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Lets say these 5 properties were $500/week rent each, at $40/month per property, that's a measly 1.8% management fee...... Even if the properties were renting at just $200/week, that's still only a 4.6% fee. I'm assuming the $200 management fees covers all 5 properties.

If they've been managing your properties for 6 years and have not increased fees in that time, there must come a time when increased business expenses have to be passed on. They did send you out a letter. If you do not agree with it, not much else to do apart from take your business elswhere...