ACCREDITED RESIDENTIAL MANAGER -
ARM CERTIFICATION PRACTICE
EXAMINATION 2026 QUESTIONS WITH
ANSWERS GRADED A+
◍ Annual Debt Service (ADS).
Answer: Payments on principle or interest of mortgage/loans each year.
◍ The amount of rent paid after deducting negotiated concessions such as one
month's free rent is called (a)scheduled rent.(b)effective rent.(c)nominal
rent.(d)net rent..
Answer: Your answer: (B) is correct. The effective rent is the amount of rent
after deduction negotiated concessions such as one month's free rent.
◍ Estate for years.
Answer: Lease for a definite period of time
◍ The 4 legal obligations of a manager requesting a consumer report.
Answer: Inform the applicants the the report will be requested, Get a signed
release to do so, Provide an adverse action letter if not approved without
condition, and maintain all records for 5 years.
◍ SWOT Analysis.
Answer: An analysis of the Strenghths, Weaknesses, Opportunities, and
Threats that affect the success of a business.
◍ scheduled rent.
Answer: Income due under existing leases
◍ Absorbtion.
Answer: The space that is "absorbed" by residents from the available
(not-leased) space.
,◍ Before-Tax Cash Flow.
Answer: BTCF
◍ Cash Flow Budget.
Answer: A projection of the cash position in a business, monthly or other.
◍ To make sure it is clear that each signer is liable for the entire rent, the
parties should sign (a)as emancipated minors.(b)in front of a
witness.(c)jointly and severally.(d)in front of a notary..
Answer: Your answer: (C) is correct. In signing the lease, the parties should
sign "jointly and severally," so it is clear that each signer is liable for the
entire rent and you can go to one or to all tenants for the rent.
◍ To select the best contractor for the work..
Answer: What is the primary purpose of the bidding process when
contracting work?
◍ Vacancy and Collection Loss.
Answer: The amount of potential income not being acquired due to vacancy
or non-payment of leased space.
◍ Traffic Report.
Answer: Logs telephone calls and visits to the property, source of the traffic,
result of each contact, etc.
◍ Progressive Discipline.
Answer: A series of interventions which gives an opportunity for the
employee to correct their behavior before being dismissed; coaching,
follow-up meeting, then termination.
◍ How would the duties of a condominium property manager differ from those
of a residential property manager? (a)Condominium property managers
don't make policy.(b)Condominium managers carry out policies as directed
by the board of directors.(c)Condominium managers must face the politics
of the homeowner's association.(d)All of the above..
Answer: Your answer: (D) is correct. In a condominium association, the
, property manager doesn't make policy; he or she merely carries out policy as
directed by the board of directors. A condominium property manager must
also deal with the personalities and politics of the homeowner's association
members.
◍ Preventative Maintenance.
Answer: Proactive Maintenance approach that requires planning and
prioritizing maintenance activities
◍ A tenant signs a lease that stipulates that the lessee pays the property tax.
This lease is probably a (a)standard lease.(b)sandwich lease.(c)net
lease.(d)reverse lease..
Answer: Your answer: (C) is correct. Net Lease: A lease, usually
commercial, in which the lessee not only pays the rent for occupancy but
also pays maintenance and operating expenses such as taxes, insurance,
utilities and repairs. The rent paid is said to be "net" to the lessor.
◍ The fees charged for property management are usually (a)A flat fee and a
percentage of gross rents(b)A percentage of net rent(c)Flat fee plus
expenses(d)Flat rate.
Answer: Your answer: (A) is correct. Property managers can charge a flat
fee and/or a percentage of gross rents. Usually when they take over a
property, the manager may require the flat fee in order to bring the property
up to market
◍ estate at will.
Answer: An occupation of space, for an indefinite period, which can be
terminated by either the lessor or lessee at any time. Also referred to as
tenancy at will.
◍ In addition to the property manager's dual role of an administrator for the
owner and an advocate for the resident, the California Department of Real
Estate requires a property manager to (a)maintain proper records and make
regular reports to the owner.(b)supervise employees.(c)create and supervise
maintenance schedules and repairs.(d)all of the above..
