Property Manager Designations and Apartment Rent

This paper examines the effect of professional designations on apartment rent. The real estate market is characterized by information asymmetries between landlords and tenants. Information may be transferred by actions of landlords such as the holding of professional designations. This may serve as a signal to potential renters of the true quality of service provided by the property management. The data consist of apartment complexes managed by professional management companies. The degree of professionalization is measured by the extent to which managers hold professional designations such as the CPM, ARM, or CAM. The results of the empirical model show that the holding of designations has a positive effect on monthly rent.