PM fees + acquisition costs -- opinions needed

[George Chang]

Hey everyone - my family has purchased 2 units in Memphis (looking to purchase more soon) and we're trying to see if our PM contract and fees are within "normal" range.  

We have family friends in the area who own investment properties as well, so they will be doing the day-to-day PM responsibilities.  One thing that may stand out is that these family friends also buy for us and recommend houses they think are a good fit.  They are our boots on the ground and have lived in the area for over 10 years, so we rely heavily on them.  We have visited Memphis, and seen the areas they invest in and I'm confident that they know what they're doing and that they'll handle everything really well.

Here are the fees in the contract:

• House Acquisition - price plus 1.5% (minimum $1,000)
• Cap Ex/Rehab costs - if <$5,000, there is a 15% service fee.  For >$5,000, there is a 10% fee.
• Tenant Acquisition/Lease Finding - 50% of 1st month's rent
• PM Rental Fees - 10% of rents
• Re-lease Fees - 25% of monthly rent, not to exceed $250.  Is this a bit high?
• Repairs - not stated, I think this is part of the monthly rental fee of 10%
• Eviction - not stated (will follow-up on this)

I think most of these figures are in the ballpark range, but I just want to make sure especially with the house acquisition fee.  Additionally, this would be good for me to know in the future when our family friends stop PMing.  I want to think long term for our business so learning about the normal fee range would help with estimating future income.

Thanks in advance!!!

George