Indiana Practice TestProperty Management

Indiana Property Management
Practice Questions & Answers (2026)

Property management questions on the Indiana exam cover both the practical aspects of managing rental properties and the landlord-tenant law specific to Indiana. The Indiana Professional Licensing Agency tests security deposit limits, required notice periods for entry and termination, habitability standards, and the property manager's fiduciary duties. Indiana'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

Indiana Property Management — Practice Questions & Answers

94 questions on Property Management from the Indiana real estate question bank. First 10 are free — sign up to unlock all 94.

Q1. A property manager's primary duty is to:

A.Maximize occupancy at all costs
B.Manage the property to achieve the owner's investment objectives
C.Negotiate on behalf of tenants
D.Enforce zoning regulations

Explanation

A property manager acts as an agent of the property owner and has a fiduciary duty to manage the property in accordance with the owner's investment goals.

Q2. A management agreement is essential because it:

A.Replaces the need for a real estate license
B.Defines the scope of authority, duties, and compensation of the property manager
C.Guarantees rental income to the owner
D.Eliminates the property manager's liability

Explanation

The management agreement is the contract between property owner and manager that establishes the manager's authority, responsibilities, reporting requirements, and compensation.

Q3. Security deposits collected from tenants in Indiana must be:

A.Deposited in the property manager's personal account
B.Kept in a separate trust or escrow account apart from operating funds
C.Remitted to the Indiana Real Estate Commission
D.Invested in stocks for the owner's benefit

Explanation

Indiana law requires security deposits to be held in a separate escrow or trust account, not commingled with operating funds, to protect tenant rights.

Q4. Under Indiana law, a landlord must return a security deposit within how many days after a tenant vacates?

A.14 days
B.30 days
C.45 days
D.60 days

Explanation

Indiana law requires landlords to return the security deposit, or provide an itemized written statement of deductions, within 45 days after the tenant vacates.

Q5. Gross lease means:

A.The tenant pays all operating expenses in addition to base rent
B.The landlord pays all or most property expenses and the tenant pays a fixed rent
C.The rent adjusts with the consumer price index
D.The tenant and landlord split operating expenses equally

Explanation

In a gross lease, the landlord pays operating expenses such as taxes, insurance, and maintenance, and the tenant pays a fixed rent amount.

Q6. A triple net (NNN) lease requires the tenant to pay:

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

Explanation

A triple net lease requires the tenant to pay base rent plus property taxes, building insurance, and maintenance costs — the three 'nets.'

Q7. An eviction proceeding in Indiana begins with the landlord serving the tenant a:

A.Court summons directly
B.Written notice to pay rent or vacate (notice to quit)
C.Call to the police
D.Letter from the Indiana Real Estate Commission

Explanation

In Indiana, an eviction (unlawful detainer) typically begins with the landlord serving the tenant a written notice to pay rent or quit, giving the tenant an opportunity to cure before court proceedings begin.

Q8. A property manager who hires a contractor for repairs that cost more than the management agreement's authorized limit without owner approval is:

A.Fulfilling their duty of care
B.Exceeding their authority and potentially breaching fiduciary duty
C.Required to do so by law
D.Protected under the management agreement automatically

Explanation

A property manager has only the authority granted in the management agreement; exceeding spending limits without owner approval may constitute a breach of fiduciary duty.

Q9. A percentage lease is commonly used in:

A.Single-family residential rentals
B.Retail commercial leases where rent is tied to the tenant's gross sales
C.Industrial warehouse leases
D.Government-subsidized housing

Explanation

Percentage leases are common in retail properties; the tenant pays a base rent plus a percentage of their gross sales, aligning the landlord's and tenant's interests.

Q10. The Indiana Residential Landlord-Tenant Act primarily governs:

A.Commercial lease agreements
B.Residential rental agreements and tenant-landlord rights and obligations
C.Condominium association rules
D.Agricultural lease agreements

Explanation

The Indiana Residential Landlord-Tenant Act (IC 32-31) establishes the rights and responsibilities of both landlords and tenants in residential rental relationships.

Q11. A property manager's operating budget should include all of the following EXCEPT:

A.Expected rental income
B.Maintenance and repair costs
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