Replace carpet for vinyl plank, add gutters, moisture barrier in crawl space etc...   

We upgraded the electricals, did moisture & termite repair, and some other little things which add up to additional $15K.

Likewise the STR model needs to generate sufficient return in excess of the MTR model in order to justify ITS increased cost, management and risk.  

That being said thank you all for the post as I might shift some of the excess cash reserves from my rental income into this policy as opposed to simply funding it from the excess cash I earned in previous assignments overseas.

I started a PM business this year after trying multiple companies and being frustrated with the poor quality and suspicious about the excessive charges.The best thing you can do is look for another property management company to replace them.

We all have finite amounts of time and money and it is up to each of us to determine what we have an excess of to trade one for the other. 

To add to @Abel Curiel's list:-Bad credit (600 or less in my opinion) or no credit-Signs of fake W2s or paystubs (I dealt with this recently)-Renters that are flaky or do not show up on time-People that lie during pre-qualification or on their application-Previous evictions-They excessively complain about their current or previous landlord-They only want to pay in cash-Their social media shows them posting about guns, drugs, and other negative stuff

In Washington State, management companies I spoke to all seemed reasonable, but then had clauses hidden within their management agreement stating I'd use their lawn service for excessive fees all year, or have all window blinds cleaned by their window company annually for $40 per window, all kinds of weird stuff. 

Many inspectors don't test for things like moisture penetration around windows, some do.

But as one gets older, often one does not want 'excess' but folks downsize in their wants and needs, smaller house, less stuff, etc.