DC PROPERTY MANAGER EXAM –
FLASHCARDS LATEST 2026/2027
ACTUAL EXAM QUESTIONS WITH
CORRECT ANSWERS 100% VERIFIED
GRADED A+
ManagementmPlanm-
mCORRECTmANSWERmThismdescribesminmdetailmthemsubjectmproperty'smcurrentmusemalongmwithmitsm
physicalmcondition,mfiscalmprojections,mandmanymoperationalmissues.mItmalsomincludesmanmanalysism
ofmthemmarketm(bothmregionalmandmneighborhood),mthemcompetingmproperties,masmwellmasmpoten
tialmimprovementsmormalternativemusesmformthemsubjectmproperty.
MarketmAnalysism-
mCORRECTmANSWERmThismfocusesmonmbothmamregionalmandmneighborhoodmevaluation,mwhichmincl
udesmthemdemographicmconditions,mgeographicmfeatures,mgovernmentalmprospective,mexistingmre
almestatemsupply,mpotentialmfuturemdevelopments,mandmtenant/residentmdemand.
AnalysismofmAlternativesm-
mCORRECTmANSWERmThismlooksmatmthemtheoreticalmcostsmandmcorrespondingmincreaseminmrentsmb
ymmakingmdifferentmimprovements,mevenmthemsubjectmproperty'smredevelopment.
CapitalmExpendituresm-
mCORRECTmANSWERmWorkmperformedmonmpropertiesmthatmaremoccupiedmandmoperationalmwithmt
hemgoalmofmtryingmtompreventmthempropertymfrommdecliningmandmbecomingmobsolete.
PhysicalmObsolescencem-
mCORRECTmANSWERmAmstatusmcharacterizedmasmamconditionmofmagingm(i.e.mwearmandmtear)mormdef
erredmmaintenance.mExamplesmaremwornmcarpets,mpeelingmpaint,mamleakingmroof,mormdeadmlandsc
aping.
, FunctionalmObsolescencem-
mCORRECTmANSWERmAmstatusmcharacterizedmbymoldmormoutdatedmdesignsmormbuildingmsystems.mE
xamplesmincludemequipmentmthatmismnotmrepairablembecausempartsmormnomlongermmanufactured;m
singlempanemwindowmsystemsmbecausemtheymwastemamlargemamountmofmenergy;moutdatedmbathro
ommfixturesmbecausemofmchangingmdesignsmandmtastes.
EconomicmObsolescencem-
mCORRECTmANSWERmAmstatusmthatmrepresentsmamlossminmvaluemduemtomoutsidemforcesm(i.e.mlocati
on,mmarketmconditions).mAnmexamplemwouldmbemanmofficembuilding,mlocatedminmamsmallmtown,mwh
eremthemmajormemployermcloses.mThismmaymresultminmbothmlowermdemandmandmrentalmrates.
Depreciationm-
mCORRECTmANSWERmThemprocessmbymwhichmpropertiesmbeginmtomdeterioratemasmsoonmasmtheymar
emcompleted.mItmrepresentsmthemlossminmvaluemfrommthemvariousmformsmofmobsolescence.
DepreciatedmValuem-
mCORRECTmANSWERmThemamountmvaluemthatmampropertymlosesmpermyearmduemtomthemvariousmfor
msmofmobsolescence.mEx:m$12,000,000mxm2.5%m(0.025)m=m$300,000mpermyear
InvestmentmValuem-
mCORRECTmANSWERmAnmamountmthatmismfrequentlymdeterminedmeithermbymcalculatingmthemNetm
OperatingmIncomemandmapplyingmamCapitalizationmRatemtomitmormfrommCashmFlowmbymdeterminingm
themReturnmonmInvestment.
AssessedmValuem-
mCORRECTmANSWERmThismismthemvaluemusedmbymgovernmentmtaxmoffices.mSincemitmismfrequentlymd
eterminedmusingmsophisticatedmmathematicalmmodelsmthatmaremappliedmtommanymsimilarmtypesmo
fmpropertiesmovermamgeographicmarea,mitmcanmbemlessmaccuratemandmproducemresultsmthatmaremhig
hermormlowermthanmothermtypesmofm"values".
