Professional Property Management Overview PDF

Professional Property 1 Management: An Overview Learning Objectives After completing this lesson, students should be able to… Describe some typical duties of a professional property manager Distinguish between the...

Professional Property 1 Management: An Overview Learning Objectives After completing this lesson, students should be able to… Describe some typical duties of a professional property manager Distinguish between the three main classes of property management clients Identify the technological, social, and historical factors that gave rise to the growth of the property management profession Describe ways in which state and federal regulations affect the property management pro- fession Contrast the different types of managed properties as well as their management needs Explain the property manager’s main task and how that task is accomplished Discuss the various career possibilities for property managers Explain the benefits of membership in professional associations Identify some of the prominent professional certifications and designations available to property managers Suggested Lesson Plan 1. Provide a brief overview of Chapter 1, “Property Management: An Overview,” and re- view the learning objectives for the chapter. © 2021 Rockwell Publishing  Property Management Instructor Materials 2. Present lesson content: Professional Property Management – Introduction to property management – Who uses property managers? – Development of the profession – Regulation of professional property managers EXERCISE 1.1 Growth of the property management profession Types of Managed Properties EXERCISE 1.2 Types of property The Property Manager’s Role EXERCISE 1.3 Responsibilities of a property manager Career Possibilities for Property Managers – Employment arrangements – Positions – Specializations Professional Development for Property Managers – Professional associations – Designations and certifications EXERCISE 1.4 Professional associations 3. End lesson with Chapter 1 Quiz. Chapter 1 Outline: Professional Property Management: An Overview I. Professional Property Management A. Property management: the administration, operation, and maintenance of a piece of real estate; specifically, the management of real estate by a profes- sional property manager who is working on behalf of the property owner 1. Ongoing duties may include advertising space, negotiating leases, rent collection, recordkeeping, physical maintenance, tenant relations, ar- ranging financing, risk management, creating and executing long-term strategies 2  Chapter 1: Professional Property Management 2. Managers may focus on a certain property size or type, or limit work to specific management function(s); managers may handle several proper- ties or one large one 3. Property managers may be employed by management firm, brokerage, individual(s), or the property management division of a large corporation B. There are three main classes of property management clients 1. Investor-owner: owns property that produces rental income; can be an individual or syndicate (partnership or LLC) a. Income-producing property: investment property that is held not just for appreciation, but also because it generates rental income 2. Incidental/interim owner: property owners who are responsible for an investment property only temporarily or incidentally (for instance, be- cause of a foreclosure or an inheritance); the owners often plan to sell the property as soon as possible, but need managers in the meantime 3. Institutional owner: corporations, institutions, and agencies that occupy and use their properties; institutional owners include schools, government entities, the military, and private companies a. Property managers employed by institutional owners are often called facilities managers, and the managed property may be referred to as institutional property C. Property management developed into a recognized profession in the 20th century 1. Development of high rise office/apartment buildings resulted in increased tenant density, more ownership by investment syndicates 2. Great Depression brought more foreclosures, bank-owned property need- ing professional management 3. Construction boom after WWII brought more retail shopping centers, business parks 4. The 1960s and 1970s brought an increase in condominiums and broad investments in large-scale income-producing properties D. Professional property managers are regulated by state licensing laws, laws regulating business practices, and agency law 1. Most states require professional property managers to hold either a real estate license or a property manager’s license a. A license is generally required to engage in leasing, offering to lease, negotiating lease terms, collecting rent, or soliciting rental listings on behalf of another, in exchange for compensation 3  Property Management Instructor Materials b. Exemptions to the license requirement may include persons managing their own property, a manager acting without compensation, a resident manager who lives on the premises, and unlicensed family members of the property owner (for