IREM MNT 402 EXAM 2026/2027 || PROPERTY & ASSET
MANAGEMENT FUNDAMENTALS || MAINTENANCE
OPERATIONS & BUDGETING || RISK, SAFETY &
COMPLIANCE || PRACTICE QUESTIONS WITH VERIFIED
CORRECT ANSWERS || GRADED A+
Care or upkeep of a property and all its components - CORRECT ANSWER -
Maintenance
Process of controlling or reducing risk to acceptable levels - CORRECT
ANSWER -Risk management
The control of _______ affects the owner's bottom line more than any other
operating expense - CORRECT ANSWER -Maintenance Costs
First step of the maintenance and risk management cycle. Produces the property
information report and initial inspection results - CORRECT ANSWER -
Assess
Contains detailed information about a property that gives an overall picture of a
property and its history - CORRECT ANSWER -Property information report
Steps to Maintenance and Risk Management Process - CORRECT ANSWER -
Assess —> Plan —> Execute —> Evaluate
The _____ is the guide that provides the tasks and steps needed to implement
the maintenance and risk management program for the property - CORRECT
ANSWER -Maintenance & Risk Management Policy and Procedure Manual
Incurred during the normal course of running a business, such as the electric
Bill or payroll - CORRECT ANSWER -Operating expenses
, A ______ expense is made to acquire a long-term asset—one that is considered
to add value to an asset and contribute to its long-term profitability -
CORRECT ANSWER -Capital
New building construction costs and/or major improvements or alterations to a
building are considered _________ - CORRECT ANSWER -Capital expenses
Whenever a capital improvement is made, __________, monitored and adjusted
throughout its life cycle - CORRECT ANSWER -a plan for its replacement
should be made
Replacements are not normally considered capital expenditures unless they
_____ the value of an asset (I.e. replacing carpet with the same carpet as was
there prior doesn't count) - CORRECT ANSWER -Increase
Three Types of Maintenance - CORRECT ANSWER -Preventative,
Corrective, Deferred
Day to day upkeep of the property which is essential to preserving the interior
and exterior appearance and value (e.g. cleaning, waxing floors, removing trash)
- CORRECT ANSWER -Routine/Custodial (Preventative)
Reactive after the fact maintenance in which a problem needs to be repaired or
corrected, often notified of problem by the tenant
Includes emergency maintenance, which is unscheduled maintenance that must
be performed immediately to prevent further damage being done to the property
- CORRECT ANSWER -Corrective Maintenance
Repairs or replacements that should have been completed but were purposely
delayed for any reason, may or may not be fixed depending on the owner's
wishes - CORRECT ANSWER -Deferred Maintenance
MANAGEMENT FUNDAMENTALS || MAINTENANCE
OPERATIONS & BUDGETING || RISK, SAFETY &
COMPLIANCE || PRACTICE QUESTIONS WITH VERIFIED
CORRECT ANSWERS || GRADED A+
Care or upkeep of a property and all its components - CORRECT ANSWER -
Maintenance
Process of controlling or reducing risk to acceptable levels - CORRECT
ANSWER -Risk management
The control of _______ affects the owner's bottom line more than any other
operating expense - CORRECT ANSWER -Maintenance Costs
First step of the maintenance and risk management cycle. Produces the property
information report and initial inspection results - CORRECT ANSWER -
Assess
Contains detailed information about a property that gives an overall picture of a
property and its history - CORRECT ANSWER -Property information report
Steps to Maintenance and Risk Management Process - CORRECT ANSWER -
Assess —> Plan —> Execute —> Evaluate
The _____ is the guide that provides the tasks and steps needed to implement
the maintenance and risk management program for the property - CORRECT
ANSWER -Maintenance & Risk Management Policy and Procedure Manual
Incurred during the normal course of running a business, such as the electric
Bill or payroll - CORRECT ANSWER -Operating expenses
, A ______ expense is made to acquire a long-term asset—one that is considered
to add value to an asset and contribute to its long-term profitability -
CORRECT ANSWER -Capital
New building construction costs and/or major improvements or alterations to a
building are considered _________ - CORRECT ANSWER -Capital expenses
Whenever a capital improvement is made, __________, monitored and adjusted
throughout its life cycle - CORRECT ANSWER -a plan for its replacement
should be made
Replacements are not normally considered capital expenditures unless they
_____ the value of an asset (I.e. replacing carpet with the same carpet as was
there prior doesn't count) - CORRECT ANSWER -Increase
Three Types of Maintenance - CORRECT ANSWER -Preventative,
Corrective, Deferred
Day to day upkeep of the property which is essential to preserving the interior
and exterior appearance and value (e.g. cleaning, waxing floors, removing trash)
- CORRECT ANSWER -Routine/Custodial (Preventative)
Reactive after the fact maintenance in which a problem needs to be repaired or
corrected, often notified of problem by the tenant
Includes emergency maintenance, which is unscheduled maintenance that must
be performed immediately to prevent further damage being done to the property
- CORRECT ANSWER -Corrective Maintenance
Repairs or replacements that should have been completed but were purposely
delayed for any reason, may or may not be fixed depending on the owner's
wishes - CORRECT ANSWER -Deferred Maintenance
