Course 1: Marketing and Leasing Strategies for Investment Properties (MKL410)
Learning Objectives
Lesson 1: Overview
In terms of broad marketing and leasing activities, the real estate manager is responsible for positioning a property in the market to attract, secure, and retain residents and tenants. In order to develop an effective marketing and leasing plan, knowledge of a property’s characteristics is critical.
In this lesson, you will learn how to:
- Identify key differences in terms of real estate manager involvement in marketing and leasing activities between residential and commercial properties
- Describe common residential, commercial, and mixed-use property types, classes, and characteristics
Lesson 2: Economics of marketing and leasing
The real estate manager must be familiar with key factors that influence the supply and demand of investment real estate, the components of the pro forma statement of cash flow, and calculating a property’s value. The real estate manager’s role in marketing and leasing has a direct impact on the value of a property and the ability to achieve the owner’s objectives.
In this lesson, you will learn how to:
- Identify common ownership goals and objectives
- Consider how economic conditions impact the marketing and leasing process
- Determine the impact of marketing and leasing activities on the value of the property
- Calculate a property’s value using the income capitalization approach
Lesson 3: Market and property analysis
It is important to define and evaluate the market in its current state and estimate how it may change in the future, as well as assess a property’s characteristics and determine its individual strengths and challenges. The real estate manager must perform an accurate market analysis to identify and attract the appropriate target market to the property, increasing the likelihood of signed leases and maximizing value for the owner. It is also necessary to perform an accurate property analysis to recognize how best to position and market the property in the marketplace in order to maximize occupancy and rental income, establish accurate rental rates, and forecast for future changes.
In this lesson, you will learn how to:
- Perform a market analysis, including analysis of regional, neighborhood/trade area, and economic factors
- Determine the economic characteristics of the market area and their effect on the subject property’s
marketing and leasing efforts
- Calculate key retailer ratios such as profit margins, markdowns, turnover, and store feasibility
- Conduct a property analysis
Lesson 4: Comparison grid analysis and setting rents
The market analysis and knowledge about the property and its competition helps determine appropriate rental rates. Setting appropriate rental rates attracts prospects to the property and increases the likelihood of securing a lease and meeting the owner’s goals and objectives.
In this lesson, you will learn how to:
- Complete a comparison grid analysis to determine average market rents
- Consider additional rent setting strategies
Lesson 5: Marketing strategies and trends
Selecting appropriate marketing strategies and techniques attracts residents and tenants to the building, increases signed leases, increases resident and tenant retention, and maximizes income for the owner. A real estate manager must be able to determine appropriate marketing strategies, plans, and tactics for the property.
In this lesson, you will learn how to:
- Recommend a marketing plan that aligns with the owner’s goals
- Identify best practices for selecting and working with brokers
- Determine the impact of broker commissions
- Determine appropriate marketing strategies and tactics
- Outline a social media and reputation management strategy
- Assess the effectiveness of a marketing plan
Lesson 6: Leasing strategies
Real estate managers need to understand how leasing strategies and procedures affect prospects’ decisions to lease, and how those decisions affect the ability to achieve owner’s goals.
In this lesson, you will learn how to:
- Identify the key elements of a leasing plan and their purpose
- Determine key strategies for effective residential leasing such as online and mobile leasing, leasing office competencies, closing strategies, benchmarking, mystery shops, and legal compliance
- Determine key strategies for commercial leasing such as understanding building lease types, leasing plan components, tenant mix and placement, method of space measurement, space planning, and tenant improvements
- Consider prospect qualification criteria to assess the prospect’s overall desirability as a resident or tenant for the property
Lesson 7: Understanding and negotiating the lease
Analyzing, comparing, and negotiating lease terms can maximize the financial outcome for the owner. A real estate manager must be able to understand major lease provisions and clauses and their impact on the property’s financial health.
In this lesson, you will learn how to:
- Identify the basic elements of a lease
- Understand common residential and commercial lease clauses
- Negotiate commercial lease terms to arrive at agreed upon lease terms for the owner and tenant
- Assess commercial lease terms to determine effective rent and the best financial value
- Evaluate options before lease expiration
- Identify best practices for handling lease violations
Lesson 8: Resident and tenant relations
The real estate manager can reduce turnover, maintain occupancy, and meet the owner’s goals by implementing a resident or tenant retention program. A manager must be able to explore resident and tenant retention strategies and techniques for investigating and resolving complaints.
