ACCREDITED RESIDENTIAL MANAGER (ARM) CERTIFICATION / INSTITUTE OF REAL ESTATE MANAGEMENT
(IREM) EXAM 1 QUESTIONS AND CORRECT ANSWERS (VERIFIED ANSWERS) PLUS RATIONALES 2026 Q&A |
INSTANT DOWNLOAD PDF
Core Domains
1. Property Operations and Maintenance
2. Financial Management and Budgeting
3. Legal Compliance and Risk Management
4. Ethics and Professional Standards (IREM Code of Professional Ethics)
5. Leasing and Marketing
6. Tenant Relations and Human Factors
7. Environmental and Safety Regulations
8. Supervision and Staff Management
9. Insurance and Liability
10. Strategic Planning for Asset Value
Introduction
*This examination assesses candidates for the Accredited Residential Manager (ARM) Certification and Institute
of Real Estate Management (IREM) Exam 1. The purpose is to validate professional competence in managing
residential properties, including financial oversight, legal compliance, ethical decision-making, and operational
,effectiveness. The exam consists of multiple-choice and scenario-based questions that require applied
knowledge and critical thinking. Emphasis is placed on real-world application, risk mitigation, and maximizing
asset value while maintaining regulatory and ethical standards. Each question includes a verified correct answer
and a concise rationale to reinforce learning and exam readiness.*
SECTION ONE: QUESTIONS 1–100
Question 1
Under the IREM Code of Professional Ethics, a residential manager must disclose any financial interest in a
vendor before:
A. Signing a management agreement
B. Recommending that vendor to an owner
C. Collecting the first month’s rent
D. Filing an eviction notice
🟢B
🔴 RATIONALE: IREM ethics require disclosure of any conflict of interest, including financial interest in a vendor,
prior to recommending that vendor to an owner or client.
,Question 2
A property has 200 units. Last month, 10 tenants moved out, and 8 new leases were signed. What is the net
change in occupied units?
A. +2
B. -2
C. +8
D. -10
🟢B
🔴 RATIONALE: Net change = move-ins minus move-outs = 8 – 10 = -2 occupied units.
Question 3
Which federal law prohibits discrimination based on familial status in residential rentals?
A. Americans with Disabilities Act
B. Fair Housing Act
C. Civil Rights Act of 1866
D. Equal Credit Opportunity Act
🟢B
🔴 RATIONALE: The Fair Housing Act (as amended in 1988) added familial status as a protected class,
prohibiting discrimination against families with children under 18.
, Question 4
A tenant’s security deposit must be returned within 30 days of move-out. The tenant left no forwarding address.
The manager should:
A. Forfeit the deposit after 60 days
B. Mail the deposit to the last known address
C. Hold the deposit indefinitely
D. Donate the deposit to a housing fund
🟢B
🔴 RATIONALE: Mailing to the last known address satisfies legal notice requirements in most jurisdictions. The
manager should document the attempt.
Question 5
Which financial statement shows a property’s profitability over a specific period?
A. Balance sheet
B. Income statement (operating statement)
C. Rent roll
D. Cash flow statement
🟢B
🔴 RATIONALE: The income statement reports revenues and expenses over a period, showing net operating
income and profitability.
(IREM) EXAM 1 QUESTIONS AND CORRECT ANSWERS (VERIFIED ANSWERS) PLUS RATIONALES 2026 Q&A |
INSTANT DOWNLOAD PDF
Core Domains
1. Property Operations and Maintenance
2. Financial Management and Budgeting
3. Legal Compliance and Risk Management
4. Ethics and Professional Standards (IREM Code of Professional Ethics)
5. Leasing and Marketing
6. Tenant Relations and Human Factors
7. Environmental and Safety Regulations
8. Supervision and Staff Management
9. Insurance and Liability
10. Strategic Planning for Asset Value
Introduction
*This examination assesses candidates for the Accredited Residential Manager (ARM) Certification and Institute
of Real Estate Management (IREM) Exam 1. The purpose is to validate professional competence in managing
residential properties, including financial oversight, legal compliance, ethical decision-making, and operational
,effectiveness. The exam consists of multiple-choice and scenario-based questions that require applied
knowledge and critical thinking. Emphasis is placed on real-world application, risk mitigation, and maximizing
asset value while maintaining regulatory and ethical standards. Each question includes a verified correct answer
and a concise rationale to reinforce learning and exam readiness.*
SECTION ONE: QUESTIONS 1–100
Question 1
Under the IREM Code of Professional Ethics, a residential manager must disclose any financial interest in a
vendor before:
A. Signing a management agreement
B. Recommending that vendor to an owner
C. Collecting the first month’s rent
D. Filing an eviction notice
🟢B
🔴 RATIONALE: IREM ethics require disclosure of any conflict of interest, including financial interest in a vendor,
prior to recommending that vendor to an owner or client.
,Question 2
A property has 200 units. Last month, 10 tenants moved out, and 8 new leases were signed. What is the net
change in occupied units?
A. +2
B. -2
C. +8
D. -10
🟢B
🔴 RATIONALE: Net change = move-ins minus move-outs = 8 – 10 = -2 occupied units.
Question 3
Which federal law prohibits discrimination based on familial status in residential rentals?
A. Americans with Disabilities Act
B. Fair Housing Act
C. Civil Rights Act of 1866
D. Equal Credit Opportunity Act
🟢B
🔴 RATIONALE: The Fair Housing Act (as amended in 1988) added familial status as a protected class,
prohibiting discrimination against families with children under 18.
, Question 4
A tenant’s security deposit must be returned within 30 days of move-out. The tenant left no forwarding address.
The manager should:
A. Forfeit the deposit after 60 days
B. Mail the deposit to the last known address
C. Hold the deposit indefinitely
D. Donate the deposit to a housing fund
🟢B
🔴 RATIONALE: Mailing to the last known address satisfies legal notice requirements in most jurisdictions. The
manager should document the attempt.
Question 5
Which financial statement shows a property’s profitability over a specific period?
A. Balance sheet
B. Income statement (operating statement)
C. Rent roll
D. Cash flow statement
🟢B
🔴 RATIONALE: The income statement reports revenues and expenses over a period, showing net operating
income and profitability.
