DC PROPERTY MANAGERS STUDY GUIDE QUESTIONS
WITH CORRECT ANSWERS 2026
Management Plan - CORRECT ANSWER -Assists the owner in meeting their goals while
maximizing the property's value and return. The plan describes in detail the subject property's
current use along with it's physical condition, fiscal projections, and operational issues (includes
an analysis of the market regional & neighborhood).
Organizational and educational programs available to assist in enhancing the property
manager's knowledge, identifying resources to resolve issues, and expanding their business
network. - CORRECT ANSWER -Institute of Real Estate Management (IREM), National
Association of Realtors (NAR), Greater Capital Area Association of Realtors (GCARR), building
Owners & Managers Association (BOMA), National Association of Real Estate Brokers,
International Council of Shopping Centers (ICSC), and National Property Management
Association.
Market Analysis - CORRECT ANSWER -Focuses on regional and neighborhood evaluations.
Includes demographic conditions, geographic features, governmental prospective, existing real
estate supply, future developments, and tenant/resident demand
Market Analysis & Competitive Property Analysis helps to..... - CORRECT ANSWER -Identify the
subject property's strengths and weaknesses
The Highest & Best Use - CORRECT ANSWER -When the property manager considers alternatives
to improve the property's weaknesses or further enhance its strengths to improve overall
economic performance.
Analysis of Alternative - CORRECT ANSWER -Looks at the theoretical costs and corresponding
increase in rents by making different improvements, even property's redevelopment.
When determining the best use of property, alternatives to consider are......... - CORRECT
ANSWER -Rehabilitate without altering its existing use, Modernize by updating finishes (more
,efficient equipment), Change the Use of building (including conversion), or Conversion to a
condominium m ownership structure.
Capital Expenditures - CORRECT ANSWER -Projects that help extend the property's life.
Physical Obsolescene - CORRECT ANSWER -is characterized as a condition of aging (i.e. wear &
tear) or deferred maintenance. Examples are worn carpet, peeling paint, a leaking roof, or dead
landscaping
Functional Obsolescene - CORRECT ANSWER -is characterized by old or outdated designs or
building systems.
Economic Obsolesence - CORRECT ANSWER -Represents a loss in value due to outside forces
(i.e. location, market conditions). Examples would be an office building, locates in a small town,
where the major employer closes.
Investment Value - CORRECT ANSWER -A value generally used by investors
Assessed Value - CORRECT ANSWER -The value used by government tax assessment offices
Market Value - CORRECT ANSWER -The value that is agreed to between a buyer & seller
Rules of Ethics for Property Manager - CORRECT ANSWER -Loyalty to client, confidentiality,
accurate accounting & reporting, protection of owner's funds, conflicts of interest, and
compliance with law regulations.
An owner can be directly affected by manager's..... - CORRECT ANSWER -Improper handling of
evictions, unlawful rent collections, failure to return security deposits, not maintaining proper
compliance with the Rental Accommodations Division (RAD)
, The Management Agreement - CORRECT ANSWER -is a formal and binding contract that
establishes the authority and responsibilities that a manager has on behalf of the owner.
Name of the owner & manager, term of agreement, describes the property, describes services
provided by manager, identifies who collects rental payments, identifies whose name all service
contracts are to be made, when funds are disbursed, whose employees work at the property,
bank accounts, fidelity bonds, identifies building licenses, insurance requirements/ who secures
policies, and management fees compensation - CORRECT ANSWER -Some provisions outlined in
the Management Agreement include:
Reasons for termination of Management Agreement - CORRECT ANSWER -Sale or transfer of the
property, improper financial reporting, stealing funds, negligence, taking kickbacks or benefiting
directly from discounts from vendors, commingling funds.
Comparison Analysis - CORRECT ANSWER -Helps determine if the subject property's rental rates
are appropriate for the market.
A Comparison Analysis should include: - CORRECT ANSWER -Locational advantages/Accessibility,
Curb Appeal, Interior conditions, quality of finishes, Amenities, Rents per square foot, Operating
expenses per square foot
The purpose of a Budget is to................ - CORRECT ANSWER -Develop a means to track the
property's performance & and to organize various types of income.
Gross Potential Rent - CORRECT ANSWER -The maximum amount of income that a property can
generate from all sources.
Pass-Through Income, Expense Reimbursement, or Recoveries - CORRECT ANSWER -Commercial
leases tenants can be billed for some or all of the property's operating expenses, real estate
taxes and insurance.
