So much more
...to consider
A good PM is worth so much more than what you are suggesting. Yes, don't pay more for one poor PM than another poor PM but you shouldn't be thinking of using a poor PM regardless of how much (or little) they cost. If you don't pay much, you can't really expect someone to really look after your property.
You need a PM that will really assess a potential tenant. You need a PM that will really keep an eye on the property. You need a PM that will really ensure that the rent is being paid (and follow up damned quickly if it isn't). You need a PM that will really fight your corner if you need to use the Tribunal to get repairs or back rent paid for.
A good PM should find the right tenant who is happy to stay for a long time and look after the property. In these circumstances, the re-letting fee is irrelevant, the advertising costs are irrelevant and associated costs of turn-overs are irrelevant. You negotiate their fee, and they will (silently) negotiate their service.
Trust me, 1% or 2% is such a small factor in your property investment finances that you should not be concentrating on it. By all means concentrate on finding a good PM but don't get distracted. It is far more to do with finding someone you can trust than it is about number crunching.
By the way, I am a landlord not a real estate agent and I have had to deal with PM's for over 20 years and no, I still don't get it right all the time. But cost is such a small factor in trying to get it right.
...to consider
A good PM is worth so much more than what you are suggesting. Yes, don't pay more for one poor PM than another poor PM but you shouldn't be thinking of using a poor PM regardless of how much (or little) they cost. If you don't pay much, you can't really expect someone to really look after your property.
You need a PM that will really assess a potential tenant. You need a PM that will really keep an eye on the property. You need a PM that will really ensure that the rent is being paid (and follow up damned quickly if it isn't). You need a PM that will really fight your corner if you need to use the Tribunal to get repairs or back rent paid for.
A good PM should find the right tenant who is happy to stay for a long time and look after the property. In these circumstances, the re-letting fee is irrelevant, the advertising costs are irrelevant and associated costs of turn-overs are irrelevant. You negotiate their fee, and they will (silently) negotiate their service.
Trust me, 1% or 2% is such a small factor in your property investment finances that you should not be concentrating on it. By all means concentrate on finding a good PM but don't get distracted. It is far more to do with finding someone you can trust than it is about number crunching.
By the way, I am a landlord not a real estate agent and I have had to deal with PM's for over 20 years and no, I still don't get it right all the time. But cost is such a small factor in trying to get it right.