Examination Practice Questions And

Illinois Property Manager Licensing Examination Practice Questions And Correct Answers (Verified Answers) Plus Rationales 2026 Q&A | Instant Download Pdf

• Which of the following is the primary duty of a property manager?
• Selling properties
• Maintaining the property
• Maximizing the owner’s return on investment
• Drafting legal contracts

Rationale: The primary role of a property manager is to manage and

operate property efficiently to maximize the owner’s ROI.

2. A property manager must always act in the best interest of:

• Tenants
• Competitors 1 / 4

• The property owner
• Contractors

Rationale: Property managers are fiduciaries and must act in the best

interest of the owner.

• Which type of lease allows the tenant to pay a fixed rent plus a portion

of operating expenses?

• Gross lease
• Net lease
• Percentage lease
• Tenancy at will

Rationale: In a net lease, tenants pay base rent plus some or all

operating expenses.

• Which law governs discrimination in housing based on race, color,

religion, sex, or national origin?

• Illinois Property Code
• Americans with Disabilities Act
• Fair Housing Act
• Equal Employment Opportunity Act

Rationale: The federal Fair Housing Act prohibits housing

discrimination on protected classes.

• What is a property manager required to do when collecting security

deposits?

• Spend them on maintenance 2 / 4

• Hold them in a separate trust account
• Deposit them in the operating account
• Keep them as a personal advance

Rationale: Security deposits must be held in a separate account to

protect tenants’ funds.

6. The most effective way to reduce tenant turnover is to:

• Increase rent frequently
• Ignore tenant complaints
• Provide responsive maintenance and good communication
• Limit amenities

Rationale: Maintaining positive tenant relations reduces turnover

and vacancy rates.

• Which of the following is an example of preventative maintenance?
• Fixing a leaky roof after it collapses
• Painting walls after tenants leave
• Regularly inspecting HVAC systems
• Replacing appliances when broken

Rationale: Preventative maintenance involves proactive measures to

prevent problems before they occur.

8. The operating budget for a property should include:

• Only mortgage payments
• Maintenance, utilities, taxes, insurance, and management fees
• Only capital improvements 3 / 4

• Tenant wages

Rationale: A comprehensive operating budget accounts for all

expected expenses to manage the property effectively.

9. A property manager’s fiduciary responsibility includes:

• Acting in the best interest of tenants
• Avoiding financial reporting
• Acting loyally and honestly for the owner
• Making decisions based on personal profit

Rationale: Fiduciary duties require loyalty, care, and honesty toward

the property owner.

• What is the purpose of a capital reserve fund?
• Paying monthly rent
• Funding long-term repairs and replacements
• Paying employee salaries
• Covering routine maintenance

Rationale: Capital reserves are intended for large-scale, non-routine

expenses like roof replacement or major renovations.

• How often should property managers perform inspections?
• Never
• Only when tenants request
• Regularly, based on lease terms and property type
• Only when the property is vacant
• / 4