DC PROPERTY MANAGER EXAM -
FLASHCARDS, DC PROPERTY
MANAGEMENT EXAM 2025
QUESTIONS AND ANSWERS
Management Plan - ....ANSWER ...-This describes in detail the subject
property's current use along with its physical condition, fiscal projections, and any
operational issues. It also includes an analysis of the market (both regional and
neighborhood), the competing properties, as well as potential improvements or
alternative uses for the subject property.
Market Analysis - ....ANSWER ...-This focuses on both a regional and
neighborhood evaluation, which includes the demographic conditions, geographic
features, governmental prospective, existing real estate supply, potential future
developments, and tenant/resident demand.
Analysis of Alternatives - ....ANSWER ...-This looks at the theoretical costs
and corresponding increase in rents by making different improvements, even the
subject property's redevelopment.
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
,Capital Expenditures - ....ANSWER ...-Work performed on properties that
are occupied and operational with the goal of trying to prevent the property from
declining and becoming obsolete.
Physical Obsolescence - ....ANSWER ...-A status characterized as a
condition of aging (i.e. wear and tear) or deferred maintenance. Examples are worn
carpets, peeling paint, a leaking roof, or dead landscaping.
Functional Obsolescence - ....ANSWER ...-A status characterized by old or
outdated designs or building systems. Examples include equipment that is not
repairable because parts or no longer manufactured; single pane window systems
because they waste a large amount of energy; outdated bathroom fixtures because
of changing designs and tastes.
Economic Obsolescence - ....ANSWER ...-A status that represents a loss in
value due to outside forces (i.e. location, market conditions). An example would be
an office building, located in a small town, where the major employer closes. This
may result in both lower demand and rental rates.
Depreciation - ....ANSWER ...-The process by which properties begin to
deteriorate as soon as they are completed. It represents the loss in value from the
various forms of obsolescence.
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
, Depreciated Value - ....ANSWER ...-The amount value that a property loses
per year due to the various forms of obsolescence. Ex: $12,000,000 x 2.5% (0.025)
= $300,000 per year
Investment Value - ....ANSWER ...-An amount that is frequently determined
either by calculating the Net Operating Income and applying a Capitalization Rate
to it or from Cash Flow by determining the Return on Investment.
Assessed Value - ....ANSWER ...-This is the value used by government tax
offices. Since it is frequently determined using sophisticated mathematical models
that are applied to many similar types of properties over a geographic area, it can
be less accurate and produce results that are higher or lower than other types of
"values".
Market Value - ....ANSWER ...-This is the value that is agreed to between a
buyer and seller. It represents the "meeting of the minds".
Depreciated Value - ....ANSWER ...-This is used for income tax purposes
and affects a property's tax basis. In the past, the Federal Government has
implemented accelerated depreciation programs to help promote economic
growth. It's one way people like Donald Trump can claim to be losing money
every year.
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 3
FLASHCARDS, DC PROPERTY
MANAGEMENT EXAM 2025
QUESTIONS AND ANSWERS
Management Plan - ....ANSWER ...-This describes in detail the subject
property's current use along with its physical condition, fiscal projections, and any
operational issues. It also includes an analysis of the market (both regional and
neighborhood), the competing properties, as well as potential improvements or
alternative uses for the subject property.
Market Analysis - ....ANSWER ...-This focuses on both a regional and
neighborhood evaluation, which includes the demographic conditions, geographic
features, governmental prospective, existing real estate supply, potential future
developments, and tenant/resident demand.
Analysis of Alternatives - ....ANSWER ...-This looks at the theoretical costs
and corresponding increase in rents by making different improvements, even the
subject property's redevelopment.
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
,Capital Expenditures - ....ANSWER ...-Work performed on properties that
are occupied and operational with the goal of trying to prevent the property from
declining and becoming obsolete.
Physical Obsolescence - ....ANSWER ...-A status characterized as a
condition of aging (i.e. wear and tear) or deferred maintenance. Examples are worn
carpets, peeling paint, a leaking roof, or dead landscaping.
Functional Obsolescence - ....ANSWER ...-A status characterized by old or
outdated designs or building systems. Examples include equipment that is not
repairable because parts or no longer manufactured; single pane window systems
because they waste a large amount of energy; outdated bathroom fixtures because
of changing designs and tastes.
Economic Obsolescence - ....ANSWER ...-A status that represents a loss in
value due to outside forces (i.e. location, market conditions). An example would be
an office building, located in a small town, where the major employer closes. This
may result in both lower demand and rental rates.
Depreciation - ....ANSWER ...-The process by which properties begin to
deteriorate as soon as they are completed. It represents the loss in value from the
various forms of obsolescence.
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
, Depreciated Value - ....ANSWER ...-The amount value that a property loses
per year due to the various forms of obsolescence. Ex: $12,000,000 x 2.5% (0.025)
= $300,000 per year
Investment Value - ....ANSWER ...-An amount that is frequently determined
either by calculating the Net Operating Income and applying a Capitalization Rate
to it or from Cash Flow by determining the Return on Investment.
Assessed Value - ....ANSWER ...-This is the value used by government tax
offices. Since it is frequently determined using sophisticated mathematical models
that are applied to many similar types of properties over a geographic area, it can
be less accurate and produce results that are higher or lower than other types of
"values".
Market Value - ....ANSWER ...-This is the value that is agreed to between a
buyer and seller. It represents the "meeting of the minds".
Depreciated Value - ....ANSWER ...-This is used for income tax purposes
and affects a property's tax basis. In the past, the Federal Government has
implemented accelerated depreciation programs to help promote economic
growth. It's one way people like Donald Trump can claim to be losing money
every year.
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 3
