Managing Residential Properties (RES202)
Learning Objectives
Part I: Introduction
1. Course Overview
The goal of this course is to provide residential managers with the tools and expertise necessary to professionally manage the day-to-day aspects of residential properties. This version of Managing Residential Properties was tailored specifically for students who have already completed the 2-day Certified Property Management Training course presented by IEREI. It is a comprehensive resource that will serve as an ongoing reference tool, and provides many forms and checklists for immediate, on- the-job application.
In this lesson, you will learn how to:
- Understand residential property management and the roles and responsibilities of the residential property manager.
- Understand what owners expect of the property manager, and assist in meeting owners' goals and reporting to owners, lenders, and regulatory agencies.
- Assist in all areas of managing the residential property, including relations with staff, contractors, and residents, budgeting and accounting, and maintenance and inspections.
- Determine what tasks need to be prioritized and completed.
- Above all, lead, motivate, support, and manage staff as appropriate.
2. What is Residential Property Management?
There is never a dull moment in the life of a residential property manager. From balancing the budget to overseeing construction projects and keeping the apartments leased, every day brings new challenges and problems to solve. There is no doubt that residential property management is a complex and rewarding field.
In this lesson, you will learn how to:
- Describe various property management company structures and staffing models
- Explain characteristics of residential properties
- List key considerations for various ownership types
- Determine owner goals and objectives
Part II: Ethics
3. Introduction to Ethics
First and foremost, ethics refers to well-founded standards of right and wrong that tell us what we ought to do. Ethics, for example, refers to standards that impose obligations to refrain from acts such as stealing or fraud. Ethical standards also demand virtues such as honesty, compassion, and loyalty.
In this lesson, you will learn how to:
- Define the concept of Ethics, and its relationship to morality and the law
- Explain the history of IREM
- Understand the purpose of the IREM Code of Professional Ethics
4. Ethical Decision Making
Ethical issues can arise in everyday life and can sometimes be confusing. The “Five Question Method” is a valuable framework for clarifying and examining ethical decisions, in addition to referencing the IREM Code of Professional Ethics.
In this lesson, you will learn how to:
- Identify excuses and justifications for conducting unethical business practices
- Recognize strategies for resolving ethical dilemmas
5. IREM Code of Professional Ethics
IREM was founded in 1933 with ethics as its cornerstone to establish an organization of responsible real estate managers opposed to unethical business practices. Those early standards of the 1930s have evolved into what today is the IREM® Code of Professional Ethics.
In this lesson, you will learn how to:
- Understand the articles of the IREM Code of Professional Ethics and apply them to real world situations
6. Conflict of Interest
A fiduciary relationship assures your clients and fellow professionals that they can trust and depend on you whenever you conduct business together. Because of the importance of fiduciary relationships, conflicts of interest must be avoided. A conflict of interest is a situation in which a professional has a personal, usually financial, interest sufficient to appear to influence the objective exercise of his or her official duties
In this lesson, you will learn how to:
- Explain what a fiduciary relationship means
- Identify factors that contribute to conflicts of interest
7. Enforcement: Detailed Case Study
Unless enforced, codes of ethics have little meaning. IREM enforces the code vigorously. Enforcement of the IREM code of ethics is conducted within a defined structure by an established peer review process that may result in disciplinary actions. The three boards responsible for enforcing the code are: the Ethics Inquiry Board, the Ethics Hearing and Discipline Board, and the Ethics Appeal board.
In this lesson, you will learn how to:
- Explain how the IREM Code of Professional Ethics is enforced
- Evaluate real ethics violations and determine outcomes through a detailed case study
8. Summary
Ethics is more than just a set of rules. It is a personal commitment to determine the right thing to do and then to do just that. It's good for you, your business, and our industry. Good luck with your exam today, and with your future as an ethical IREM member and real estate management professional.
