Property Management Fees

[James Devereaux]

Hi Bigger Pockets! I have been a member of this awesome community for several years now (at least a year before I embarked upon my first real estate deal ~4 years ago) & have learned so much! This is my first time posting or replying to a post though. I am hoping to get a little guidance with my property management company. Specifically with their fees.

So a little history with me, I have 3 residential homes that they manage. I live in a different state than these homes, so I am definitely needing/wanting a management company. 

I am hoping you all can give me some advice on if I am getting angry for no reason or justified in my thinking. 

The issue at hand is regarding a tenant who is behind on her rent, quite a bit behind on her rent. After having to get after them several months ago, they placed the tenant on a payment plan to get caught up... I don't think they would have proactively done this had I not put the pressure on them. Well fast forward to now and the tenant is still pretty far behind on their rent. So after reaching out and asking what is being done they ask if I want to put her on a new payment plan (they didn't answer my question on what was being done and what communication they had already had with her. I asked 3 times. It makes me think there is none and they are taking action only because I am putting them on the spot once again). I got a copy of their entire history with this tenant which also shows their fees they charge the tenant. This is something I don't normally see, I usually just see my statement of rents in, disbursements to me, and any expenses for my mgmt fees or repairs.

When viewing their statement I was a little bit shocked. Since January of this year, they have assessed the following fees:
NSF Fee (for a payment returned by tenants bank): $30*2=$60
Notice Posted Fee (them making a notice to tenant of late rent): $65*2=$130
Late Fee" $70*5=$350 
Missed appointment fee: $78*1

TOTAL: $618

Now I don't mind necessarily even mind that the PM takes the fees. I also understand that some of the fees, like the NSF fees, aren't even necessarily even going to them because they pay a charge for a returned payment. I also understand that they operate on slim margins. They are only making 8% of my gross rents (So for this property, they would make $672 for the year based off the 8% alone. Granted this is by far my lowest rent property). I don't even mind they charge 10% of any repairs that need to be done to cover their cost and time of setting up the repair and overseeing it. But in mind that this has created a culture where my tenant is $1200 behind in rent and they are making an additional $618 in fees. Fees that they take when the tenant does make a payment before giving me the difference of the rent minus this fee... Why would the be inclined to keep the tenant paying on time when they can make an extra $70 per late fee.

Thank you all in advance, I am definitely needing to get out of my own head with this and get some advice from you all.