DC PROPERTY MANAGERS STUDY GUIDE 2026/2027 | DC
Only Test Actual Questions with Verified Answers | Latest
Update | Pass Guaranteed - A+ Graded
Section 1: DC Property Management Laws & Regulations (DCRA) (Questions
1-35)
Q1: Under DC law, who has the primary jurisdiction to enforce property management
regulations, issue licenses, and conduct housing inspections?
A. The District of Columbia Housing Authority (DCHA)
B. The Department of Consumer and Regulatory Affairs (DCRA) [CORRECT]
C. The Office of the Attorney General (OAG)
D. The Rental Housing Commission (RHC)
Correct Answer: B
Rationale: DCRA is the primary agency responsible for licensing, regulating, and
enforcing property management and housing standards in the District of Columbia.
DCHA manages public housing, OAG prosecutes violations, and RHC handles rent
control.
Q2: To obtain a Basic Business License as a Property Manager in the District of
Columbia, an individual must fulfill which of the following requirements?
A. Pass the DC real estate salesperson exam and work under a broker
B. Complete 60 hours of pre-licensing education and provide a surety bond [CORRECT]
C. Hold a Certified Property Manager (CPM) designation from IREM
D. Have a master's degree in urban planning
Correct Answer: B
Rationale: DC Code § 47-2851.06 requires property management firms and individuals
to obtain a Basic Business License from DCRA, which mandates completion of required
education hours and a surety bond to protect consumers.
Q3: A property manager in DC fails to place security deposits into a separate escrow
account and instead uses the funds for personal business expenses. This action is
strictly prohibited by DCRA regulations and constitutes what?
A. A minor administrative infraction resulting in a written warning
B. Commingling of funds, which is grounds for license revocation [CORRECT]
C. Legal trust management permissible with tenant consent
D. An acceptable practice if the funds are replaced within 30 days
Correct Answer: B
Rationale: DCRA regulations strictly prohibit the commingling of security deposits with
personal or operating funds. Security deposits must be maintained in a designated
,escrow or trust account; violations are severe and can result in license suspension or
revocation.
Q4: How often must a licensed Property Manager in the District of Columbia renew their
license, and what is required at the time of renewal?
A. Every two years, with proof of 15 hours of continuing education
B. Annually, with proof of 3 hours of continuing education [CORRECT]
C. Every three years, with no continuing education requirement
D. Biennially, with a passing score on a comprehensive exam
Correct Answer: B
Rationale: DC Basic Business Licenses for property management must be renewed
annually. Property managers must complete 3 hours of continuing education approved
by DCRA as a condition for renewal.
Q5: A DC property manager is hired to manage a 12-unit apartment building. The
manager verbally agrees to handle all operations but fails to obtain a separate property
management business license for this specific location. Under DCRA rules, this is:
A. Permitted if the manager has a personal property manager license
B. A violation, as each physical location requires its own business license [CORRECT]
C. Allowed under a blanket corporate license exemption
D. Only a violation if the building is subject to rent control
Correct Answer: B
Rationale: In the District of Columbia, a Basic Business License is location-specific. A
property management firm must obtain a separate license for each physical address or
location from which they conduct business.
Q6: Which of the following entities is explicitly exempt from obtaining a DC property
management license under DC Code Title 47?
A. A property manager hired directly by a condominium association to manage common
areas
B. A resident manager of an apartment building who receives reduced rent as
compensation [CORRECT]
C. A real estate broker managing rental properties for individual owners
D. A property management firm based in Maryland managing properties in DC
Correct Answer: B
Rationale: DC Code § 47-2851.05 exempts resident managers (employees of the owner
who live on the premises and receive compensation in the form of reduced or free rent)
from the property management licensing requirement.
,Q7: A property owner in DC hires an unlicensed individual to manage their rental
property. The unlicensed individual collects rent and handles maintenance. Which of the
following statements is true regarding DCRA enforcement?
A. DCRA can only fine the property owner, not the unlicensed manager
B. DCRA cannot intervene in private contracts between owners and managers
C. Both the property owner and the unlicensed manager are subject to fines and
enforcement actions [CORRECT]
D. The unlicensed manager is exempt from penalties if they do not sign a lease
Correct Answer: C
Rationale: DC Code § 47-2853.02 makes it unlawful for an unlicensed person to engage
in property management and unlawful for an owner to employ an unlicensed manager.
Both parties are subject to civil penalties, injunctions, and fines.
Q8: Under DCRA regulations, what must a property manager do regarding the display
of their business license?
A. Keep the license filed in the main office and provide it upon request
B. Display the license prominently at the managed property or place of business
[CORRECT]
C. Post the license number on the front door of every managed unit
D. Provide a copy of the license to every new tenant at move-in
Correct Answer: B
Rationale: DCRA regulations require that a valid Basic Business License be
conspicuously displayed at the location for which it is issued so that it is easily visible to
the public and DCRA inspectors.
Q9: A property management firm in DC undergoes a change in ownership. What is the
firm's obligation to DCRA regarding their existing property management license?
