If you really had the issues you described in your OP, then why are you buying that property if you didn't have the intention to gut the place?

We currently own a co-op in Queens, which we purchased a year ago for $260,000.

Is it typical in other markets of is it just the OP? 

To OP: search on BP forums "cash flow vs appreciation" for an earful on why appreciation matters.

@Scott Wolf Integrity was the criteria of the OP, only meant to wish her good luck.

I feel for the OP.

However, don't skimp on the OP agreement, I've seen them go sideways between brothers 15 years later.  

To answer the OPs quesiton, I am a PM and I can tell you what I do.I do NOT charge any junk fees, mark up fees, Leasing fees...you get the idea.I charge 7-10% flat fee of gross monthly rent, that is it.

I haz questions for OP.

Was ultimately trying to figure out why OP was saying they could not add an additional bathroom, converting from a 5/1 to a 4/2 I think would certainly help.