certain tasks) c. License candidates are generally required to complete real estate coursework and pass an examination; age and experience requirements may apply; and the licensee may need to be bonded and insured 2. Most state licensing agencies regulate property management business practices, such as security deposit and trust fund handling, recordkeeping requirements, and advertising a. Property managers must also be familiar with federal, state, and local laws regarding fair housing, landlord-tenant relations, antidiscrimination, and anti- trust issues 3. The manager-client relationship is governed by agency law a. The manager/agent is authorized to represent the owner/principal in dealings with third parties b. The manager owes the owner fiduciary duties (a legal obligation to protect and promote the owner’s interests) EXERCISE 1.1 Growth of the property management profession II. Types of Managed Properties A. Residential property: includes single-family homes, duplexes, apartments, mobile home parks, condominiums, cooperatives, and planned unit developments B. Office property: includes small office buildings, high rises, and business parks C. Retail property: includes stand-alone buildings, strip malls, and regional malls D. Industrial property: includes warehouse and manufacturing facilities (which are either stand-alone or part of an industrial park), and mini-storage facilities E. Mixed use property: multi-level buildings with ground-floor retail space and upper- level office or residential units F. Special-purpose property: properties that don’t fit into the above categories; includes hospitals and nursing homes, schools and colleges, places of worship, military hous- ing, theaters, hotels and motels, resorts, clubs, and other recreational facilities 1. Special-purpose property is often institutional property, and occupied by the cor- poration or institution that owns it EXERCISE 1.2 Types of property III. The Property Manager’s Role A. A property manager’s main task is to manage the property in a manner that helps the property owner achieve his investment goals, which usually include both maximizing income and preserving or increasing the property’s value 1. With institutional property, the manager’s goals are preserving value and ensuring that the property meets the client’s needs 4  Chapter 1: Professional Property Management B. A manager works with a client to develop a management plan based on those goals; the management plan also serves as a blueprint for the property’s management C. The manager is also responsible for other day-to-day and long-term tasks, which may include analyzing the market to determine appropriate rental rates, creating budgets and paying expenses, hiring and supervising staff, overseeing maintenance, marketing, screening potential tenants, negotiating leases, addressing tenant requests, collecting rent and fees, minimizing risks, accounting and recordkeeping, handling trust funds, and reporting to the owner EXERCISE 1.3 Responsibilities of a property manager IV. Career Possibilities for Property Managers A. Employment arrangements can range from working as a sole proprietor (providing property management services to many different property owners) to working as an employee of a large corporation and managing the many properties owned by that corporation 1. A manager can work for a property management company, a real estate broker- age, a financial institution, a large corporation, or for an institutional owner B. Positions available in the property management industry include site manager, prop- erty manager, regional or executive manager, and asset manager 1. Site manager: a resident manager in an apartment or other residential building, or a building manager in an office building; also called an on-site manager a. A site manager is responsible for the day-to-day tasks required to manage a single property, including leasing, rent collection, physical maintenance, and handling tenant complaints b. A site manager is usually not involved with long-term management planning, and is usually under the supervision of a property manager, rather than report- ing directly to the owner 2. Property manager: a property manager is someone who manages a portfolio of properties for several clients, but the term can also refer to someone managing a single large property 3. Regional and executive managers: a manager who supervises on-site managers rather than performing hands-on management functions; may be responsible for handling the management business itself 4. Asset manager: a manager who handles the long-term planning for a client’s property, including evaluating whether the property is serving its highest and best use and implementing any desired change in the property’s use C. Managers can specialize in a certain property size or type, such as single-family homes, hotels, or retail property; they may also specialize in community association management 5  Property Management Instructor Materials V. Professional Development A. Property managers benefit from membership in professional property management associations 1. Benefits include networking