Download DC Property Manager Exam: Questions and Answers for Real Estate Professionals and more Exams Property Law in PDF only on Docsity!
DC PROPERTY MANAGER EXAM
QUESTIONS WITH 100% CORRECT ANSWERS | UPDATED 2024
"What is a Leasehold Interest? - Correct Answer When the owner leases a property, it temporarily
transfers to the tenant a portion of the right of possession."
"What are the four categories related to Maintenance? - Correct Answer Curative, Deferred, Routine,
& Prevenative"
"List Price - Correct Answer The only price that the owner has offered to sell a property for."
"Cash Flow - Correct Answer is the amount of money that remains after Debt Service is subtracted
from Net Operating Income. Is often used by investors to determine the owner's Return On Investment" "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."
"A landlord may evict a tenant for only one of ten statutory reasons some of those reasons include -
Correct Answer Nonpayment of rent, Violation of an obligation of tenancy, of which the tenant failed
to correct after notice; Tenant performed as illegal act within the rental unit."
"TOPA Tenant Opportunity to Purchase Act - Correct Answer Landlord must provide the tenant(s) with
the opportunity to acquire a residence."
"The Condominium Act - Correct Answer Regulates condominium formation and registration."
"The District of Columbia Real Estate Commission - Correct Answer protects consumers by enforcing
the laws and regulations applicable to property managers including licensure"
"Return On Investment Equation - Correct Answer Cash Flow divided by Initial Investment"
"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."
"Examples of Capital Expenditures include...... - Correct Answer Improvements to a property that
update appearance, replacement of major mechanical equipment (boilers), replacement of major building system (roof), renovating space, replacing old appliances."
"Escrow Accounts & Reserves - Correct Answer In order for the owner to prepare for significant Capital
Expenditures, it is common to establish an"
"Gross Lease - Correct Answer The property owner pays all Operating Expenses up to a certain
amount. Commonly found in office spaces."
"What does the term "Net Lease" mean when referring to commercial leases? - Correct Answer The
tenant pays for some or all Operating Expenses in addition to base rent. Derivatives of this structure are Net-Net & Triple Net Leases."
" - Correct Answer "
"Percentage Lease - Correct Answer A lease, that requires tenant to pay rent based on a calculation
that relates directly to the tenant's gross sales. Usually stipulates a base monthly rental plus a percentage of any gross sales above a certain amount."
"The rights of a property owner include........ - Correct Answer The right of possession, the right of
control, the right of exclusion, the right of enjoyment, the right to sell."
"Escalator Clause - Correct Answer When multi-year leases contain a provision for the owner to
increase the rent on the lease's anniversary date."
"Separation of Funds - Correct Answer Funds must be kept separate from property manager's
accounts. Funds that the property generates belong to the owner and should be deposited into owner's account."
"What common method is used to determine a property's Investment Value? - Correct Answer Net
Operating Income is divided by the Capitalization Rate (NOI/Cap Rate= Value)"
"Curative Maintenance involves...... - Correct Answer Fixing or repairing something after it has already
broken. An example would be fixing a broken sink"
"Deffered Maintenance - Correct Answer Involves delaying needed repairs and maintenance to save
money.Is an ordinary maintenance item that is not performed at the time when a problem is discovered. An example a manager notices some minor paint peeling in stairwell."
"Routine Maintenance - Correct Answer Relates to the cleaning and upkeep that is needed every day.
An example is vacuuming the carpet in the building hallways."
"Depreciated Value - Correct Answer This is used for income tax purposes and affects a property's tax
basis"
"Chart of Accounts - Correct Answer is utilized to classify each of the different types of the income and
expenses."
"Tenancy at Will - Correct Answer Usually occurs in the absence of a written lease and can occur after
a lease expires. Tenant/resident continues to occupy space and landlord continues to accept payment."
"Tenancy at Sufferance - Correct Answer Occurs after the expiration of lease has expired.
Tenant/resident continues to occupy the apartment or space without the landlord's consent."
"Primary objectives to consider prior to any property inspection - Correct Answer What will be
inspected, what is the frequency of inspection, who will conduct the inspection, how will results be reported."
"Routine Maintenance - Correct Answer relates to cleaning and upkeep that is needed everyday."
"General Liability - Correct Answer Insurance coverage that can protect the property owner from a
variety of claims including bodily injury, property damage, and personal injury."
"Excess Liability - Correct Answer an umbrella policy is issued to provide coverage limits in excess of an
underlying General Liability policy."
"Marketing Plan - Correct Answer Is necessary for every property to find new residents or tenants
primary goals is to identify as many qualified prospects as possible."
"A Management Plan is made up of how many what 7 components? - Correct Answer Regional
Analysis, Neighborhood Analysis, Property Analysis, Market Analysis, Analysis of Alternatives, Proposed Property Analysis, Investment Analysis."
"Functional Obsolescence can directly imapact - Correct Answer Attainable rents at a building."
"Deferred Maintenance - Correct Answer Involves delaying needed repairs and maintenance to save
money."
"Effective Gross Income - Correct Answer Is the Net effective of all items listed above equals Gross
Potential Rent Income includes Expense reimbursement minus Vacancy and Credit Loss plus Miscellaneous Income."
"Net Operating Income - Correct Answer is used one of the components often used in calculating a
property's investment value. It represents the money that remains after Operating Expenses are subtracted from Effective Gross Income."
