IREM Tightens Requirements To Earn its Corporate AMO Credential
Industry Best Practices Drive Changes
* * * * * * * * * *
(Chicago, Feb. 13, 2012) The Institute of Real Estate Management (IREM) has updated and made more stringent the requirements firms must meet to earn and maintain its Accredited Management Organization (AMO) accreditation. The AMO Code of Professional Ethics, to which all member firms must adhere, also has been modified to complement the IREM Code of Professional Ethics. In the process, it has been made more rigorous and more reflective of industry standards.
“The AMO credential is the only one in the industry that recognizes excellence among real estate management firms," said IREM 2012 President James A. Evans, CPM, adding that “the new requirements to earn it are more relevant than ever to real estate managers, their clients, and the assets they manage. And," Evans said, “firms with AMO accreditation will be able to demonstrate to investors and clients that they don’t just meet industry standards…they set them."
According to Evans, the requirement and ethics changes were driven by a Presidential Task Force charged with evaluating the relevance and value of the AMO accreditation program in the market. The group of industry professionals developed a set of best practices to serve as a useful and practical tool for real estate management company executives in operating their businesses successfully and professionally. Detailed in the IREM publication titled Best Practices: Real Estate Management Service, “the practices provide a reasonable framework for the professional delivery of real estate management services," noted Evans, “and are reviewed and updated annually by the Institute’s Industry Standards Advisory Board."
AMO ACCREDITATION REQUIREMENTS
Requirements for firms to earn accreditation:
- Promise to abide by the AMO Code of Professional Ethics
- Have an IREM-credentialed CPM Member in an executive position to supervise management operations
- Meet specific standards and required functions for operations of the firm, servicing the client, and managing properties
- Maintain required insurance coverage - to ensure financial stability and to protect owner’s funds
- Pass an independent financial review
- Only 537 firms in the U.S. and Canada currently hold AMO accreditation.
- Collectively, AMO firms manage over $289.1 billion in real estate assets, including approximately 2.6 million residential units and over 1 billion net square feet of commercial space.
- AMO firms must seek re-accreditation every three years to demonstrate that they are in full compliance with current AMO program requirements.
- Over half of all AMO firms have been in business for 25 years or more and nearly 90 percent have been established for at least a decade.
ABOUT THE INSTITUTE OF REAL ESTATE MANAGEMENT
The Institute of Real Estate Management (IREM) is an international community of real estate managers across all property types dedicated to ethical business practices and maximizing the value of investment real estate. An affiliate of the National Association of Realtors, IREM has been a trusted source for knowledge, advocacy and networking for the real estate management community for more than 80 years.
IREM is the only professional real estate management association serving both the multi-family and commercial real estate sectors and has 80 U.S. chapters, 14 international chapters, and several other partnerships around the globe. Worldwide membership includes nearly 18,000 individual members and over 535 corporate members.
IREM promotes ethical real estate management practices through its credentialed membership programs, including the Certified Property Manager (CPM) designation, the Accredited Residential Manager (ARM) certification, the Accredited Commercial Manager (ACoM) certification, and the Accredited Management Organization (AMO) accreditation. These esteemed credentials certify competence and professionalism for those engaged in real estate management. IREM also offers CPM Candidate, Associate, Student, and Academic memberships. All members are bound by the strictly enforced IREM Code of Professional Ethics.
Collectively, CPM Members in the United States manage nearly $2 trillion in real estate assets, including 11.4 million residential units and 10.4 billion net square feet of commercial space. To learn more about the IREM and its chapter network, call (800) 837-0706, ext. 4650 (outside the U.S. call (312) 329-6000) or visit www.irem.org.