IREM® Facts
Institute of Real Estate Management (IREM®) of the National Association of REALTORS®
430 N. Michigan Ave., Chicago, Illinois 60611; Phone (800) 837-0706; Fax (800) 338-4736; www.irem.org Founded: Chicago, Illinois 1933 Core purpose: To advance the profession of real estate management while helping real estate managers prosper
and add value to their companies and the properties they manage.
Membership categories (figures as of 1/01/09):
| CERTIFIED PROPERTY MANAGER® (CPM®) Member | 8,705 members |
| CPM® Candidate Member | 3,501 members |
| ACCREDITED RESIDENTIAL MANAGER® (ARM®) Member | 3,704 members |
| ACCREDITED COMMERCIAL MANAGER (ACoM) Member | 46 members |
| Associate Member | 2,210 members |
| Student Member | 280 members |
| Academic Member | 21 members |
| Total individual membership | 18,467 members |
| ACCREDITED MANAGEMENT ORGANIZATION® (AMO®) Member Firms | |
| Headquarters | 515 |
| Branch offices | 617 |
Assets under IREM Member management: $1.5 trillion Residential units: 9.4 million Commercial space: 8.4 billion square feet
Structure: Led by Governing Council consisting of all current chapter presidents, regional vice presidents, officers, ex officio members and elected membership supported by association management professionals
Number of chapters: 80 domestic; 10 international
2009 Leadership:
2009 IREM President: Pamela W. Monroe, CPM®, Community Realty Management, AMO®, Pleasantville, NJ 2009 IREM President-Elect: O. Randall Woodbury, CPM®, Woodbury Corp., Salt Lake City, UT 2009 IREM Secretary/Treasurer: Ronald Goss, CPM®, RPM Management Co., Inc., AMO®, Little Rock, AR Chief Executive Officer/Executive Vice President: Russell C. Salzman, CAE, IOM
2009 Conferences:
Leadership and Legislative Summit featuring Capitol Hill Visit Day
April 18-22, 2009 JW Marriott Hotel Washington, DC
Chapter Leadership Conference
July 29-31, 2009 The Palmer House® Hilton Chicago, IL
IREM Business and Governance Meetings CCIM & IREM Success Series 2009
October 13-15, 2009 October 16-17, 2009 Hilton Hawaiian Village Hilton Hawaiian Village Honolulu, Hawaii Honolulu, Hawaii
Key education offerings:
Successful Site Management (RES201) Ethics for the Real Estate Manager (ETH800) Property Maintenance and Risk Management (MNT402) Today’s Leadership Challenges (HRS603) Investment Real Estate Financing and Valuation (ASM603,
Marketing and Leasing (MKL404, MKL405, MKL406) ASM604, ASM605)
Human Resource Essentials for Real Estate Growth Strategies for Real Estate Management
Managers (HRS402) Companies (BDM601)
Common Interest Developments:
Managing Condominium Association Properties (CID201)
Key publications:
Journal of Property Management (published bimonthly) Community Associations: A Guide to Successful Income/Expense Analysis® Reports (five reports published Management annually) The Leasing Process: Landlord and Tenant Perspectives Principles of Real Estate Management, Fifteenth Edition Marketing Residential Properties: The Science and the
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IREM® Membership and Credentialing Highlights
IREM has eight membership types including four credentialing programs.
CERTIFIED PROPERTY MANAGER® (CPM®) Designation – for individual real estate and asset managers working with large portfolios of all property types – residential, commercial, retail and industrial. Currently, CPM Members manage approximately 8.4 million residential units and 8.4 billion net square feet of commercial space, exceeding $1.5 trillion in real estate assets. Requirements to earn the designation are:
- Education – though IREM courses, through other organizations, through academic achievement
- Experience – minimum of 36 months of qualifying real estate management experience
- Ethics – promise to uphold the IREM Code of Professional Ethics and pass the IREM ethics course
- Examination – show competency in all aspects of real estate management by passing a certification exam. In addition, demonstrate the practical application of all that has been learned on the job and in the classroom through a written management plan
ACCREDITED RESIDENTIAL MANAGER® (ARM®) Certification – for managers of residential portfolios, including conventional apartments, federally assisted housing, public housing, condominiums, university housing, homeowners’ associations and manufactured home communities. The average portfolio size for an ARM Member is 706 residential units. Requirements to earn the certification are:
- Education – through IREM courses, through other organizations, through academic achievement
- Experience – at least one year of residential property management experience
- Ethics – promise to abide by the IREM Code of Professional Ethics
- Examination – show competency in key areas of residential real estate management by passing a
certification exam
ACCREDITED COMMERCIAL MANAGER (ACoM) Certification – for commercial site managers of
office buildings, retail properties, industrial and other commercial properties. Requirements to earn the certification are:
- Education – through IREM courses, through other organizations, through academic achievement
- Experience – at least one year of commercial property management experience
- Ethics – promise to abide by the IREM Code of Professional Ethics
- Examination – show competency in key areas of commercial real estate management by passing a
certification exam
ACCREDITED MANAGEMENT ORGANIZATION® (AMO®) Accreditation – recognizes excellence
among real estate management firms. AMO firms manage approximately 2.6 million residential units and 1 billion net square feet of commercial space, the total value of which exceeds more than $289.1 billion.
