On paper, the role of an apartment management agent is to professionally manage the running of the development, to ensure the building is fully insured, safe and well maintained. It’s a service business which you’d obviously expect to be run profitably, but without the desire for popcorn profits over professional management service.
A management company model should be to manage residents’ money securely and efficiently — with a lean financial business model — giving high-value and strong ROI to residents, so the revenue from residents goes as far as possible on products, jobs and services. Add a small management fee for professionally executing this service and the money is spent.
However, the below letter raises a lot of questions with regards the disposable cash available in such companies, the transparency of profits generated from residents' revenue and integrity of such a management service. The question is, where has this surplus cash come from to pay affiliates £1,000 for a recommendation?