In this lesson, you will learn how to:
- Review concepts learned during “Ethics for the Real Estate Manager (ETH800)”
PART III The Staff
9. Managing and Leading the Team
An effective property manager is one that understands the various dynamics on the property and creates an environment where all team members are encouraged to do their best work. A property manager must create an intentional strategy for managing and leading the team.
In this lesson, you will learn how to:
- Determine the property manager’s role on the property team
- Identify and describe approaches to management
- Identify intergenerational dynamics related to management
- Determine what motivates employees
10. The Life Cycle of an Employee
Finding, hiring, training, and evaluating the right talent will add to the bottom line by decreasing turnover and increasing the quality of work. The property manager must understand the life cycle of an employee and the related legal considerations throughout the process in order to attract and retain an effective property team.
In this lesson, you will learn how to:
- Identify and describe key components in the recruitment and hiring process
- Determine strategies for onboarding and training new employees
- Execute the performance management process
- Manage employee retention and turnover
11. Communication and Conflict Resolution
Managing employees involves an understanding of communication skills as well as the various styles of conflict resolution. A manager must develop active listening and nonverbal communication skills to break down communication barriers and enable more effective problem solving among employees.
In this lesson, you will learn how to:
- Recognize common communication barriers
- Demonstrate active listening
- Interpret nonverbal behavior
- Compare conflict resolution styles
- Recognize problem-solving strategies
Part III: Accounting and Budgeting
12. Accounting
Overseeing and executing accurate and efficient accounting procedures ensures the financial health of the property. A property manager must be able to identify and understand accounting skills needed to meet the owner’s objectives for the property’s performance and to provide a foundation for making day-to-day operating decisions.
In this lesson, you will learn how to:
- Describe the importance of accounting and budgeting
- Differentiate between accounting and budgeting
- Recognize ethical accounting and budgeting practices
- Describe the accounting function
- Define key accounting terms
- Classify cash, full accrual, and modified accounting practices
- Describe the chart of accounts
- Define assets and liabilities
- Summarize the purchase order process
- Identify the functionalities of accounting software
13. Budgeting
Establishing and monitoring budgets is the road map to achieving the owner’s goals and objectives for the property. A property manager needs the skills to prepare budgets, forecast, and analyze variances to help meet the owner’s objectives for the property.
In this lesson, you will learn how to:
- Define a budget and describe its purposes
- Describe the key elements of a budget
- Characterize the different types of budgets
- Explain key components of the annual operating budget
- Describe ways to forecast income and expenses
- Analyze budget variances
14. Statement of Cash Flow
Making sound decisions about a property that positively impact the property’s cash flow and stay within the owner’s objectives is a core requirement of the property manager and staff. A property manager must be able to identify the components of cash flow and understand how property managers and staff impact the property’s net operating income.
In this lesson, you will learn how to:
- Understand components of the cash flow statement
- Calculate the components of the cash flow statement
15. Creating Value
Understanding how value is determined and how daily decisions impact the NOI, and therefore the value of the property, enables property managers to meet the owner’s goals and objectives. A property manager must be able to apply capitalization techniques to project the market value of a property.
In this lesson, you will learn how to:
- Describe capitalization and the usage of single-year valuation
16. Working with Capital
Budgeting capital for major expenditures ensures the future of the property. A property manager must budget capital for major expenditures so that the owner’s objectives for the property are met.
In this lesson, you will learn how to:
- Define capital and describe its uses
- Explore concepts of how capital is used
- Describe the purpose and process of preparing a capital budget
Part IV: The Physical Property
17. Importance of Maintenance
A well-managed maintenance and risk management plan increases maintenance efficiency, controls costs, extends the life of equipment, ensures the safety of residents and staff, and increases resident and staff satisfaction levels. A property manager must be able to understand the importance of developing a sound maintenance and risk management plan, as well as the factors to consider when developing the plan.
