A typical developer profits on sale day and moves on. It is not malice but an incentive structure, and a different one can be chosen.
Defects, shared profit and peace of mind. For each one: where it is written in the management agreement, because a promise without an anchor is a slogan.
When the developer's management income comes from rent actually collected, an empty property costs him money. That is aligned interests.
Compass on the Lake is under construction and first handovers are expected in December 2027. Until then, money is protected under Law 207/2025.
A written SLA, transparent pricing before signing and an orderly exit. A developer who fears you'll leave built a model you'll want to leave.
February, back home: the tenant stopped answering
There is one scenario I ask every investor sitting across from me to imagine, before we even talk about price.
It is February. You are at home, two thousand kilometres away. Your tenant in Bucharest has stopped answering the phone, and his last message mentioned damp on a wall. Who do you call?
If you bought from a typical developer, the honest answer is: nobody. The developer sold, booked the profit and moved on to the next project. Construction defects? You against the contractor. A contract in Romanian? You against a dictionary.
What the developer does after handover shapes the life of your investment more than most of what is said before you sign. In this article I will explain why, and exactly what to check.
Why most developers disappear after handover
This is nobody's malice. It is the result of an incentive structure.
A typical developer makes his profit on the day of the sale. From that moment, his focus moves to the next project and the next buyer. Game theory calls this a "one-shot game": when both sides know the relationship ends with a single transaction, neither has a reason to invest in it beyond that.
And incentive structures, it turns out, can be chosen. The theory, and why a "repeated game" changes a developer's behaviour, is covered in our article on the shared interests model. Here we stay on the ground: what actually happens the day after.
From the field: “A landlord should be present”
Attorney Ilan Leibovitch recalls:
An Israeli investor in his forties rented out a two-room apartment in a new Bucharest project to a young couple, a teacher and a programmer, on a standard one-year lease with payment by bank transfer. After only two months, an email arrived: “We need you to come and check the damp problem yourself.”
He thought it was a joke. Fly in because of damp? When he did not reply for a few days, he got an emotional phone call: “It is very disappointing that you are not taking responsibility. A landlord should be present.” That is how he learned that in the local culture the owner’s presence carries weight, and that a lack of involvement can be read as a lack of respect.
He appointed a local management company to be his face in Bucharest, and the relationship calmed down. Today he runs every apartment with a local representative, a tailored contract and clear expectations.
The tenant does not need a landlord in Tel Aviv. He needs someone in Bucharest who answers, shows up and deals with it, and that is exactly the question to ask the developer before handover, not after.
The developer after handover: service provider or stakeholder?
At Compass on the Lake, our project in Balotești, featured in a Walla Nadlan report (in Hebrew), the developer stays in the project after handover, managing it directly and personally rather than through an anonymous outside company.
The difference is structural, not emotional:
- An outside management company is a service provider earning a commission, whether the property performs or not.
- A developer who manages himself is a stakeholder. His ongoing income, and his next project, depend on how your property performs.
If you are considering an outside management company, there is a right way to do it. We listed the clauses that must be in the agreement in our guide to choosing a property manager in Romania.
The February scenario: who handles what
Here is the same February under both models:
The question is not whether there will be a problem. It is who picks up the phone when there is.
| What happened | Developer who sold and left | Developer who stays to manage |
|---|---|---|
| A defect during the warranty period | You against the contractor, remotely, in Romanian | The developer against the contractor, as his biggest client |
| The tenant goes silent or stops paying | You against the tenant | The manager, whose income depends on it |
| A letter from the authorities in Romanian | You against a dictionary | One point of contact, in your language |
| "What's happening with the property?" | Nobody to ask | A fixed contact person and reports |
The question is not whether there will be a problem. It is who picks up the phone when there is.
Three commitments of the developer after handover, each anchored in the contract
A promise without an anchor is a slogan. So next to each commitment, I have written where it should live.
1. Defects: the developer handles them himself
Every repair demand to the building contractor is handled by that contractor's biggest client, with bargaining power a single investor simply does not have. The anchor: the management agreement, including response times.