A. The license automatically transfers to the new owner
B. The firm must notify DCRA within 30 days, and the license becomes void
[CORRECT]
C. The new owner can operate on the old license indefinitely
D. The license remains valid as long as the EIN does not change
Correct Answer: B
Rationale: A Basic Business License is issued to a specific entity and is not
transferable. If a property management firm is sold or changes ownership, the new
entity must apply for a new license, and the old license becomes void.
Q10: DCRA issues a Notice of Infraction (NOI) to a property manager for failing to
maintain a property in a safe and sanitary condition. The manager disagrees with the
citation. What is the manager's right under DC administrative law?
A. To ignore the NOI and wait for a court summons
, B. To request an informal hearing with the DCRA Office of Adjudication within 15
calendar days [CORRECT]
C. To immediately sue the DCRA inspector in civil court
D. To withhold rent from tenants to pay for the fines
Correct Answer: B
Rationale: Recipients of a Notice of Infraction in DC have the right to contest the citation
by requesting an informal hearing before an administrative law judge at the Office of
Adjudication within 15 days of service.
Q11: In addition to DCRA licensing, a property manager in DC who handles residential
rentals must comply with the law requiring them to act as a constructive landlord. This
legal doctrine means the property manager is liable to tenants for:
A. Only the specific tasks explicitly written in the management contract
B. Breaches of the lease and housing code violations just as the owner would be
[CORRECT]
C. Mistakes made by maintenance subcontractors only
D. Only financial mismanagement of trust accounts
Correct Answer: B
Rationale: Under DC common law and statutory interpretation, a property manager
steps into the shoes of the owner and assumes the duties and liabilities of a landlord
regarding habitability, lease enforcement, and tenant rights.
Q12: A DC property manager is convicted of a felony involving fraud. How does this
impact their ability to manage property in the District?
A. It has no impact on their property management license
B. DCRA will automatically suspend their license pending a review [CORRECT]
C. They can continue managing properties but cannot handle trust accounts
D. They are only barred from managing rent-controlled properties
Correct Answer: B
Rationale: DCRA can suspend or revoke a property management license if the licensee
is convicted of a felony or any crime involving moral turpitude, fraud, or dishonesty, as
property managers handle sensitive financial and personal tenant data.
Q13: Before a DC property manager can collect rent on behalf of an owner, what
specific documentation must be authorized and provided to the tenant?
A. A copy of the property manager's surety bond
B. A written notice identifying the property manager as the owner's agent [CORRECT]
C. The owner's Social Security Number for tax purposes
D. A copy of the property management firm's internal financial audit
Correct Answer: B
Only Test Actual Questions with Verified Answers | Latest
Update | Pass Guaranteed - A+ Graded
Section 1: DC Property Management Laws & Regulations (DCRA) (Questions
1-35)
Q1: Under DC law, who has the primary jurisdiction to enforce property management
regulations, issue licenses, and conduct housing inspections?
A. The District of Columbia Housing Authority (DCHA)
B. The Department of Consumer and Regulatory Affairs (DCRA) [CORRECT]
C. The Office of the Attorney General (OAG)
D. The Rental Housing Commission (RHC)
Correct Answer: B
Rationale: DCRA is the primary agency responsible for licensing, regulating, and
enforcing property management and housing standards in the District of Columbia.
DCHA manages public housing, OAG prosecutes violations, and RHC handles rent
control.
Q2: To obtain a Basic Business License as a Property Manager in the District of
Columbia, an individual must fulfill which of the following requirements?
A. Pass the DC real estate salesperson exam and work under a broker
B. Complete 60 hours of pre-licensing education and provide a surety bond [CORRECT]
C. Hold a Certified Property Manager (CPM) designation from IREM
D. Have a master's degree in urban planning
Correct Answer: B
Rationale: DC Code § 47-2851.06 requires property management firms and individuals
to obtain a Basic Business License from DCRA, which mandates completion of required
education hours and a surety bond to protect consumers.
Q3: A property manager in DC fails to place security deposits into a separate escrow
account and instead uses the funds for personal business expenses. This action is
strictly prohibited by DCRA regulations and constitutes what?
A. A minor administrative infraction resulting in a written warning
B. Commingling of funds, which is grounds for license revocation [CORRECT]
C. Legal trust management permissible with tenant consent
D. An acceptable practice if the funds are replaced within 30 days
Correct Answer: B
Rationale: DCRA regulations strictly prohibit the commingling of security deposits with
personal or operating funds. Security deposits must be maintained in a designated
,escrow or trust account; violations are severe and can result in license suspension or
revocation.
Q4: How often must a licensed Property Manager in the District of Columbia renew their
license, and what is required at the time of renewal?
A. Every two years, with proof of 15 hours of continuing education
B. Annually, with proof of 3 hours of continuing education [CORRECT]
C. Every three years, with no continuing education requirement
D. Biennially, with a passing score on a comprehensive exam
Correct Answer: B
Rationale: DC Basic Business Licenses for property management must be renewed
annually. Property managers must complete 3 hours of continuing education approved
by DCRA as a condition for renewal.
