DC PROPERTY MANAGER EXAM
Questions and Answers
1.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.
2.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 ten- ant/resident demand.
3.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.
4.Capital Expenditures
Answer Work performed on properties that are occupied and op-
erational with the goal of trying to prevent the property from declining
1/
7
, and becoming obsolete.
5.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.
6.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Answer A status characterized by old or outdated designs or building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they waste a large amount of energy; outdated bathroom fixtures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.
7.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.
8.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.
2/
7
Questions and Answers
1.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.
2.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 ten- ant/resident demand.
3.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.
4.Capital Expenditures
Answer Work performed on properties that are occupied and op-
erational with the goal of trying to prevent the property from declining
1/
7
, and becoming obsolete.
5.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.
6.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.
7.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.
8.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.
2/
7