" - Correct Answer "
"Return On Investment - Correct Answer Is one measure used by investors to determine if a potential
investment is worth purchasing."
"What are the advantages of the Return On Investment calculation - Correct Answer It enables an
investor to compare different types of investments, in order to decide which one to choose."
"Net Lease - Correct Answer The tenant pays for all Operating Expenses in addition to Base Rent."
"Triple Net Lease - Correct Answer Tenant will pay including all Operating Expenses including real
estate taxes, insurance, roof maintenance, etc."
"Leasehold Interest - Correct Answer When the owner leases a property, it temporarily transfers to the
tenant a portion of right of possession or when a property is sold the new owner's rights are transferred."
"Leesee - Correct Answer A person who holds the lease of a property; a tenant"
"Lessor - Correct Answer A person who leases or lets a property to another; a landlord."
"Property Manager's are entrusted to look after other people's money this includes: - Correct Answer
Opening Bank Accounts, promptly depositing all receipts, and paying vendors when all services are completed."
"Physical Inspections - Correct Answer Is a method used to evaluate the property's condition &
equipment as well as being the first step to develop a plan to address any issues."
"When should an inspection be performed after a resident has moved out? - Correct Answer Ideally
the same day."
"Some areas to regular inspect include - Correct Answer Roofs- look for pondering water, holes, and
debris; Parking Lots- look for pavement alligator, loose graveling, potholes Front Entrance- look for trip hazards, cracked windows; Exterior Facades- failed caulking, loose concrete, crack windows."
"In order to generate a list of what to be inspected on a property - Correct Answer A walk-through of
the property and all of the areas related to its mechanical, electrical, telephone, and life safety equipment needs to be conducted. Frequency of inspections are determined annually, semi-annually, quarterly, and monthly."
"Request For Proposal or RPF - Correct Answer To develop a clear and thorough specification for
contracts to bid on is called"
"What is included in an RPF? - Correct Answer Scope of work, how is to be performed, frequency,
special requirements, work hours, timetable to complete, insurance requirements, deadline for submission, number of personnel to be provided, warranty, & references."
"Before marketing an available space or unit, - Correct Answer Be sure that it is clean and presentable
and that the owner has approved all marketing plans."
"What is a legal reason for a landlord to evict a tenant? - Correct Answer Landlord wants to occupy the
rental unit."
"All evictions except non-payment of rent must be filed with - Correct Answer Rental Accommodations
Division (RAD)"
"A property's foreclosure in not - Correct Answer A legal basis to evict tenant. Should an eviction
occur, there is no change in tenant's rights."
"Owners are required to - Correct Answer File an income tax return, file & maintain accurate records
of all income and expenses."
"Security Deposits - Correct Answer Owner is required to pay interest on security deposits."
"Smoke Detectors should be installed - Correct Answer at least 1 smoke detector per sleeping area, in
the room used for sleeping and outside the bedroom but in the mediated vicinity of the sleeping area."
"Each owner should install smoke detectors an comply with the requirements of - Correct Answer The
Smoke Detector Act of 1978."
"Smoke detectors should be directly wired to - Correct Answer The power supply of the building."
"The owner shall post in conspicuous places - Correct Answer Instructions on the operation of the fire
alarm, whether the apartment building fire alarm is separate from or connected to detectors in the individual unit or building, connected to Fire, Medical Services, and a warning that in the event of a fire call 911."
the act took effect, a person who owns no more than 4 rental units. - Correct Answer with RAD, Rental
Accommodations Division within 30-days."
"The last increase in rent must have been - Correct Answer 12 months ago unless the unit is vacant."
"The housing provider must give a 30-day notice - Correct Answer Before increasing rent"
"A tenant organization must set a date of election and notify the owner within - Correct Answer 30-
days"
"The date of election must be held within - Correct Answer 60 days"
"The Conversion Sale & Regulatory Office shall schedule and conduct an election within - Correct
Answer 45 days"
"The owner must provide tenants of a housing accommodation how many days notice of intent to
convert to a cooperative or condo - Correct Answer 120 days"
"The owner should pay relocation expenses within - Correct Answer 7 days of receiving request for
payment."
"The owner will a minimum of $125 up to a maximum of $500 for - Correct Answer Relocation
expenses."
"A request from an owner or tenant must be made in 15 days of the 30 day expiration period allowed -
Correct Answer for the tenant organization to set a date for an election after coordinating the date
with the Conversion & Sales Regulatory Office."
"Investment Value Equation - Correct Answer Net Operating Income divided by Cap Rate"
"What does the term "Triple Net" mean when referring to commercial leases - Correct Answer refers
to commercial tenant paying ALL Operating Expenses including real estate taxes, insurance, roof maintenance, landscaping, etc. This is the most commonly found in industrial leases."
"Asset Management focuses on - Correct Answer The property's long term planning, leasing and asking
rates, negotiates commercial leases, evaluates mortgages & opportunities to refinance the loan,considers strategies to maximize value and when to market the property for sale."
"What are the objectives of a Maintenance Plan? - Correct Answer Implement & accomplish the
owner's objectives, increase resident/tenant satisfact rates, reduce operating costs, optimize the
property's physical capabilities, increase the property's value, providing safety of tenants, residents, visitors, and employees." "
