IREM Accredited Residential Manager (ARM)

What is the primary purpose of a residential property's marketing plan?

• ATo set rental rates above market to maximize revenue
• BTo attract qualified prospects and reduce vacancy loss
• CTo document leasing activity for the owner's tax return
• DTo replace the operating budget during slow seasons

Which metric expresses unoccupied unit days as a percentage of total available unit days?

• ARenewal rate
• BVacancy rate
• CConcession rate
• DCap rate

Which of the following is the standard first step in the residential leasing process?

• AExecuting the lease and collecting the first month's rent
• BTaking the inquiry and pre-qualifying the prospect
• CPerforming the move-in inspection with the new resident
• DCollecting the security deposit and application fee

Which document shows the unit types a property is offering along with their current asking rents and any specials?

• AAnnual operating budget
• BCurrent rent roll
• CCurrent pricing sheet
• DCapital reserve study

When comparing your property to competitors in the same submarket, which research tool is typically used?

• ACapitalization rate analysis
• BComparison grid of rent comps
• CReplacement reserve study
• DTrailing 12-month income statement

Effective gross income (EGI) for a residential property is best defined as:

• AGross potential rent before any vacancy or other income
• BPotential rent less vacancy and collection loss, plus other income
• CNet operating income remaining after annual debt service
• DGross potential rent less vacancy loss and total operating expenses

A property is offering one month free on a 12-month lease at $1,500 per month. What is the effective monthly rent?

• A$1,250
• B$1,375
• C$1,400
• D$1,500

Which of the following best describes a 'traffic source' report in residential leasing?

• AA count of inquiries and leases by marketing channel
• BA follow-up log of prospects who toured but did not apply
• CA schedule of upcoming lease expirations by month and unit type
• DA weekly summary of move-ins and move-outs by floor plan

A site team's lease conversion ratio for the month is 30%. If the property received 200 prospects, how many leases were signed?

• A30
• B60
• C70
• D200

When setting renewal rents, which factor should the property manager weigh MOST heavily alongside current market rent?

• AThe expected cost of turnover if the resident moves out
• BThe same percentage increase applied at last year's renewals
• CThe property's loan-to-value ratio at its last refinancing
• DThe household's size and the number of children in the unit

Which of the following is the BEST KPI to evaluate the effectiveness of a residential leasing agent?

• ATotal prospect traffic logged by the agent each month
• BClosing ratio: leases signed per qualified prospect
• CAverage number of days each vacant unit sits unleased
• DResident renewal rate for the whole property

A residential lease is most commonly which type of contract?

• AA bilateral contract that conveys a leasehold estate
• BA unilateral contract binding only the resident
• CA deed that transfers title for the lease term
• DAn option contract giving the resident a right to buy

Which of the following application screening criteria is generally permitted under federal fair housing law?

• ASetting different income standards for families with children
• BRequiring one minimum credit score for every applicant
• CRefusing to rent to applicants from certain national origins
• DCharging higher application fees for applicants with disabilities

Why should a property manager use a written 'guest card' or CRM record for every prospect?

• ATo replace the written rental application for qualified prospects
• BTo document equal treatment and track traffic and conversions
• CTo record each prospect's credit score before the tour begins
• DTo serve as the prospect's consent to a background screening

Which of the following terms is typically NEGOTIABLE in a residential lease?

• AThe Fair Housing Act protected classes
• BThe lease term length and pet policy fees
• CThe lead-based paint disclosure for a pre-1978 building
• DThe state-imposed maximum security deposit cap

A property has 200 units and 12 vacant on the last day of the month. What is the physical occupancy rate?

• A88%
• B92%
• C94%
• D96%

A 100-unit property has gross potential rent of $150,000/month. Vacancy and collection loss are 6% and other income is $4,000/month. What is the monthly EGI?

• A$144,000
• B$145,000
• C$141,000
• D$148,000

Which strategy is MOST likely to reduce physical vacancy without lowering the property's published street rents?

• ACutting the marketing budget until occupancy recovers
• BOffering targeted concessions during slow leasing periods
• CRaising application fees to screen out casual prospects
• DEnding renewal offers so units can be re-leased at market

When developing a property's annual marketing plan, the FIRST analytical step should be:

• AChoosing the advertising channels and setting the budget
• BAnalyzing the target market and competing properties
• CScheduling new photography and a website refresh
• DSetting the leasing team's monthly lease goals

A property's leasing data shows high traffic, low closing ratio, and high resident satisfaction at renewal. Which corrective action is BEST supported by the data?

