CODE OF ETHICS AND STANDARDS OF PROFESSIONALISM FOR THE NATIONAL ASSOCIATION OF RESIDENTIAL PROPERTY MANAGERS
INTRODUCTION: The National Association of Residential Property Managers (“NARPM®”)
promotes a high standard of business ethics, professionalism, and fair housing practices. All
property managers who are members of NARPM® must abide by the following Code of Ethics
and Standards of Professionalism (the “Code”).
DEFINITIONS: Capitalized terms throughout the Code shall have the following meanings:
“Client” means any person (typically owner of a property) with whom the Property Manager has
a disclosed working relationship.
“Firm” refers to a Property Manager’s employer or broker.
“Property Manager” means a property manager who is a member of NARPM®.
“Tenant” means an individual or entity that rents and/or occupies property managed by the
Property Manager.
“Written” or “in writing” means communication in the form of a record and includes both hard
copy and electronic forms.
Article 1: RESPONSIBILITY TO PROTECT THE PUBLIC
The Property Manager shall protect the public against fraud, misrepresentation, and
unethical practices in property management.
STANDARDS OF PROFESSIONALISM
1-1 The Property Manager shall endeavor to eliminate, through the normal course of business,
any practices which could be damaging to the public or bring discredit to the profession.
1-2 The Property Manager shall cooperate with the governmental agency charged with
regulating the practices of Property Managers.
1-3 The Property Manager shall comply with all relevant local and state ordinances regarding
real estate law, licensing, insurance, and banking.
1-4 The Property Manager shall comply with all federal and state antitrust laws and shall follow
the NARPM® Antitrust Policy and any related procedures.
1-5 The Property Manager shall not reveal confidential information of Clients, Tenants or
others except as required in the course of performing his or her duties or as otherwise required
by law. The Property Manager shall take all reasonable precautions to protect confidential
information.
1-6 The Property Manager shall use reasonable efforts to ensure that information on his or her
website, or that of his or her Firm, is current and accurate. If it becomes apparent that
information on the website is not current or accurate, then the Property Manager shall promptly
take corrective action.
1-7 Websites of the Property Manager shall not contain any deceptive metatags or other
devices/methods to direct, drive, or divert Internet traffic in a deceptive manner or to otherwise
mislead users. The websites shall also not manipulate listing content in any deceptive or
misleading way.
1-8 The Property Manager shall disclose all details on the availability of rental properties to
prospective parties on a regular and timely basis.
1-9 The Property Manager shall not exaggerate, misrepresent, misinform, or conceal
pertinent facts in the advertising, leasing, and management of property.
1-10 The Property Manager shall make reasonable attempts to remove from the Internet
listings for rentals that are no longer available.
Article 2: DISCRIMINATION
The Property Manager shall not discriminate in the management, rental, lease, or
negotiation for real property, shall operate consistent with fair housing laws and
regulations and shall comply with all federal, state, and local laws concerning
discrimination.
STANDARDS OF PROFESSIONALISM
2-1 It is the duty of the Property Manager to educate those with whom the Property Manager
is affiliated to comply with all fair housing laws and laws regarding discrimination.
2-2 The Property Manager shall not deny service to any person due to race, color, religion,
sex, handicap, familial status, national origin, sexual orientation, or gender identity.
Article 3: RESPONSIBILITY TO CLIENT
The Property Manager shall serve the Client and act in the best interests of the Client.
STANDARDS OF PROFESSIONALISM
3-1 The Property Manager shall use written agreements, and written extensions, if required,
outlining all responsibilities and fees, if any. The Client will be provided a copy of all signed
agreements and extensions, and the Property Manager will retain a copy.
3-2 The Property Manager shall communicate regularly with the Client, either orally or in writing,
and shall provide the Client with written reports as needed and as agreed between all parties. In
the event of any dispute, the Property Manager shall provide a written accounting as soon as
practical.
3-3 On behalf of the Client, the Property Manager shall review and verify all Tenant applications
to determine the applicant’s ability to pay rental fees and to assess the likelihood that the
applicant will comply with all provisions of the rental agreement.
