INSIDEIREM KNOW YOUR CODE
Know your irem code of professional
ethics Article 8. Managing the Assets of the Client
A MEMBER shall exercise due diligence in
the maintenance and management of the client’s assets and shall make all reasonable efforts
to protect it against all reasonably foreseeable
contingencies and losses.
The current recession has become a sensitive issue for many clients and tenants. When
it comes to handling their money or assets,
what is reasonable has climbed to new heights.
Clients and tenants often expect more than due
diligence from property managers; they expect
perfection. This perception makes it vital that
you match up the client’s vision of what we do,
to what we actually do. There are three methods of accomplishing this:
craig;L.
cardweLL,;cPM®
(ccardwell@
edrtrust.com),
is executive
vice president
of education
realty trust,
inc. and the
president of
allen & o’hara
education
services, inc. in
memphis, tenn.
tied to the annual budget, marketing or
capital planning meeting for an asset. During
this meeting, your systems, procedures and
controls should be woven in to the presentation when they are relevant to the topic. The
purpose is to elevate transparency, to enhance
the discussion by providing the means and
methods of execution by the manager, and to
produce meaningful exchanges. Often, “state of
the asset” meetings are strategic in nature. This
does not mean practical policies, procedures
and systems should be downplayed. Rather, this
is precisely the venue to point out and discuss
how your duties are executed.
Share;ManageMent;PracticeS
First, hold regular meetings with clients to
describe and identify the property management practices in place that protect the client’s assets. Offer this information as part of
a routine client agenda in small bites so it is
a continuous exercise. Topics should include
banking and cash management, segregation of
funds, loss-prevention management, security
controls and the long list of other major systems and procedures in place. Make sure you
give plenty of opportunity for the client to ask
questions and offer suggestions regarding your
management practices. By affording the fullest
opportunity for the client to learn what we do,
and why we do things a certain way, you can
give clients a “street level” view of our business.
These meetings will also allow for an exchange
of ideas on possible improvements.
State;of;the;aSSet;Meeting
This method of educating the client is often
PoLicy;and;Procedure;uPdateS
Despite their importance, many clients and
owners may show little interest in your asset/
property management policies, systems and
procedures. Most want a copy of the policy
book on DVD or to download, but often this
is a checklist item that ends up in a file somewhere. It is never read until something goes
awry. A way to overcome this disinterest is to
engage the client each time there is a policy or
procedure update. The client will be educated
over an extended period of time, while you
highlight the importance of the procedure and
its update. This communication will help the
client buy in to your efforts to protect foreseeable assets.
Managing clients’ assets well in today’s economy requires more than just a nuts and bolts
approach. Communicating through a clear
and open framework that explains policy and
systems, and invites discussion, can produce
an excellent avenue to jointly understand due
diligence and what is reasonable. n
