DC PROPERTY MANAGERS EXAM
QUESTIONS & ANSWERS (RATED A+)
What are the three types of Obsolescence? - ANSWER1. Physical Obsolescence.
2. Functional Obsolescence.
3. Economic Obsolescence.
Depreciation - ANSWERthe loss in value from the various forms of obsolescence.
Market Analysis - ANSWERIdentifying the properties strengths and weaknesses in
an effort to improve overall economic performance; also known an determining the
properties highest and best use.
Analysis of Alternatives - ANSWERIdentifying theoretical costs associated with
corresponding increases in rent; analyzing the costs associated with improvements
that could increase the overall value of the property.
Assessed Value - ANSWERThis 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 - ANSWERThis is the value that is agreed to between a buyer and
seller. It represents the
"meeting of the minds".
Define "Meeting of the Minds" - ANSWER
Responsibilities and Limitations of a Manager - ANSWER1. Loyalty to the client
2. Confidentiality
3. Accurate accounting and reporting.
4. Protection of owner's funds. ( no commingling of funds)
5. Conflicts of interest
6. Compliance with laws and regulations.
Comparison Analysis - ANSWERDetermines if the subject property's rental rates are
appropriate for the market; should include:
1. Age of Properties
2. Location Advantages/Accessibility
3. Curb Appeal
4. Interior Conditions, Quality of Finishes
5. Amenities
6. Rents Per Square Foot (commercial) or Rents Per Unit (apartments)
7. Operating expenses per square foot.
Example: Modernizing/updating the property's finishes for the purposes of gaining
premium rents.
QUESTIONS & ANSWERS (RATED A+)
What are the three types of Obsolescence? - ANSWER1. Physical Obsolescence.
2. Functional Obsolescence.
3. Economic Obsolescence.
Depreciation - ANSWERthe loss in value from the various forms of obsolescence.
Market Analysis - ANSWERIdentifying the properties strengths and weaknesses in
an effort to improve overall economic performance; also known an determining the
properties highest and best use.
Analysis of Alternatives - ANSWERIdentifying theoretical costs associated with
corresponding increases in rent; analyzing the costs associated with improvements
that could increase the overall value of the property.
Assessed Value - ANSWERThis 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 - ANSWERThis is the value that is agreed to between a buyer and
seller. It represents the
"meeting of the minds".
Define "Meeting of the Minds" - ANSWER
Responsibilities and Limitations of a Manager - ANSWER1. Loyalty to the client
2. Confidentiality
3. Accurate accounting and reporting.
4. Protection of owner's funds. ( no commingling of funds)
5. Conflicts of interest
6. Compliance with laws and regulations.
Comparison Analysis - ANSWERDetermines if the subject property's rental rates are
appropriate for the market; should include:
1. Age of Properties
2. Location Advantages/Accessibility
3. Curb Appeal
4. Interior Conditions, Quality of Finishes
5. Amenities
6. Rents Per Square Foot (commercial) or Rents Per Unit (apartments)
7. Operating expenses per square foot.
Example: Modernizing/updating the property's finishes for the purposes of gaining
premium rents.