Requirements to earn accreditation are:
- Maintain appropriate insurance coverage – to ensure financial stability and to protect owner’s funds
- Pass an independent financial review
- Have a CPM Member in an executive position to supervise management operations
- Promise to abide by the AMO Code of Professional Ethics and Minimum Standards
IREM also offers four forms of non-credentialed membership:
- CPM Candidate Membership: open to real estate professionals pursuing the CERTIFIED PROPERTY
MANAGER (CPM) designation
- Associate Membership: open to real estate professionals who are involved in virtually any area of real
estate management
- Student Membership: for full time undergraduate and graduate students attending an accredited college
or university
- Academic Membership: for individuals teaching full- or part-time at a college, community college or university
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© 2009 Institute of Real Estate Management. All rights reserved. IREM®, the IREM logo, CERTIFIED PROPERTY MANAGER®, CPM®,
| IREM Headquarters | Phone | (800) 837-0706 | the CPM key logo, ACCREDITED RESIDENTIAL MANAGER® , |
| 430 North Michigan Avenue | | (312) 329-6000 | ARM®, the ARM torch logo, ACCREDITED MANAGEMENT |
| Chicago, IL 60611-4090 | Fax | (800) 338-4736 | ORGANIZATION®, AMO®, and the AMO circle logo are |
| www.irem.org | E-mail | custserv@irem.org | registered marks of the Institute of Real Estate Management. |
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Frequently Asked Questions (FAQs) About Real Estate Management and Real Estate Managers
Q: How would you define professional real estate management?
A: Simply put, professional real estate management is the administrative operation and maintenance of properties to meet the objectives of their owners. It also involves planning for the future of the properties
by proposing physical and fiscal programs that will enhance the value of the real estate.
Q: What are the primary responsibilities of real estate managers?
A: Their primary responsibilities are: (1) management of the physical site, (2) management of on-site and off-site personnel, (3) management of funds and accounts, and (4) management of leasing activities and tenant services.
Q: What sparked the development of real estate management as a function within the real estate industry?
A: The function resulted from a number of factors, but a major trigger occurred in the 1930s after lenders foreclosed on thousands of mortgages and discovered that real estate management required specialized skills.
Q: Is real estate management growing as a profession?
A: Yes, it is growing steadily because of these three concurrent trends: (1) simultaneous growth of the population and its requirements for space has increased the total number of all types of buildings, (2) a larger percentage of real estate is considered investment property and (3) there is increasingly wide acceptance of the fact that real estate management requires special training and education.
Q: Generally speaking, what is the primary goal that property owners – and therefore their real estate managers -- strive to achieve?
A: That goal is usually for the property to reach its highest and best use, meaning that it generates the highest net operating income (NOI) possible and is being used in the best possible way based on its location, size and design.
Q: How do real estate managers determine the direction they will take to achieve the owners’ goals?
A: They typically start by developing a management plan – an analysis of the current physical, fiscal,
competitive and operational conditions of a property expressed in relation to the owners’ goals. If these conditions are not compatible with attaining those goals, real estate managers generally use the
management plan to recommend and support physical, financial or operational changes. Management
plans also may be developed to evaluate the feasibility or practicality of plans owners have for their property.
Q: What are the typical components of a management plan?
A: Because of the unique aspects of each property, each real estate manager’s management style and each
owner’s expectations, there is no definitive form for a management plan. But the typical components of a
plan, in the following sequence, are:
- Regional analysis
- Neighborhood analysis
- Property analysis
- Analysis of alternatives, e.g. operational changes, structural changes and changes in use
- Cost-benefit analysis
- Conclusion and recommendations
Q: Can you describe the management agreement that formalizes the relationship between real estate managers and property owners?