In this lesson, you will learn how to:
- Explain the definition and importance of maintenance and risk management
- Identify the components of a comprehensive maintenance program
- Recognize the benefits of a well-managed maintenance program
- Describe the differences between the various types of maintenance
18. Inspecting the Property
Regular inspection ensures a well-kept building and eliminates reactive maintenance. Also, identifying, controlling, and reducing risk protects the owner’s asset, the property’s residents and guests, and the management company. A property manager must inspect all parts of the property on a regular basis to ensure proactive maintenance, reduce risk, and identify risks to be managed.
In this lesson, you will learn how to:
- Explain the purpose and importance of property inspections
- Describe the types and frequency of property inspections
- Recognize the importance of an inspection checklist
- Determine the property manager’s role with inspections
- Explain how to effectively use inspection results
19. Protecting the Property
Identifying, controlling, and reducing risk protects the owner’s asset, the property’s residents and guests, and the management company. The property manager must inspect the property on a regular basis to identify and manage risks.
In this lesson, you will learn how to:
- Explain the importance of risk management
- Determine strategies for managing specific risks
- Explain the importance of emergency and disaster planning, and identify the components of an effective plan
- Describe key insurance concepts for property managers
20. Components and Systems
Understanding the maintenance of major components and systems allows the property manager to effectively maintain them, supervise staff, and oversee contracted work. A property manager must be able to identify key maintenance considerations for the major building mechanicals and systems.
In this lesson, you will learn how to:
- Recognize general guidelines for good property maintenance
- Explain key maintenance issues related to roofs, HVAC systems, plumbing, and pavement systems in order to effectively maintain the property
21. Working with Contractors
Selecting and overseeing the work of contractors helps to control costs and ensures the work is performed to specifications. A property manager must understand when to use contract labor, and how to develop an effective bidding process, including well-written contract specifications.
In this lesson, you will learn how to:
- Determine when to use contractors workers
- Create detailed job specifications
- Understand the bidding process and how to evaluate bids
- Describe standard components of the maintenance contract
- Identify factors to consider when monitoring a contractor’s work
22. Sustainability
Market demand, the bottom line, government regulations, and personal voluntary awareness is driving the demand for sustainability. Implementing sustainability measures can have a positive impact on natural resources and the owner’s profit, as well as a marketing impact for potential residents. A property manager must be able to identify ways to implement conservation techniques to improve sustainability and efficiency while reducing operating expenses.
In this lesson, you will learn how to:
- Describe various sustainability programs
- Analyze and develop energy conservation efforts
- Analyze and develop water conservation efforts
- Explain key components of an effective recycling program
- Educate residents on the role they play in energy and water conservation
23. Planning and Prioritizing Maintenance Work
The property manager must work in conjunction with the maintenance team to plan and prioritize maintenance work in order to leverage staff, resources, and budget most effectively.
In this lesson, you will learn how to:
- Identify types of maintenance required on the property
- Prioritize maintenance requests
- Describe key factors of an effective service request system
- Identify best practices for making inventory purchasing decisions and for inventory control and storage
ARM Designation Requirements
Education
IEREI Course Curriculum
- IEREI 3-day course
- RES202: A customized 3-day extension course incorporating ethics, introductory budgeting, maintenance operations, risk management, and human resource management
Examinations
Pass ARM certification exam – 150 question multiple choice exam
Experience
1 years (12 months) of real estate management experience as defined by IREM – you will document this by completing the experience forms enclosed in this application
Ethics – meet the ethics requirements in one of three ways
Agree to uphold the IREM Code of Professional Ethics
Successfully complete the 3-day Managing Residential Properties course (RES202)
Other
Submit the ARM application
Submit three letters of reference (included with application)
Pay annual membership fees (requirement after approved as an ARM) – to keep your ARM membership active with IREM, it is required that you renew your membership at the start of every new year. IREM will send invoices at the start of every new year. *The year you submit your ARM application, and are approved as an ARM, you will not be invoiced*
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