Education

by Michelle L. Horneff-Cohen

This fall will mark 11 years since I began my career in the rental housing industry in San Francisco as an onsite resident manager at an 18-unit building. At the time, the owner of this building encouraged me to learn as much as I could and, to promote that philosophy, provided me with the opportunity to take what was then called the California Resident Manager series (now the California Certified Residential Manager designation). It was sponsored by the San Francisco Apartment Association, and I became certified through the California Apartment Association. Thanks to this experience, my interest in property management was sparked and my passion for property management continues to this day; this passion is something that I wish to impart to others by sharing my knowledge as an instructor for SFAA. Many years have passed since I began educating others, and my excitement and passion have never wavered, nor has my belief that owners and managers of rental property should learn as much as they possibly can.

The best defense an owner or manager of rental housing in San Francisco can have is being educated. Owners and managers should never say, “It’s not my fault, I didn’t know the law.” As you know, ignorance of the law is never a defense in court.

Over the years, CAA and SFAA have brought their members superb educational offerings; this year is no exception as CAA has updated and brought back the CCRM designation program. This series truly is the nuts and bolts of property management from the beginning of a tenancy to the end, with everything you need to know in between. Usually taught by professional property managers that work day in and day out in the San Francisco rental housing industry, students learn how to manage their units more effectively and professionally.

CCRM is a nine-course series with a final exam at the end. The exam must be passed with a 70% or better score to earn the CCRM designation. After earning this designation, the designee must take continuing education courses every two years to keep the designation current. Currently, there are four continuing education courses that may be taken in order to keep the designation current (or students may retake the original courses again). All in all, there are currently 13 CCRM courses being offered, and if you are not interested in taking the entire series, you may take these courses individually.

Also, with the reaffiliation of CAA to the National Apartment Association, SFAA will now be offering additional educational opportunities to further one’s ongoing knowledge in the rental housing industry. Why is this important to you? A number of years ago, NAA created the National Apartment Association Education Institute, which has developed several national designation programs to further your professional development.

These designation programs, once completed, will not only provide the student with a deeper understanding of their chosen field of property management or leasing, but will also enable the student to earn one of the prestigious designations of National Apartment Leasing Professional or Certified Apartment Manager. Additionally, with this reaffiliation, NAAEI spent thousands of dollars and rewrote the CAM series to be in compliance with California’s unique state laws.

Another interesting fact about NAA is that in order for SFAA to be able to offer NAA courses, SFAA instructors are required to complete NAAEI’s three-day Advanced Instructor Training–an intensive “train-the-trainer” seminar–to be able to serve as an NAAEI faculty member. Currently, SFAA has two instructors who have completed this training.

While the CCRM and CAM series have similar formats with similar messages, the CAM series is focused more on the budgeting and financial side of managing larger complex community properties, whereas the CCRM series is a great starting place for the new owner or manager getting their feet wet in the industry. Both series may be taken on the whole or by taking individual classes or modules in a specific area of interest.

The CCRM Classes
I’ve written an in-depth description of each of the nine CCRM courses (PMR), plus the additional four continuing education courses (PME).

PMR100:
Preparing the Property for Market
Even before the first applicant arrives, the rental property must be prepared for leasing. In this course, you will learn how to prepare a property for market, including attributes of curb appeal, setting competitive rental rates and how to advertise within fair housing guidelines.

PMR101:
Professional Leasing Skills and the Application Process
Once applications arrive, your work really begins. You will learn the three basic steps to leasing, as well as fair housing laws as they relate to renting and processing applications.

PMR102:
The Move-In Process, Rent Collection and Notices
This course will give you the insight needed to increase the bottom line on a rental property. You will learn how to use effective communication skills to ease the move-in process. You will be taught the ins and outs of rental agreements, policies and procedures, and the proper procedures to collect rent, handle funds and file legal notices. The criteria and formulas for adjusting market rents and handling renewals will also be discussed.

