Property Management Fee Structure

[Ryan Moore]

Hi, I'm closing on a multi-family 4-plex in Phoenix and I'm starting to research property management companies.  I've noticed that some charge a flat rate vs taking a percentage of the total rental income.  The flat rate charges I've seen so far seem to push my estimated monthly PM expense up to 13 - 15% of monthly income.  A couple questions:

1) 13-15% is a high expense ratio for PM correct?

2) Are there benefits to doing a flat fee manager vs one that takes a percentage?