CERTIFIED PROPERTY MANAGER (CPM)
PRACTICE EXAM 2 – QUESTIONS AND
CORRECT ANSWERS 2025
1. What is the primary responsibility of a Certified Property Manager (CPM)?
A. Maximize property value and return on investment
B. Design construction layouts
C. Conduct property appraisals
D. Provide legal representation
The CPM is responsible for ensuring properties operate efficiently
and profitably to generate the best ROI for the owner.
2. Which document outlines the financial plan for the property?
A. Lease agreement
B. Market analysis
C. Operating budget
D. Property management contract
An operating budget helps track income and expenses, projecting
financial performance over time.
3. What type of lease adjusts rent based on the consumer price index?
A. Index lease
B. Gross lease
C. Net lease
D. Fixed lease
Index leases adjust rent periodically based on inflation measures like CPI.
4. Which financial report shows a property's assets, liabilities, and equity
, at a specific point in time?
A. Income statement
B. Balance sheet
C. Cash flow report
D. Budget variance report
The balance sheet reflects a snapshot of financial health on a given date.
5. What does a capitalization rate (cap rate)
represent?
A. Rate of return based on the income of a
property
B. Property tax rate
C. Loan interest rate
D. Depreciation expense
Cap rate helps investors compare potential returns on real estate
investments.
6. What is typically the first step in a market analysis?
A. Writing lease clauses
B. Analyzing comparable properties
C. Hiring maintenance staff
D. Creating a pro forma
Comparable property analysis reveals pricing and occupancy trends in
the area.
7. What is the primary legal document between a property manager and
the owner?
A. Tenant lease
B. Management agreement
PRACTICE EXAM 2 – QUESTIONS AND
CORRECT ANSWERS 2025
1. What is the primary responsibility of a Certified Property Manager (CPM)?
A. Maximize property value and return on investment
B. Design construction layouts
C. Conduct property appraisals
D. Provide legal representation
The CPM is responsible for ensuring properties operate efficiently
and profitably to generate the best ROI for the owner.
2. Which document outlines the financial plan for the property?
A. Lease agreement
B. Market analysis
C. Operating budget
D. Property management contract
An operating budget helps track income and expenses, projecting
financial performance over time.
3. What type of lease adjusts rent based on the consumer price index?
A. Index lease
B. Gross lease
C. Net lease
D. Fixed lease
Index leases adjust rent periodically based on inflation measures like CPI.
4. Which financial report shows a property's assets, liabilities, and equity
, at a specific point in time?
A. Income statement
B. Balance sheet
C. Cash flow report
D. Budget variance report
The balance sheet reflects a snapshot of financial health on a given date.
5. What does a capitalization rate (cap rate)
represent?
A. Rate of return based on the income of a
property
B. Property tax rate
C. Loan interest rate
D. Depreciation expense
Cap rate helps investors compare potential returns on real estate
investments.
6. What is typically the first step in a market analysis?
A. Writing lease clauses
B. Analyzing comparable properties
C. Hiring maintenance staff
D. Creating a pro forma
Comparable property analysis reveals pricing and occupancy trends in
the area.
7. What is the primary legal document between a property manager and
the owner?
A. Tenant lease
B. Management agreement
