New York Practice TestProperty Management

New York Property Management
Practice Questions & Answers (2026)

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

New York Property Management — Practice Questions & Answers

122 questions on Property Management from the New York real estate question bank. First 10 are free — sign up to unlock all 122.

Q1. New York City Rent Stabilization Law applies primarily to:

A.All residential buildings in NYC
B.Privately owned buildings with six or more units built before a specified date
C.Only publicly subsidized housing
D.Buildings with fewer than five units

Explanation

NYC Rent Stabilization generally applies to privately owned residential buildings with six or more units that were built before 1974 (or were subject to rent control and deregulated). It limits rent increases and provides tenant protections.

Q2. Under NYC Rent Stabilization, a landlord may increase the rent by:

A.Any amount the market will bear
B.Only the percentage approved annually by the NYC Rent Guidelines Board
C.A maximum of 10% per year regardless of board guidelines
D.3% per year indexed to inflation

Explanation

For rent-stabilized apartments, allowable rent increases are set each year by the NYC Rent Guidelines Board (RGB). Landlords may only raise rents by the percentages approved by the RGB.

Q3. In New York, a residential landlord must return a security deposit within how many days after the tenant vacates?

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

Explanation

Under New York law (General Obligations Law § 7-108), landlords must return a security deposit (or provide an itemized statement of deductions) within 14 days after the tenant vacates.

Q4. A property manager's primary fiduciary duty is owed to:

A.The tenants in the building
B.The property owner (principal)
C.The local municipality
D.The mortgage lender

Explanation

A property manager acts as the owner's agent and owes fiduciary duties — loyalty, confidentiality, disclosure, obedience, care, and accounting — to the property owner as their principal.

Q5. Which of the following is a common component of a property management agreement?

A.The sale price of the property
B.The scope of manager's authority, management fee, and reporting requirements
C.The tenant's right to sublet
D.The lender's debt service requirements

Explanation

A property management agreement typically defines the scope of the manager's authority, the management fee structure, reporting and accounting obligations, and the term of the agreement.

Q6. The purpose of a building's reserve fund in property management is to:

A.Cover daily operating expenses
B.Accumulate funds for major capital expenditures and unexpected repairs
C.Pay property taxes when due
D.Provide emergency cash flow for the owner

Explanation

A reserve fund (capital reserve) accumulates funds over time to pay for major capital expenditures such as roof replacement, HVAC systems, or elevator upgrades, avoiding large special assessments on owners.

Q7. In New York, a landlord who fails to return a tenant's security deposit within the required period may:

A.Face no penalty as long as they return it eventually
B.Forfeit their right to make any deductions and face liability for the deposit amount
C.Be reported to the DOS
D.Only face a civil fine of $100

Explanation

Under New York law, a landlord who fails to return the security deposit within 14 days after the tenant vacates may forfeit the right to make any deductions and is liable to the tenant for the full deposit amount.

Q8. NYC Rent Control (as distinct from Rent Stabilization) applies to buildings:

A.Built after 1974 with more than 6 units
B.Built before 1947 with continuous tenancy since before 1969
C.All buildings in the five boroughs regardless of age
D.Only publicly owned housing projects

Explanation

NYC Rent Control applies to a dwindling number of apartments: those in buildings built before February 1, 1947, where the tenant (or their successor) has been living there continuously since before July 1, 1969.

Q9. A property manager who collects rents, negotiates leases, and coordinates repairs for a fee without a real estate license in New York is:

A.Operating legally as a property manager is exempt from licensing
B.Violating New York license law which generally requires a license for property management for compensation
C.Only required to register with the local municipality
D.Only required to be licensed if managing more than 10 units

Explanation

In New York, managing property for others for compensation generally requires a real estate broker's license. An unlicensed person who collects rents and negotiates leases for compensation is violating RPL Article 12-A.

Q10. A gross lease, commonly used in residential rentals, means:

A.The tenant pays rent plus all operating expenses
B.The landlord pays all operating expenses from the fixed rent payment
C.The tenant pays a base rent plus a percentage of their income
D.Both landlord and tenant split all expenses equally

Explanation

In a gross lease, the tenant pays a fixed rent and the landlord pays the operating expenses (taxes, insurance, maintenance, utilities). This is the most common structure for residential rentals.

Q11. A net lease in commercial real estate typically requires the tenant to pay:

A.Only base rent with no additional charges
B.Base rent plus some or all of the property's operating expenses such as taxes, insurance, and maintenance
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