Flat fee Property management vs. percentage base Property Management

[Sohrab Khosravi]

Hi,

My name is Sohrab and I am from Houston. I Invest in rental properties and I want to expand my business as a property management company, when I research Houston market for management company I can find out two ways that campaign are marketing:

1- Flat fee per month plus first month full rent (half will be for the tenant agent if exist)

2-percentage of the gross rent amount.

I want to know what people thinking about this, and like to see which way is the better way to go.

Thank you in advance for all of your help.