Negotiating Property management fees

[Trina P.]

I have just closed on my first property in Huntsville, AL and am in the process of setting up a property management company. 

The turnkey company I purchased the home from (ROIPGM) have partnered with a property management company called Yellow Hammer. They have done this to have part control over the management company and make sure everything runs how it should. 

So, am I purchasing the property with a tenant already in place that has been renting since January. 

Now that I am starting to talk with the property manager I have all these fees popping up that were not discussed with me in prior conversations. Maybe I am just new to the game, but these fees seem crazy. What are your thoughts?

- Activation fee $150

- Leasing fee equal to one month's rent ($1,200) (is it typically a one time fee or everytime a new tenant is established?)

- Keeps 10% of months rents (not too worried about this)

- charges 10% of all repairs

- charges 10% of all materials purchased

- Charges $65 fee upon renewal of tenant lease

- Charges a 7 day "quit or Pay" notice to tenant for $35

[Curt Davis]

@Anton Ivanov

Show me a management company that can operate with quality employees if only charging 8% with no placement fee or repair mark up?  How do the leasing agents get paid who secure tenants? Property management companies are not no profit centers, they surely have their fees all outlined and at times can seem high but unless a person wants to self manage they are left with no choice.