PMR103:
Resident Issues and Ending the Tenancy
Effective property management is about successfully interacting with people, managing resident issues and knowing how to handle difficult situations. In this class, you will learn how to handle a variety of resident requests and problems that will occur onsite. The proper procedures for terminating tenancy, distinguishing between normal wear and tear (as opposed to damages), and dealing with security deposit depositions will be reviewed.

PMR104:
Professional Skills for Supervisors
Leadership and team performance play a major role in the success of a property. This class will enhance your ability for team building, setting goals and maximizing employee performance. Learn more about employment practices, such as hiring qualified employees, the interview process, and selecting vendors and contractors. Understand the importance of proper disciplinary actions and employee recognition. Become familiar with the different types of records and what documentation needs to be maintained. Become skilled at recognizing acts of theft and fraud in order to protect the investment.

PMR105:
Maintenance–Maintaining a Property
Proper care and maintenance affect the overall property value and your ability to retain residents. This class will teach you the critical elements of maintenance management, including “turning” a unit between tenancies, tips for inspecting property, and scheduling and completing repairs. Overview information regarding OSHA policies and handling emergencies and maintenance records will also be covered. You will learn the fundamentals for ordering supplies, inventory control and the bidding process for products and services.

PMR106:
Liability and Risk Management
All managers and owners need to be savvy, especially in California’s often-litigious business environment. In this class, you will learn how to protect the property investment by reducing the potential for liability. Environmental issues will be discussed and safety measures recommended. You will learn about other liability-related issues, including the different types of insurance coverage and identifying how and when it may be best to contact an attorney.

PMR107:
Fair Housing–It’s the Law
Fair housing practices are not only ethical, they are also pragmatic. With discrimination complaints, undercover investigations, fines and penalties on the rise, it is imperative that all owners and their employees are trained to understand and abide by all federal, state and local laws regarding fair housing.

PMR108:
Ethics in Property Management
As the country’s largest statewide trade association for rental property owners and managers, CAA plays a critical role in promoting ethics and developing the standards of good practice in the California rental housing industry. This class teaches you about the implementation of ethics in the day-to-day management of rental property, as well as how to handle ethical challenges. Working with other students and guided by skilled instructors, you will role play real-world scenarios as you review CAA’s “Code of Ethics,” “Code for Equal Housing Opportunity” and “Residents’ Bill of Rights.” As a property management professional, you will be expected to endorse and abide by these practices.

PME109:
Drug- and Crime-Free Housing
This class will teach you how to recognize possible illegal activity and work with public officials, law enforcement and residents to keep your property free of drugs and crime. When drug users and criminals are ignored and allowed to operate out of rental housing, the entire community pays the price. This class will teach you how to avoid a decline in property value due to criminal activity, reduce turnover and avoid loss of rent due to costly evictions and excessive damages.

PME110:
Human Resources–Employee Recruiting, Hiring and Retention
In property management, as in most other businesses, employees can be one of your most valuable assets or largest liabilities. This class will teach you methods for recruiting and retaining employees that are hard working, honest and motivated. The course material will include up-to-date information regarding the laws for wages, benefits and lodging credits. Tips for interviewing and creating employee recognition programs will also be discussed.

PME111:
Resident Screening and Credit Reports–Processing the Application
Save unnecessary expense and avoid loss of income by learning to effectively screen all applicants. This course will teach you methods that will help to attract qualified applicants and identify those who do not qualify. You will learn how to read a credit report and to recognize the red flags that signal possible problems. This class will include fair housing information to assist you in handling denials and avoiding claims of discrimination.

PME112:
Budget Development and Implementation
Do you know how to figure your net operating income, or estimate your turnover cost or vacancy loss? This course can give you the information to understand it all. You will also learn how to develop and implement an effective budget by using it as a tool to set goals and measure strengths and weaknesses. When properly used, a budget will give you the information needed to become a success.

The opinions expressed in this article are those of the author and do not necessarily reflect the viewpoint of SFAA or San Francisco Apartment Magazine. Michelle L. Horneff-Cohen is a licensed real-estate broker and the founder of Property Management Systems. She can be reached at 415-661-3860. Copyright © 2007 by SF Apartment Magazine. All rights reserved.