To be more precise, we are not talking about D areas (war zones) or run down (trash) properties. 

The rental market is extremely hot and many landlords are able to rent units quickly, sometimes within a day or two of posting.IMO, placement fees do not properly align owner and manager interests. 

4) In short, they are not going to let her act as both a Realtor and a Property Manager anymore and are changing her pay structure so that she is no longer salaried by them, and only paid for tenant placement commissions.

Beyond the Monthly Management, Placement & Maintenance fees, all other fees in our contract are IF EVENT -> THEN fees.

Beyond the Monthly Management, Placement & Maintenance fees, all other fees in our contract are IF EVENT -> THEN fees.

How the market will be impacted precisely I can't say but will be an interesting ride.

Best to do that with Reg D paperwork and a proper operating agreement and private placement memorandum.

They held me to a 30 day notice before I could advertise with another PM, otherwise they would have claimed rights to the placement fee ($1200).

Combine that with the fact that the buyer doesn't have to pay the lease up fee for the first tenant placement and have all of the carrying costs while the property is being fixed up and marketed for a tenant,  you're not getting any bargains on the MLS and often are buying  property with a lot of deferred maintenance and CAP Ex expenses.

Precisely