opportunities and access to training and publications; in addition, most associations have codes of conduct and may offer professional designations 2. Prominent associations include: a. Institute of Real Estate Management (IREM): a professional association that offers property management courses and conferences, and publishes a journal of property management; it is an affiliate of the National Association of REALTORS®, and its members include both residential and commercial property managers b. Building Owners and Managers Association International (BOMA): the oldest property management group in the U.S. (founded in 1907); it is an organization of local and regional property management groups and associa- tions; BOMA lobbies on behalf of the commercial real estate industry, and produces a number of industry publications c. National Apartment Association (NAA): this organization, created in 1939, is composed of state and local apartment housing associations; its members include apartment managers, developers, builders, and suppliers d. National Association of Residential Property Managers (NARPM): an orga- nization founded in 1988 for those who specialize in managing single-family homes and other small residential properties e. International Council of Shopping Centers (ICSC): An organization founded in 1957 for those specializing in retail property management, marketing, and investing B. Designations and certifications can be useful to managers seeking employment, as evidence of a baseline level of knowledge and skill 1. Certified Property Manager (CPM): the most widely recognized property management credential; offered by IREM; candidates must fulfill a variety of requirements, including training, experience, and passing an exam 2. Accredited Residential Manager (ARM): an IREM certification for managers who specialize in residential management; candidates must fulfill a variety of requirements, including training, experience, and passing an exam 3. Real Property Administrator (RPA): a designation that requires three years of property management experience, along with extensive coursework in building design, operation, and maintenance; real estate investment and finance; environ- mental health and safety; and ethics 4. Certified Apartment Manager (CAM): a designation conferred by the NAA; can- didates must complete required coursework, have at least one year of experience, and pass an exam 6  Chapter 1: Professional Property Management 5. Residential Management Professional (RMP): a designation conferred by NARPM that requires a real estate license if required by law, experience, man- agement of at least 25 residential units during the candidacy period, coursework, and recommendations 6. Master Property Manager (MPM): a designation conferred by NARPM that re- quires the RMP designation, a real estate license if required by law, experience, management of at least 50 residential units during the candidacy period, course- work, and recommendations EXERCISE 1.4 Professional associations Exercises EXERCISE 1.1 Growth of the property management profession Discussion Prompt: Which of the following are historical factors that played an important role in the growth of the property management profession? Why? The Great Depression of 1929 The fall of the Dow to about 6,500 points in 2009 Post-World War II residential and commercial construction boom Early 19th century development of steel construction and high-speed elevators The civil rights movement The rise of labor unions in the 1930s Global markets for U.S. goods The rise of condominium developments beginning in the 1960s Analysis: The property management profession began to take off in the first part of the 20th century. Two factors played a role during this time: the Great Depression and the growth of high-rise buildings. The Depression left a lot of property under bank control, increasing the need for professional management. Steel construction and elevators made high-rises possible—a type of building that operates more smoothly with professional management. The construction boom after World War II, and later the rise of condominium developments also increased demand for professional management. 7  Property Management Instructor Materials EXERCISE 1.2 Responsibilities of a property manager Discussion Prompt: Ask the class to call out at least ten tasks performed by a typical property manager. Alternatively, break the class into small groups and have each group generate a list. Here is a list of 15 tasks (many of which appear in a list in the textbook). Of course, this list is not exclusive; property managers perform other tasks as well. advise homeowners associations set rental rates create a tenant handbook or tenant rules draft budgets hire and train staff write an employee manual oversee maintenance of the property advertise the property screen potential tenants negotiate leases address tenant repair requests collect rents and assessments or fees insure against loss handle trust funds make reports to the owner EXERCISE 1.3 Types of property Classify the following properties as either residential, office, retail, industrial, or