PROPERTY MANAGEMENT CERTIFICATION EXAM
1.
What is the primary role of a property manager?
A. Sell properties
B. Maintain and operate real estate assets
C. Build properties
D. Appraise land
Answer: B
Rationale: Property managers are responsible for daily operations, maintenance, and profitability of
real estate assets.
2.
Which document legally defines the landlord-tenant relationship?
A. Deed
B. Lease agreement
C. Title
D. Survey
Answer: B
Rationale: A lease agreement outlines rights and responsibilities of both landlord and tenant.
3.
Security deposits are primarily used for:
A. Rent payment
B. Repairs for tenant damages
C. Property taxes
D. Insurance premiums
Answer: B
Rationale: Security deposits cover damages beyond normal wear and tear.
4.
Which of the following is considered operating expense?
A. Mortgage principal
B. Property insurance
C. Purchase price
D. Down payment
Answer: B
Rationale: Insurance is a recurring cost of operating a property.
,5.
Fair Housing laws prohibit discrimination based on:
A. Income
B. Credit score
C. Race, religion, national origin, etc.
D. Employment status
Answer: C
Rationale: Fair Housing Act protects against discrimination based on protected classes.
6.
What is a vacancy rate?
A. Rent collected monthly
B. Percentage of unoccupied units
C. Maintenance cost ratio
D. Tax rate
Answer: B
Rationale: Vacancy rate measures how much rental space is unoccupied.
7.
A lease violation notice is typically issued for:
A. Early payment
B. Breach of lease terms
C. Rent increase
D. Property sale
Answer: B
Rationale: Notices are issued when tenants violate lease conditions.
8.
Which insurance protects against tenant injury claims?
A. Title insurance
B. Liability insurance
C. Flood insurance
D. Content insurance
Answer: B
Rationale: Liability insurance covers injury or damage claims on the property.
9.
, Net Operating Income (NOI) is:
A. Gross rent minus mortgage
B. Income after taxes only
C. Income minus operating expenses
D. Total sales price
Answer: C
Rationale: NOI excludes financing and taxes, focusing on operational performance.
10.
A rent roll is:
A. List of tenants and rent amounts
B. Tax record
C. Maintenance schedule
D. Property blueprint
Answer: A
Rationale: Rent roll tracks tenant names, leases, and rent payments.
11.
Which maintenance is considered preventive?
A. Fixing broken pipe
B. Replacing a leaking roof
C. Routine HVAC servicing
D. Emergency repair
Answer: C
Rationale: Preventive maintenance avoids breakdowns before they occur.
12.
What is an eviction?
A. Lease renewal
B. Legal removal of tenant
C. Rent increase
D. Property sale
Answer: B
Rationale: Eviction is a legal process to remove a tenant for violations.
13.
Which fee is commonly non-refundable?
A. Security deposit
B. Application fee
1.
What is the primary role of a property manager?
A. Sell properties
B. Maintain and operate real estate assets
C. Build properties
D. Appraise land
Answer: B
Rationale: Property managers are responsible for daily operations, maintenance, and profitability of
real estate assets.
2.
Which document legally defines the landlord-tenant relationship?
A. Deed
B. Lease agreement
C. Title
D. Survey
Answer: B
Rationale: A lease agreement outlines rights and responsibilities of both landlord and tenant.
3.
Security deposits are primarily used for:
A. Rent payment
B. Repairs for tenant damages
C. Property taxes
D. Insurance premiums
Answer: B
Rationale: Security deposits cover damages beyond normal wear and tear.
4.
Which of the following is considered operating expense?
A. Mortgage principal
B. Property insurance
C. Purchase price
D. Down payment
Answer: B
Rationale: Insurance is a recurring cost of operating a property.
,5.
Fair Housing laws prohibit discrimination based on:
A. Income
B. Credit score
C. Race, religion, national origin, etc.
D. Employment status
Answer: C
Rationale: Fair Housing Act protects against discrimination based on protected classes.
6.
What is a vacancy rate?
A. Rent collected monthly
B. Percentage of unoccupied units
C. Maintenance cost ratio
D. Tax rate
Answer: B
Rationale: Vacancy rate measures how much rental space is unoccupied.
7.
A lease violation notice is typically issued for:
A. Early payment
B. Breach of lease terms
C. Rent increase
D. Property sale
Answer: B
Rationale: Notices are issued when tenants violate lease conditions.
8.
Which insurance protects against tenant injury claims?
A. Title insurance
B. Liability insurance
C. Flood insurance
D. Content insurance
Answer: B
Rationale: Liability insurance covers injury or damage claims on the property.
9.
, Net Operating Income (NOI) is:
A. Gross rent minus mortgage
B. Income after taxes only
C. Income minus operating expenses
D. Total sales price
Answer: C
Rationale: NOI excludes financing and taxes, focusing on operational performance.
10.
A rent roll is:
A. List of tenants and rent amounts
B. Tax record
C. Maintenance schedule
D. Property blueprint
Answer: A
Rationale: Rent roll tracks tenant names, leases, and rent payments.
11.
Which maintenance is considered preventive?
A. Fixing broken pipe
B. Replacing a leaking roof
C. Routine HVAC servicing
D. Emergency repair
Answer: C
Rationale: Preventive maintenance avoids breakdowns before they occur.
12.
What is an eviction?
A. Lease renewal
B. Legal removal of tenant
C. Rent increase
D. Property sale
Answer: B
Rationale: Eviction is a legal process to remove a tenant for violations.
13.
Which fee is commonly non-refundable?
A. Security deposit
B. Application fee
