Chapter 1 Property Management– A Profession of Service

I. The History of Property Management There were a number of events which increased the importance of and changed the scope of property management. A. THE MOLDBOARD PLOW B. THE INDUSTRIAL REVOLUTION C. THE ELECTRIC ELEVATOR  The Otis elevator was the first practical elevator and was powered by electricity. D. STRUCTURAL STEEL E. THE GREAT DEPRESSION

II. Career Opportunities in Property Management A. THE GOVERNMENT B. REITs (REAL ESTATE INVESTMENT TRUSTS)  REITs are publicly traded and, by law, must distribute 95 percent of their gross income from operation to the shareholders.  CEOs of REITs tend to have backgrounds in development or finance rather than property management. C. FINANCIAL INSTITUTIONS D. CORPORATIONS  Many large corporations have over one-half of their assets in real property. E. FRANCHISES

II. Career Opportunities in Property Management (cont.) F. EMPLOYEES OF PRIVATE OWNERS G. PRIVATE MANAGEMENT FIRMS  Many real estate brokerage offices operate property management services. H. ON-SITE MANAGEMENT  The greatest number of property managers are on-site managers who live and/or work exclusively at a property where they have management duties. I. WOMEN IN PROPERTY MANAGEMENT  While there have always been many female leasing agents, women are just beginning to enter the field with full property management duties and responsibilities. J. MINORITIES IN PROPERTY MANAGEMENT

III. Why Owners Choose Management Many owners choose property management for economic and personal reasons. A. ECONOMIC REASONS  Property managers can simply do a better job of management than most owners because of training and experience. B. PERSONAL REASONS  Those owners who recognize their short comings choose professional management.

IV. Attributes of a Successful Manager While an estimated two-thirds of our national wealth is in real estate, we have far more stock brokers than property managers. Property managers must be both detail and people-oriented.

IV. Attributes of a Successful Manager A. MENTAL STAMINA B. INTEGRITY C. ORGANIZATIONAL SKILLS D. BRAVERY E. PEOPLE SKILLS  The property manager works with people to create a harmonious and mutually beneficial relationship. F. ABILITY TO PRIORITIZE  Priorities will differ among owners. The property manager CANNOT forget that he or she stands in the shoes of the owner as an agent of the owner.

IV. Attributes of a Successful Manager (cont.) G. GOAL ORIENTED H. COMMUNICATION SKILLS I. TEAM ORIENTED J. ABILITY TO DELEGATE  Delegation involves giving a person “authority” as well as “responsibility.” K. FLEXIBILITY L. BE PART OF THE SOLUTION M. ACCEPT RESPONSIBILITY

IV. Attributes of a Successful Manager (cont.) N. BENEFIT ORIENTED O. AGENCY FOCUSED  Doing for others rather than to others will result in referral business, long-term relationships and prosperity. P. A MONEY MANAGER

V. Licensing Requirements Generally, renting or leasing real property in an agency capacity for others requires a real estate broker’s license.

V. Licensing Requirements A. OWNERS B. WITHOUT COMPENSATION C. POWER OF ATTORNEY  Persons holding an executed power of attorney from an owner of real property can sell or lease the property under the power of attorney. D. HOTEL MANAGER E. TRANSIENT OCCUPANCY F. RESIDENT MANAGERS

VI. Professionalism in Property Management A. INSTITUTE OF REAL ESTATE MANAGEMENT (IREM) 1- Certified Property Manager (CPM) The Certified Property Manager (CPM) designation is likely the most prestigious and widely recognized designation for professional property management a.Criteria b.160 Required Points c.100 Elective Points 2- Accredited Residential Manager (ARM) Specialists in residential property management are designated as Accredited Residential Managers (ARM). 3- Accredited Management Organization (AMO) 4- Educational Courses

VI. Professionalism in Property Management B. BUILDING OWNERS AND MANAGERS ASSOCIATION INTERNATIONAL (BOMA) 1- Real Property Administrator (RPA) 2- Facilities Management Administrator (FMA) 3- Additional Designations BOMA courses prepare individuals NOT only for top management positions but also for hands-on operating positions working in the trenches. C. NATIONAL PROPERTY MANAGEMENT ASSOCIATION (NPMA) D. INTERNATIONAL REAL ESTATE INSTITUTE ( IREI) E. URBAN LAND INSTITUTE (ULI)

VI. Professionalism in Property Management F. AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION (AIREA) G. INTERNATIONAL COUNCIL OF SHOPPING CENTERS (ICSC) 1- Certified Leasing Specialist (CLS) 2- Certified Shopping Center Manager (CSM) 3- Accredited Shopping Center Manager (ASM) 4- Accredited Marketing Director (AMD) 5- Senior Level Accreditation 6- Awards

VI. Professionalism in Property Management H. COMMUNITY ASSOCIATIONS INSTITUTE 1- Certified Manager of Community Associations (CMCA) The CMCA designations certifies that a manager has the basic knowledge necessary to manage any type of community association. 2- Association Management Specialist (AMS) 3- Professional Community Association Manager (PCAM) This is the highest professional designation available from CAI. I. INTERNATIONAL FACILITY MANAGEMENT ASSOCIATION (IFMA)

Chapter Summary Property managers need to know that owners/investors are looking to make money Property managers fall into a number of categories: 1. Employee managers 2. Resident managers 3. Independent property managers Owners choose professional management for a variety of reasons Attributes of a successful property manager include: 1. Mental stamina 2. Integrity 3. Organizational skills 4. Bravery 5. People skills 6. Ability to prioritize 7. Goal oriented 8. Communication skills 9. Team oriented 10. Ability to delegate 11. Flexibility 12. Be part of the solution 13. Benefit oriented 14. Agency focused 15. A money manager