I went looking for a property manager when I was trying to rent out a flat, but it wasn't worth it. They charge 8%+ but the real problem is that doesn't include costs (eg. they won't do repairs) and most seemed as if they were just an expensive middleman who would simply pass on tenant requests to you.

Usually it puts you under breaking even, esp if you just bought the place. Usually 8-12% according to google. Good for a property with a below market mortgage you don’t want to worry about but don’t want to sell.

Nearer 10-15% in the UK. If you manage to find a good one they're definitely worth it, but the problem is, at least in my experience, the majority aren't.

Classical agent-principal problem.

Anecdotally we make ~ $500/mo after property management costs, but it isn't 100% hands-off. They are a middleman which means they bother us instead of the tenant.

I don't want to belittle the $500, but if we had good tenants and dealt with them directly we'd be getting double that.

Now is an extra grand a month worth the hassle with GOOD tenants? Maybe. But all it takes is one bad one to be in the hole and full of stress.

Wow how are you making $1k over mortgage, is the market and location that hot?

We aren't because of the property management fees, but we could. We bought at absolute rock bottom in 2010.

Sounds like a great investment, I'm paying several hundred a month unfortunately cause my market got cold. Might sell the property for a small profit if it keeps burning a hole in my pocket.

In Australia it’s 6-8%

There are two kinds of contracts with property managers - one kind that only find tenants, and another that manages everything (e.g. if the boiler breaks they get a plumber).

Which kind are you talking about? I'd be surprised if the discrepancy between countries was as large as 6% to 15% for the same contract.

The 6-8% is for the ongoing maintenance and routine inspections. Usually leasing the property is 1 week's rent, however sometimes that is included in the management fee as well.