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Exam Review

Key Facts: ARM Exam

100

Exam Questions

Open book, online proctored

70%

Passing Score

IREM

30 days

Exam Window

After registration

12 mo

Experience Required

IREM minimum portfolio

2 courses

Required Coursework

Ethics + RES201 (or MAH201/CID201)

5 days

ARM Track Training

IREM (classroom or live online)

The IREM ARM Certification Exam has 100 open-book multiple-choice questions, a 70% passing score, and must be completed within 30 days of registration with a live online proctor. IREM does not publish domain weights; the ARM Track covers ethics plus human resources and relationship management, property financial management, maintenance and risk management, and marketing and leasing. The exam costs $99 for IREM members or $129 for non-members, or is included in the ARM Track ($1,003 member / $1,305 non-member). To earn the ARM, complete an ethics course (ETH800 or ETH001) and RES201 (or MAH201 or CID201), pass the exam, and apply with 12 months of qualifying experience (minimum portfolio plus 14 of 29 functions).

Sample ARM Practice Questions

Try these sample questions to review concepts for the ARM exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 170+ question experience with AI tutoring.

1What is the primary purpose of a residential property's marketing plan?
A.To set rental rates above market to maximize revenue
B.To attract qualified prospects and reduce vacancy loss
C.To document leasing activity for the owner's tax return
D.To replace the operating budget during slow seasons
Explanation: A marketing plan identifies the property's target market and lays out the strategies used to attract qualified prospects, fill vacancies quickly, and reduce lost rent. Pricing above market usually lengthens vacancy rather than raising revenue, leasing records are kept for operations and owner reporting rather than as a tax filing, and the plan works alongside the operating budget rather than replacing it.
2Which metric expresses unoccupied unit days as a percentage of total available unit days?
A.Renewal rate
B.Vacancy rate
C.Concession rate
D.Cap rate
Explanation: Vacancy rate is the percentage of available unit days (or units) that are unoccupied during a given period. Renewal rate measures lease renewals, concession rate tracks discounts, and cap rate is a valuation metric (NOI ÷ value).
3Which of the following is the standard first step in the residential leasing process?
A.Executing the lease and collecting the first month's rent
B.Taking the inquiry and pre-qualifying the prospect
C.Performing the move-in inspection with the new resident
D.Collecting the security deposit and application fee
Explanation: Leasing begins when a prospect inquires and the leasing professional pre-qualifies them on basics such as desired unit type, move-in date, and the property's published rental criteria. Collecting the application fee and deposit, executing the lease with first month's rent, and the move-in inspection all come later in the process.
4Which document shows the unit types a property is offering along with their current asking rents and any specials?
A.Annual operating budget
B.Current rent roll
C.Current pricing sheet
D.Capital reserve study
Explanation: A current pricing (rate) sheet lists the unit types offered, their current asking rents, and any specials, and it is updated as market surveys of competing properties change. The rent roll lists each occupied unit's resident and contract rent, the operating budget projects income and expenses, and a reserve study schedules capital replacements.
5When comparing your property to competitors in the same submarket, which research tool is typically used?
A.Capitalization rate analysis
B.Comparison grid of rent comps
C.Replacement reserve study
D.Trailing 12-month income statement
Explanation: A comparison grid (rent comps survey) lines up the subject property against nearby competitors of similar age, size, and amenities, adjusting for differences to benchmark rents, concessions, and occupancy. Cap rate analysis values the property, a reserve study plans capital replacements, and a T-12 statement reports the subject's own historical income and expenses.
6Effective gross income (EGI) for a residential property is best defined as:
A.Gross potential rent before any vacancy or other income
B.Potential rent less vacancy and collection loss, plus other income
C.Net operating income remaining after annual debt service
D.Gross potential rent less vacancy loss and total operating expenses
Explanation: EGI starts with gross potential rent (100% occupancy at scheduled rents), subtracts vacancy and collection loss, and adds other income such as fees, laundry, and parking. Gross potential rent alone ignores vacancy and other income, subtracting operating expenses moves past EGI toward NOI, and subtracting debt service produces cash flow, not EGI.
7A 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
Explanation: Effective monthly rent equals total rent collected divided by the lease term. Eleven months of paid rent is $16,500; divided by 12 months gives $1,375 effective monthly rent. The advertised street rent of $1,500 is gross, not effective.
8Which of the following best describes a 'traffic source' report in residential leasing?
A.A count of inquiries and leases by marketing channel
B.A follow-up log of prospects who toured but did not apply
C.A schedule of upcoming lease expirations by month and unit type
D.A weekly summary of move-ins and move-outs by floor plan
Explanation: A traffic source report ties each inquiry and signed lease back to the channel that produced it (internet listing service, website, referral, drive-by, social media), so the manager can compare cost per lease and shift the marketing budget. A follow-up log, a lease expiration schedule, and a move-in/move-out summary are useful leasing reports, but none shows which marketing sources produce results.
9A site team's lease conversion ratio for the month is 30%. If the property received 200 prospects, how many leases were signed?
A.30
B.60
C.70
D.200
Explanation: Lease conversion ratio is leases ÷ prospects. With 200 prospects and a 30% conversion, 0.30 × 200 = 60 leases were signed. The other choices misapply the calculation or simply repeat the input.
10When setting renewal rents, which factor should the property manager weigh MOST heavily alongside current market rent?
A.The expected cost of turnover if the resident moves out
B.The same percentage increase applied at last year's renewals
C.The property's loan-to-value ratio at its last refinancing
D.The household's size and the number of children in the unit
Explanation: Renewal pricing weighs current market rent against the cost of losing the resident: vacancy days, make-ready, marketing, and leasing effort. A renewal offer slightly below market can still maximize income if it avoids a turnover. Reusing last year's percentage ignores current market conditions, the loan-to-value ratio has no bearing on what a resident will pay, and basing rent on household size or children is familial-status discrimination under the Fair Housing Act.