mixed-use. 1. Condominium complex for seniors 2. Refrigerated warehouse 3. Cellphone-manufacturing facility 4. High-rise apartment tower 5. High-rise tower with financial and legal businesses as tenants 6. Shopping mall 7. Fast-food restaurant 8. Three-story building with ground-floor stores and apartments above 8  Chapter 1: Professional Property Management Answers: 1. Residential 2. Industrial 3. Industrial 4. Residential 5. Office 6. Retail 7. Retail 8. Mixed-use EXERCISE 1.4 Professional associations List the following acronyms on the board. Ask what each one stands for. IREM CPM BOMA ARM NAR® NAA MPM RPA Answers: 1. IREM: Institute of Real Estate Management 2. CPM: Certified Property Manager (a designation offered by IREM) 3. BOMA: Building Owners and Managers Association 4. ARM: Accredited Residential Manager (a designation offered by IREM) 5. NAR: National Association of REALTORS® 6. NAA: National Apartment Association 7. MPM: Master Property Manager (a designation offered by NARPM—the National Association of Residential Property Managers) 8. RPA: Real Property Administrator (a designation offered by the Building Owners and Managers Institute) 9  Property Management Instructor Materials Chapter 1 Quiz 1. Marie inherits her father’s house, which is lo- 5. Which of the following persons is likeliest to cated in a different city from where she lives. need a real estate license? She would like to rent it out to a family, and a) A building’s owner, who negotiates lease eventually sell it once things settle down. She terms with potential tenants would be considered an: b) A non-resident manager who collects rent a) incidental or interim owner from tenants b) institutional owner c) A resident property manager who performs c) investor-owner maintenance tasks d) permanent owner d) The son of a property’s owner, who solicits potential tenants 2. A property manager might be tasked with: a) advertising vacant space 6. Which of the following is not a form of resi- b) creating a long-term strategy for increasing dential property? the property’s value a) Duplex c) overseeing physical maintenance b) Manufactured home park d) All of the above c) Planned unit development d) Warehouse 3. Why was the Great Depression a turning point in the development of the profession of prop- 7. The document that serves as the blueprint for erty management? the management of a property is the: a) Buildings became larger and offered more a) cost-benefit analysis varied facilities b) management agreement b) Mass foreclosures led to banks acquiring c) management plan many properties that needed management d) profit and loss statement c) New Deal programs encouraged the hiring of property managers to oversee public 8. Jack is in charge of managing a large office works projects building, with a staff of dozens. He oversees d) There were suddenly more renters and tenant relations, building maintenance, and fewer homeowners other day-to-day tasks. He would be considered a/an: 4. A property manager is subject to: a) asset manager a) federal antidiscrimination laws b) executive manager b) state agency laws c) regional manager c) state real estate license laws d) site manager d) All of the above 10  Chapter 1: Professional Property Management 9. Which of the following professional organiza- 14. A strip mall would fall into the category of: tions is specifically targeted toward managers a) industrial property of single-family residential properties? b) office property a) Building Owners and Managers Associa- c) residential property tion International d) retail property b) Institute of Real Estate Management c) National Apartment Association 15. A property manager might be employed by a: d) National Association of Residential Prop- erty Managers a) financial institution b) property management company c) real estate brokerage 10. The Certified Property Manager designation is d) All of the above one of the most common property management credentials. This designation is offered by the: a) Building Owners and Managers Associa- tion International b) Institute of Real Estate Management c) National Apartment Association d) National Association of Residential Prop- erty Managers 11. All of the following are special-purpose proper- ties, except: a) churches b) hospitals c) schools d) shopping malls 12. All of the following are day-to-day tasks that a property manager will perform, except: a) collecting rents b) keeping records c) performing market analysis d) supervising maintenance staffers 13. An asset manager might: a) evaluate whether a particular property is serving its highest and best use b) handle tenant complaints c) oversee corrective maintenance d) perform accounting tasks 11  Property Management Instructor Materials Answer Key 1. a) An incidental or interim owner is 7. c) A management plan is a roadmap for someone who didn’t plan on own- how the property manager will operate ing property but finds herself owning the property and seek to maintain or property anyway, such as someone increase its value. who acquires property as an inheri- tance or through foreclosure. 