In this lesson, you will learn how to:
- Devise techniques for increasing resident and tenant retention
- Generate a plan for investigating and resolving resident and tenant complaints
Course 2: Budgeting, Cash Flow, and Reporting for Investment Real Estate (FIN402)
Learning Objectives
Lesson 1: Ownership Goals within the Market
Owners have high expectations of their real estate management professionals, and a strong knowledge of finance is an advantage that can enhance a real estate manager’s relationships with clients and the professionals that turn to them for their expertise.
In this lesson, you will learn how to:
- Establish property goals in collaboration with ownership
- Explain external impacts on real estate
Lesson 2: The Accounting Function
Today, one cannot try to identify a single business model for a real estate management office and its accounting function. Many permutations can be found across different companies and regions, providing greater flexibility and market differentiation in terms of level and cost of service.
In this lesson, you will learn how to:
- Discuss approaches to accounting and list associated personnel
- Explore ethical budgeting and accounting
- Compare cash, accrual, and modified accounting
Lesson 3: Financial Reporting
Accurate information is the foundation of managerial decisions. Therefore, the real estate manager must be aware of the different criteria that apply to various financial reports.
In this lesson, you will learn how to:
- Interpret common reports shared with ownership
- Calculate balance sheet ratios
Lesson 4: Budget Elements and Cash Flow
Accounting terms and concepts are the basis of the language of real estate finance. Real estate managers need to understand these concepts to set operating goals for the property, measure performance, and communicate to ownership.
In this lesson, you will learn how to:
- Define each element of the statement of cash flow
- Calculate operating expense pass-through amounts
Lesson 5: Budget Forecasting and Monitoring
Budgets are a tool used by real estate managers to plan and control a property’s operations. Learning and
applying the skills to develop and monitor budgets is essential for all real estate managers. Define common budget types
In this lesson, you will learn how to:
- Compare and apply various budget forecasting methods
- Analyze favorable and unfavorable budget variances
Lesson 6: Income and Property Value
In a sense, all of real estate finance is a study of valuation—how much a property is worth. The single most important contribution that a real estate manager makes is to build value for an investor.
In this lesson, you will learn how to:
- Explain how management staff can impact the bottom line
- Use the capitalization rate to determine property value
Course 3: Ethics for the Real Estate Manager (ETH800)
Learning Objectives
Lesson 1: Getting Started
This course prepares real estate managers to meet the stringent ethical standards that are associated with accomplished, respected business professionals.
In this lesson, you will learn how to:
- Explain the purpose of the course
- Assess existing knowledge of ethics and the Institute’s IREM Code of Professional Ethics
Lesson 2: 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
Lesson 3: 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
Lesson 4: 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
Lesson 5: 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
Lesson 6: 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
Lesson 7: 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)”
Course 4: Leading a Winning Property Management Team (HRS402)
Learning Objectives
Lesson 1: Human Resources Are Your Most Important Asset
Your employees are your greatest asset. Without them, you cannot do business. Without sufficient staff who have the skills and knowledge needed to perform their jobs, your company cannot succeed or grow. Therefore, it’s important to attract and hire the best talent.
In this lesson, you will learn how to:
- Determine and manage staffing requirements to meet company and client business goals and respond to employment trends.
- Define and review job functions.
Lesson 2: Recruiting and Hiring the Best Talent
Finding, interviewing and hiring the right talent will add to the bottom line by decreasing turnover and increasing the quality of work.
In this lesson, you will learn how to:
- Develop a recruiting plan.
- Interview candidates.
- Select and hire the best talent.
Lesson 3: Leading and Managing Your Team
Effective leaders influence their co-workers behavior and work in a way that increases confidence,
effectiveness, and productivity, ultimately increasing the company’s profitability.
In this lesson, you will learn how to:
- Differentiate between leading and managing a team.
- Determine personal strengths and weaknesses as a leader.
- Recognize levels of emotional intelligence and how it impacts how one leads and managers others.
- Identify ways to create and promote a positive organizational culture as well as lead change.
Lesson 4: Training and Developing Your Employees
A competent workforce will increase cash flow through higher productivity and better customer service.
In this lesson, you will learn how to:
- Understand the difference between training and development.
- Identify current trends of effective training for today’s property management workforce.
- Determine ways to develop employee engagement and retention.
Lesson 5: Managing and Evaluating Employee Performance
An effective performance management and coaching system will improve employee morale and productivity, retain top performers, and increase profitability.
In this lesson, you will learn how to:
- Manage employee performance.
- Coach and mentor employees.
- Motivate employees.
- Evaluate employee performance.
- Terminate employees, as necessary.
