Minimum Standards and Code of Ethics for the ACCREDITED MANAGEMENT ORGANIZATION® (AMO®)

Relations With Clients and Public:
An AMO® firm must engage in property management on a fee basis.
An AMO® firm shall be capable of performing duties for clients including but not limited to:

• Collection of rents/assessments
• Supervision of employees at the properties
• Tenant and owner contact in regard to complaints
• Purchase of minor operating supplies and repairs
• Hiring and dismissal of employees at the properties
• Purchase of major repairs (roofs, exterior paint, masonry, etc.)
• Purchase of major supplies (fuel, etc.)
• Preparation of specifications covering major expenditures
• Consultation on major replacements, additions or remodeling
• Negotiation of leases
• Ordering and supervision of tenant decorating
• Obtaining competitive bids on major repairs and alterations
• Preparation of payroll deductions, social security taxes, etc.
• Payment of real estate and personal property taxes
• Recommendations about rental rates
• Preparation of operating budgets
• Other management activities.

An AMO® firm shall exert due diligence for the protection of client's funds against all foreseeable contingencies. The deposit of such funds in an escrow, trust, or agency account with an FDIC or equivalently insured financial institution, or as otherwise required by the management agreement, shall constitute due diligence.

An AMO® firm shall not permit any of its employees to make any misleading or inaccurate representations to the public.

An AMO® firm shall have at least one (1) CPM® member in an executive position who directs and supervises the property management activity of the firm.

An AMO® firm shall conduct its operation in such a manner so as to comply with the Code of Professional Ethics as prescribed for a CPM® member and shall be responsible for the conduct of its employees and others over whom it has supervision or control.

Any action by an AMO® firm emanating from its headquarters office or any of its branch offices or occurring at any of the properties it manages shall be subject to these Minimum Standards and Code of Ethics.

An AMO® firm shall constantly strive to achieve and maintain a sound business reputation in the community, and shall encourage its employees and associates to take leadership roles in local, civic, and governmental organizations.

Each AMO® firm shall, whenever possible, have a written management agreement with each of its clients.
Operating Practices:

An AMO® firm shall use due diligence in selecting and placing tenants for its clients so as to ensure stability of the properties in compliance with all federal, state, and local laws and regulations.

An AMO® firm shall not deny nor permit any of its employees to deny equal employment opportunity or equal professional services to any person for reasons of race, gender, religion, familial status, national origin, age, or handicap.

An AMO® firm shall vigorously and legally pursue the collection of any rental accounts to insure prompt payment of rents and revenues when due.

In accordance with the management agreement, an AMO® firm shall, on behalf of the client, demonstrate its experience, with diligence and imagination, in the marketing and merchandising of rental space.

In accordance with the management agreement, an AMO® firm shall disburse the funds of the client in such a manner so as to make prompt payment of all obligations as they become due or as requested by the client.

In accordance with the management agreement, an AMO® firm shall make reasonable efforts to conserve the resources of the client and shall take full advantage of discounts, purchasing opportunities, and other ethical means at its disposal when purchasing or contracting for supplies, services, or material on behalf of the client.

An AMO® firm shall at all times keep and maintain accurate financial records properly marked for identification concerning the properties managed for its client and shall render a statement of receipts and disbursements in accordance with the management agreement in sufficient detail to reflect an account for the funds of the client and the status of the property. Such records shall be available for inspection at all reasonable times by each respective client.

In accordance with the management agreement, an AMO® firm shall make or cause to be made regular physical inspections of the properties of its clients and shall not neglect to keep its clients informed as to the condition of the properties. The frequency of regular inspections shall be as mutually agreed upon with the client.

An AMO® firm shall endeavor to expend funds of its clients with wisdom and integrity so as to achieve the greatest benefit for its clients.

An AMO® firm shall not commingle its funds with any of the funds of its management clients but shall deposit all such funds in an FDIC or equivalently insured financial institution or as otherwise may be directed in writing by the client, and all such receipts and revenues shall be deemed to be trust funds held in trust for the clients or for the clients' accounts or as otherwise provided in the management agreement.

An AMO® firm shall have sufficient staff and administration to ensure the capable handling of the client's property during any absence of the executive CPM® from the office.

Neither an AMO® firm nor any person connected with it shall receive from third parties or suppliers rebates, gifts with a value of more than fifty dollars ($50), or other consideration in connection with the management or property which is not disclosed to the client.

Neither an AMO® firm nor others of the organization engaged in property management shall hold themselves out to anyone as being an AMO® at any time before it is accredited or after the expiration or revocation of any accreditation.

An AMO® firm shall advise the client of the need to obtain proper insurance.

An AMO® firm shall assist in the negotiation of union contracts when called upon to do so.
Relations With The Institute of Real Estate Management:

An AMO® firm shall remain in full compliance with all rules and regulations governing the AMO® program and shall report to the Institute of Real Estate Management in a timely fashion any changes within the firm that may affect its status as an AMO® firm.

© Copyright 1998, Institute of Real Estate Management, Chicago, Illinois, USA. All Rights Reserved. Certified Property Manager®, CPM®, Accredited Management Organization®, AMO® and IREM® are federally registered marks of the Institute of Real Estate Management. (Revised November 1995)

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