About the ARM Exam

The ARM (Accredited Residential Manager) certification from IREM is the early-career credential for residential property managers. The exam is 100 multiple-choice questions, open book with PDF or hard-copy IREM materials, and must be completed within 30 days of registration. It is delivered live online with a proctor and requires a 70% passing score. IREM describes the ARM Track as covering ethics plus four competency areas: human resources and relationship management, property financial management, maintenance and risk management, and marketing and leasing.

Exam sponsor: Institute of Real Estate Management (IREM). The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Questions

100 questions

Time Limit

Open book, 30-day window

Passing Score

70%

Exam / Certification Fees

$99 (members) / $129 (non-members)

Exam sponsor website

Reported exam pass rate: Not publicly reported. by IREM Exam sponsor website

Fees, eligibility, and exam policies can change. Confirm them with the exam sponsor before applying or paying.

Our practice resources: topics covered

We aim to reflect publicly available exam outlines and topic information in our study resources. Coverage, format, and difficulty may differ from the actual exam, and we cannot guarantee that every detail is accurate or current. Confirm exam requirements, fees, and policies with the official exam sponsor.

Not published

Human Resources & Relationship Management

Owner goals and management company structures, leading the site team, the employee life cycle (recruiting, onboarding, performance management, retention), employment law, and communication and conflict resolution (RES201 Parts I-II)

Not published

Property Financial Management

Accounting methods, chart of accounts, operating and capital budgets, variance analysis, the statement of cash flow, NOI and capitalization-based value, record keeping, and reporting to the owner (RES201 Parts III and VI)

Not published

Maintenance & Risk Management

Types of maintenance, property inspections, building components and systems, contractors and bidding, sustainability, work-order priorities and inventory, risk management, emergency planning, and insurance (RES201 Part IV)

Not published

Marketing & Leasing

Market and property analysis, rent setting and revenue management, reputation management, leasing and prospect qualification, fair housing and ADA, lease execution, collections and evictions, and resident retention (RES201 Part V)

Not published

Ethics

IREM Code of Professional Ethics articles, including loyalty to the client, confidentiality, accounting and reporting, protection of funds, conflicts of interest, equal opportunity, duty to tenants, and enforcement (ETH800 or ETH001)

Preparing for the ARM Exam

What You Need to Know

  • Passing score: 70%
  • Exam length: 100 questions
  • Time limit: Open book, 30-day window
  • Exam / certification fees: $99 (members) / $129 (non-members) Official sources

Using Our Practice Resources

  • Work through all 170 available questions
  • Review every answer and explanation
  • Track weak areas and revisit them
  • Use our AI tutor for tough concepts

ARM: Suggested Study Strategy

1Tab and highlight your IREM course materials before the exam — open book only helps if you can find answers in under 60 seconds
2Memorize the seven Fair Housing Act protected classes (race, color, religion, national origin, sex, familial status, disability) — multiple questions test these directly
3Practice core formulas: NOI = effective gross income − operating expenses; cap rate = NOI ÷ value; GRM = price ÷ gross annual rent
4Know the difference between preventive maintenance, corrective maintenance, and capital improvements — and where each one is funded (operating budget vs. reserves)
5Study the IREM Code of Professional Ethics articles — fiduciary duty, trust accounts, confidentiality, and disclosure of conflicts come up in scenario questions

Frequently Asked Questions

What is the IREM ARM certification?

The Accredited Residential Manager (ARM) is IREM's early-career certification for residential property managers. It is designed for managers of any type of residential property, including multifamily rental communities, condominiums, homeowners associations, single-family homes, and mixed-use property, and ARMs can later pursue the Certified Property Manager (CPM) designation.

How many questions are on the ARM exam and what is the passing score?

The ARM exam has 100 multiple-choice questions and requires a 70% passing score. The exam is open book — candidates may use PDF or hard-copy IREM course materials. After registration you have a 30-day window to schedule and take the exam, which is delivered live online with a proctor.

What are the eligibility requirements for the ARM?

You need 12 months of residential property management experience that meets IREM's minimum portfolio (for example, 30 rental multifamily units or 60 HOA/condo units) while performing at least 14 of IREM's 29 management functions, by the time you submit the ARM application. You also complete two certification courses, an ethics course (ETH800 or ETH001) and RES201 (or MAH201 or CID201), usually through the ARM Track, which includes the exam.

Is the ARM exam open book?

Yes. The ARM exam is open book and you may use PDF or hard-copy IREM course materials during the test. You must bring a standard calculator or use the calculator on your laptop; cell phones and tablets are not permitted. Because reference materials are permitted, the exam tests your ability to apply concepts and find the right answer in your materials quickly, not pure memorization.

How long does it take to earn the ARM?

IREM estimates about 2-3 months from coursework to graduation. The ARM Track takes five days in the classroom or live online (day 1 ethics, days 2-5 RES201), with comparable hours self-paced online. The exam must be completed within 30 days of registration, and application review and approval take about 1-2 months.

How does ARM differ from CPM?

ARM is the residential, early-career credential — 12 months of experience, two ARM courses, and a 100-question exam. CPM is the senior, all-asset-class designation — 36 months of experience, eight courses plus a Management Plan Skills Assessment, and a 150-question exam. Many CPM candidates earn the ARM first and use it as a stepping stone.