Code of Ethics
Adhering to a professional Code of Ethics helps companies and individuals build relationships of trust with their customers, employees, suppliers, owners and the communities in which they work.
Ethical Issues Have Become More Complicated
The need to adhere to increasingly complex government regulations and the litigious nature of our society has changed how property managers view their profession.
Public Trust in Fair Business Has Diminished
It has become a common occurrence to hear the details of corporate scandals in the media. Now more than ever, it is crucially important for property management professionals to obtain the validation that comes from belonging to an organization that has set a high standard of conduct for it’s members.
Our Code of Ethics
It is well known that NARPM® promotes a high standard of business ethics, professionalism and fair housing practices. Click here to view the NARPM® Code of Ethics & Standards of Professionalism, formalized at the New Orleans Convention in 1994.
Trouble with a Property Manager?
If the property manager is a member of NARPM®, we will investigate your claims after you submit a completed Ethics Complaint against the member. We can’t guarantee our effectiveness in resolving your issue, but we will make contact with the offending company.
As part of a settlement with the Federal Trade Commission (“FTC”), NARPM® agreed to change its Code of Ethics and will not adopt, encourage its members to follow, or enforce any Code of Ethics provision relating to solicitation of property management work that does not comply with the FTC Consent Order.
- FTC Settlement Statement
- FTC Decision and Order
- FTC Complaint
- FTC Press Release issued by the Commission in this matter
Amended Article 9 and Standards of Professionalism:
Article 9: RELATIONS WITH OTHER PROPERTY MANAGERS
The Property Manager shall not knowingly or recklessly make false or misleading statements about other property managers or 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 deal 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 between Property Managers with different Firms, the Property Manager of the Firm 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.
NARPM® Antitrust Statement:
It is the policy of the NARPM® to comply fully with all antitrust laws. The antitrust laws prohibit, among other things, any joint conduct among competitors that could lessen competition in the marketplace. NARPM®’s membership is composed of competitors; they must refrain from discussing competitively sensitive topics, including those related to pricing (such as rates, fees, or costs), individual competitors or specific business transactions, or controlling or allocating markets. NARPM® shall not restrict members’ ability to solicit competitors’ clients. NARPM® shall not restrict members’ ability to advertise for business, provided the advertising is not false, deceptive or otherwise illegal.