DC Property Manager
Frequently Tested Exam Questions With Verified
Multiple Choice and Conceptual Actual 100%
Correct Detailed Answers
Guaranteed Pass!!Current Update!!
1. What are the four core components of a Management Plan?
Current use, current condition, fiscal projections, operational issues
2. What is the purpose of a Market Analysis in property management?
To evaluate regional and neighborhood conditions including demographics,
geography, government factors, current supply, future development, and tenant
demand.
3. What is included in an Analysis of Alternatives?
Evaluation of costs and rent-increase potential when considering
modernization, rehabilitation, change, or conversion.
4. What are Capital Expenditures?
Projects that extend the useful life of the property.
5. What are the three types of obsolescence?
Physical, functional, and economic
6. What are the five types of property value?
Investment, assessed, market, depreciated, and list price
7. What are the key Rules of Ethics for property managers?
Loyalty, confidentiality, accurate reporting, safeguarding owner funds,
avoiding conflicts of interest, legal compliance
,8. What is a Management Agreement?
A binding contract outlining the authority and responsibilities of the property
manager.
9. What are valid grounds for terminating a Management Agreement?
Sale or transfer, improper reporting, negligence, commingling funds
10. What is the purpose of a Comparison Analysis?
To compare properties and adjust rental values based on strengths,
weaknesses, and physical differences.
11. What is the purpose of the Budget Process?
To track property performance and organize income/expenses on an annual
basis.
12. What is Gross Potential Rental Income?
The maximum possible income from all sources.
13. What is Effective Gross Income?
Formula:
GPRI + Reimbursements – Vacancy/Credit Loss + Misc. Income
14. What are Operating Expenses?
Costs to run and maintain a property: utilities, maintenance, taxes, insurance,
management fees.
15. What is Net Operating Income (NOI)?
Effective Gross Income minus Operating Expenses.
16. What is Debt Service?
Principal + interest payments.
17. What is Cash Flow?
Formula:
NOI – Debt Service
, 18. How is Return on Investment (ROI) calculated?
Formula:
Annual Cash Flow ÷ Initial Cash Investment
19. What distinguishes Capital Expenditures from Operating Expenses?
CapEx are infrequent and long-term; OpEx occur regularly.
Reports and Accounting
20. What is a Chart of Accounts?
A system for categorizing all income and expenses.
21. What is an Operating Statement?
A performance report summarizing income, expenses, and NOI.
Lease Administration & Types
22. What are the main types of commercial leases?
Gross, Net (including Double Net & Triple Net), and Percentage Rent
23. What is a Leasehold Interest?
Tenant’s temporary right of possession.
24. What is a Casualty Provision?
Lease terms for damage or destruction during the lease term.
25. What is an Escalator Clause?
A clause allowing rent increases on the lease anniversary.
Property Rights & Tenancy Types
26. What are the owner’s property rights?
Possession, control, exclusion, enjoyment, and disposition.
Frequently Tested Exam Questions With Verified
Multiple Choice and Conceptual Actual 100%
Correct Detailed Answers
Guaranteed Pass!!Current Update!!
1. What are the four core components of a Management Plan?
Current use, current condition, fiscal projections, operational issues
2. What is the purpose of a Market Analysis in property management?
To evaluate regional and neighborhood conditions including demographics,
geography, government factors, current supply, future development, and tenant
demand.
3. What is included in an Analysis of Alternatives?
Evaluation of costs and rent-increase potential when considering
modernization, rehabilitation, change, or conversion.
4. What are Capital Expenditures?
Projects that extend the useful life of the property.
5. What are the three types of obsolescence?
Physical, functional, and economic
6. What are the five types of property value?
Investment, assessed, market, depreciated, and list price
7. What are the key Rules of Ethics for property managers?
Loyalty, confidentiality, accurate reporting, safeguarding owner funds,
avoiding conflicts of interest, legal compliance
,8. What is a Management Agreement?
A binding contract outlining the authority and responsibilities of the property
manager.
9. What are valid grounds for terminating a Management Agreement?
Sale or transfer, improper reporting, negligence, commingling funds
10. What is the purpose of a Comparison Analysis?
To compare properties and adjust rental values based on strengths,
weaknesses, and physical differences.
11. What is the purpose of the Budget Process?
To track property performance and organize income/expenses on an annual
basis.
12. What is Gross Potential Rental Income?
The maximum possible income from all sources.
13. What is Effective Gross Income?
Formula:
GPRI + Reimbursements – Vacancy/Credit Loss + Misc. Income
14. What are Operating Expenses?
Costs to run and maintain a property: utilities, maintenance, taxes, insurance,
management fees.
15. What is Net Operating Income (NOI)?
Effective Gross Income minus Operating Expenses.
16. What is Debt Service?
Principal + interest payments.
17. What is Cash Flow?
Formula:
NOI – Debt Service
, 18. How is Return on Investment (ROI) calculated?
Formula:
Annual Cash Flow ÷ Initial Cash Investment
19. What distinguishes Capital Expenditures from Operating Expenses?
CapEx are infrequent and long-term; OpEx occur regularly.
Reports and Accounting
20. What is a Chart of Accounts?
A system for categorizing all income and expenses.
21. What is an Operating Statement?
A performance report summarizing income, expenses, and NOI.
Lease Administration & Types
22. What are the main types of commercial leases?
Gross, Net (including Double Net & Triple Net), and Percentage Rent
23. What is a Leasehold Interest?
Tenant’s temporary right of possession.
24. What is a Casualty Provision?
Lease terms for damage or destruction during the lease term.
25. What is an Escalator Clause?
A clause allowing rent increases on the lease anniversary.
Property Rights & Tenancy Types
26. What are the owner’s property rights?
Possession, control, exclusion, enjoyment, and disposition.
