. $10,000 has been collected by the lender and is in an “unapplied” status due to the short payments.

I don't want to give the impression that we don't maintain.  

It's impressive that you secured a deal like this with no renovations and turned it around the same day.

My first impression is that your numbers in the current economic climate seem a little rosy.I also have friends that are builders and I try to stay in touch with them on costs as we mostly do "to the studs" renovations when we buy a place. 

If your manager is just 'keeping an eye' on things, collecting/reminding on a few rents here and there and some light cleanup while being compensated in free or reduced space rent then classifying them as 1099 subcontractor is great. 

We have never collected that and it is not a significant cost.Also be very careful changing criteria mid stream, I would only change it between vacancies. 

Hello Kyle,When screening applications for the properties that I manage, I always look for:- Income of at least 3 times the monthly rent (verified through the employer)- Credit score of 580+- Rental verification with past landlords (no outstanding balances, no late payments, and the property left in acceptable condition)- No history of collections, evictions, or criminal offenses- No overdue debt (except medical debt)I have found this screening standard very helpful when finding tenants who pay on time and treat the property well!

First things first, when assessing property managers, it is crucial to prioritize their ability to collect rent and manage delinquencies.

What if they have collections or judgments?

PM's will keep all late fees, they hold the security deposits so they collect all the interest on security deposits.