8. d) A site manager is anyone who man- ages a particular building and works at 2. d) A property manager’s duties may that building on day-to-day operations, encompass rent collection, recordkeep- even if it’s a particularly large and ing, advertising, maintenance, and complicated building. long-term planning. 9. d) The National Association of Residen- 3. b) During the Depression, many build- tial Property Managers (NARPM) is ings were foreclosed, and ownership an organization of property managers passed to lenders, who needed to cre- specializing in single-family homes ate property management departments and other small residential properties. to handle the sudden influx of proper- ties that needed management services. 10. b) The Certified Property Manager des- ignation is offered by the Institute for 4. d) Property managers in most states must Real Estate Management (IREM). have a real estate license or property Membership requires at least three manager’s license; they are also sub- years of real estate management expe- ject to state laws concerning agency rience. relationships. In addition, federal laws, such as fair housing and other antidis- 11. d) Special-purpose properties, such as crimination laws, apply. churches, hospitals, and schools, don’t fit into any of the other categories 5. b) Collecting rent is an activity that (residential, commercial, or industrial). typically requires a license, when They’re often owned by institutions. performed on behalf of someone else in exchange for compensation. 12. c) Many property managers will need to Exemptions from license laws apply perform a market analysis as part of to owners, and may also apply to an creating a management plan, but this owner’s relatives or resident managers. will not happen on a day-to-day basis. 6. d) A warehouse is considered to be in- 13. a) An asset manager handles long-term dustrial property. The other options are planning for a client’s portfolio of residential in nature. managed properties. He would be responsible for making sure that the managed properties offer the best re- turn on the investor’s investment. 12  Chapter 1: Professional Property Management 14. d) Retail property includes properties where stores operate; this would in- clude a strip mall along with larger shopping centers. 15. d) Property management companies, real estate brokerages, financial institutions, large corporations, and in- stitutional owners all employ property managers. 13  Property Management Instructor Materials PowerPoint Thumbnails Use the following thumbnails of our PowerPoint presentation to make your lecture notes. Property Management Lesson 1: Property Management: An Overview © 2021 Rockwell Publishing 1 Introduction This lesson covers: ⚫ professional property management ⚫ types of managed properties ⚫ the property manager’s role ⚫ career possibilities ⚫ professional development © 2021 Rockwell Publishing 2 Introduction Property management: The administration, operation, and maintenance of real estate. Usually refers to management: ⚫ by professional property manager ⚫ working for property owner © 2021 Rockwell Publishing 3 14  Chapter 1: Professional Property Management Property Management Who uses property managers Generally three types of owners: ⚫ investor-owners ⚫ incidental or interim owners ⚫ institutional owners © 2021 Rockwell Publishing 4 Property Management Who uses property managers Investor-owners: ⚫ hold property with main goal of income production (rent) ⚫ may be individual or investment syndicate (partnership, corporation, LLC) May manage property themselves, but often choose to use managers, especially for larger properties. © 2021 Rockwell Publishing 5 Property Management Who uses property managers Incidental/interim owners: ⚫ come into ownership by circumstance, rather than deliberate investment ⚫ individuals by inheritance ⚫ banks through foreclosure ⚫ government agencies via seizure Usually intend to sell property; want manager to maintain it in the interim. © 2021 Rockwell Publishing 6 15  Property Management Instructor Materials Property Management Who uses property managers Institutional owners: ⚫ own and occupy a property; goal is not income production ⚫ include private companies, nonprofits, schools, military Managers of these properties often called facilities managers; property often called institutional property. © 2021 Rockwell Publishing 7 Property Management Development of the profession Historically, landowners employed managers to maintain land and collect rent. But not until economic, social, and technological developments of 20th century that property management became recognized as a profession. © 2021 Rockwell Publishing 8 Property Management Development of the profession 20th century developments: ⚫ technological advances enabling construction of high-rises ⚫ greater tenant density ⚫ more complex ownership structures © 2021 Rockwell Publishing 9 16  Chapter 1: Professional Property Management Property Management Development of the profession 20th century developments (continued) ⚫ Great Depression ⚫ more foreclosures; more bank-owned (REO) properties ⚫ REOs needed management © 2021 Rockwell Publishing 10 Property