If they're getting an extra $30,000 a year, is that treated as passive income from real estate?

Is the increased income going to be worth the extra time and gas money you spend on a longer commute?

Yes, I agree with the SF comment, for me they are asking way far from what what is really worth perhaps betting on the potential of the lot (huge patio around the house) that easily accomodate an extra room extension for example.

It may sound nice to pay a 5% management fee but the extra fees can add up to be more than the other company that charges 10% with no add-on fees.

I've found it immensely helpful, especially when you consider the difficulty of a tenant contacting you outside the U.S., the ease for a property manager to do a visual inspection, their knowledge of local contacts, etc. 

It depends on your location, size of property, purchase price, nightly rate you can get, your upkeep of the property, and many other factors.If your unit shows well in photos and if you build up some good reviews in the first months, and your pricing is reasonable, it will be consistently rented.We have 3 of them, and all less than 1 year so the jury is still out, but in our experience so far, the startup and ongoing costs have been higher than expected, but all are getting good reviews, so in year 2 (now that they are stable) we expect to do pretty well.You have to make sure your town allows it, and you have to decide if you will manage it yourself and take on that extra work (communicating with the guests and people who will clean/make repairs) or if you will hire a property manager, which can be expensive, upwards of 25%.

If they needed cash to move, cough up the extra 2-3K. 

You didn’t mention any family in your post so you might also be able to rent out a room and bring in extra income that way.

Where did the extra 1.5% come from?

He also will tell me when the thinks I should take a different approach or am wrong, and I listen.So, the things I'd draw from this are, setting clear expectations with the landlords you work with, and maintaining a good rapport with tenants (that does reduce vacancy rates and people moving out, in my view), and being willing to go the extra mile (within reason).