DC Property Managers Study Guide
UPDATED ACTUAL Exam Questions and
CORECT Answers
What does the term "Triple Net" mean when referring to commercial leases - CORRECT
ANSWER - refers to commercial tenant paying ALL Operating Expenses including real
estate taxes, insurance, roof maintenance, landscaping, etc. This is the most commonly found in
industrial leases.
Percentage Lease - CORRECT ANSWER - A lease, that requires tenant to pay rent based
on a calculation that relates directly to the tenant's gross sales. Usually stipulates a base monthly
rental plus a percentage of any gross sales above a certain amount.
The rights of a property owner include........ - CORRECT ANSWER - The right of
possession, the right of control, the right of exclusion, the right of enjoyment, the right to sell.
What is a Leasehold Interest? - CORRECT ANSWER - When the owner leases a property,
it temporarily transfers to the tenant a portion of the right of possession.
Escalator Clause - CORRECT ANSWER - When multi-year leases contain a provision for
the owner to increase the rent on the lease's anniversary date.
Separation of Funds - CORRECT ANSWER - Funds must be kept separate from property
manager's accounts. Funds that the property generates belong to the owner and should be
deposited into owner's account.
Asset Management focuses on - CORRECT ANSWER - The property's long term
planning, leasing and asking rates, negotiates commercial leases, evaluates mortgages &
opportunities to refinance the loan,considers strategies to maximize value and when to market
the property for sale.
, What common method is used to determine a property's Investment Value? - CORRECT
ANSWER - Net Operating Income is divided by the Capitalization Rate
(NOI/Cap Rate= Value)
What are the four categories related to Maintenance? - CORRECT ANSWER - Curative,
Deferred, Routine, & Prevenative
Curative Maintenance involves...... - CORRECT ANSWER - Fixing or repairing
something after it has already broken. An example would be fixing a broken sink
Deffered Maintenance - CORRECT ANSWER - Involves delaying needed repairs and
maintenance to save money.Is an ordinary maintenance item that is not performed at the time
when a problem is discovered. An example a manager notices some minor paint peeling in
stairwell.
Routine Maintenance - CORRECT ANSWER - Relates to the cleaning and upkeep that is
needed every day. An example is vacuuming the carpet in the building hallways.
Depreciated Value - CORRECT ANSWER - This is used for income tax purposes and
affects a property's tax basis
List Price - CORRECT ANSWER - The only price that the owner has offered to sell a
property for.
Cash Flow - CORRECT ANSWER - is the amount of money that remains after Debt
Service is subtracted from Net Operating Income. Is often used by investors to determine the
owner's Return On Investment
Chart of Accounts - CORRECT ANSWER - is utilized to classify each of the different
types of the income and expenses.
UPDATED ACTUAL Exam Questions and
CORECT Answers
What does the term "Triple Net" mean when referring to commercial leases - CORRECT
ANSWER - refers to commercial tenant paying ALL Operating Expenses including real
estate taxes, insurance, roof maintenance, landscaping, etc. This is the most commonly found in
industrial leases.
Percentage Lease - CORRECT ANSWER - A lease, that requires tenant to pay rent based
on a calculation that relates directly to the tenant's gross sales. Usually stipulates a base monthly
rental plus a percentage of any gross sales above a certain amount.
The rights of a property owner include........ - CORRECT ANSWER - The right of
possession, the right of control, the right of exclusion, the right of enjoyment, the right to sell.
What is a Leasehold Interest? - CORRECT ANSWER - When the owner leases a property,
it temporarily transfers to the tenant a portion of the right of possession.
Escalator Clause - CORRECT ANSWER - When multi-year leases contain a provision for
the owner to increase the rent on the lease's anniversary date.
Separation of Funds - CORRECT ANSWER - Funds must be kept separate from property
manager's accounts. Funds that the property generates belong to the owner and should be
deposited into owner's account.
Asset Management focuses on - CORRECT ANSWER - The property's long term
planning, leasing and asking rates, negotiates commercial leases, evaluates mortgages &
opportunities to refinance the loan,considers strategies to maximize value and when to market
the property for sale.
, What common method is used to determine a property's Investment Value? - CORRECT
ANSWER - Net Operating Income is divided by the Capitalization Rate
(NOI/Cap Rate= Value)
What are the four categories related to Maintenance? - CORRECT ANSWER - Curative,
Deferred, Routine, & Prevenative
Curative Maintenance involves...... - CORRECT ANSWER - Fixing or repairing
something after it has already broken. An example would be fixing a broken sink
Deffered Maintenance - CORRECT ANSWER - Involves delaying needed repairs and
maintenance to save money.Is an ordinary maintenance item that is not performed at the time
when a problem is discovered. An example a manager notices some minor paint peeling in
stairwell.
Routine Maintenance - CORRECT ANSWER - Relates to the cleaning and upkeep that is
needed every day. An example is vacuuming the carpet in the building hallways.
Depreciated Value - CORRECT ANSWER - This is used for income tax purposes and
affects a property's tax basis
List Price - CORRECT ANSWER - The only price that the owner has offered to sell a
property for.
Cash Flow - CORRECT ANSWER - is the amount of money that remains after Debt
Service is subtracted from Net Operating Income. Is often used by investors to determine the
owner's Return On Investment
Chart of Accounts - CORRECT ANSWER - is utilized to classify each of the different
types of the income and expenses.
