DC Property Manager Exam Study Guide (Latest
2026/2027 Update) Questions with Verified
Answers | 100% Correct | Graded A+
Question:
Depreciation?
Answer:
The process by which properties begin to deteriorate as soon as they are
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
completed. It represents the loss in value from the various forms of
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
obsolescence.
Question:
Depreciated Value? i,-
Answer:
The amount value that a property loses per year due to the various forms
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
of obsolescence. Ex: $12,000,000 x 2.5% (0.025) = $300,000 per year
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
Question:
Investment Value?
i,-
Answer:
,An amount that is frequently determined either by calculating the Net
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
Operating Income and applying a Capitalization Rate to it or from Cash
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
Flow by determining the Return on Investment.
i,- i,- i,- i,- i,- i,-
Question:
Assessed Value? i,-
Answer:
This is the value used by government tax offices. Since it is frequently
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
determined using sophisticated mathematical models that are applied to
i,- i,- i,- i,- i,- i,- i,- i,- i,-
many similar types of properties over a geographic area, it can be less
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
accurate and produce results that are higher or lower than other types of
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
"values".
Question:
Market Value? i,-
Answer:
This is the value that is agreed to between a buyer and seller. It represents
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
the "meeting of the minds".
i,- i,- i,- i,-
Question:
Depreciated Value? i,-
Answer:
,This is used for income tax purposes and affects a property's tax basis. In
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
the past, the Federal Government has implemented accelerated
i,- i,- i,- i,- i,- i,- i,- i,-
depreciation programs to help promote economic growth. It's one way
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
people like Donald Trump can claim to be losing money every year.
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
Question:
List price?
i,-
Answer:
This is the price that the owner has offered to sell a property for.
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
Question:
Responsibilities and Limitations? i,- i,-
Answer:
• Loyalty to the client
i,- i,- i,- i,-
• Confidentiality
i,-
• Accurate accounting and reporting
i,- i,- i,- i,-
• Protection of owner's funds (including not commingling the owner's
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
funds with the manager's)
i,- i,- i,-
• Conflicts of interest
i,- i,- i,-
• Compliance with Laws and Regulations
i,- i,- i,- i,- i,-
, Question:
Management Agreement? i,-
Answer:
The ______________ is a formal and binding contract that establishes the
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
authority and responsibilities that the manager has on behalf of the owner
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
and in operating the property. Many of the provisions typically found in a
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
____________________ are as follows: i,- i,- i,-
• Provides the name of the owner and manager
i,- i,- i,- i,- i,- i,- i,- i,-
• Specifies the term of the agreement
i,- i,- i,- i,- i,- i,-
• Describes the property
i,- i,- i,-
• Describes the services provided by the manager
i,- i,- i,- i,- i,- i,- i,-
• Identifies who collects the rent payments
i,- i,- i,- i,- i,- i,-
• Identifies in whose name all service contracts are to be made
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
• Describes when funds are to be disbursed
i,- i,- i,- i,- i,- i,- i,-
• Identifies whose employees work at the property
i,- i,- i,- i,- i,- i,- i,-
• Determines if fidelity bonds necessary
i,- i,- i,- i,- i,-
• Indicates how many bank accounts are needed and their purpose
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
• Identifies who maintains various building licenses (elevator, boiler, etc.)
i,- i,- i,- i,- i,- i,- i,- i,- i,-
• Provides insurance requirements and who secures the policies
i,- i,- i,- i,- i,- i,- i,- i,-
• Specifies the management fee compensation
i,- i,- i,- i,- i,-
_______________________ typically last for many years. However, they can be i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
terminated for various reasons. The most common are:
i,- i,- i,- i,- i,- i,- i,-
• Sale or transfer of the property
i,- i,- i,- i,- i,- i,-
2026/2027 Update) Questions with Verified
Answers | 100% Correct | Graded A+
Question:
Depreciation?
Answer:
The process by which properties begin to deteriorate as soon as they are
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
completed. It represents the loss in value from the various forms of
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
obsolescence.
Question:
Depreciated Value? i,-
Answer:
The amount value that a property loses per year due to the various forms
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
of obsolescence. Ex: $12,000,000 x 2.5% (0.025) = $300,000 per year
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
Question:
Investment Value?
i,-
Answer:
,An amount that is frequently determined either by calculating the Net
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
Operating Income and applying a Capitalization Rate to it or from Cash
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
Flow by determining the Return on Investment.
i,- i,- i,- i,- i,- i,-
Question:
Assessed Value? i,-
Answer:
This is the value used by government tax offices. Since it is frequently
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
determined using sophisticated mathematical models that are applied to
i,- i,- i,- i,- i,- i,- i,- i,- i,-
many similar types of properties over a geographic area, it can be less
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
accurate and produce results that are higher or lower than other types of
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
"values".
Question:
Market Value? i,-
Answer:
This is the value that is agreed to between a buyer and seller. It represents
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
the "meeting of the minds".
i,- i,- i,- i,-
Question:
Depreciated Value? i,-
Answer:
,This is used for income tax purposes and affects a property's tax basis. In
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
the past, the Federal Government has implemented accelerated
i,- i,- i,- i,- i,- i,- i,- i,-
depreciation programs to help promote economic growth. It's one way
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
people like Donald Trump can claim to be losing money every year.
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
Question:
List price?
i,-
Answer:
This is the price that the owner has offered to sell a property for.
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
Question:
Responsibilities and Limitations? i,- i,-
Answer:
• Loyalty to the client
i,- i,- i,- i,-
• Confidentiality
i,-
• Accurate accounting and reporting
i,- i,- i,- i,-
• Protection of owner's funds (including not commingling the owner's
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
funds with the manager's)
i,- i,- i,-
• Conflicts of interest
i,- i,- i,-
• Compliance with Laws and Regulations
i,- i,- i,- i,- i,-
, Question:
Management Agreement? i,-
Answer:
The ______________ is a formal and binding contract that establishes the
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
authority and responsibilities that the manager has on behalf of the owner
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
and in operating the property. Many of the provisions typically found in a
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
____________________ are as follows: i,- i,- i,-
• Provides the name of the owner and manager
i,- i,- i,- i,- i,- i,- i,- i,-
• Specifies the term of the agreement
i,- i,- i,- i,- i,- i,-
• Describes the property
i,- i,- i,-
• Describes the services provided by the manager
i,- i,- i,- i,- i,- i,- i,-
• Identifies who collects the rent payments
i,- i,- i,- i,- i,- i,-
• Identifies in whose name all service contracts are to be made
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
• Describes when funds are to be disbursed
i,- i,- i,- i,- i,- i,- i,-
• Identifies whose employees work at the property
i,- i,- i,- i,- i,- i,- i,-
• Determines if fidelity bonds necessary
i,- i,- i,- i,- i,-
• Indicates how many bank accounts are needed and their purpose
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
• Identifies who maintains various building licenses (elevator, boiler, etc.)
i,- i,- i,- i,- i,- i,- i,- i,- i,-
• Provides insurance requirements and who secures the policies
i,- i,- i,- i,- i,- i,- i,- i,-
• Specifies the management fee compensation
i,- i,- i,- i,- i,-
_______________________ typically last for many years. However, they can be i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
terminated for various reasons. The most common are:
i,- i,- i,- i,- i,- i,- i,-
• Sale or transfer of the property
i,- i,- i,- i,- i,- i,-
