Know your IREM code of professional ethics: Article 9. Duty to former clients and former firms or employers.(KNOW YOUR CODE)

A MEMBER shall act in a professional manner when, for whatever reason, relationships are terminated between a MEMBER and a client and firm or employer.

[ILLUSTRATION OMITTED]

Never burn a bridge in life because you just never know when you might need that bridge again. In the world of real estate management there are many stories of property managers who are eventually employed by former tenants, clients or even employees.

A property manager is privy to financial and other confidential information concerning properties and clients that should not be divulged, especially when the manager ceases to work with the property. A CPM" has a professional duty to exercise caution in not divulging information that could have a negative impact on the property or its owners. For example, one should not share information that cannot be obtained publicly. Lease terms, such as expiration dates and rental rates of commercial tenants, could enable unethical solicitation of business with a competing property, giving unfair advantage that might cause the former client's building to lose rental revenue and face other hardships.

A CPM also has a duty to companies or employers for whom he or she has worked and pledges not to unethically solicit customers or clients. If a property manager has signed a non-compete agreement with an employer, he is bound to the terms of that agreement for whatever time period and terms stated.

In the absence of a non-compete agreement (or once it has expired), a CPM may make his services known to the public, including former clients, if done in a professional manner and not using information that isn't available from public sources. At no time may a CPM solicit business away from a current employer while still employed as an agent of that company. If a current client learned that the CPM was leaving and asked to follow, it is the CPM's obligation to inform the client that it would be inappropriate to discuss until (a) after the last day of employment, or (b) at the end of any employment contract in place that includes non-compete provisions.

A client may choose to follow a CPM to a new place of business at the expiration or within the terms of any current contract(s) in place at that time. Nothing restricts a CPM from enjoying free trade and normal healthy competition for customers. It is not unusual for a competent CPM to eventually enjoy continuance of client relationships that develop throughout his career. A CPM should always follow the proper protocol of maintaining loyalty and any employment contract terms, written or verbal, throughout a business relationship and beyond, relative to confidentiality and professionalism.

A CPM should always reference the positive aspects of previous jobs and maintain affirmative business relationships with former colleagues going forward. Bridges are expensive and often difficult to rebuild. Under the IREM Code of Professional Ethics, a CPM is directed to protect that infrastructure, regardless of the controversy or personality conflicts that may take place along the way.

MARJEAN POUNTAIN, CPM[R] (MARJEAN@ TDS.NET), IS A LICENSED REAL ESTATE BROKER FOR POUNTAIN PARTNERS LLC (WWW.POUN-TAINPARTNERS. COM) IN ELKHART LAKE. WIS. SHE CURRENTLY SERVES AS VICE CHAIR OF THE ETHICAL BOARD OF INQUIRY FOR IREM.

Print Get the Mag Weekly Updates