Or if they break something, they may not know the true cost of it and may think you are over charging them.

If they are overcharging you for repairs, call them on it, and fire them if they don't correct it.It can be rather difficult to "change a washer" from a lounge chair on the deck of a Cruise Ship in the Mediterranean.

You may be required to have an escrow account, collect such payments within a tolerance to ensure the borrower is not over charged, you'll need to send out statements to require additional funds as taxes increase or any premium changes and if an escrow agreement or account is required you'll need to give an accounting of the amounts on deposit.

That's why its hardly legal in some places anymore.Think about: You are charging a big deposit, over charging rent and all in the hopes that the buyer *might* be able to qualify for financing after two years.

Now I am investigating to find out if the repairs are legit.So far, on the move out issue, I have two vendors who have confirmed that at the least, I've been overcharged.

If your manager gets a nice big fee for every tenant he finds and signs up, and if you have constant turnover, then there is a very good chance your manager is churning the tenants: deliberately renting to people that he knows won't stay, so he can get another fee for signing up the next tenant.It would be unusual for all your different managers to be doing it, though.I've seen managers (a lot of managers) who are too lazy to screen, and they will get a troublemaker in the building who drives the other tenants out.I've also seen managers who over-charge for all the repairs, and even bill for repairs that were never done.When your buildings are spread all over the country like that, it is difficult to keep an eye on all of them.

That assumes that the property manager does a good job and doesn't overcharge you for placing tenants, scheduling maintenance, etc.

It prevents them from overcharging you for these services especially if they order it themselves.

@Lesley Ray Its all about the the team around you and protecting you from contractors that will rip you off, and PM co's overcharging you and not placing tenants.  

Most overcharges seem to occur with the title insurance, see if you can get your own.