If the law allows, I will sometimes move the personal items to storage, which is much cheaper than lost rent, so I can clean up the rental and find a new tenant.

The reality is the opposite - if it's not in writing then the PMC doesn't have to provide the service or can charge extra for it!

I haven't worked with anything but hardwood and tile in recent years but would prefer a cheaper, waterproof option if it looks decent. 

I'm a decent and fair guy so I appreciate the entrepreneur spirit, but to take free of charge is THEFT.

Also, there is a need in the marketplace for a co-living PM company that doesn't charge too high of rate. 

Naturally you need to charge them for any damage to incldue smoke damange 

He said he charged $400 for his, is profiting well on it since he got his property for a third of market price some years before, and both he and his tenant are happy with it.

So they would first payoff the first mortgage, if there is a second then $ goes to the second and if anything above that goes to any other lienholders or the homeowner.There are a lot of people who invest in 2nd mortgages because they are cheaper than a first, but in Ohio (not sure all counties) you have to pay off the first at foreclosure so if you do not have the money to pay off the first you are out of luck. 

The last time I stayed in one, I was charged a large cleaning fee and then met with a list of what to clean prior to us leaving.

The reality is the opposite - if it's not in writing then the PMC doesn't have to provide the service or can charge extra for it!