Management Development of the profession 20th century developments (continued) ⚫ after World War II ⚫ economic prosperity ⚫ growth in suburban development; more shopping malls and industrial parks needing professional management © 2021 Rockwell Publishing 11 Property Management Development of the profession 20th century developments (continued) ⚫ 1960s – 1970s ⚫ increased construction of apartment buildings, condominiums, other CIDs ⚫ increased investment in real estate by pension funds, insurance companies, REITs. © 2021 Rockwell Publishing 12 17  Property Management Instructor Materials Regulation Licensing Most states require real estate license or property management license to engage in: ⚫ leasing ⚫ offering to lease ⚫ negotiating lease terms ⚫ collecting rent ⚫ soliciting rental listings © 2021 Rockwell Publishing 13 Regulation Licensing exemptions Some situations that generally don’t require a license: ⚫ owner who manages own property ⚫ someone acting without compensation ⚫ resident manager ⚫ family member of owner © 2021 Rockwell Publishing 14 Regulation Licensing requirements Typical state requirements for license: ⚫ complete real estate coursework ⚫ pass exam ⚫ meet age and/or experience requirements ⚫ maintain professional insurance ⚫ complete continuing education to maintain license © 2021 Rockwell Publishing 15 18  Chapter 1: Professional Property Management Regulation Business practices Activities involved in property management also regulated by federal, state laws: ⚫ handling security deposits, trust funds ⚫ retaining copies of leases, documents ⚫ fair housing, antidiscrimination ⚫ landlord-tenant ⚫ antitrust © 2021 Rockwell Publishing 16 Regulation Business practices Agency relationship between property manager and property owner governed by general agency law. ⚫ Manager is owner’s agent. ⚫ Owner is agent’s principal. ⚫ Manager authorized to represent owner in dealings with third parties (such as tenant, suppliers). ⚫ Manager owes owner fiduciary duties. © 2021 Rockwell Publishing 17 Types of Managed Properties Four basic categories: ⚫ residential ⚫ office ⚫ retail ⚫ industrial © 2021 Rockwell Publishing 18 19  Property Management Instructor Materials Types of Managed Properties Residential Source of greatest demand for professional property management. Includes: ⚫ single-family homes ⚫ duplexes ⚫ apartment buildings ⚫ mobile home parks ⚫ common interest developments ⚫ condos ⚫ cooperatives © 2021 Rockwell Publishing 19 Types of Managed Properties Office Includes: ⚫ small office buildings ⚫ business parks ⚫ high-rise complexes © 2021 Rockwell Publishing 20 Types of Managed Properties Retail Includes: ⚫ stand-alone buildings ⚫ strip malls ⚫ local shopping centers ⚫ regional malls © 2021 Rockwell Publishing 21 20  Chapter 1: Professional Property Management Types of Managed Properties Industrial Includes: ⚫ warehouses ⚫ light manufacturing ⚫ heavy manufacturing ⚫ mini-storage facilities © 2021 Rockwell Publishing 22 Types of Managed Properties Special purpose properties Special purpose properties don’t fit into any of the four basic categories. ⚫ Typically institutional properties. Examples: ⚫ nursing homes ⚫ places of worship ⚫ schools ⚫ military housing © 2021 Rockwell Publishing 23 Types of Managed Properties Special purpose properties Also: ⚫ theaters ⚫ resorts ⚫ clubs ⚫ hotels/motels ⚫ recreational facilities © 2021 Rockwell Publishing 24 21  Property Management Instructor Materials Summary Owners and Property Types – Investor-owner – Individual/interim owner – Institutional owner – Residential property – Office property – Retail property – Industrial property – Special purpose properties © 2021 Rockwell Publishing 25 Property Manager’s Role Tasks Manager’s two main functions: ⚫ determining owner’s goals for the property ⚫ working with owner to develop a management plan © 2021 Rockwell Publishing 26 Property Manager’s Role Tasks Other tasks depend on property, but generally include: ⚫ analyzing market to determine appropriate rental rates ⚫ creating budgets and paying operating expenses ⚫ hiring and supervising staff and contractors © 2021 Rockwell Publishing 27 22  Chapter 1: Professional Property Management Property Manager’s Role Tasks Tasks (continued) ⚫ overseeing maintenance of property ⚫ marketing property ⚫ screening potential tenants ⚫ negotiating lease terms ⚫ addressing tenant requests © 2021 Rockwell Publishing 28 Property Manager’s Role Tasks Tasks (continued) ⚫ collecting rents, assessments, and fees ⚫ minimizing risk and insuring against loss ⚫ accounting, recordkeeping, and handling of trust funds ⚫ reporting to the owner © 2021 Rockwell Publishing 29 Career Possibilities Employment arrangements Possible employers: ⚫ property management company ⚫ real estate brokerage ⚫ financial institution ⚫ large corporation ⚫ institutional owner © 2021 Rockwell Publishing 30 23  Property Management Instructor Materials Career Possibilities Property management positions Site manager: A property manager who resides and/or works on-site and manages day-to-day operations of one property. ⚫ Often works under supervision of another property manager. ⚫ Usually not