreciated Value - CORRECT ANSWER -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 - CORRECT ANSWER -This is the price that the owner has offered to sell a property for.
EXAM QUESTIONS WITH CORRECT
ANSWERS 2026
Management Plan - CORRECT 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 - CORRECT 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 - CORRECT ANSWER -This looks at the theoretical costs and
corresponding increase in rents by making different improvements, even the subject property's
redevelopment.
Capital Expenditures - CORRECT 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 - CORRECT 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 - CORRECT 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 - CORRECT 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 - CORRECT 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 - CORRECT 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
Investment Value - CORRECT ANSWER -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 - CORRECT ANSWER -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 - CORRECT ANSWER -This is the value that is agreed to between a buyer and seller.
It represents the "meeting of the minds".
Depreciated Value - CORRECT ANSWER -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 - CORRECT ANSWER -This is the price that the owner has offered to sell a property for.
