ACCREDITED RESIDENTIAL MANAGER
(ARM) EXAMINATION QUESTIONS AND
CORRECT ANSWERS (VERIFIED
ANSWERS) PLUS RATIONALES 2026 Q&A
| INSTANT DOWNLOAD PDF
1. What is the primary responsibility of an Accredited Residential Manager?
A. Marketing residential properties
B. Supervising maintenance staff
C. Managing day-to-day operations of residential communities
D. Conducting real estate sales
Rationale: An ARM is primarily responsible for the overall management of
residential properties, including operations, staff supervision, and resident
relations.
2. Which of the following is considered an operational budget responsibility for
a residential manager?
A. Approving loan applications
B. Allocating funds for maintenance and repairs
C. Selling units to investors
D. Setting property tax rates
Rationale: Operational budgets involve planning and allocating resources for the
day-to-day maintenance and operation of a property.
3. When handling resident complaints, the ARM should:
A. Ignore minor complaints
B. Address complaints promptly and fairly
C. Only respond in writing
D. Refer all complaints to legal counsel
,Rationale: Prompt and fair handling of complaints improves resident satisfaction
and prevents escalation.
4. What is the most effective method for controlling vacancy rates?
A. Reducing rent drastically
B. Maintaining good resident relations and property upkeep
C. Limiting marketing efforts
D. Offering long-term leases only
Rationale: High-quality property management and positive resident relations
are key factors in minimizing vacancies.
5. In residential property management, preventive maintenance is important
because:
A. It increases property taxes
B. It reduces long-term repair costs and extends asset life
C. It allows more frequent unit turnover
D. It is legally required for all properties
Rationale: Preventive maintenance helps avoid costly repairs and preserves the
property’s value.
6. What is the first step in preparing an annual operating budget?
A. Collecting past financial statements
B. Forecasting income and expenses for the coming year
C. Hiring additional staff
D. Approving rent increases
Rationale: Budget preparation starts with projecting income and expenses to
guide operational planning.
7. Which of the following best describes capital expenditures?
A. Daily cleaning supplies
B. Long-term investments in property improvements or replacements
C. Utility bills
D. Advertising costs
Rationale: Capital expenditures are funds used for major property
improvements, not routine operations.
, 8. Fair Housing laws prohibit discrimination based on all of the following EXCEPT:
A. Race
B. Income level
C. Religion
D. National origin
Rationale: Fair Housing laws protect against discrimination based on personal
characteristics, not income alone.
9. When a resident violates community rules, the ARM should:
A. Evict immediately
B. Follow the community’s established disciplinary process
C. Ignore the violation
D. Publicly reprimand the resident
Rationale: Using established procedures ensures fairness and reduces legal risk.
10. Which financial statement shows a property’s revenues and expenses over a
specific period?
A. Balance sheet
B. Income statement (profit and loss statement)
C. Statement of cash flows
D. Budget variance report
Rationale: The income statement summarizes revenue and expenses for a
particular period, showing net income or loss.
11. Which of the following is a key component of risk management in residential
property management?
A. Only hiring volunteers
B. Identifying, evaluating, and mitigating potential risks
C. Ignoring minor safety issues
D. Avoiding insurance coverage
Rationale: Effective risk management involves proactive identification and
reduction of risks to protect residents and property.
12. What is the primary goal of a preventive maintenance program?
A. Reduce staff workload
(ARM) EXAMINATION QUESTIONS AND
CORRECT ANSWERS (VERIFIED
ANSWERS) PLUS RATIONALES 2026 Q&A
| INSTANT DOWNLOAD PDF
1. What is the primary responsibility of an Accredited Residential Manager?
A. Marketing residential properties
B. Supervising maintenance staff
C. Managing day-to-day operations of residential communities
D. Conducting real estate sales
Rationale: An ARM is primarily responsible for the overall management of
residential properties, including operations, staff supervision, and resident
relations.
2. Which of the following is considered an operational budget responsibility for
a residential manager?
A. Approving loan applications
B. Allocating funds for maintenance and repairs
C. Selling units to investors
D. Setting property tax rates
Rationale: Operational budgets involve planning and allocating resources for the
day-to-day maintenance and operation of a property.
3. When handling resident complaints, the ARM should:
A. Ignore minor complaints
B. Address complaints promptly and fairly
C. Only respond in writing
D. Refer all complaints to legal counsel
,Rationale: Prompt and fair handling of complaints improves resident satisfaction
and prevents escalation.
4. What is the most effective method for controlling vacancy rates?
A. Reducing rent drastically
B. Maintaining good resident relations and property upkeep
C. Limiting marketing efforts
D. Offering long-term leases only
Rationale: High-quality property management and positive resident relations
are key factors in minimizing vacancies.
5. In residential property management, preventive maintenance is important
because:
A. It increases property taxes
B. It reduces long-term repair costs and extends asset life
C. It allows more frequent unit turnover
D. It is legally required for all properties
Rationale: Preventive maintenance helps avoid costly repairs and preserves the
property’s value.
6. What is the first step in preparing an annual operating budget?
A. Collecting past financial statements
B. Forecasting income and expenses for the coming year
C. Hiring additional staff
D. Approving rent increases
Rationale: Budget preparation starts with projecting income and expenses to
guide operational planning.
7. Which of the following best describes capital expenditures?
A. Daily cleaning supplies
B. Long-term investments in property improvements or replacements
C. Utility bills
D. Advertising costs
Rationale: Capital expenditures are funds used for major property
improvements, not routine operations.
, 8. Fair Housing laws prohibit discrimination based on all of the following EXCEPT:
A. Race
B. Income level
C. Religion
D. National origin
Rationale: Fair Housing laws protect against discrimination based on personal
characteristics, not income alone.
9. When a resident violates community rules, the ARM should:
A. Evict immediately
B. Follow the community’s established disciplinary process
C. Ignore the violation
D. Publicly reprimand the resident
Rationale: Using established procedures ensures fairness and reduces legal risk.
10. Which financial statement shows a property’s revenues and expenses over a
specific period?
A. Balance sheet
B. Income statement (profit and loss statement)
C. Statement of cash flows
D. Budget variance report
Rationale: The income statement summarizes revenue and expenses for a
particular period, showing net income or loss.
11. Which of the following is a key component of risk management in residential
property management?
A. Only hiring volunteers
B. Identifying, evaluating, and mitigating potential risks
C. Ignoring minor safety issues
D. Avoiding insurance coverage
Rationale: Effective risk management involves proactive identification and
reduction of risks to protect residents and property.
12. What is the primary goal of a preventive maintenance program?
A. Reduce staff workload