involved in planning or management decisions. © 2021 Rockwell Publishing 31 Career Possibilities Property management positions Property manager: Someone who manages a portfolio of properties or one large property. ⚫ Works directly with owner, involved in management decisions and owner reports. ⚫ May or may not be involved in day-to-day aspects of property. © 2021 Rockwell Publishing 32 Career Possibilities Property management positions Regional/executive manager: One who supervises site managers; not involved in day-to-day operations of a property. ⚫ May oversee operations of the entire property management business. © 2021 Rockwell Publishing 33 24  Chapter 1: Professional Property Management Career Possibilities Property management positions Asset manager: One who is involved in long-range planning for owner’s property or portfolio. ⚫ Consults with owner on highest and best use, when/whether to buy/sell, improvements to property, and other decisions. © 2021 Rockwell Publishing 34 Summary Manager’s Roles & Career Options – Manager’s tasks – Possible employers – Site manager – Property manager – Regional/executive manager – Asset manager © 2021 Rockwell Publishing 35 Professional Development Associations A number of professional associations for property managers. Some advantages of membership: ⚫ networking opportunities ⚫ professional training, publications ⚫ codes of ethics and/or guidelines for conduct ⚫ professional designations or credentials © 2021 Rockwell Publishing 36 25  Property Management Instructor Materials Professional Development Associations Institute of Real Estate Management (IREM) ⚫ affiliate of NAR ⚫ members include residential and commercial property managers © 2021 Rockwell Publishing 37 Professional Development Associations Building Owners and Managers Association (BOMA) International ⚫ members include commercial property: ⚫ owners ⚫ managers ⚫ developers ⚫ suppliers ⚫ BOMA lobbies on behalf of commercial property industry © 2021 Rockwell Publishing 38 Professional Development Associations Building Owners and Managers Institute (BOMI) ⚫ nonprofit affiliated with BOMA ⚫ provides education and training ⚫ offers a number of professional designations © 2021 Rockwell Publishing 39 26  Chapter 1: Professional Property Management Professional Development Associations National Apartment Association (NAA) ⚫ collection of state and local apartment housing associations ⚫ members include apartment: ⚫ managers ⚫ developers ⚫ builders ⚫ suppliers ⚫ offers several professional designations © 2021 Rockwell Publishing 40 Professional Development Associations National Association of Residential Property Managers (NARPM) ⚫ organization of managers specializing in small residential properties ⚫ offers several residential property management designations © 2021 Rockwell Publishing 41 Professional Development Associations International Council of Shopping Centers (ICSC) ⚫ organization of retail property managers, marketers, and investors ⚫ offers Certified Shopping Center Manager (CSM) designation © 2021 Rockwell Publishing 42 27  Property Management Instructor Materials Summary Professional Associations – IREM – BOMA – BOMI – NAA – NARPM – ICSC © 2021 Rockwell Publishing 43 Professional Development Designations and certifications Certified Property Manager (CPM) ⚫ conferred by IREM ⚫ most widely recognized credential ⚫ candidates must: ⚫ meet coursework and experience requirements ⚫ pass an exam © 2021 Rockwell Publishing 44 Professional Development Designations and certifications Accredited Resident Manager (ARM) ⚫ conferred by IREM ⚫ for managers specializing in residential management ⚫ candidates must: ⚫ meet coursework and experience requirements ⚫ pass an exam © 2021 Rockwell Publishing 45 28  Chapter 1: Professional Property Management Professional Development Designations and certifications Certified Apartment Manager (CAM) ⚫ conferred by NAA ⚫ for managers specializing in apartment management ⚫ candidates must: ⚫ meet coursework and experience requirements ⚫ pass an exam © 2021 Rockwell Publishing 46 Professional Development Designations and certifications Professional Property Manager (PPM) ⚫ conferred by NARPM ⚫ for managers specializing in residential management ⚫ candidates must meet certain coursework and experience requirements © 2021 Rockwell Publishing 47 Professional Development Designations and certifications Master Property Manager (MPM) ⚫ conferred by NARPM ⚫ more advanced level of PPM designation ⚫ candidates must meet advanced coursework and experience requirements © 2021 Rockwell Publishing 48 29  Property Management Instructor Materials Professional Development Designations and certifications Real Property Administrator (RPA) ⚫ conferred by BOMI ⚫ requires three years of property management experience ⚫ candidates must also complete a significant set of prescribed coursework © 2021 Rockwell Publishing 49 Summary Designations and Certifications – Certified Property Manager – Accredited Resident Manager – Certified Apartment Manager – Professional Property Manager – Master Property Manager – Real Property Administrator © 2021 Rockwell Publishing 50 30