Course 5: Managing Maintenance Operations and Property Risk (MNT402)
Learning Objectives
Lesson 1: Developing a Customized Maintenance and Risk Management Program
A successful property maintenance and risk management program helps avoid liability and reduce operating expenses/increase NOI by identifying and addressing potential problems well before they become significant safety and financial risks.
In this lesson, you will learn how to:
- Recognize the importance of owner’s goals when developing or monitoring a maintenance and risk
management program
- Reduce risk by developing and implementing a successful and proactive maintenance program
- Identify components necessary in a maintenance policy and procedure manual
- Develop a maintenance and risk management budget and capital improvement plan
Lesson 2: Conducting and Monitoring Property Inspections and Risk Analysis
Regular inspection ensures a proactive approach to maintenance that preserves the owner’s investment and eliminates reactive maintenance. This results in higher resident and/or commercial tenant satisfaction and retention as well as attracting new residents and/or commercial tenants. Implementing appropriate risk management strategies reduces the potential for losses and the severity of their consequences.
In this lesson, you will learn how to:
- Prioritize activities, marshal resources, and develop a budget to accomplish maintenance and risk management goals
- Conduct property inspections to identify and document needed repairs and potential risks, and develop procedures to resolve maintenance needs
- Identify, recommend, and implement risk management strategies
Lesson 3: Developing Policies and Procedures for Maintenance of Building Systems Understanding major building equipment and systems allows the property manager to speak
knowledgeably with maintenance personnel and contractors to ensure proper, proactive maintenance and efficient, cost-effective operation.
In this lesson, you will learn how to:
- Develop and apply guidelines and procedures to ensure proper maintenance and operation of major building mechanicals and systems.
Lesson 4: Managing Maintenance Activities
Management of onsite maintenance staff and contractors ensures cost-effective and efficient work, while proper communication ensures owner buy-in and resident and/or commercial tenant satisfaction.
In this lesson, you will learn how to:
- Determine which maintenance activities are best handled by onsite maintenance staff vs contractors and why
- Create detailed job specifications and manage the bidding process from RFP to awarding the contract
- Develop procedures for establishing contracts that protect the owner and management company
- Identify proper contracting procedures to avoid ethical challenges, litigation, and liens against the owner and property
- Identify strategies and communication protocols for managing contractors and contract work
Lesson 5: Mitigating Risk Through Insurance
Proper insurance coverage helps to mitigate or transfer risk from the property manager and owner.
In this lesson, you will learn how to:
- Describe the importance of transferring risk away from the owner and management company through the purchase of insurance
- Define various insurance coverage types and general insurance concepts
- Manage the incident response, incident reporting, and claims process
Lesson 6: Developing and Practicing Emergency and Disaster Plans
Having incident management procedures and an emergency and disaster program in place promotes life safety, protects the investment, reduces risk, and limits liability.
In this lesson, you will learn how to:
- Identify the types of emergencies and disasters
- Develop and implement emergency and disaster plans
- Develop and implement business continuity plans
Course 6: Asset Management - Part 1
Financing and Loan Analysis for Investment Real Estate (ASM603)
Learning Objectives
Lesson 1: The time value of money
In order to achieve the owner’s financial goals and fulfill your fiduciary obligations to the client, it is important to understand the concept of the time value of money, which is: Dollars in the future are worth less than dollars today. Long-term income streams must be discounted back to present value to determine their true net present value.
In this lesson, you will learn how to:
- Define the time value of money
- Compare income streams using compounding and discounting
- Organize data using T-bars and timelines
Lesson 2: Financing and loan packages
An investor can borrow a major portion of the purchase price of a property. Consequently, financing plays a large role in making decisions about real estate.
In this lesson, you will learn how to:
- List common sources of investment real estate loans
- Detail the elements of a loan package used to secure financing
Lesson 3: Loan structures and fees
Financing for a property may be required for acquisition, major replacements, and renovations. Thus, one of a real estate manager’s responsibilities may be to compare loan options in order to select the most advantageous loan structure form available. To do this, the real estate manager must understand the various types of loans that can be obtained in the marketplace today.
In this lesson, you will learn how to:
- Define common loan types
- List fees associated with financing
Lesson 4: Loan calculation
Although few real estate managers make decisions about financing on their own, an understanding of loan calculations leads to better decision making, assessment of financial condition, and knowledge of how a property operates.
In this lesson, you will learn how to:
- Compare financial calculation tools
- Calculate principal and interest on several types of loans
- Calculate effective interest rate
Lesson 5: Loan analysis
Equity holders and lenders alike invest in real estate because the returns are higher than those from “safe investments,” such as government securities. When evaluating a potential loan recipient, lenders examine a number of aspects of the potential borrower and of the property itself and weigh risks associated with financing. This is why the loan package needs to be complete and meet lender criteria.
