ACCREDITED RESIDENTIAL MANAGER
(ARM) EXAM PRACTICE TEST
QUESTIONS AND CORRECT ANSWERS
(VERIFIED ANSWERS) PLUS RATIONALES
2025 Q&A | INSTANT DOWNLOAD PDF
- What is the primary responsibility of a residential property manager?
- Designing building structures
- Selling real estate
- Managing day-to-day operations of residential properties
- Issuing construction permits
- Which of the following is considered a fixed expense?
- Utility costs
- Maintenance labor 1 / 3
The core function of a residential manager is overseeing operations such as maintenance, leasing, budgeting, and tenant relations.
- Property management fees
- Property taxes
- When advertising a rental unit, which law must be strictly followed?
- Fair Housing Act
- Sherman Antitrust Act
Fixed expenses, like taxes and insurance, do not vary monthly unlike utilities or repairs.
C. ADA
D. OSHA
The Fair Housing Act ensures no discrimination in housing advertisements.
4. The capitalization rate is used to estimate:
- Operating costs
- Loan interest
- Property value based on income
- Construction costs
Cap rate helps investors evaluate the return on investment based on net income.
5. A vacancy report is important because it:
- Tracks building codes
- Monitors lost rental income
- Calculates payroll
- Tracks utility usage 2 / 3
Vacancy reports help analyze lost income potential and leasing effectiveness.
6. The best way to screen tenants is to:
- Rely on gut instinct
- Ask for a reference from a friend
- Use a standardized application and background check process
- Skip background checks
Fair and standardized screening protects against liability and ensures qualified tenants.
7. Preventive maintenance aims to:
- Reduce long-term repair costs
- Replace broken items
- Lower rent
- Hire more vendors
- What is the industry benchmark for economic occupancy?
Preventive maintenance minimizes future breakdowns and expenses.
A. 50%
B. 75%
C. 95%
D. 100%
Economic occupancy reflects the actual income vs potential income; 95% is a common target.
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