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NPMA Certified Professional Property Manager (CPPM)
Certification EXAM QUESTIONS AND CORRECT VERIFIED
SOLUTIONS LATEST UPDATE THIS YEAR – JUST RELEASED
NPMA Certified Professional Property Manager (CPPM) Certification Exam
Tested Knowledge Areas
Core Competencies
Asset Management
Business Planning
Valuation
Risk Management
Audits
Contracts
Policy & Procedure Writing
Advanced Skills
Problem Solving and Collaboration
Training Development and Self-Assessment
Contract Closeout and Delivery Management
Investigations and Compliance Monitoring
RFP/RFQ Input and Vendor Management
Sample Practice Questions
1. Which of the following is the primary goal of preventive maintenance?
A) Reduce tenant complaints
B) Increase rent revenue
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C) Minimize equipment failure and prolong asset life
D) Decrease insurance premiums
Answer: C
Rationale: Preventive maintenance focuses on regularly scheduled inspections and servicing to
prevent unexpected breakdowns and extend equipment life .
2. What is the first step in developing a capital improvement plan?
A) Selecting contractors
B) Assessing the current condition of the property
C) Creating a budget
D) Scheduling maintenance
Answer: B
Rationale: Capital improvement planning starts with evaluating existing conditions to prioritize
needs .
3. Which of the following is considered an operating expense for property management
purposes?
A) Roof replacement
B) Utilities for common areas
C) Major structural renovation
D) Land acquisition
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Answer: B
Rationale: Operating expenses are recurring costs necessary for day-to-day property operation .
4. Which type of lease requires tenants to pay some or all property operating expenses in
addition to base rent?
A) Gross lease
B) Net lease
C) Percentage lease
D) Month-to-month lease
Answer: B
Rationale: Net leases pass on some operating costs, such as taxes or insurance, to tenants .
5. What is the primary purpose of a reserve fund?
A) Covering daily operating expenses
B) Paying employee bonuses
C) Funding future capital expenditures
D) Advertising and marketing
Answer: C
Rationale: Reserve funds are set aside for anticipated major repairs or replacements .
6. Which financial report shows a property's profitability over a specific period?
A) Balance sheet
B) Cash flow statement
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C) Income and expense statement
D) Tenant ledger
Answer: C
Rationale: Income and expense statements summarize revenues and costs to show net
operating income .
7. Which of the following is the most effective method for reducing tenant turnover?
A) Increasing rent gradually
B) Restricting amenities
C) Maintaining good communication and property condition
D) Limiting lease options
Answer: C
Rationale: Tenant retention is linked to responsive management, property upkeep, and
satisfaction .
8. What is the most common cause of elevator downtime?
A) Power outages
B) Lack of preventive maintenance
C) Tenant misuse
D) Marketing campaigns
Answer: B
Rationale: Regular preventive maintenance reduces elevator failures and improves safety .
NPMA Certified Professional Property Manager (CPPM)
Certification EXAM QUESTIONS AND CORRECT VERIFIED
SOLUTIONS LATEST UPDATE THIS YEAR – JUST RELEASED
NPMA Certified Professional Property Manager (CPPM) Certification Exam
Tested Knowledge Areas
Core Competencies
Asset Management
Business Planning
Valuation
Risk Management
Audits
Contracts
Policy & Procedure Writing
Advanced Skills
Problem Solving and Collaboration
Training Development and Self-Assessment
Contract Closeout and Delivery Management
Investigations and Compliance Monitoring
RFP/RFQ Input and Vendor Management
Sample Practice Questions
1. Which of the following is the primary goal of preventive maintenance?
A) Reduce tenant complaints
B) Increase rent revenue
, Page 2 of 94
C) Minimize equipment failure and prolong asset life
D) Decrease insurance premiums
Answer: C
Rationale: Preventive maintenance focuses on regularly scheduled inspections and servicing to
prevent unexpected breakdowns and extend equipment life .
2. What is the first step in developing a capital improvement plan?
A) Selecting contractors
B) Assessing the current condition of the property
C) Creating a budget
D) Scheduling maintenance
Answer: B
Rationale: Capital improvement planning starts with evaluating existing conditions to prioritize
needs .
3. Which of the following is considered an operating expense for property management
purposes?
A) Roof replacement
B) Utilities for common areas
C) Major structural renovation
D) Land acquisition
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Answer: B
Rationale: Operating expenses are recurring costs necessary for day-to-day property operation .
4. Which type of lease requires tenants to pay some or all property operating expenses in
addition to base rent?
A) Gross lease
B) Net lease
C) Percentage lease
D) Month-to-month lease
Answer: B
Rationale: Net leases pass on some operating costs, such as taxes or insurance, to tenants .
5. What is the primary purpose of a reserve fund?
A) Covering daily operating expenses
B) Paying employee bonuses
C) Funding future capital expenditures
D) Advertising and marketing
Answer: C
Rationale: Reserve funds are set aside for anticipated major repairs or replacements .
6. Which financial report shows a property's profitability over a specific period?
A) Balance sheet
B) Cash flow statement
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C) Income and expense statement
D) Tenant ledger
Answer: C
Rationale: Income and expense statements summarize revenues and costs to show net
operating income .
7. Which of the following is the most effective method for reducing tenant turnover?
A) Increasing rent gradually
B) Restricting amenities
C) Maintaining good communication and property condition
D) Limiting lease options
Answer: C
Rationale: Tenant retention is linked to responsive management, property upkeep, and
satisfaction .
8. What is the most common cause of elevator downtime?
A) Power outages
B) Lack of preventive maintenance
C) Tenant misuse
D) Marketing campaigns
Answer: B
Rationale: Regular preventive maintenance reduces elevator failures and improves safety .
