DC PROPERTY MANAGER EXAM (LATEST 2026/2027
UPDATE) QUESTIONS WITH ANSWERS | GRADE A
Management Plan - ANSWERThis 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 - ANSWERThis 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 - ANSWERThis looks at the theoretical costs and
corresponding increase in rents by making different improvements, even the
subject property's redevelopment.
Capital Expenditures - ANSWERWork performed on properties that are
occupied and operational with the goal of trying to prevent the property
from declining and becoming obsolete.
Physical Obsolescence - ANSWERA 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, Functional Obsolescence - ANSWERA status characterized by old or outdated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systems because they waste a large amount of energy; outdated bathroom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 - ANSWERA 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 - ANSWERThe 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 - ANSWERThe 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 - ANSWERAn 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 - ANSWERThis 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".
UPDATE) QUESTIONS WITH ANSWERS | GRADE A
Management Plan - ANSWERThis 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 - ANSWERThis 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 - ANSWERThis looks at the theoretical costs and
corresponding increase in rents by making different improvements, even the
subject property's redevelopment.
Capital Expenditures - ANSWERWork performed on properties that are
occupied and operational with the goal of trying to prevent the property
from declining and becoming obsolete.
Physical Obsolescence - ANSWERA 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 - ANSWERA 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 - ANSWERA 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 - ANSWERThe 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 - ANSWERThe 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 - ANSWERAn 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 - ANSWERThis 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".
