DC PM Latest recent & frequently tested exam
with questions and verified accurate solutions
(detailed & elaborated) GRADED A+
, sublet/sublease agreement - correct ans:a lease agreement between a tenant a sub-tenant where the
original tenant essentially becomes a middle-man between the landlord and the subtenant assumes
both landlord duties to the sub-tenant and tenant duties to the landlord
management plan - correct ans:describes in detail the subject property''s current use along with its
physical condition, fiscal projections and any operational issues
analysis of alternatives - correct ans:rehabilitate the property w/out altering its existing use, modernize
the property by updating finishes etc., changes the use of the building or demolish for new
development, conversion to condos
Physical Obsolescence - correct ans:a condition of aging or deferred maintenance ex) worn carpets,
dead landscaping
functional obsolescence - correct ans:old or outdated designs or building system's ex) equipment that is
not repairable b/c parts are no longer made
Economic Obsolescence - correct ans:loss in value due to outside forces
gross potential rental income - correct ans:max amount of income that a property can generate from all
sources. represents the total potential income from all units/spaces being fully occupied and all
amounts owed by residents/tenants being collected in full
pass through income, expense reimbursements, or recovers - correct ans:when tenants are billed for
some or all of the property's operating expenses. owner will be reimbursed for some or all of the
property's operating expenses ex.) reimbursements for utilities landscaping, etc.
Effective Gross Income - correct ans:gross potential rental income + expenses reimbursements - vacant
and credit loss + misc income
operating expenses - correct ans:all of the costs associated with running and maintaining a property ex)
real estate taxes, insurance, snow removal
with questions and verified accurate solutions
(detailed & elaborated) GRADED A+
, sublet/sublease agreement - correct ans:a lease agreement between a tenant a sub-tenant where the
original tenant essentially becomes a middle-man between the landlord and the subtenant assumes
both landlord duties to the sub-tenant and tenant duties to the landlord
management plan - correct ans:describes in detail the subject property''s current use along with its
physical condition, fiscal projections and any operational issues
analysis of alternatives - correct ans:rehabilitate the property w/out altering its existing use, modernize
the property by updating finishes etc., changes the use of the building or demolish for new
development, conversion to condos
Physical Obsolescence - correct ans:a condition of aging or deferred maintenance ex) worn carpets,
dead landscaping
functional obsolescence - correct ans:old or outdated designs or building system's ex) equipment that is
not repairable b/c parts are no longer made
Economic Obsolescence - correct ans:loss in value due to outside forces
gross potential rental income - correct ans:max amount of income that a property can generate from all
sources. represents the total potential income from all units/spaces being fully occupied and all
amounts owed by residents/tenants being collected in full
pass through income, expense reimbursements, or recovers - correct ans:when tenants are billed for
some or all of the property's operating expenses. owner will be reimbursed for some or all of the
property's operating expenses ex.) reimbursements for utilities landscaping, etc.
Effective Gross Income - correct ans:gross potential rental income + expenses reimbursements - vacant
and credit loss + misc income
operating expenses - correct ans:all of the costs associated with running and maintaining a property ex)
real estate taxes, insurance, snow removal