3-4 The Property Manager shall accept no commissions, rebates, profits, discounts, or any
other benefit, which have not been fully disclosed to and approved by the Client.
3-5 The Property Manager shall not mislead a potential Client about the rental market value of a
property in an attempt to secure a rental listing.
3-6 The Property Manager shall disclose to his or her Client all pertinent facts relating to any
transaction.
Article 4: OBLIGATIONS TO TENANTS
The Property Manager shall treat all Tenants honestly and professionally when they are
applying for, living in, and/or vacating a managed residence, including through the
deposit refund process.
STANDARDS OF PROFESSIONALISM
4-1 The Property Manager shall offer all prospective Tenants a written application.
4-2 The Property Manager shall provide all Tenants with a copy of the signed rental
agreement and extensions with all addendums attached.
4-3 The Property Manager shall make all disclosures as required by state and local laws and
provide the Tenant an opportunity to complete a written condition report within 7 days of moving
in.
4-4 The Property Manager shall respond promptly to requests for repairs.
4-5 The Property Manager shall provide a written deposit refund determination to the Tenant
within the time prescribed by law after the Tenant has vacated a property. The Property
Manager shall not cause any undue delay in refunding or accounting for the security deposit.
Article 5: CARE OF MANAGED PROPERTIES
The Property Manager shall hold a high regard for the safety and health of those lawfully
at a managed property and shall manage all properties in accordance with safety and
habitability requirements of the local jurisdiction.
STANDARDS OF PROFESSIONALISM
5-1 The Property Manager shall not manage properties for Clients who refuse, or are
unable, to maintain their property in accordance with safety and habitability requirements of the
local jurisdiction.
5-2 The Property Manager shall terminate management of a property if the Client does not
comply with habitability requirements.
Article 6: HANDLING OF FUNDS
The Property Manager shall hold all funds received on behalf of others in compliance
with state law and shall not commingle the funds with personal or other business funds
or use the funds for other than their intended purposes.
STANDARDS OF PROFESSIONALISM
6-1 The Property Manager shall keep appropriate records and shall prepare and furnish to
the Client accurate and timely financial reports relating to the Client’s rental and funds in
accordance with the terms of the applicable management agreement.
Article 7: AREAS OF EXPERTISE
The Property Manager must provide competent service within his or her area of
expertise, and refrain from the unauthorized practice of any other profession for which
he or she is not licensed or qualified.
7-1 The Property Manager shall perform only such services in such locations for which he or
she is qualified and can reasonably be expected to perform with professional competence.
7-2 The Property Manager shall not perform and shall not represent that he or she can or
will perform services outside of his or her area of expertise, particularly services that require a
separate license or qualification – such as law, accounting, financial planning, construction,
and/or contracting – unless the Property Manager independently possesses such license or
qualification.
Article 8: COMMITMENT TO FIRM
The Property Manager shall act in the best interests of his or her property management
Firm.
STANDARDS OF PROFESSIONALISM
8-1 The Property Manager shall not have any undisclosed conflict of interest with his or her
Firm. If a conflict or potential conflict should arise, the Property Manager shall notify his or her
Firm immediately.
8-2 The Property Manager shall not receive any form of compensation, rebates, or any other
benefits without full disclosure to his or her Firm.
8-3 The Property Manager may not take or use any proprietary documentation, including but
not limited to Client/Tenant lists, during or after his or her relationship with a Firm without
express written consent from the Firm.
Article 9: RELATIONS WITH OTHER PROPERTY MANAGERS
The Property Manager shall not knowingly or recklessly make false or misleading
statements about the competence or professionalism of other property managers or
about their business practices, or otherwise attempt to take business from other
property managers by deceptive means.
STANDARDS OF PROFESSIONALISM
9-1 The Property Manager shall conduct dealings with other property managers in an honest
and professional manner and shall not knowingly engage in any practice or take any action
against a property manager in an un-businesslike manner.
