Illinois Property Manager Licensing
Examination Practice Questions And
Correct Answers (Verified Answers) Plus
Rationales 2026 Q&A | Instant
Download Pdf
1. Which of the following is the primary duty of a property manager?
A. Selling properties
B. Maintaining the property
C. Maximizing the owner’s return on investment
D. Drafting legal contracts
Rationale: The primary role of a property manager is to manage and
operate property efficiently to maximize the owner’s ROI.
2. A property manager must always act in the best interest of:
A. Tenants
B. Competitors
, C. The property owner
D. Contractors
Rationale: Property managers are fiduciaries and must act in the best
interest of the owner.
3. Which type of lease allows the tenant to pay a fixed rent plus a portion
of operating expenses?
A. Gross lease
B. Net lease
C. Percentage lease
D. Tenancy at will
Rationale: In a net lease, tenants pay base rent plus some or all
operating expenses.
4. Which law governs discrimination in housing based on race, color,
religion, sex, or national origin?
A. Illinois Property Code
B. Americans with Disabilities Act
C. Fair Housing Act
D. Equal Employment Opportunity Act
Rationale: The federal Fair Housing Act prohibits housing
discrimination on protected classes.
5. What is a property manager required to do when collecting security
deposits?
A. Spend them on maintenance
, B. Hold them in a separate trust account
C. Deposit them in the operating account
D. Keep them as a personal advance
Rationale: Security deposits must be held in a separate account to
protect tenants’ funds.
6. The most effective way to reduce tenant turnover is to:
A. Increase rent frequently
B. Ignore tenant complaints
C. Provide responsive maintenance and good communication
D. Limit amenities
Rationale: Maintaining positive tenant relations reduces turnover
and vacancy rates.
7. Which of the following is an example of preventative maintenance?
A. Fixing a leaky roof after it collapses
B. Painting walls after tenants leave
C. Regularly inspecting HVAC systems
D. Replacing appliances when broken
Rationale: Preventative maintenance involves proactive measures to
prevent problems before they occur.
8. The operating budget for a property should include:
A. Only mortgage payments
B. Maintenance, utilities, taxes, insurance, and management fees
C. Only capital improvements
, D. Tenant wages
Rationale: A comprehensive operating budget accounts for all
expected expenses to manage the property effectively.
9. A property manager’s fiduciary responsibility includes:
A. Acting in the best interest of tenants
B. Avoiding financial reporting
C. Acting loyally and honestly for the owner
D. Making decisions based on personal profit
Rationale: Fiduciary duties require loyalty, care, and honesty toward
the property owner.
10. What is the purpose of a capital reserve fund?
A. Paying monthly rent
B. Funding long-term repairs and replacements
C. Paying employee salaries
D. Covering routine maintenance
Rationale: Capital reserves are intended for large-scale, non-routine
expenses like roof replacement or major renovations.
11. How often should property managers perform inspections?
A. Never
B. Only when tenants request
C. Regularly, based on lease terms and property type
D. Only when the property is vacant
Examination Practice Questions And
Correct Answers (Verified Answers) Plus
Rationales 2026 Q&A | Instant
Download Pdf
1. Which of the following is the primary duty of a property manager?
A. Selling properties
B. Maintaining the property
C. Maximizing the owner’s return on investment
D. Drafting legal contracts
Rationale: The primary role of a property manager is to manage and
operate property efficiently to maximize the owner’s ROI.
2. A property manager must always act in the best interest of:
A. Tenants
B. Competitors
, C. The property owner
D. Contractors
Rationale: Property managers are fiduciaries and must act in the best
interest of the owner.
3. Which type of lease allows the tenant to pay a fixed rent plus a portion
of operating expenses?
A. Gross lease
B. Net lease
C. Percentage lease
D. Tenancy at will
Rationale: In a net lease, tenants pay base rent plus some or all
operating expenses.
4. Which law governs discrimination in housing based on race, color,
religion, sex, or national origin?
A. Illinois Property Code
B. Americans with Disabilities Act
C. Fair Housing Act
D. Equal Employment Opportunity Act
Rationale: The federal Fair Housing Act prohibits housing
discrimination on protected classes.
5. What is a property manager required to do when collecting security
deposits?
A. Spend them on maintenance
, B. Hold them in a separate trust account
C. Deposit them in the operating account
D. Keep them as a personal advance
Rationale: Security deposits must be held in a separate account to
protect tenants’ funds.
6. The most effective way to reduce tenant turnover is to:
A. Increase rent frequently
B. Ignore tenant complaints
C. Provide responsive maintenance and good communication
D. Limit amenities
Rationale: Maintaining positive tenant relations reduces turnover
and vacancy rates.
7. Which of the following is an example of preventative maintenance?
A. Fixing a leaky roof after it collapses
B. Painting walls after tenants leave
C. Regularly inspecting HVAC systems
D. Replacing appliances when broken
Rationale: Preventative maintenance involves proactive measures to
prevent problems before they occur.
8. The operating budget for a property should include:
A. Only mortgage payments
B. Maintenance, utilities, taxes, insurance, and management fees
C. Only capital improvements
, D. Tenant wages
Rationale: A comprehensive operating budget accounts for all
expected expenses to manage the property effectively.
9. A property manager’s fiduciary responsibility includes:
A. Acting in the best interest of tenants
B. Avoiding financial reporting
C. Acting loyally and honestly for the owner
D. Making decisions based on personal profit
Rationale: Fiduciary duties require loyalty, care, and honesty toward
the property owner.
10. What is the purpose of a capital reserve fund?
A. Paying monthly rent
B. Funding long-term repairs and replacements
C. Paying employee salaries
D. Covering routine maintenance
Rationale: Capital reserves are intended for large-scale, non-routine
expenses like roof replacement or major renovations.
11. How often should property managers perform inspections?
A. Never
B. Only when tenants request
C. Regularly, based on lease terms and property type
D. Only when the property is vacant
