Magazine article Journal of Property Management

Put It in Writing!

Magazine article Journal of Property Management

Put It in Writing!

Article excerpt

Article 4 of the AMO Code states that an AMO Firm "shall use reasonable efforts to provide accurate, auditable financial and business records and documentation concerning each asset managed for the client," based on the terms of the management agreement.

The term "shall use" implies you must make reasonable effort to provide and protect your clients' interest--not only based on their specific reporting requirements, but also when undertaking a new client relationship--by suggesting steps they consider necessary for reporting and documentation based on their previous experience and IREM education.

Define Your Expectations

When written guidance is not established, both the clients and managers open themselves to misunderstanding and failure. For the protection and well-being of both parties, it is incumbent on the CPM Member responsible for oversight of an AMO Firm to encourage that management agreements are in writing and contain clearly defined financial and business reporting requirements for every asset the firm is responsible for.

If an ethics complaint is brought against an ARM, CPM or ACoM Member employed by an AMO Firm, the complainant could choose to file the complaint both against the member and the AMO Firm (if the firm has responsibilities for preparation of client reports and documentation). It is safe to say that if an ethics complaint is filed, the result of such a complaint will, in most cases, be determined by the documentation, or lack thereof, provided by both parties. …

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