And if you convert it to a rental you’ll be facing a $200k taxable gain. 

That's not worth 15% of the job.Another thing to consider is that some managers will charge low management fees and then add maintenance fees to bring in more income, while others charge high, all-inclusive management fees.

The value of the property and how it’s distributed relative to ownership stakes will determine whether it counts as a taxable event, I believe(I’m not a CPA or attorney). 

For example, I mention that every adult must pay a $30 application fee, pass my credit/criminal background, make a combined income of 3x the rent, and whether or not the property accepts pets.

It is the same recording fee, just different wording on the deed.

I have read in forums that upfront fees are generally big no-no's.

This would typically include legal fees, the receiver's fees and costs, and the repair costs. 

With DSTs you need to make sure that the various fees don’t negate your profits.

I believe it is completely reasonable to have a clause in your lease that places a cap on utilities with any overage (proven by a bill) being the responsibility of the resident.Our clause states that any electrical bill (we don't have gas, and water has never been a problem) that is over double the same month's bill from last year will have the overage assigned as a fee.It is important to keep your bookkeeping straight if you do assess a fee.

And, it's amazing how many closing costs are junk fees that we as investors need to pushback on paying for ourselves and our clients.