Property management: is this a red flag?

[Kyle Hern]

Hello fellow BP members! I'm still working towards my first real estate investment and trying to build a team. I was looking at a few companies in Indianapolis and found T&H Realty Services. They look great and seem to have everything an investor would need. However, I noticed that their pricing was unusual (I think). I recall reading that most managers charge a percent on the rent, but T&H showed their pricing in a dollar amount. They charge $3,100 per year on a property renting for $1,000 per month. I also remember reading that property managers should cost about 8%-12% on the rent. However, $3,100 in PM cost divided by $1,000 per month multiplied by 12 months is about 25%. From what I've read, this is a bad deal, but, since I'm new, I'd like to hear from you. If you have anything else to add about T&H, I'd love to know. Or, if you have a suggestion for who I should use as my PM in Indianapolis, it would be greatly appreciated.

Thank you!

Kyle