Illinois Property Manager Licensing Examination
Practice Questions and Correct Answers 2026
Complete 200-Question Exam Prep Bank | Verified Answers
with Detailed Rationales
EXAM OVERVIEW
License Type: Real Estate Broker License (required for property
management activities in Illinois)
Issuing Authority: Illinois Department of Financial and Professional
Regulation (IDFPR)
Testing Vendor: PSI Services
Exam Structure:
• National Portion: 100 multiple-choice questions (150 minutes)
• State Portion: 40 multiple-choice questions (90 minutes)
• Passing Score: 75% required on both portions
• Total Time: 4 hours including breaks and instructions
License Paths for Property Managers:
• Managing Broker: 165 hours pre-license + 2 years experience as a
Broker; can open and operate own property management company,
supervise other licensees
• Broker: 75 hours + 15 interactive hours pre-license; full property
management activities but must work under a Managing Broker
• Residential Leasing Agent: 15 hours pre-license; show units, process
applications, sign residential leases under a sponsoring Managing
Broker
, • Community Association Manager (CAM): For HOA/condo
association management; does NOT authorize brokerage activities
Key 2025/2026 Updates:
• Written brokerage agreements required for ALL real estate brokerage
activities including property management
• 2 hours of Fair Housing added to core CE requirement (now 6 core +
6 elective)
• Reciprocity replaced by endorsement program starting January 1,
2026
SECTION 1: FUNDAMENTALS OF PROPERTY
MANAGEMENT (Questions 1-40)
Question 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
Answer: C) Maximizing the owner's return on investment
Rationale: The primary role of a property manager is to manage and operate
property efficiently to maximize the owner's ROI. This encompasses
maintaining the property, marketing it, collecting rent, and handling tenant
relations to achieve the best financial outcome for the owner.
,Question 2:
A property manager must always act in the best interest of:
A) Tenants
B) Competitors
C) The property owner
D) Contractors
Answer: C) The property owner
Rationale: Property managers are fiduciaries and must act in the best interest
of the owner. Fiduciary duties require loyalty, care, and honesty toward the
property owner. This is a fundamental legal and ethical obligation in property
management.
Question 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
Answer: B) Net lease
Rationale: In a net lease, tenants pay base rent plus some or all operating
expenses such as taxes, insurance, and maintenance. This shifts some of the
property's operating costs from the owner to the tenant.
, Question 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
Answer: C) Fair Housing Act
Rationale: The federal Fair Housing Act prohibits housing discrimination
based on protected classes including race, color, religion, sex, national origin,
disability, and familial status. Property managers must comply with all fair
housing laws.
Question 5:
What is a property manager required to do when collecting security
deposits?
A) Spend them on maintenance
B) Deposit them in a personal account
C) Follow applicable state laws for handling, holding, and returning
deposits
D) Return them immediately
Answer: C) Follow applicable state laws for handling, holding, and
returning deposits
Rationale: Security deposits must be handled according to state law. In
Illinois, deductions must be itemized and documented to ensure fairness and
transparency. Receipts should be provided when rent is paid, especially if paid
in cash.
Practice Questions and Correct Answers 2026
Complete 200-Question Exam Prep Bank | Verified Answers
with Detailed Rationales
EXAM OVERVIEW
License Type: Real Estate Broker License (required for property
management activities in Illinois)
Issuing Authority: Illinois Department of Financial and Professional
Regulation (IDFPR)
Testing Vendor: PSI Services
Exam Structure:
• National Portion: 100 multiple-choice questions (150 minutes)
• State Portion: 40 multiple-choice questions (90 minutes)
• Passing Score: 75% required on both portions
• Total Time: 4 hours including breaks and instructions
License Paths for Property Managers:
• Managing Broker: 165 hours pre-license + 2 years experience as a
Broker; can open and operate own property management company,
supervise other licensees
• Broker: 75 hours + 15 interactive hours pre-license; full property
management activities but must work under a Managing Broker
• Residential Leasing Agent: 15 hours pre-license; show units, process
applications, sign residential leases under a sponsoring Managing
Broker
, • Community Association Manager (CAM): For HOA/condo
association management; does NOT authorize brokerage activities
Key 2025/2026 Updates:
• Written brokerage agreements required for ALL real estate brokerage
activities including property management
• 2 hours of Fair Housing added to core CE requirement (now 6 core +
6 elective)
• Reciprocity replaced by endorsement program starting January 1,
2026
SECTION 1: FUNDAMENTALS OF PROPERTY
MANAGEMENT (Questions 1-40)
Question 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
Answer: C) Maximizing the owner's return on investment
Rationale: The primary role of a property manager is to manage and operate
property efficiently to maximize the owner's ROI. This encompasses
maintaining the property, marketing it, collecting rent, and handling tenant
relations to achieve the best financial outcome for the owner.
,Question 2:
A property manager must always act in the best interest of:
A) Tenants
B) Competitors
C) The property owner
D) Contractors
Answer: C) The property owner
Rationale: Property managers are fiduciaries and must act in the best interest
of the owner. Fiduciary duties require loyalty, care, and honesty toward the
property owner. This is a fundamental legal and ethical obligation in property
management.
Question 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
Answer: B) Net lease
Rationale: In a net lease, tenants pay base rent plus some or all operating
expenses such as taxes, insurance, and maintenance. This shifts some of the
property's operating costs from the owner to the tenant.
, Question 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
Answer: C) Fair Housing Act
Rationale: The federal Fair Housing Act prohibits housing discrimination
based on protected classes including race, color, religion, sex, national origin,
disability, and familial status. Property managers must comply with all fair
housing laws.
Question 5:
What is a property manager required to do when collecting security
deposits?
A) Spend them on maintenance
B) Deposit them in a personal account
C) Follow applicable state laws for handling, holding, and returning
deposits
D) Return them immediately
Answer: C) Follow applicable state laws for handling, holding, and
returning deposits
Rationale: Security deposits must be handled according to state law. In
Illinois, deductions must be itemized and documented to ensure fairness and
transparency. Receipts should be provided when rent is paid, especially if paid
in cash.