Q5: A DC property manager is hired to manage a 12-unit apartment building. The
manager verbally agrees to handle all operations but fails to obtain a separate property
management business license for this specific location. Under DCRA rules, this is:
A. Permitted if the manager has a personal property manager license
B. A violation, as each physical location requires its own business license [CORRECT]
C. Allowed under a blanket corporate license exemption
D. Only a violation if the building is subject to rent control
Correct Answer: B
Rationale: In the District of Columbia, a Basic Business License is location-specific. A
property management firm must obtain a separate license for each physical address or
location from which they conduct business.
Q6: Which of the following entities is explicitly exempt from obtaining a DC property
management license under DC Code Title 47?
A. A property manager hired directly by a condominium association to manage common
areas
B. A resident manager of an apartment building who receives reduced rent as
compensation [CORRECT]
C. A real estate broker managing rental properties for individual owners
D. A property management firm based in Maryland managing properties in DC
Correct Answer: B
Rationale: DC Code § 47-2851.05 exempts resident managers (employees of the owner
who live on the premises and receive compensation in the form of reduced or free rent)
from the property management licensing requirement.
,Q7: A property owner in DC hires an unlicensed individual to manage their rental
property. The unlicensed individual collects rent and handles maintenance. Which of the
following statements is true regarding DCRA enforcement?
A. DCRA can only fine the property owner, not the unlicensed manager
B. DCRA cannot intervene in private contracts between owners and managers
C. Both the property owner and the unlicensed manager are subject to fines and
enforcement actions [CORRECT]
D. The unlicensed manager is exempt from penalties if they do not sign a lease
Correct Answer: C
Rationale: DC Code § 47-2853.02 makes it unlawful for an unlicensed person to engage
in property management and unlawful for an owner to employ an unlicensed manager.
Both parties are subject to civil penalties, injunctions, and fines.
Q8: Under DCRA regulations, what must a property manager do regarding the display
of their business license?
A. Keep the license filed in the main office and provide it upon request
B. Display the license prominently at the managed property or place of business
[CORRECT]
C. Post the license number on the front door of every managed unit
D. Provide a copy of the license to every new tenant at move-in
Correct Answer: B
Rationale: DCRA regulations require that a valid Basic Business License be
conspicuously displayed at the location for which it is issued so that it is easily visible to
the public and DCRA inspectors.
Q9: A property management firm in DC undergoes a change in ownership. What is the
firm's obligation to DCRA regarding their existing property management license?
A. The license automatically transfers to the new owner
B. The firm must notify DCRA within 30 days, and the license becomes void
[CORRECT]
C. The new owner can operate on the old license indefinitely
D. The license remains valid as long as the EIN does not change
Correct Answer: B
Rationale: A Basic Business License is issued to a specific entity and is not
transferable. If a property management firm is sold or changes ownership, the new
entity must apply for a new license, and the old license becomes void.
Q10: DCRA issues a Notice of Infraction (NOI) to a property manager for failing to
maintain a property in a safe and sanitary condition. The manager disagrees with the
citation. What is the manager's right under DC administrative law?
A. To ignore the NOI and wait for a court summons
, B. To request an informal hearing with the DCRA Office of Adjudication within 15
calendar days [CORRECT]
C. To immediately sue the DCRA inspector in civil court
D. To withhold rent from tenants to pay for the fines
Correct Answer: B
Rationale: Recipients of a Notice of Infraction in DC have the right to contest the citation
by requesting an informal hearing before an administrative law judge at the Office of
Adjudication within 15 days of service.
Q11: In addition to DCRA licensing, a property manager in DC who handles residential
rentals must comply with the law requiring them to act as a constructive landlord. This
legal doctrine means the property manager is liable to tenants for:
A. Only the specific tasks explicitly written in the management contract
B. Breaches of the lease and housing code violations just as the owner would be
[CORRECT]
C. Mistakes made by maintenance subcontractors only
D. Only financial mismanagement of trust accounts
Correct Answer: B
Rationale: Under DC common law and statutory interpretation, a property manager
steps into the shoes of the owner and assumes the duties and liabilities of a landlord
regarding habitability, lease enforcement, and tenant rights.
Q12: A DC property manager is convicted of a felony involving fraud. How does this
impact their ability to manage property in the District?
A. It has no impact on their property management license
B. DCRA will automatically suspend their license pending a review [CORRECT]
C. They can continue managing properties but cannot handle trust accounts
D. They are only barred from managing rent-controlled properties
Correct Answer: B
Rationale: DCRA can suspend or revoke a property management license if the licensee
is convicted of a felony or any crime involving moral turpitude, fraud, or dishonesty, as
property managers handle sensitive financial and personal tenant data.
Q13: Before a DC property manager can collect rent on behalf of an owner, what
specific documentation must be authorized and provided to the tenant?
A. A copy of the property manager's surety bond
B. A written notice identifying the property manager as the owner's agent [CORRECT]
C. The owner's Social Security Number for tax purposes
D. A copy of the property management firm's internal financial audit
Correct Answer: B
