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Profits vs. Professional Management Service

20/05/2015 By admin

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?

 

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