2. Profit: shared
Our management income is derived from the rent actually collected. An empty property means zero income for us. The anchor: the fee structure, in writing, before you sign.
3. Peace of mind: one address
One point of contact for everything, in Hebrew, English or Romanian. Not a call centre, but the company that built the house. The anchor: the management agreement, with a committed response time.
The hidden asset: leverage over the contractor
Look closely at the first commitment, because it is the part nobody talks about.
During the warranty period, a single investor facing a Romanian contractor is at a built-in disadvantage: distance, language and zero bargaining power. He is a one-time customer.
The developer is the one who feeds the contractor his projects. When he demands a repair, he gets it. When the developer stays after handover, that leverage works for you.
To be precise: your statutory warranty rights under Romanian law exist either way, regardless of any management agreement. The difference is who actually enforces them, and how fast.
What it costs, and what to check, with us too
Management costs money, with us and with everyone else. The difference is not the price but who receives it.
You will get the exact figures before you sign, on paper, with the full calculation. A model built on aligned interests cannot afford hidden numbers.
And a good model is still not a good contract. So check three things, with us as well:
- Contractual anchoring: a management agreement with a written SLA, not a verbal "this is how we work".
- Transparent pricing: in writing, before signing.
- An orderly exit mechanism: it sounds against our interest, but an agreement that lets you leave shows the developer's confidence in his model. A developer who fears you will leave has built a model you will want to leave.
Where we stand today
Let us be honest: Compass on the Lake is under construction, and the first handovers are expected in December 2027. Until then, buyers' money is protected under Law 207/2025, which we explain in our article on how your money is protected off-plan.
As of August 2026, 13 Israeli families have already bought a villa in the project, and some bought two adjoining units: one to live in and one to rent out. We built the model where the developer stays to manage with the long term in mind, because it is the only model in which we earn only when you do.
Frequently asked questions
What happens with construction defects after handover in Romania?
The buyer's warranty rights exist under Romanian law, but an investor living abroad will find it hard to enforce them alone against a local contractor. When the developer stays after handover, he handles the repair demands with the contractor, and response times are set in the management agreement.
What is the difference between an outside management company and a developer who stays to manage?
An outside company is a service provider that earns its commission even when the property is not performing. A developer who manages himself is a stakeholder: his ongoing income and his reputation for the next project depend on your property being rented and maintained.
Do I have to use the developer's management?
No. The property is registered in your name and the choice is yours. A good management agreement includes an orderly exit mechanism, so you can manage yourself or move to another company.
When are the first handovers at Compass on the Lake?
The first handovers are expected in December 2027. The project is under construction, which is exactly the stage to review the management agreement: before you sign, not after.
Is my money protected until handover?
For off-plan projects in Romania, Law 207/2025 (the "Nordis law") requires advances to be paid into a dedicated project account, with caps per construction stage. The first contract is a preliminary contract, and the last step is the final contract and registration in your name.
The bottom line
Don't compare only the price per m². Compare incentive structures.
Ask every developer: "What do you earn after I get the keys?" A developer who answers "nothing" has sold you a property. A developer who answers "from your peace of mind and your profit" has entered a partnership with you. Adv. Ilan Leibovitch put it his own way in his interview: when the developer's income depends on your property's occupancy, interests are aligned.
If you want to see what our management agreement looks like, clause by clause, book 30 minutes with me. We will walk through your own February scenario, and you will leave with a list of questions that works with any developer.
Moti Azulay, Compass Group Romania
Sources and data: Law 10/1995 on construction quality, Romanian legislation portal · Law 207/2025 (the "Nordis law"), Monitorul Oficial 1133, 8.12.2025 · Monitorul Oficial · National Agency for Cadastre and Land Registration (ANCPI) · Walla Nadlan report on Compass on the Lake (in Hebrew) · Interview with Adv. Ilan Leibovitch, Compass Group Romania investor guide (August 2026).
This article is for general information only and is not legal, tax or financial advice. The binding terms are those set out in the purchase and management agreements. Before any transaction, consult local experts.
Now you know more.
This article is general information, not legal, tax or financial advice. Consult local professionals before any transaction.
