Of course they are going to have bad credit or they would be looking in a better area.Another thing you may want to consider to drive more applications is to not charge the application fee.

I'd have the PM send notice to the tenants that it was brought to the owners attention and they've waived the fee and thank you for being good tenants.

Quote from @Sami Gren: I start by making the original tenant fill out a form requesting to add a new renter, and they pay me a $50 processing fee (I charge a $50 fee any time I make changes to an existing lease). 

I see lawyers fees cancelling out this years rent increases quickly. this is a business, and I would always expect unhappy customers to push back - a good business worthInvesting In will satisfy customers while still making a profit.

This eviction altogether cost me $20,000 - legal fees, lost rent, and rehabbing.

I had a local bank provide a 1031 without fees. 

You could also structure a plan that has the income snowball pay for the coaching fee.

Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers.

@Deirdre Lizio see a lot of competiting PMCs start with a pledge of doing it better than "what's out there".Always interesting to revisit them 3-5 years later - after they've experienced the reality of challenging tenants AND owners.Look no further than Evernest: they started out with flat fee management at $99/month and promises of better & fairer service & pricing.Now they're at 10%, capped at $199/month - wonder what changed?

Assume that i got margin with IBKR their calculation shows 5.4% and costs 21.8k per year for 400k.So assuming property is 700k with conventional loan and 670k with cash offer.I manage to find another 270k (this is what I'm asking) without paying any origination fees.