DC PROPERTY MANAGER TEST QUESTIONS
WITH CORRECT ANSWERS 2026
Management Plan - CORRECT ANSWER -The plan 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. These
items will be discussed further in this section.
Market Analysis - CORRECT ANSWER -A ______ 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
By performing the ____________ and a ______________, it is easier to identify the subject
property's strengths and weaknesses. - CORRECT ANSWER -Market Analysis, Competitive
Property Analysis
Analysis of Alternatives - CORRECT ANSWER -Looks at the theoretical costs and corresponding
increase in rents by making different improvements, even the subject property's
redevelopment.
Physical Obsolescence - CORRECT ANSWER -is 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Functional Obsolescence - CORRECT ANSWER -is characterized by old or outdated designs or
building systems. Examples include equipment that is not repairable because parts or no longer
manufactured; DC Property Management Study Guide - 3 single pane window systems because
they waste a large amount of energy; outdated bathroom fixtures because of changing designs
and tastes.
, Economic Obsolescence - CORRECT ANSWER -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 - CORRECT ANSWER -Properties begin to deteriorate as soon as they are
completed. This process is called ____________. and it represents the loss in value from the
various forms of obsolescence. __________ can be economically estimated on a broad level.
If a new 400 unit apartment building is worth $12,000,000 and depreciates in value at 2.5% per
year, what is its Depreciated Value after five years? - CORRECT ANSWER -$12,000,000 x 0.025 =
$300,000 per year of Depreciated Value $300,000 x 5 years = $1,500,000 accumulated
Depreciation $12,000,000 - $1,500,000 = $10,500,000 Depreciated Value after 5 years
Investment Value - CORRECT ANSWER -This is the value that is generally used by investors. It 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 - CORRECT ANSWER -This is the value used by government tax assessment
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 - CORRECT ANSWER -This is the value that is agreed to between a buyer and seller.
It represents the "meeting of the minds".
Depreciated Value - CORRECT 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
List Price - CORRECT ANSWER -This is only the price that the owner has offered to sell a property
for
WITH CORRECT ANSWERS 2026
Management Plan - CORRECT ANSWER -The plan 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. These
items will be discussed further in this section.
Market Analysis - CORRECT ANSWER -A ______ 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
By performing the ____________ and a ______________, it is easier to identify the subject
property's strengths and weaknesses. - CORRECT ANSWER -Market Analysis, Competitive
Property Analysis
Analysis of Alternatives - CORRECT ANSWER -Looks at the theoretical costs and corresponding
increase in rents by making different improvements, even the subject property's
redevelopment.
Physical Obsolescence - CORRECT ANSWER -is 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 - CORRECT ANSWER -is characterized by old or outdated designs or
building systems. Examples include equipment that is not repairable because parts or no longer
manufactured; DC Property Management Study Guide - 3 single pane window systems because
they waste a large amount of energy; outdated bathroom fixtures because of changing designs
and tastes.
, Economic Obsolescence - CORRECT ANSWER -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 - CORRECT ANSWER -Properties begin to deteriorate as soon as they are
completed. This process is called ____________. and it represents the loss in value from the
various forms of obsolescence. __________ can be economically estimated on a broad level.
If a new 400 unit apartment building is worth $12,000,000 and depreciates in value at 2.5% per
year, what is its Depreciated Value after five years? - CORRECT ANSWER -$12,000,000 x 0.025 =
$300,000 per year of Depreciated Value $300,000 x 5 years = $1,500,000 accumulated
Depreciation $12,000,000 - $1,500,000 = $10,500,000 Depreciated Value after 5 years
Investment Value - CORRECT ANSWER -This is the value that is generally used by investors. It 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 - CORRECT ANSWER -This is the value used by government tax assessment
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 - CORRECT ANSWER -This is the value that is agreed to between a buyer and seller.
It represents the "meeting of the minds".
Depreciated Value - CORRECT 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
List Price - CORRECT ANSWER -This is only the price that the owner has offered to sell a property
for
