Evening star., 1939-02-18
Really Management
Leadership Need
Is Stressed
Interesting importance
Impressed on Students
In Course Here

In Course Here
A call for leadership In the field
of real estate management was
sounded by E. L. Ostendorf of
Cleveland, president of the National
Association of Real Estate Boards,
addressing students Of the course
In management of unfurnished
apartments which was conducted
this week at the Wardman Park
Hotel. The course was sponsored
by the Institute of Real Estate
Management, professional body of
the national association.
1.-THE management of real estate
Is an increasingly important prob
lem, not only from the standpoint
Of the owner of real property, but
also from the standpoint of the
millions of tenants who pay out
from IS to 40 per cent of their
gross earnings for rent" Mr.. Osten-
dorf said 1T is true from the
standpoint of the mortgages who
finance the Nations housing. 1t is
true from the standpoint of Gov
ernment. not only because manage
ment affects the taxable value of
real estate, but also because Gov
eminent is faced with a tremen-
dous management problem in the
handling of the numerous real
estate holdings it is acquiring
through the operation of certain
New Deal agencies.
Lucrative Field Seen.
Management is acquiring in
creasing Importance in the real
estate vocation. 1t is rapidly be-
coming the most lucrative branch
of the real estate business. A re-
cent survey conducted by the United
States Census of Business revealed
the fact that IS per cent of the in
come of real estate firms in this
country comes from fees for man
aging real estate property.
"The Federal Government now
owns some 10000 respossessed
homes. 1t has a stake of nearly
$500,0OO,00O in real estate requiring
management. 1t has before it the
management of housing projects for
low income groups involving a capi-
tai expenditure that will undoubt-
edly exceed $1,000,0 100000. 1t is diff
ficult fully to appreciate the vast
social and economic Importance of
this specialized business service
which is rapidly becoming one of
the most important problems in the
Federal Government.
Forty mine insurance companies
now own some S2,0Oo,0OO,OOO worth
of real estate. They are realizing
the Importance to them and their
polcyholders OF competent and re-
liable real estate management in
conserving the value of their huge
real estate property holdings. Ger
tainly, here is a great challenge
to the emerging profession of real
estate management.
Throughout the country people
are giving more and more attention
to the great problem of rehabilitat-
ing blighted areas. Here is another
great field where the services of
thoroughly trained and competent
property managers are essential.
"The National Association of Real
Estate Boards recognizes that there
is definite need at this time to define
sound management and to put the
management of real estate property
on such a basis that those who
require the services of property
managers may easily recognize and
reward competency, integrity and
efficiency. 1t was for this reason
that the National Association of
Real Estate Boards created the
Institute of Real Estate Manage
ment. The institute was organized
as professional body to set up and
disseminate the very best ideals for
the management of real estate, to
identify competent and reliable
managers, and above all to estab-
lish standards of efficiency. Many
Of the men who have given their
time and their talent to the estah-
lishment of the institute are here in
this room today.
Education Program Developed.
Prom its original inception, one
Of the primary functions of the
Institute of Real Estate Manage
ment has been to develop program
Of education covering the funda-
mentals of sound real estate man
agement so that a competent per-
sonnel to meet the demands which
will be made upon us may be pre-
pared. The course which we are
offering this week here in Washing
ton is one of the first steps in what
We expect to accomplish-a compre-
hensive program of technical educa-
ton in the field of real estate man
agement. I feel that in very real
sense the eyes OF the Nation are
upon you men who are enrolled in
this initial course and I hope that
each Of you men will not only apply
yourself thoroughly to the task of
securing the greatest possible bene-
fit from the lectures you are to hear
this week, but that you will follow
through with the institute in all
Of its educational activities during
the next few years. The Nation has
real need for leadership in this field
and we are hoping that each and
every one Of the students in this
course will achieve recognition as
pioneer in the development and
establishment of the great profess
sion OF real estate management"