I'm not a big fan of management companies. They have no vested interest and provide pedestrian returns. Every property I've looked to buy, over 100 units, with a management company has high expenses, poor occupancy and high bad debts. Management companies tend to collect the easy money. If you pay 3% of GOI, what incentive do they have to collect the last $5,000? $150. Yet, it is the last $5,000 or $10,000 that enhances your profit. If your GOI is $100,000 per month and they need to spend 10 hours to collect the last $10,000, they are not going to do it because it is only worth $300 to them. For the owner manager, if it takes 10 hours to collect, it is worth $1,000 per hour. I think a better structure would be 1% of GOI for the first 80% collected and a rising scale to incent them to collect the last 10%.