In this lesson, you will learn how to:
- Define and calculate lender ratios
- Determine leverage position
- Conduct a break-even analysis
Lesson 6: Lender rights and recourses
Measuring risk helps lenders avoid making bad loans. However, even with all the best risk measures in place, lenders must have ways to protect themselves if a loan does not perform as desired or becomes delinquent. This could impact your property if it is not performing well and cannot meet debt obligations.
In this lesson, you will learn how to:
- Describe liens
- Explain loan workout arrangements
Course 7: Asset Management - Part 2
Performance and Valuation of Investment Real Estate (ASM604)
Learning Objectives
Lesson 1: Financial performance
The owners you represent will have specific criteria for investment return on their cash equity. Four common calculations are used to measure investment return. The most significant test(s) will vary in each situation based on the individual investor’s goals for the asset.
In this lesson, you will learn how to:
- Define and calculate cash-on-cash return, value enhancement, NPV, and IRR
Lesson 2: Property valuation
In a sense, all of real estate finance is a study of valuation—how much a property is worth. The single most important contribution that you, as a real estate manager, makes is to build value for an investor— something that management staff can influence on a daily basis.
In this lesson, you will learn how to:
- Define highest and best use
- Compare three common valuation methods
- Derive the cap rate using several methods
- Apply equity capitalization to determine investment value
Lesson 3: Discounted cash flow analysis
When a property’s income stream is not stable, which can happen in real estate, each year’s cash flow must be discounted individually to its present value for a more accurate appraisal. Using DCF analysis for property valuation requires discounting income streams by a rate found in the market or from your own particular owner.
In this lesson, you will learn how to:
- Outline the components used to conduct a discounted cash flow analysis
- Calculate market value using DCF analysis
Lesson 4: Lease analysis
Many of the concepts discussed thus far can also be applied to analysis of leases. Discounted cash flow analysis is a key tool to determine the financial impact lease terms and concessions have on property income. The real value of leases drives cash flow, which in turn drives property value.
In this lesson, you will learn how to:
- Calculate effective rent on short- and long-term leases
- Compute buyout costs for early lease terminations
- Compare lease proposals with a variety of terms
Course 8: Asset Management - Part 3
Asset Analysis of Investment Real Estate (ASM605)
Learning Objectives
Lesson 1: Taxation
While it is not the responsibility of a real estate manager to be an expert in tax law, you should understand how tax laws impact the cash flow of the investment properties you manage.
In this lesson, you will learn how to:
- Define taxes related to real estate
Lesson 2: Cash flow analysis
Real estate managers use measures of return to make the best financial decisions regarding a property in order to meet ownership goals. To that end, real estate managers must analyze a property’s financial status by conducting cash flow projections over the holding period, in order to establish a baseline of performance.
In this lesson, you will learn how to:
- Walk-through a cash flow analysis from start to finish
- Define and conduct a midstream analyses
Lesson 3: Analyzing alternatives
Once baseline performance is established, the real estate manager can propose and test the financial outcome of several potential alternative scenarios for the property from addressing capital improvements to reducing operating expenses and increasing net income.
In this lesson, you will learn how to:
- Analyze and compare several courses of action for the property
Lesson 4: Making a recommendation
After the as-is and alternative analyses are conducted, it is time to compare the results of each scenario and make the best recommendation, based on the specific goals of your ownership.
In this lesson, you will learn how to:
- Select a recommendation to present to ownership
Lesson 5: Case study
Putting into practice what you have learned thus far will help reinforce the concepts of before-cash tax flow analysis, testing alternatives, and making a recommendation.
In this lesson, you will learn how to:
- Apply all the concepts learned by testing alternatives and making a recommendation to a case study property
Course 9: MPSA Management Plan Skills Assessment
Course Description
The MPSAXM meets the management plan requirement for the CPM. It assesses your knowledge of the concepts and technical skills involved in preparing, analyzing, and completing a property management plan following IREM standards.
It is strongly recommended that you fulfill the CPM education requirements before completing the management plan requirement.
The MPSAXM is completed in a virtual setting and includes a review of key concepts and a multiple choice exam which will evaluate your ability to conduct several real-world analyses and make recommendations across scenarios and property types.
Upon registration, you will receive access to a wealth of resources in the IREM Learning platform, including the MPSA Prep Tutorial.
Technical Requirements:
- Laptop computer, desktop computer, or tablet
- Reliable internet connection
- Built-in or external webcam
- Speaker to hear the class
- Microphone to speak to the class
- Ability to access a Zoom meeting
