Illinois Property Manager Licensing Examination
Practice Questions And (Verified ANSWER✔✨-s)
Plus Rationales 2026 Q&A
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
Correct ANSWER✔✨-: C
Rationale:
A: Incorrect. Selling properties is the role of a real estate sales agent or broker, not the primary duty of a
property manager.
B: Incorrect. While maintaining the property is important, it is one of many responsibilities and not the
primary duty.
C: Correct. The primary role of a property manager is to manage and operate property efficiently to
maximize the owner's ROI.
D: Incorrect. Drafting legal contracts is typically done by attorneys; property managers may use standard
forms but don't primarily draft legal documents.
2. A property manager must always act in the best interest of:
A. Tenants
B. Competitors
C. The property owner
D. Contractors
Correct ANSWER✔✨-: C
Rationale:
A: Incorrect. While property managers must treat tenants fairly, their fiduciary duty is to the owner.
B: Incorrect. Property managers have no duty to competitors.
C: Correct. Property managers are fiduciaries and must act in the best interest of the owner.
D: Incorrect. Contractors are service providers; the manager's duty is to 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
Correct ANSWER✔✨-: B
Rationale:
A: Incorrect. In a gross lease, the landlord pays all operating expenses; the tenant pays only fixed rent.
B: Correct. In a net lease, tenants pay base rent plus some or all operating expenses.
C: Incorrect. A percentage lease is based on a percentage of the tenant's sales, common in retail.
D: Incorrect. Tenancy at will is a rental arrangement with no fixed term that can be terminated by either
party.
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
Correct ANSWER✔✨-: C
Rationale:
A: Incorrect. The Illinois Property Code covers various property matters but is not the primary fair
housing law.
B: Incorrect. The ADA addresses disability access but is not the comprehensive fair housing law.
C: Correct. The federal Fair Housing Act prohibits housing discrimination on protected classes.
D: Incorrect. The Equal Employment Opportunity Act addresses workplace discrimination, not housing.
5. What is a property manager required to do when collecting security deposits?
A. Spend them on maintenance
B. Commingling with operating funds
C. Place in a separate interest-bearing account
D. Use them for personal expenses
,Correct ANSWER✔✨-: C
Rationale:
A: Incorrect. Security deposits cannot be spent until properly deducted for damages at lease end.
B: Incorrect. Commingling security deposits with operating funds is illegal in Illinois.
C: Correct. Illinois law requires security deposits to be held in separate interest-bearing accounts.
D: Incorrect. Using security deposits for personal expenses is illegal and constitutes theft.
6. Under Illinois law, how many days does a landlord have to return a security deposit after a tenant
vacates?
A. 15 days
B. 30 days
C. 45 days
D. 60 days
Correct ANSWER✔✨-: B
Rationale:
A: Incorrect. 15 days is too short; Illinois law provides 30 days.
B: Correct. Illinois Security Deposit Return Act requires return within 30 days of vacancy.
C: Incorrect. 45 days applies in some jurisdictions but not Illinois.
D: Incorrect. 60 days is too long; Illinois requires 30 days.
7. What is the maximum security deposit a landlord can charge for an unfurnished residential unit in
Illinois?
A. One month's rent
B. Two months' rent
C. Three months' rent
D. No limit under state law
Correct ANSWER✔✨-: D
Rationale:
A: Incorrect. While some localities limit deposits, Illinois state law doesn't set a maximum.
B: Incorrect. Some states limit to two months, but Illinois doesn't have this restriction.
C: Incorrect. Illinois state law doesn't specify a maximum amount.
, D: Correct. Illinois has no state limit on security deposits, though local ordinances may apply.
8. Which of the following is NOT a protected class under the federal Fair Housing Act?
A. Race
B. Religion
C. Marital status
D. National origin
Correct ANSWER✔✨-: C
Rationale:
A: Incorrect. Race is a protected class under the Fair Housing Act.
B: Incorrect. Religion is a protected class under the Fair Housing Act.
C: Correct. Marital status is NOT protected under federal law, though some states include it.
D: Incorrect. National origin is a protected class under the Fair Housing Act.
9. A property manager's fiduciary duties include all of the following EXCEPT:
A. Loyalty
B. Disclosure
C. Profit maximization at any cost
D. Accountability
Correct ANSWER✔✨-: C
Rationale:
A: Incorrect. Loyalty is a core fiduciary duty requiring the manager to act in the owner's best interest.
B: Incorrect. Disclosure is a fiduciary duty requiring transparency about material facts.
C: Correct. Profit maximization at any cost violates ethical and legal obligations; managers must act
lawfully.
D: Incorrect. Accountability is a fiduciary duty requiring proper accounting and reporting.
