DC Property Manager Exam 2026/2027 – Complete Study Guide &
Practice Test Questions & Detailed Answers with Rationales
PART I — PROPERTY MANAGEMENT FUNDAMENTALS
Question 1
A property manager primarily acts as an agent for:
A. The tenant
B. The owner of the real estate
C. The local government
D. The contractor
Answer: B. The owner of the real estate
Rationale: Under DC law, a property manager is an agent for the owner
in matters pertaining to property management under the manager's
direction and for compensation.
Question 2
Which document normally establishes the relationship between a
property owner and a property manager?
A. Deed
B. Management agreement
C. Building permit
D. Rent receipt
Answer: B. Management agreement
Rationale: The management agreement defines the manager's
authority, responsibilities, compensation, and relationship with the
owner.
,Question 3
Which is generally a property-management function?
A. Managing rental operations
B. Negotiating the sale of property for a commission
C. Appraising property for lending purposes
D. Practicing law
Answer: A. Managing rental operations
Rationale: Managing rental operations falls within property
management. Negotiating the purchase or sale of real estate for
compensation is outside the statutory property-manager scope unless
separately authorized and licensed as required.
Question 4
The first step in developing an effective management program is
generally to:
A. Evict the current tenants
B. Understand the owner's goals and objectives
C. Increase rent immediately
D. Replace all contractors
Answer: B. Understand the owner's goals and objectives
Rationale: Effective management begins with understanding the
owner's objectives and developing a plan around those objectives.
Question 5
A management plan should normally address:
A. Only rent collection
B. Physical, financial, and operational conditions
,C. Only tenant complaints
D. Only insurance coverage
Answer: B. Physical, financial, and operational conditions
Rationale: A comprehensive management plan considers the property's
physical condition, financial performance, operations, maintenance,
and owner's objectives.
Question 6
A property manager receives rent on behalf of an owner. The manager
should:
A. Keep the money indefinitely
B. Properly account for the money
C. Give the money to another tenant
D. Use it for personal expenses
Answer: B. Properly account for the money
Rationale: Money received on behalf of another party must be properly
recorded, handled, and accounted for.
Question 7
Which principle best describes a manager's duty to follow the owner's
lawful instructions?
A. Arbitrary authority
B. Agency responsibility
C. Tenant sovereignty
D. Independent ownership
Answer: B. Agency responsibility
, Rationale: A property manager acts on behalf of the owner and must
operate within the authority granted by the management agreement
and applicable law.
Question 8
A manager discovers a significant condition affecting the property's
value. The manager should generally:
A. Hide it from the owner
B. Disclose the material information appropriately
C. Destroy the records
D. Tell only another tenant
Answer: B. Disclose the material information appropriately
Rationale: Material property information should be communicated to
the owner in accordance with the management agreement and
applicable duties.
Question 9
Which is an important property-management record?
A. Rent roll
B. Personal diary
C. Social media password
D. Employee's unrelated medical record
Answer: A. Rent roll
Rationale: A rent roll provides information about rental units,
occupants, rents, and occupancy status and is an important
management record.
Question 10
Preventive maintenance is designed primarily to:
Practice Test Questions & Detailed Answers with Rationales
PART I — PROPERTY MANAGEMENT FUNDAMENTALS
Question 1
A property manager primarily acts as an agent for:
A. The tenant
B. The owner of the real estate
C. The local government
D. The contractor
Answer: B. The owner of the real estate
Rationale: Under DC law, a property manager is an agent for the owner
in matters pertaining to property management under the manager's
direction and for compensation.
Question 2
Which document normally establishes the relationship between a
property owner and a property manager?
A. Deed
B. Management agreement
C. Building permit
D. Rent receipt
Answer: B. Management agreement
Rationale: The management agreement defines the manager's
authority, responsibilities, compensation, and relationship with the
owner.
,Question 3
Which is generally a property-management function?
A. Managing rental operations
B. Negotiating the sale of property for a commission
C. Appraising property for lending purposes
D. Practicing law
Answer: A. Managing rental operations
Rationale: Managing rental operations falls within property
management. Negotiating the purchase or sale of real estate for
compensation is outside the statutory property-manager scope unless
separately authorized and licensed as required.
Question 4
The first step in developing an effective management program is
generally to:
A. Evict the current tenants
B. Understand the owner's goals and objectives
C. Increase rent immediately
D. Replace all contractors
Answer: B. Understand the owner's goals and objectives
Rationale: Effective management begins with understanding the
owner's objectives and developing a plan around those objectives.
Question 5
A management plan should normally address:
A. Only rent collection
B. Physical, financial, and operational conditions
,C. Only tenant complaints
D. Only insurance coverage
Answer: B. Physical, financial, and operational conditions
Rationale: A comprehensive management plan considers the property's
physical condition, financial performance, operations, maintenance,
and owner's objectives.
Question 6
A property manager receives rent on behalf of an owner. The manager
should:
A. Keep the money indefinitely
B. Properly account for the money
C. Give the money to another tenant
D. Use it for personal expenses
Answer: B. Properly account for the money
Rationale: Money received on behalf of another party must be properly
recorded, handled, and accounted for.
Question 7
Which principle best describes a manager's duty to follow the owner's
lawful instructions?
A. Arbitrary authority
B. Agency responsibility
C. Tenant sovereignty
D. Independent ownership
Answer: B. Agency responsibility
, Rationale: A property manager acts on behalf of the owner and must
operate within the authority granted by the management agreement
and applicable law.
Question 8
A manager discovers a significant condition affecting the property's
value. The manager should generally:
A. Hide it from the owner
B. Disclose the material information appropriately
C. Destroy the records
D. Tell only another tenant
Answer: B. Disclose the material information appropriately
Rationale: Material property information should be communicated to
the owner in accordance with the management agreement and
applicable duties.
Question 9
Which is an important property-management record?
A. Rent roll
B. Personal diary
C. Social media password
D. Employee's unrelated medical record
Answer: A. Rent roll
Rationale: A rent roll provides information about rental units,
occupants, rents, and occupancy status and is an important
management record.
Question 10
Preventive maintenance is designed primarily to:
