Montana Practice TestProperty Management

Montana Property Management
Practice Questions & Answers (2026)

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

Montana Property Management — Practice Questions & Answers

117 questions on Property Management from the Montana real estate question bank. First 10 are free — sign up to unlock all 117.

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

A.Maximize the property manager's own income
B.Manage the property in the best interest of the property owner
C.Represent tenants in lease negotiations
D.Set rental rates independent of the owner's direction

Explanation

A property manager acts as the owner's agent and owes fiduciary duties to the property owner, including managing the property to maximize the owner's return while complying with all legal requirements.

Q2. A Montana property manager who collects rent on behalf of a property owner for a fee must hold:

A.A property management certification only
B.A Montana real estate license
C.A licensed contractor's permit
D.A notary public commission

Explanation

In Montana, collecting rent or otherwise managing property for others for compensation constitutes a real estate activity requiring a Montana real estate license.

Q3. A property management agreement should include:

A.Only the rental rate and lease term
B.Management fee, scope of authority, reporting requirements, and duration
C.The tenant's personal information and credit score
D.A list of all potential tenants interviewed

Explanation

A property management agreement should clearly define the manager's authority, responsibilities, compensation, reporting requirements, duration, and termination provisions.

Q4. A gross lease requires the tenant to pay:

A.All property operating expenses directly
B.A fixed rent with the landlord paying most or all operating expenses
C.Rent plus a proportionate share of taxes and insurance
D.Rent plus a percentage of gross sales

Explanation

Under a gross lease, the tenant pays a fixed rent and the landlord is responsible for paying most or all operating expenses such as taxes, insurance, and maintenance.

Q5. A net lease differs from a gross lease because in a net lease:

A.The landlord pays all operating expenses
B.The tenant pays some or all operating expenses in addition to base rent
C.Rent is based on a percentage of the tenant's sales
D.The lease term is shorter than a gross lease

Explanation

Under a net lease, the tenant pays base rent plus some or all operating expenses (taxes, insurance, maintenance). A triple net (NNN) lease requires the tenant to pay all three major expense categories.

Q6. Montana's landlord-tenant law requires landlords to provide rental units that are:

A.Fully furnished with appliances
B.Fit for human habitation (implied warranty of habitability)
C.Equipped with air conditioning
D.Located near public transportation

Explanation

Montana's Residential Landlord and Tenant Act (RLTA) requires landlords to maintain rental units in a habitable condition, meaning they must be safe, clean, and fit for human occupancy.

Q7. Under Montana's Residential Landlord and Tenant Act, a landlord must return a tenant's security deposit within how many days after the tenant vacates?

A.10 days
B.30 days
C.45 days
D.60 days

Explanation

Montana law requires landlords to return the security deposit (or provide an itemized list of deductions) within 30 days after the tenant vacates, unless the lease provides for a shorter period.

Q8. A percentage lease is commonly used in retail properties and requires the tenant to pay:

A.Only a flat monthly rent regardless of sales volume
B.Base rent plus a percentage of the tenant's gross sales above a threshold
C.Rent equal to a percentage of the property's appraised value
D.A percentage of the landlord's mortgage payment

Explanation

A percentage lease is common in retail/shopping center leases and requires the tenant to pay a base rent plus a percentage of gross sales that exceed a specified breakpoint, aligning landlord income with tenant performance.

Q9. The capitalization rate approach to evaluating an income property shows that if cap rates in a market increase, property values will:

A.Increase proportionally
B.Decrease, assuming NOI remains constant
C.Remain unchanged
D.Double

Explanation

Value = NOI ÷ Cap Rate. If cap rates increase and NOI stays the same, the denominator increases, causing value to decrease. Rising cap rates generally indicate falling property values.

Q10. When a commercial tenant fails to pay rent, the landlord's first legal step in Montana is typically to:

A.Change the locks immediately
B.Serve the tenant with a written notice to pay or vacate
C.File an eviction lawsuit directly without notice
D.Seize the tenant's business equipment

Explanation

Before filing for eviction in Montana, the landlord must typically serve the tenant with a written notice to pay rent or vacate within a specified period, as required by state law.

Q11. Common area maintenance (CAM) charges in a commercial lease are fees paid by tenants to cover:

A.The tenant's interior renovation costs
B.Their proportionate share of maintaining shared areas such as lobbies, parking lots, and landscaping
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