FLASHCARDS LATEST 2026/2027
ACTUAL EXAM QUESTIONS WITH
CORRECT ANSWERS 100% VERIFIED
GRADED A+
ManagementmPlanm-
mCORRECTmANSWERmThismdescribesminmdetailmthemsubjectmproperty'smcurrentmusemalongmwithmitsm
physicalmcondition,mfiscalmprojections,mandmanymoperationalmissues.mItmalsomincludesmanmanalysism
ofmthemmarketm(bothmregionalmandmneighborhood),mthemcompetingmproperties,masmwellmasmpoten
tialmimprovementsmormalternativemusesmformthemsubjectmproperty.
MarketmAnalysism-
mCORRECTmANSWERmThismfocusesmonmbothmamregionalmandmneighborhoodmevaluation,mwhichmincl
udesmthemdemographicmconditions,mgeographicmfeatures,mgovernmentalmprospective,mexistingmre
almestatemsupply,mpotentialmfuturemdevelopments,mandmtenant/residentmdemand.
AnalysismofmAlternativesm-
mCORRECTmANSWERmThismlooksmatmthemtheoreticalmcostsmandmcorrespondingmincreaseminmrentsmb
ymmakingmdifferentmimprovements,mevenmthemsubjectmproperty'smredevelopment.
CapitalmExpendituresm-
mCORRECTmANSWERmWorkmperformedmonmpropertiesmthatmaremoccupiedmandmoperationalmwithmt
hemgoalmofmtryingmtompreventmthempropertymfrommdecliningmandmbecomingmobsolete.
PhysicalmObsolescencem-
mCORRECTmANSWERmAmstatusmcharacterizedmasmamconditionmofmagingm(i.e.mwearmandmtear)mormdef
erredmmaintenance.mExamplesmaremwornmcarpets,mpeelingmpaint,mamleakingmroof,mormdeadmlandsc
aping.
, FunctionalmObsolescencem-
mCORRECTmANSWERmAmstatusmcharacterizedmbymoldmormoutdatedmdesignsmormbuildingmsystems.mE
xamplesmincludemequipmentmthatmismnotmrepairablembecausempartsmormnomlongermmanufactured;m
singlempanemwindowmsystemsmbecausemtheymwastemamlargemamountmofmenergy;moutdatedmbathro
ommfixturesmbecausemofmchangingmdesignsmandmtastes.
EconomicmObsolescencem-
mCORRECTmANSWERmAmstatusmthatmrepresentsmamlossminmvaluemduemtomoutsidemforcesm(i.e.mlocati
on,mmarketmconditions).mAnmexamplemwouldmbemanmofficembuilding,mlocatedminmamsmallmtown,mwh
eremthemmajormemployermcloses.mThismmaymresultminmbothmlowermdemandmandmrentalmrates.
Depreciationm-
mCORRECTmANSWERmThemprocessmbymwhichmpropertiesmbeginmtomdeterioratemasmsoonmasmtheymar
emcompleted.mItmrepresentsmthemlossminmvaluemfrommthemvariousmformsmofmobsolescence.
DepreciatedmValuem-
mCORRECTmANSWERmThemamountmvaluemthatmampropertymlosesmpermyearmduemtomthemvariousmfor
msmofmobsolescence.mEx:m$12,000,000mxm2.5%m(0.025)m=m$300,000mpermyear
InvestmentmValuem-
mCORRECTmANSWERmAnmamountmthatmismfrequentlymdeterminedmeithermbymcalculatingmthemNetm
OperatingmIncomemandmapplyingmamCapitalizationmRatemtomitmormfrommCashmFlowmbymdeterminingm
themReturnmonmInvestment.
AssessedmValuem-
mCORRECTmANSWERmThismismthemvaluemusedmbymgovernmentmtaxmoffices.mSincemitmismfrequentlymd
eterminedmusingmsophisticatedmmathematicalmmodelsmthatmaremappliedmtommanymsimilarmtypesmo
fmpropertiesmovermamgeographicmarea,mitmcanmbemlessmaccuratemandmproducemresultsmthatmaremhig
hermormlowermthanmothermtypesmofm"values".
