Michigan Practice TestProperty Management

Michigan Property Management
Practice Questions & Answers (2026)

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

Michigan Property Management — Practice Questions & Answers

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

Q1. Under Michigan law, a security deposit for a residential tenant cannot exceed:

A.One month's rent
B.One and one-half months' rent
C.Two months' rent
D.Three months' rent

Explanation

Michigan's Security Deposit Act (Act 348 of 1972) limits security deposits to a maximum of one and one-half months' rent for residential tenancies.

Q2. In Michigan, a landlord must return a tenant's security deposit within how many days after the tenancy ends?

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

Explanation

Michigan's Security Deposit Act requires landlords to return the security deposit, or provide an itemized written statement of deductions, within 30 days after the tenant vacates the rental unit.

Q3. A Michigan property manager's primary fiduciary duty is to:

A.The tenants of the property
B.The property owner (principal)
C.The local zoning authority
D.LARA

Explanation

A property manager is an agent of the property owner and owes primary fiduciary duties to the owner, including loyalty, confidentiality, obedience, disclosure, and accounting.

Q4. Michigan requires that a property manager handling rental properties for others must:

A.Hold a contractor's license
B.Hold a real estate broker or salesperson license (or work under one)
C.Hold a property appraiser certification
D.Register with the county clerk

Explanation

Property management activities performed for compensation on behalf of others — including leasing, renting, and collecting rents — require a real estate license under Michigan law.

Q5. A Michigan property manager collects rent of $12,000/month from a commercial property. If the management fee is 8%, how much does the manager earn monthly?

A.$840
B.$960
C.$1,200
D.$1,440

Explanation

Management fee = $12,000 × 8% = $12,000 × 0.08 = $960 per month.

Q6. In Michigan, a landlord who enters a rental unit without proper notice (except in emergencies) may be liable for:

A.A property tax increase
B.Violation of the tenant's right to quiet enjoyment and potential civil liability
C.Automatic lease renewal
D.Criminal trespassing only

Explanation

Michigan law protects tenants' right to quiet enjoyment. Unauthorized entry by a landlord (absent emergency) can constitute a breach of the lease and may result in civil liability, including damages to the tenant.

Q7. Under Michigan law, before a landlord may evict a tenant for non-payment of rent, the landlord must first:

A.Obtain a court judgment automatically
B.Serve a 7-day demand for possession (pay or quit notice)
C.Report the tenant to LARA
D.Lockout the tenant after 3 days

Explanation

Under Michigan's Summary Proceedings Act, before filing for eviction for nonpayment of rent, a landlord must serve a 7-day demand for possession giving the tenant the opportunity to pay rent or vacate.

Q8. In Michigan, a month-to-month tenancy can be terminated by either party giving how much written notice?

A.7 days
B.14 days
C.30 days
D.60 days

Explanation

Under Michigan law, either party may terminate a month-to-month tenancy by giving the other party at least one full rental period's notice (typically 30 days).

Q9. A net lease in Michigan requires the tenant to pay:

A.Base rent only, with the landlord paying all expenses
B.Base rent plus some or all of property taxes, insurance, and maintenance
C.Gross rent with no additional charges
D.A percentage of gross sales revenue only

Explanation

A net lease passes some or all operating expenses (taxes, insurance, maintenance) directly to the tenant in addition to base rent. A triple-net (NNN) lease passes all three major expense categories to the tenant.

Q10. A Michigan property management agreement should include all of the following EXCEPT:

A.Management fee and commission structure
B.Scope of management authority
C.The manager's personal credit score
D.Duration of the agreement and termination provisions

Explanation

A property management agreement should define scope of authority, fees, term, and other relevant terms. The manager's personal credit score is not a required or relevant element of the agreement.

Q11. Michigan's Truth in Renting Act requires landlords to:

A.Post rental prices on the internet
B.Provide tenants with a written notice of their rights and responsibilities under Michigan law
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