DC Property Management Exam (2025 updated)
QUESTIONS AND ANSWERS (DETAILED &
ELABORATED) fully solved
Management Plan - (ANSWER)1. Current use
2. Current condition
3. Fiscal projections
4. Operational issues
Market Analysis - (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 - (ANSWER)Theoretical costs and potential for rent
increase based on decision to:
1. Modernize
2. Rehabilitate
3. Change
4. Convert
,Capital Expenditures - (ANSWER)Projects that help extend a properties useful life.
Three Types of Obsolescence - (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 Functional Obsolescence is characterized by old or outdated designs or building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 - (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".
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 - (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 - (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 - (ANSWER)1. Sale or
transfer of the property
2. Improper financial reporting
3. Improper financial reporting
4. Negligence
5. Commingling funds
Comparison Analysis - (ANSWER)The purpose of this analysis is to not only
identify physical differences as well as strengths and weaknesses, but also to
determine a value for each element and to make adjustments to the subject
property's rental rate, up or down, based on the results.
QUESTIONS AND ANSWERS (DETAILED &
ELABORATED) fully solved
Management Plan - (ANSWER)1. Current use
2. Current condition
3. Fiscal projections
4. Operational issues
Market Analysis - (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 - (ANSWER)Theoretical costs and potential for rent
increase based on decision to:
1. Modernize
2. Rehabilitate
3. Change
4. Convert
,Capital Expenditures - (ANSWER)Projects that help extend a properties useful life.
Three Types of Obsolescence - (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 - (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".
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 - (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 - (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 - (ANSWER)1. Sale or
transfer of the property
2. Improper financial reporting
3. Improper financial reporting
4. Negligence
5. Commingling funds
Comparison Analysis - (ANSWER)The purpose of this analysis is to not only
identify physical differences as well as strengths and weaknesses, but also to
determine a value for each element and to make adjustments to the subject
property's rental rate, up or down, based on the results.