Answer: Your answer: (D) is correct. In addition to the general
ARM CERTIFICATION PRACTICE
EXAMINATION 2026 QUESTIONS WITH
ANSWERS GRADED A+
◍ Annual Debt Service (ADS).
Answer: Payments on principle or interest of mortgage/loans each year.
◍ The amount of rent paid after deducting negotiated concessions such as one
month's free rent is called (a)scheduled rent.(b)effective rent.(c)nominal
rent.(d)net rent..
Answer: Your answer: (B) is correct. The effective rent is the amount of rent
after deduction negotiated concessions such as one month's free rent.
◍ Estate for years.
Answer: Lease for a definite period of time
◍ The 4 legal obligations of a manager requesting a consumer report.
Answer: Inform the applicants the the report will be requested, Get a signed
release to do so, Provide an adverse action letter if not approved without
condition, and maintain all records for 5 years.
◍ SWOT Analysis.
Answer: An analysis of the Strenghths, Weaknesses, Opportunities, and
Threats that affect the success of a business.
◍ scheduled rent.
Answer: Income due under existing leases
◍ Absorbtion.
Answer: The space that is "absorbed" by residents from the available
(not-leased) space.
,◍ Before-Tax Cash Flow.
Answer: BTCF
◍ Cash Flow Budget.
Answer: A projection of the cash position in a business, monthly or other.
◍ To make sure it is clear that each signer is liable for the entire rent, the
parties should sign (a)as emancipated minors.(b)in front of a
witness.(c)jointly and severally.(d)in front of a notary..
Answer: Your answer: (C) is correct. In signing the lease, the parties should
sign "jointly and severally," so it is clear that each signer is liable for the
entire rent and you can go to one or to all tenants for the rent.
◍ To select the best contractor for the work..
Answer: What is the primary purpose of the bidding process when
contracting work?
◍ Vacancy and Collection Loss.
Answer: The amount of potential income not being acquired due to vacancy
or non-payment of leased space.
◍ Traffic Report.
Answer: Logs telephone calls and visits to the property, source of the traffic,
result of each contact, etc.
◍ Progressive Discipline.
Answer: A series of interventions which gives an opportunity for the
employee to correct their behavior before being dismissed; coaching,
follow-up meeting, then termination.
◍ How would the duties of a condominium property manager differ from those
of a residential property manager? (a)Condominium property managers
don't make policy.(b)Condominium managers carry out policies as directed
by the board of directors.(c)Condominium managers must face the politics
of the homeowner's association.(d)All of the above..
Answer: Your answer: (D) is correct. In a condominium association, the
, property manager doesn't make policy; he or she merely carries out policy as
directed by the board of directors. A condominium property manager must
also deal with the personalities and politics of the homeowner's association
members.
◍ Preventative Maintenance.
Answer: Proactive Maintenance approach that requires planning and
prioritizing maintenance activities
◍ A tenant signs a lease that stipulates that the lessee pays the property tax.
This lease is probably a (a)standard lease.(b)sandwich lease.(c)net
lease.(d)reverse lease..
Answer: Your answer: (C) is correct. Net Lease: A lease, usually
commercial, in which the lessee not only pays the rent for occupancy but
also pays maintenance and operating expenses such as taxes, insurance,
utilities and repairs. The rent paid is said to be "net" to the lessor.
◍ The fees charged for property management are usually (a)A flat fee and a
percentage of gross rents(b)A percentage of net rent(c)Flat fee plus
expenses(d)Flat rate.
Answer: Your answer: (A) is correct. Property managers can charge a flat
fee and/or a percentage of gross rents. Usually when they take over a
property, the manager may require the flat fee in order to bring the property
up to market
◍ estate at will.
Answer: An occupation of space, for an indefinite period, which can be
terminated by either the lessor or lessee at any time. Also referred to as
tenancy at will.
◍ In addition to the property manager's dual role of an administrator for the
owner and an advocate for the resident, the California Department of Real
Estate requires a property manager to (a)maintain proper records and make
regular reports to the owner.(b)supervise employees.(c)create and supervise
maintenance schedules and repairs.(d)all of the above..
Answer: Your answer: (D) is correct. In addition to the general
