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DC PROPERTY MANAGER EXAM| 2026
UPDATED QUESTIONS WITH
CORRECT ANSWERS
Management Plan - correct answer- 1. Current use
2. Current condition
3. Fiscal projections
4. Operational issues
Market Analysis - correct answer- Regional and neighborhood
evaluation focusing on:
1. Demographic conditions
2. Geographic features
3. Governmental perspective
4. Existing real estate supply
5. Future developments
6. Tenant demand
Analysis of Alternatives - correct answer- Theoretical costs and
potential for rent increase based on decision to:
1. Modernize
2. Rehabilitate
3. Change
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4. Convert
Capital Expenditures - correct answer- Projects that help
extend a properties useful life.
Three Types of Obsolescence - correct answer- 1. Physical
Obsolescence is characterized as a condition of aging (i.e.
wear and tear) or deferred maintenance.
2. Functional Obsolescence is characterized by old or outdated
designs or building systems.
3. Economic Obsolescence represents a loss in value due to
outside forces (i.e. location, market conditions).
Five Types of Property Values - correct answer- 1. Investment
Value - 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.
2. Assessed Value - 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".
3. Market Value - This is the value that is agreed to between a
buyer and seller. It represents the "meeting of the minds".
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4. Depreciated Value - 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.
5. List price - This is only the price that the owner has offered to
sell a property for.
Rules of Ethics - correct answer- 1. Loyalty to the client
2. Confidentiality
3. Accurate accounting and reporting
4. Protection of owner's funds
5. Conflicts of interest
6. Compliance with Laws and Regulations
Management Agreement - correct answer- A formal and binding
contract that establishes the authority and responsibilities that
the manager has on behalf of the owner and in operating the
property. It will assist the owner in meeting their goals and
objectives as well as maximizing the property's value and
return.
Grounds for Termination of Management Agreement - correct
answer- 1. Sale or transfer of the property
2. Improper financial reporting
3. Improper financial reporting
DC PROPERTY MANAGER EXAM| 2026
UPDATED QUESTIONS WITH
CORRECT ANSWERS
Management Plan - correct answer- 1. Current use
2. Current condition
3. Fiscal projections
4. Operational issues
Market Analysis - correct answer- Regional and neighborhood
evaluation focusing on:
1. Demographic conditions
2. Geographic features
3. Governmental perspective
4. Existing real estate supply
5. Future developments
6. Tenant demand
Analysis of Alternatives - correct answer- Theoretical costs and
potential for rent increase based on decision to:
1. Modernize
2. Rehabilitate
3. Change
,2 | Page
4. Convert
Capital Expenditures - correct answer- Projects that help
extend a properties useful life.
Three Types of Obsolescence - correct answer- 1. Physical
Obsolescence is characterized as a condition of aging (i.e.
wear and tear) or deferred maintenance.
2. Functional Obsolescence is characterized by old or outdated
designs or building systems.
3. Economic Obsolescence represents a loss in value due to
outside forces (i.e. location, market conditions).
Five Types of Property Values - correct answer- 1. Investment
Value - 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.
2. Assessed Value - 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".
3. Market Value - This is the value that is agreed to between a
buyer and seller. It represents the "meeting of the minds".
, 3 | Page
4. Depreciated Value - 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.
5. List price - This is only the price that the owner has offered to
sell a property for.
Rules of Ethics - correct answer- 1. Loyalty to the client
2. Confidentiality
3. Accurate accounting and reporting
4. Protection of owner's funds
5. Conflicts of interest
6. Compliance with Laws and Regulations
Management Agreement - correct answer- A formal and binding
contract that establishes the authority and responsibilities that
the manager has on behalf of the owner and in operating the
property. It will assist the owner in meeting their goals and
objectives as well as maximizing the property's value and
return.
Grounds for Termination of Management Agreement - correct
answer- 1. Sale or transfer of the property
2. Improper financial reporting
3. Improper financial reporting
