We had to watch them the whole time so they wouldn't cut corners.

So that cut down a lot of my expenses.

Like a lot of IRS policies, it is not cut in stone either as to who's actually in business and who is not, they have a list of criteria to look at and from there, it is really up to the auditor in charge of your audit (if you're unlucky enough to get one!)

Also, whatever you pay them they'll have to split with their Broker or give them a good cut. 

It took some convincing since each time I cut the guy's chain at the top of the street he came out threatening me and thus I had to call the police back.

Should I just cut my loses and move on.

There is a wealth of help and info on this site to help you decide if you are cut out to be a landlord and handle everything yourself, or if using a property management company would be a better option for you.I certainly wish I had this knowledge when I was young and without many responsibilities!

I understand that we will still receive/pay the master-metered water bill from the city, and that the sub-metering company will bill the units directly and mail us the money (sans their cut), BUT how do you enforce the new water utility bill with the individual tenants.

He said this will cut down on how much they call you and would hopefully keep them more responsible since they would be liable for issues.

One bathroom usually doesn't cut it nowadays.