10. What is the purpose of a property management agreement?
A. To establish the relationship between manager and owner
B. To list the property for sale
C. To serve as a lease with tenants
D. To avoid all legal liability
Practice Questions And (Verified ANSWER✔✨-s)
Plus Rationales 2026 Q&A
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
Correct ANSWER✔✨-: C
Rationale:
A: Incorrect. Selling properties is the role of a real estate sales agent or broker, not the primary duty of a
property manager.
B: Incorrect. While maintaining the property is important, it is one of many responsibilities and not the
primary duty.
C: Correct. The primary role of a property manager is to manage and operate property efficiently to
maximize the owner's ROI.
D: Incorrect. Drafting legal contracts is typically done by attorneys; property managers may use standard
forms but don't primarily draft legal documents.
2. A property manager must always act in the best interest of:
A. Tenants
B. Competitors
C. The property owner
D. Contractors
Correct ANSWER✔✨-: C
Rationale:
A: Incorrect. While property managers must treat tenants fairly, their fiduciary duty is to the owner.
B: Incorrect. Property managers have no duty to competitors.
C: Correct. Property managers are fiduciaries and must act in the best interest of the owner.
D: Incorrect. Contractors are service providers; the manager's duty is to 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
Correct ANSWER✔✨-: B
Rationale:
A: Incorrect. In a gross lease, the landlord pays all operating expenses; the tenant pays only fixed rent.
B: Correct. In a net lease, tenants pay base rent plus some or all operating expenses.
C: Incorrect. A percentage lease is based on a percentage of the tenant's sales, common in retail.
D: Incorrect. Tenancy at will is a rental arrangement with no fixed term that can be terminated by either
party.
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
Correct ANSWER✔✨-: C
Rationale:
A: Incorrect. The Illinois Property Code covers various property matters but is not the primary fair
housing law.
B: Incorrect. The ADA addresses disability access but is not the comprehensive fair housing law.
C: Correct. The federal Fair Housing Act prohibits housing discrimination on protected classes.
D: Incorrect. The Equal Employment Opportunity Act addresses workplace discrimination, not housing.
5. What is a property manager required to do when collecting security deposits?
A. Spend them on maintenance
B. Commingling with operating funds
C. Place in a separate interest-bearing account
D. Use them for personal expenses
,Correct ANSWER✔✨-: C
Rationale:
A: Incorrect. Security deposits cannot be spent until properly deducted for damages at lease end.
B: Incorrect. Commingling security deposits with operating funds is illegal in Illinois.
C: Correct. Illinois law requires security deposits to be held in separate interest-bearing accounts.
D: Incorrect. Using security deposits for personal expenses is illegal and constitutes theft.
6. Under Illinois law, how many days does a landlord have to return a security deposit after a tenant
vacates?
A. 15 days
B. 30 days
C. 45 days
D. 60 days
Correct ANSWER✔✨-: B
Rationale:
A: Incorrect. 15 days is too short; Illinois law provides 30 days.
B: Correct. Illinois Security Deposit Return Act requires return within 30 days of vacancy.
C: Incorrect. 45 days applies in some jurisdictions but not Illinois.
D: Incorrect. 60 days is too long; Illinois requires 30 days.
7. What is the maximum security deposit a landlord can charge for an unfurnished residential unit in
Illinois?
A. One month's rent
B. Two months' rent
C. Three months' rent
D. No limit under state law
Correct ANSWER✔✨-: D
Rationale:
A: Incorrect. While some localities limit deposits, Illinois state law doesn't set a maximum.
B: Incorrect. Some states limit to two months, but Illinois doesn't have this restriction.
C: Incorrect. Illinois state law doesn't specify a maximum amount.
, D: Correct. Illinois has no state limit on security deposits, though local ordinances may apply.
8. Which of the following is NOT a protected class under the federal Fair Housing Act?
A. Race
B. Religion
C. Marital status
D. National origin
Correct ANSWER✔✨-: C
Rationale:
A: Incorrect. Race is a protected class under the Fair Housing Act.
B: Incorrect. Religion is a protected class under the Fair Housing Act.
C: Correct. Marital status is NOT protected under federal law, though some states include it.
D: Incorrect. National origin is a protected class under the Fair Housing Act.
9. A property manager's fiduciary duties include all of the following EXCEPT:
A. Loyalty
B. Disclosure
C. Profit maximization at any cost
D. Accountability
Correct ANSWER✔✨-: C
Rationale:
A: Incorrect. Loyalty is a core fiduciary duty requiring the manager to act in the owner's best interest.
B: Incorrect. Disclosure is a fiduciary duty requiring transparency about material facts.
C: Correct. Profit maximization at any cost violates ethical and legal obligations; managers must act
lawfully.
D: Incorrect. Accountability is a fiduciary duty requiring proper accounting and reporting.
10. What is the purpose of a property management agreement?
A. To establish the relationship between manager and owner
B. To list the property for sale
C. To serve as a lease with tenants
D. To avoid all legal liability