• ACut marketing spend because traffic already exceeds goals
• BCoach the leasing team on tours and closing technique
• CRaise renewal rents because residents are satisfied
• DLower the screening criteria so more applicants qualify

Preventive maintenance is BEST defined as:

• ARepairs made after a resident reports a problem
• BScheduled servicing that prevents equipment failures
• CMajor component replacements funded from capital reserves
• DCosmetic upgrades completed during unit turnover

A burst pipe causing active flooding is which work order priority?

• ACosmetic
• BRoutine
• CStandard
• DEmergency

Which document do property managers typically use to qualify and engage outside vendors?

• AA signed bid sheet and the vendor's business card
• BA W-9, certificate of insurance, and signed contract
• CA verbal quote and the vendor's online reviews
• DA signed lien waiver collected before any work begins

What does HVAC stand for in residential building systems?

• AHeating, Ventilation, and Air Conditioning
• BHeating, Venting, and Air Circulation
• CHumidity, Ventilation, and Air Conditioning
• DHeat, Vapor, and Air Conditioning

Capital improvements (e.g., a roof replacement) are typically funded from:

• AThe operating budget for routine repairs
• BThe capital reserve fund
• CResident security deposits
• DPetty cash

Which of the following is generally part of routine PREVENTIVE maintenance on a residential HVAC system?

• AReplacing a failed condenser coil after a breakdown
• BChanging filters and checking belts on a set schedule
• CReplacing the building's main electrical service panel
• DConverting window units to central air in all units

The size of a residential property's annual replacement reserve contribution is BEST determined by:

• AA single percentage of EGI that IREM sets for all properties
• BA reserve study of component lives and replacement costs
• CThe prior year's repairs-and-maintenance expense total
• DThe balance of resident security deposits held in trust

A 1.5-ton residential HVAC unit provides approximately how much cooling capacity?

• A1,800 BTU/hr
• B12,000 BTU/hr
• C18,000 BTU/hr
• D180,000 BTU/hr

Which of the following BEST describes the IICRC S520 standard?

• AAn industry standard for water damage restoration
• BThe industry standard for mold remediation
• CAn OSHA standard for labeling hazardous chemicals
• DAn EPA rule for lead-safe renovation practices

What is the primary purpose of a 'unit make-ready' checklist at turn?

• ATo calculate the deposit deductions owed by the prior resident
• BTo standardize the work required before the unit is re-leased
• CTo record the unit's condition for the incoming resident's file
• DTo schedule the unit's annual preventive maintenance visit

In 2026, a property pays an unincorporated painting contractor $2,500 for services. What must the payer generally do for federal information reporting?

• AFile and furnish Form 1099-NEC using the vendor's W-9
• BIssue a Form W-2 because the painter worked on the property
• CWithhold 24% backup withholding from every payment
• DNothing, because 1099 reporting starts above $5,000

Which of the following describes 'submetering' in a residential property?

• ACharging each unit a flat monthly utility fee
• BMetering each unit so residents pay for measured use
• CKeeping one master bill that the owner pays in full
• DAllocating the master bill by square footage or occupants

A common alternative to submetering, in which the master utility bill is allocated to residents using a formula such as occupancy or square footage, is known as:

• ARatio utility billing (RUBS)
• BDirect submetering of each unit
• CA fixed monthly utility fee
• DA net-lease expense pass-through

OSHA's HazCom (Hazard Communication) Standard chiefly applies to a property when:

• AOnly outside contractors bring chemicals onto the property
• BOn-site employees use hazardous cleaners or pool chemicals
• CResidents store household chemicals in their own units
• DThe pool is closed and all chemicals were removed for winter

Common area maintenance (CAM) costs are BEST described as:

• AReal estate taxes assessed on the whole property
• BCosts to operate and maintain shared spaces
• CRepairs inside individual units at turnover
• DUtility costs that each unit's own meter records

In a three-tier work order system (emergency, urgent, routine), how should a request be classified if it impairs use of the unit and needs attention within about a day, but poses no immediate threat to life, safety, or the building?

• AEmergency: dispatch immediately, day or night
• BUrgent: schedule for the same or next day
• CRoutine: add it to the normal work queue
• DDeferred: hold it until the unit turns over

When evaluating a vendor proposal for unit turns, which factor BEST supports a long-term decision?

• AThe lowest per-unit price among the bids received
• BOverall value: price, quality, speed, and warranty
• CThe vendor the previous manager used for every turn
• DThe bid that promises the fastest completion time