Idaho Practice TestProperty Management

Idaho Property Management
Practice Questions & Answers (2026)

Property management questions on the Idaho exam cover both the practical aspects of managing rental properties and the landlord-tenant law specific to Idaho. The Idaho Real Estate Commission tests security deposit limits, required notice periods for entry and termination, habitability standards, and the property manager's fiduciary duties. Idaho's landlord-tenant law has specific provisions — including notice requirements and tenant protections — that differ from what national study materials cover. These questions often involve scenarios where a property manager must navigate competing obligations to the owner-client and the tenant.

Practice Questions

Idaho Property Management — Practice Questions & Answers

114 questions on Property Management from the Idaho real estate question bank. First 10 are free — sign up to unlock all 114.

Q1. Which of the following is typically the property manager's primary responsibility?

A.Determining the property's market value
B.Maximizing the owner's return on investment while preserving the property's value
C.Arranging financing for property improvements
D.Selling the property when the owner decides to exit

Explanation

A property manager's primary responsibility is to maximize the owner's return on investment (through rental income and expense management) while maintaining and preserving the property's physical and economic value.

Q2. A management agreement between a property owner and a property manager is BEST described as:

A.A lease agreement with the tenants
B.An employment or agency contract authorizing the manager to act on behalf of the owner
C.A partnership agreement to share profits
D.A deed transfer of management rights

Explanation

A property management agreement is a contract (an agency/employment contract) that authorizes the property manager to act as the owner's agent. It specifies the manager's authority, duties, compensation, and the duration of the agreement.

Q3. A gross lease in commercial real estate is one where:

A.The tenant pays base rent plus all operating expenses
B.The landlord pays all operating expenses and the tenant pays a fixed rent
C.Rent increases based on the tenant's gross sales
D.The tenant pays only utilities

Explanation

In a gross lease, the tenant pays a fixed rent and the landlord is responsible for paying all operating expenses (taxes, insurance, maintenance). This is common in residential rentals and some commercial leases.

Q4. A triple-net (NNN) lease requires the tenant to pay:

A.Rent only
B.Rent plus utilities
C.Base rent plus property taxes, insurance, and maintenance
D.A percentage of gross sales as rent

Explanation

In a triple-net lease, the tenant pays base rent plus the three 'nets': property taxes, building insurance, and maintenance costs. This shifts operating expenses from the landlord to the tenant and is common in commercial leases.

Q5. Idaho landlord-tenant law requires a landlord to return a security deposit within how many days after the tenant vacates?

A.14 days
B.21 days
C.30 days
D.45 days

Explanation

Under Idaho landlord-tenant law (Idaho Code § 6-321), a landlord must return the security deposit (or provide an itemized statement of deductions) within 21 days after the tenant vacates the premises.

Q6. A percentage lease, common in retail properties, requires the tenant to pay:

A.A percentage of the property's appraised value annually
B.Base rent plus a percentage of the tenant's gross sales above a breakpoint
C.A percentage of the total building's operating costs
D.Rent equal to a percentage of surrounding comparable properties

Explanation

A percentage lease requires the tenant to pay base rent plus a percentage of their gross sales above a natural breakpoint. This is common in retail shopping centers and allows landlords to participate in tenants' business success.

Q7. When a tenant remains in possession after a lease expires without signing a new lease and the landlord accepts rent, this creates a:

A.Tenancy for years
B.Tenancy at will
C.Periodic tenancy (holdover tenancy)
D.Tenancy at sufferance

Explanation

When a tenant holds over after lease expiration and the landlord accepts rent, a periodic tenancy (holdover tenancy) is created, typically on a month-to-month basis. The same terms of the original lease generally apply.

Q8. A property manager who receives compensation from a vendor for recommending the vendor's services to the property owner has committed:

A.An acceptable business practice
B.A conflict of interest and possible breach of fiduciary duty
C.A violation of zoning law
D.A minor administrative violation only

Explanation

A property manager owes fiduciary duties to the property owner. Receiving undisclosed compensation from vendors creates a conflict of interest and breaches the duty of loyalty. Any such arrangement must be disclosed to and approved by the owner.

Q9. Constructive eviction occurs when:

A.A landlord physically removes a tenant's belongings
B.A landlord's failure to maintain the property makes it uninhabitable, forcing the tenant to leave
C.A court orders a tenant to vacate
D.A tenant abandons the property voluntarily

Explanation

Constructive eviction occurs when a landlord's actions or failure to act make the property uninhabitable (e.g., failure to provide heat, allowing severe disrepair), effectively forcing the tenant to vacate. The tenant may be relieved of rent obligations.

Q10. An estoppel certificate in commercial real estate is used to:

A.Certify the property's market value
B.Confirm the terms of a lease and that no defaults exist, provided to a buyer or lender
C.Authorize the property manager to sign leases
D.Disclose all environmental hazards on the property

Explanation

An estoppel certificate is a document signed by a tenant confirming the terms of their lease (rent, term, options) and that the lease is in full force with no landlord defaults. Buyers and lenders often require them to verify lease terms before acquisition or financing.

Q11. A property manager preparing an annual operating budget should include all of the following EXCEPT:

A.Projected maintenance and repair expenses
B.Anticipated mortgage principal reduction
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