Lapses in ethics may encompass a wide range of concerns, like sexual harassment, prejudice, and fraud. These issues can cause a loss in productivity and will often have financial, social, and economic implications.
Therefore, the property management sector will benefit from strengthening integrity. This article looks at the role of association management in the sector. It also looks at possible strategies they apply to address issues related to ethics.
Dealing With the Challenges
Property management companies have the right to pursue profit and get returns from their efforts. The challenge of implementing ethical policies is that stakeholders may perceive it as reducing opportunities.
Leaders should discuss issues to disseminate information and find ways to reinforce integrity among board members of real estate management companies. Discussions may include clauses on payment and disclosures. No service provider should sell a service or property without the acknowledgment of the association.
Avoiding Conflict of Interest
A real estate services company will care for the property with dedication and commitment. The management of real estate properties is often extensive. Managers are ought to check for hazards and perform maintenance and repair, among other tasks.
Yet the HOA management company needs to break even. On the other hand, their clients want the highest value of service at a reasonable price. But if the price is too low, profit margins could be boosted by relationships with vendors and providers in the industry.
The problem with developing relationships is it can raise issues of conflict of interest. It may appear to stakeholders that some service providers are winning bids unfairly.
An association management organization should ensure that there is transparency in all its processes. That will require establishing clear protocols and rules to enforce transparency. Before choosing partners, there is a need for independent research to find a match that can commit to the organization’s ethical standards.
Education and Information
There is no need to establish protocols and principles if they are not understood by stakeholders and members of the association. Professional bodies within the association may develop learning materials and support continuing education.
The aim should be to create awareness on issues of integrity arising in the sector. All the employees in a property management company should understand the protocols and how to apply them.
The education material should remind members that ethics can increase productivity. The reputation that the service provider has within the market can bring new opportunities and boost income. The dynamics of the real estate services sector are such that integrity improves awareness.
Most importantly, the managers of the association should lead by example. A bad example can set the tone for business processes that are hounded by ethical lapses. Even something as innocuous as stealing office stationery could imply that the leaders would compromise their principles when the stakes are high.
Organizations in the real estate industry need to understand that ethics can pay dividends. With that in mind, stakeholders will not see integrity as an obligation, but as an advantage to their business. The reputation of the company will be critical in taping opportunities with partners that will ultimately boost their profit margins.