Louisiana Practice TestProperty Management

Louisiana Property Management
Practice Questions & Answers (2026)

Property management questions on the Louisiana exam cover both the practical aspects of managing rental properties and the landlord-tenant law specific to Louisiana. The Louisiana Real Estate Commission (LREC) tests security deposit limits, required notice periods for entry and termination, habitability standards, and the property manager's fiduciary duties. Louisiana'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

Louisiana Property Management — Practice Questions & Answers

110 questions on Property Management from the Louisiana real estate question bank. First 10 are free — sign up to unlock all 110.

Q1. In Louisiana, a property manager who manages properties on behalf of others for compensation must hold a:

A.Property management certificate from a trade school
B.Louisiana real estate broker's or salesperson's license
C.Parish business license only
D.Federal property management certification

Explanation

In Louisiana, managing real estate for others for compensation constitutes real estate brokerage activity and requires a Louisiana real estate license (broker or salesperson working under a broker).

Q2. A property manager's primary responsibility is to:

A.Maximize the market value of the property for a future sale
B.Manage the property in accordance with the owner's goals and maximize the owner's return on investment
C.Minimize maintenance expenses regardless of tenant needs
D.Market the property for the highest possible rent without regard to vacancies

Explanation

A property manager's primary responsibility is to manage the property in accordance with the owner's investment goals, which typically includes maximizing income, minimizing vacancies, and maintaining the property.

Q3. The management agreement between a property owner and a property manager should include all of the following EXCEPT:

A.The management fee structure
B.The manager's authority to lease and collect rent
C.The manager's personal financial statements
D.The duration of the management agreement

Explanation

A management agreement includes the scope of authority, fee structure, duration, and responsibilities. The manager's personal financial statements are not a required element of a property management agreement.

Q4. Security deposits collected from tenants in Louisiana must be:

A.Deposited in the property manager's personal bank account
B.Held in a separate trust or escrow account
C.Invested in stocks to earn returns for the owner
D.Paid directly to the property owner at lease signing

Explanation

Security deposits must be held in a separate trust or escrow account, separate from the property manager's own funds, to protect tenant interests and comply with Louisiana landlord-tenant law.

Q5. Under Louisiana landlord-tenant law, a landlord must 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

Louisiana law requires landlords to return security deposits within 30 days after the tenant vacates, along with an itemized written statement of any deductions.

Q6. A property manager who mixes tenant security deposits with the owner's operating funds is guilty of:

A.Simple accounting error
B.Commingling
C.Conversion
D.Both commingling and potentially conversion

Explanation

Mixing client funds with personal or other funds is commingling. If the manager uses those funds for personal purposes, it becomes conversion (theft). Both are serious violations of license law and fiduciary duty.

Q7. A gross lease in commercial property management means:

A.The tenant pays rent plus all property expenses
B.The landlord pays most or all operating expenses and the tenant pays a fixed rent
C.The tenant's rent is based on a percentage of sales
D.The tenant and landlord split all expenses equally

Explanation

In a gross lease, the landlord pays most or all property operating expenses (taxes, insurance, maintenance) and the tenant pays a fixed rent amount.

Q8. A triple net (NNN) lease in commercial real estate requires the tenant to pay:

A.Rent only with all expenses included
B.Base rent plus property taxes, insurance, and maintenance expenses
C.Rent plus a percentage of sales revenues
D.Rent plus utilities only

Explanation

Under a triple net (NNN) lease, the tenant pays a base rent plus three additional expenses: property taxes, insurance, and maintenance/operating costs for the property.

Q9. The Americans with Disabilities Act (ADA) requires commercial properties to:

A.Rent to disabled tenants at below-market rates
B.Provide accessible entrances, restrooms, and services to persons with disabilities
C.Reserve 10% of rental units for disabled tenants
D.Provide free parking for all disabled customers

Explanation

The ADA requires places of public accommodation and commercial facilities to be accessible to people with disabilities, including accessible entrances, pathways, restrooms, and service areas.

Q10. Which type of lease gives the tenant the right to purchase the property within a specified period?

A.Ground lease
B.Lease with an option to buy
C.Percentage lease
D.Net lease

Explanation

A lease with an option to buy gives the tenant the right (but not the obligation) to purchase the property at an agreed price during a specified period, often with a portion of rent credits applied to the purchase price.

Q11. A property manager who receives a referral fee from a vendor without the property owner's knowledge is violating:

A.Only professional courtesy standards
B.The fiduciary duty of loyalty and Louisiana license law
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