WITH CORRECT ANSWERS 2026
Management Plan - CORRECT ANSWER -Assists the owner in meeting their goals while
maximizing the property's value and return. The plan describes in detail the subject property's
current use along with it's physical condition, fiscal projections, and operational issues (includes
an analysis of the market regional & neighborhood).
Organizational and educational programs available to assist in enhancing the property
manager's knowledge, identifying resources to resolve issues, and expanding their business
network. - CORRECT ANSWER -Institute of Real Estate Management (IREM), National
Association of Realtors (NAR), Greater Capital Area Association of Realtors (GCARR), building
Owners & Managers Association (BOMA), National Association of Real Estate Brokers,
International Council of Shopping Centers (ICSC), and National Property Management
Association.
Market Analysis - CORRECT ANSWER -Focuses on regional and neighborhood evaluations.
Includes demographic conditions, geographic features, governmental prospective, existing real
estate supply, future developments, and tenant/resident demand
Market Analysis & Competitive Property Analysis helps to..... - CORRECT ANSWER -Identify the
subject property's strengths and weaknesses
The Highest & Best Use - CORRECT ANSWER -When the property manager considers alternatives
to improve the property's weaknesses or further enhance its strengths to improve overall
economic performance.
Analysis of Alternative - CORRECT ANSWER -Looks at the theoretical costs and corresponding
increase in rents by making different improvements, even property's redevelopment.
When determining the best use of property, alternatives to consider are......... - CORRECT
ANSWER -Rehabilitate without altering its existing use, Modernize by updating finishes (more
,efficient equipment), Change the Use of building (including conversion), or Conversion to a
condominium m ownership structure.
Capital Expenditures - CORRECT ANSWER -Projects that help extend the property's life.
Physical Obsolescene - CORRECT ANSWER -is characterized as a condition of aging (i.e. wear &
tear) or deferred maintenance. Examples are worn carpet, peeling paint, a leaking roof, or dead
landscaping
Functional Obsolescene - CORRECT ANSWER -is characterized by old or outdated designs or
building systems.
Economic Obsolesence - CORRECT ANSWER -Represents a loss in value due to outside forces
(i.e. location, market conditions). Examples would be an office building, locates in a small town,
where the major employer closes.
Investment Value - CORRECT ANSWER -A value generally used by investors
Assessed Value - CORRECT ANSWER -The value used by government tax assessment offices
Market Value - CORRECT ANSWER -The value that is agreed to between a buyer & seller
Rules of Ethics for Property Manager - CORRECT ANSWER -Loyalty to client, confidentiality,
accurate accounting & reporting, protection of owner's funds, conflicts of interest, and
compliance with law regulations.
An owner can be directly affected by manager's..... - CORRECT ANSWER -Improper handling of
evictions, unlawful rent collections, failure to return security deposits, not maintaining proper
compliance with the Rental Accommodations Division (RAD)
, The Management Agreement - CORRECT ANSWER -is a formal and binding contract that
establishes the authority and responsibilities that a manager has on behalf of the owner.
Name of the owner & manager, term of agreement, describes the property, describes services
provided by manager, identifies who collects rental payments, identifies whose name all service
contracts are to be made, when funds are disbursed, whose employees work at the property,
bank accounts, fidelity bonds, identifies building licenses, insurance requirements/ who secures
policies, and management fees compensation - CORRECT ANSWER -Some provisions outlined in
the Management Agreement include:
Reasons for termination of Management Agreement - CORRECT ANSWER -Sale or transfer of the
property, improper financial reporting, stealing funds, negligence, taking kickbacks or benefiting
directly from discounts from vendors, commingling funds.
Comparison Analysis - CORRECT ANSWER -Helps determine if the subject property's rental rates
are appropriate for the market.
A Comparison Analysis should include: - CORRECT ANSWER -Locational advantages/Accessibility,
Curb Appeal, Interior conditions, quality of finishes, Amenities, Rents per square foot, Operating
expenses per square foot
The purpose of a Budget is to................ - CORRECT ANSWER -Develop a means to track the
property's performance & and to organize various types of income.
Gross Potential Rent - CORRECT ANSWER -The maximum amount of income that a property can
generate from all sources.
Pass-Through Income, Expense Reimbursement, or Recoveries - CORRECT ANSWER -Commercial
leases tenants can be billed for some or all of the property's operating expenses, real estate
taxes and insurance.