A: A management agreement is a binding contract that establishes the manager’s legal authority over the operation of a given property. The manager usually is an agent for the owner, serving as the
owner’s fiduciary or trustee of the owner’s funds and assets associated with the property. The agreement establishes the relationship between the owner and the manager for a fixed period, defines the manager’s authority and compensation for services provided, outlines procedures, specifies limits of the manager’s authority and actions, and states financial and other obligations of the property owner.
Q: What are the ramifications of the real estate manager’s role as an agent of — and therefore fiduciary responsibility to — the property owner?
A: In the role of agent, the real estate manager must exercise a high standard of care in managing both
money and property for the owner (fiduciary capacity). Being a fiduciary creates certain legal obligations.
The manager must be loyal to the interests of the client and not engage in activities contrary to that loyalty. This means scrupulous attention to the handling of the owner’s funds and not accepting any fee,
commission, discount, gift, or other benefit that has not been disclosed to and approved by the owner-
client.
Q: With ethical practices clearly an important part of professionalism in real estate management, how can owners be reasonably confident that their real estate managers will hold themselves to a high ethical standard?
A: Owners should be aware that real estate managers who have earned any one of the four professional credentials conferred by the Institute of Real Estate Management (IREM®) – the CERTIFIED PROPERTY MANAGER® (CPM®) designation, the ACCREDITED RESIDENTIAL MANAGER® (ARM®) certification, the ACCREDITED COMMERCIAL MANAGER certification and the ACCREDITED MANAGEMENT ORGANIZATION® (AMO®) certification
– must abide by a Code of Professional Ethics that is strictly enforced by IREM®. In addition to the
fiduciary responsibility called for as the owner’s agent, the IREM Code of Ethics requires managers to hold proprietary information in confidence, to maintain accurate financial and business records for the managed
property and to protect the owner’s funds. The Code also outlines duties to one’s employer, to former clients and employers, and to tenants and others; sets forth requirements for contracting management and managing the client’s property; and addresses relations with other members of the profession and compliance with laws and regulations.
Q. When owners and real estate management companies hire real estate managers, what types of questions should they ask?
A. When seeking a real estate manager, ask questions directed to learning about the real estate manager’s professional integrity, communication skills, analytical problem solving ability, and experience and reputation. Look for managers who have demonstrated experience in the areas of human
resources management; physical property management; financial, risk and administrative management;
communications and tenant/resident relations; and marketing and leasing. Holding a professional credential from a recognized organization such as IREM is one way to qualify potential managers. For a more in-depth list of questions, visit www.irem.org and download “Choosing the Right Real Estate Manager or Real Estate Management Firm” from the Owners/Investors section.
Q: Do IREM-credentialed members have any special assets/competitive advantages to offer their employers and owner/clients?
A: Yes. Among them:
- They have earned their credentials by meeting strict requirements in the areas of education, experience and pledging to adhere to a code of professional ethics that is strictly enforced by the association.
- They have ready access, via their IREM membership, to the latest news, information and resources in the real estate management industry, enabling them to easily stay on top of their profession and continually sharpen their skills.
- They can access networking opportunities available to them through IREM chapter activities
and national programs to draw on and benefit from the experience of others who have met the
Institute’s professional standards of excellence.
Q: How can I find CPM, ARM, Accredited Commercial Manager and AMO members in my area?
A: Visit the IREM Web site – www.irem.org – to “Find a Member.” The directories are easily accessed databases that can be searched by geographic location and other pertinent factors. Or, call IREM at (800) 837-0706, Ext. 4650.
Q: How can I get additional information about the real estate management profession, IREM and the credentials it confers as well as what it takes to earn them?
A. Again, visit the informative IREM Web site, which is continuously updated. Or contact IREM:
- By e-mail: custserv@irem.org • By phone: (800) 837-0706, Ext. 4650
- By mail: 430 N. Michigan Ave., Chicago, IL 60611 • By fax: (312) 661-0217
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© 2009 Institute of Real Estate Management. All rights reserved. IREM®, the IREM logo, CERTIFIED PROPERTY MANAGER®, CPM®, the CPM key IREM Headquarters Phone (800) 837-0706
logo, ACCREDITED RESIDENTIAL MANAGER®, ARM®, the ARM torch logo,
430 North Michigan Avenue (312) 329-6000 Chicago, IL 60611-4090 Fax (800) 338-4736
ACCREDITED MANAGEMENT ORGANIZATION®, AMO®, and the AMO circle www.irem.org E-mail custserv@irem.org logo are registered marks of the Institute of Real Estate Management.
