ISA Association for real estate manager authorisation

Authorisation and auditing of real estate managers and management communities in FInland

The Association for real estate manager authorisation authorises real estate managers and management communities complying with certain criteria to undertake management duties. The sign of this authorisation is the ISA label. The Association supervises that authorised real estate managers and communities comply with the authorisation criteria. In addition, all authorised instances are committed to following the good building management practises endorsed by ISA.

Real estate management is an independent business of its own in Finland so no permits are required from the authorities, nor are there any minimum requirements as to the managers levels of expertise or education. Established in 1987 by chief organisations operating in the real property sector, ISA has begun to issue authorisations to real estate managers and real estate management agencies. In November 2002, there were 468 authorised real estate managers and 160 real estate management communities.

ISAs general aim is to promote professional real estate management of a kind that will meet customers needs, and to enhance and develop building managers expertise and their general appreciation. The reason why real estate managers and management communities apply for the authorisation is that customers consider the authorisation and its label, ISA, as the guarantee of expertise. Together with authorised managers and management communities, ISA markets the label and thus increases peoples awareness of it.

Authorisation criteria

Authorisation criteria have been defined separately for private persons and communities that undertake management duties. Real estate managers are currently required to have completed the highest professional qualifications or a corresponding degree in a polytechnic institute. The real estate manager must also have acted as a full-time manager for at least five years.

Real estate management communities must have an authorised real estate manager who supervises all management duties. Authorised real estate management communities must also be financially stabile and have a particularly extensive liability insurance. In addition, all persons responsible for management duties must have completed basic management qualifications.

The authorisation criteria include almost 20 requirements on how real estate managers and management communities are expected to produce services to their customers. Good practises contain ethic regulations on how managers shall act with regard to customers and other managers.

Supervision of authorised real estate managers and management communities

Authorised real estate managers and management communities submit supervision reports to the Association on an annual basis. These contain information on issues such as the scope of their operation, participation in management training and other forms of developing their expertise. The customers of authorised real estate managers and management communities have the right to report to the Association any complaints they may have with regard to managers. There is a special authorisation committee that is composed of lawyers and that takes disciplinary measures, where necessary. A written notice or warning can be given to real estate managers or management communities it they act against good practises or in a manner that is against the authorisation criteria, or their authorisation can be cancelled altogether. All disciplinary measures are provided in writing.

Auditing

The authorisation of real estate management communities requires auditing. Authorised communities are audited at intervals of three years by auditors trained jointly by the Association and the appropriate educational establishment. The purpose of the one-day auditing session is to examine whether the community has acted in accordance with the authorisation criteria and good practises. A half of the criteria are examined at a time.

Possible inconsistencies with the required quality levels are divided into serious inconsistencies, issues that require development, and exemplary operation. Serious inconsistencies with the required ISA level must be eliminated during an agreed period of time after the auditing procedure, for otherwise the agencys authorisation can be cancelled. Issues to be developed will be monitored in the next auditing session while exemplary action can be referred to in public as a model to other authorised real estate managers and management communities that could then improve their operation accordingly. Auditing serves as an instrument of operative supervision and a tool for supporting the development work done by authorised managers.

Organisation of the Association for Building Manager Authorisation

Annual meeting

Decision-making power is exercised by the four national real property organisations that have established the Association; the annual meeting decides on budget and the policy plan

Board

Responsible for the Associations operation; allocates and cancels authorisations, approves auditors and appoints the authorisation committee to assist it.

Authorisation committee

Prepares all authorisation issues for discussion in the Board, assumes responsibility for disciplinary measures and the auditing procedure..