9-2 The Property Manager shall not knowingly interfere with other property managers’
contract rights, including by taking actions inconsistent with exclusive agreements that other
property managers have with their clients. This does not preclude the Property Manager from
otherwise soliciting potential Clients or making general announcements about his or her own
services. For purposes of this Code, a general announcement may be defined as a general
telephone canvass or a general mailing or distribution addressed to all prospects in a given
geographical area or in a specific profession, business, club, organization, or other
classification or group. This Code does not restrict fair and reasonable competition among
property managers.
9-3 In the event of a controversy or dispute with a property manager at a different Firm, the
Property Manager shall use best efforts to resolve the dispute prior to litigation.
9-4 The Property Manager shall not obtain or use the proprietary materials or work of a
competing management Firm without the express written permission of that Firm.
9-5 The Property Manager shall cooperate with other property managers when it is in the
best interests of the Client or Tenant to do so.
Note: The Federal Trade Commission (the “FTC”) has conducted an investigation concerning
certain provisions in the NARPM® Code of Ethics and Standards of Professionalism (“Code of
Ethics”). The provisions of the Code of Ethics that were addressed by the FTC are those that
stated: “NARPM® Professional Members shall refrain from criticizing other property managers
or their business practices” and “The Property Manager shall not knowingly solicit competitor’s
clients.” The FTC has alleged that these provisions in the Code of Ethics restrict members of
NARPM® from competing for clients, thereby depriving clients of the benefits of competition
among property managers, in violation of the Federal Trade Commission Act. Without admitting
a violation of the law, NARPM® has agreed to the entry of a Consent Agreement and a Decision
and Order by the FTC in this matter (the “Order”). The Order requires NARPM® to amend the
Code of Ethics by deleting these two provisions; please note that such restrictions on solicitation
or advertising by NARPM® members no longer apply.
Article 10: TRUTH IN ADVERTISING
The Property Manager shall ensure that all advertising is clear and forthright and
includes only accurate and truthful statements about the property or services advertised.
STANDARDS OF PROFESSIONALISM
10-1 Regardless of the type of media used, advertising content shall be truthful and honest at
all times.
10-2 No property shall be offered as “For Rent” without the actual permission of the Client. If
an unlisted property is offered, permission must be obtained from the owner.
10-3 Disclosure must be made to all parties if information gathered through electronic
advertising media may be sold to an outside party.
10-4 All marketing materials, whether printed or electronic, shall comply with applicable laws
and licensing requirements.
Article 11: RESPONSIBILITY TO NARPM® AND THE PROFESSION
The Property Manager shall comply with all policies and pronouncements of NARPM®
and all relevant laws and rules of the jurisdiction in which he or she works, and shall
strive to stay informed of and to educate others about relevant matters affecting the
property management field.
STANDARDS OF PROFESSIONALISM
11-1 The Property Manager shall strive to improve the property management profession and
NARPM® by sharing with others his or her lessons of experience for the benefit of all.
11-2 The Property Manager shall strive to be informed about relevant matters affecting the
property management field on a local, state, and national level.
11-3 The Property Manager shall maintain his or her real estate license as required by the
jurisdiction in which he or she works.
11-4 The Property Manager shall abide by NARPM®’s bylaws and any other policies and
procedures of NARPM®, and shall seek to avoid doing harm to the organization.
11-5 The Property Manager shall ensure that all electronic communication and marketing he
or she prepares is professional with respect given to the recipients.
11-6 The Property Manager shall act with integrity, good faith, and professionalism in
connection with all NARPM® and NARPM® Chapter activities.
Article 12: COMPLIANCE AND ENFORCEMENT
The Property Manager shall comply with this Code and shall participate in and/or
cooperate with any investigation and/or hearing conducted by NARPM® pursuant to this
Code.
STANDARDS OF PROFESSIONALISM
12-1 The Property Manager shall review and shall take all necessary action to understand
and to comply with this Code.
12-2 The Property Manager shall not interfere with any NARPM® action to investigate a
violation of or to enforce this Code.
12-3 The Property Manager shall promptly supply any information requested by NARPM®
during any investigation or enforcement action pursuant to this Code.
12-4 The Property Manager must take and pass an ethics course, which shall include
discussion of this Code, every four years as a condition of continued professional membership