Neither is better or worse but rather is reflective of the risk appetite of the investor.

Consider an excessive use clause for utilities.Talk to your neighbors and let them know to notify you with concerns.

Within reason, I did cut ties with one that tried to make what I thought was an excessive fee. 

However I need a strong agent who can propose fundamentally sound investment SFRs with solid math based on our cash position and risk appetite. 

Sometimes they don’t have an appetite for single family homes.  

These types of markets are a great way to enter long term holds without excessive risk while you work on your processes. 

wouldn't that be excessive amount of money?

Yes, your lease will state that you can go after the tenant for excess damage.

In addition to what Ned mentioned, you will also have advertising, entity maintenance, legal fees, evictions, court costs, periods of high vacancy, damage done by tenants (in excess of the security deposit), lawsuits, utilities (at least during vacancies), etc, etc, etc.

For example, significant damage done by tenants in excess of the security deposit (often thousands of dollars), is an expense that may only occur once in a many years.