When rental property owners are looking for professional property management in San Diego, asking about fees and costs is natural and expected. You want to know what you’ll have to pay for the leasing, management, and maintenance of your rental property. More importantly, you’ll want to understand the services and value you’re receiving in exchange for those fees.
Ultimately, the property management fees you pay will depend on the company you choose to work with, the type of rental homes you own, and the services you require for those properties.
We’re taking a look at typical San Diego property management fees today, so you’ll know what to expect when you’re looking for help with your rental property.
Exploring San Diego Property Management Fee Structures
Some companies charge a placement fee before the lease period, and then a flat monthly rate to manage your home. Other companies will charge a percentage of the rent that’s collected every month, and the placement fee will be included in that monthly charge.
When you’re comparing prices and services, make sure you’re making real comparisons. When a company offers dramatically low prices, they might also charge a separate fee for each service they provide. So, by the time you’ve paid the administrative fee, leasing fee, marketing fee, and inspection fee, that low management fee isn’t so cost-effective.
San Diego Tenant Placement Fees
Tenant placement or leasing fees are common in many markets, but you may find that not every company charges them. This doesn’t mean you aren’t paying them, it just means that the cost of placing a tenant isn’t separated out from the cost of managing your property.
Make sure you understand what you’re paying for. In exchange for the tenant placement fee, you can expect a property that’s ready for the rental market and a well-screened, qualified tenant. A placement fee should include advertising and marketing as well as the showing and screening process.
You’ll want to know what happens if the tenant that’s placed leaves your property. What if that tenant is evicted or breaks the lease? Will you have to play another placement fee to get a new tenant in place? Be sure to find out if there are any guarantees or protections in place.
San Diego Property Management Fees
All fees and services should be listed clearly and transparently in the property management agreement, so ask to see a sample before you agree to work with a company. Your management fee will either be one flat rate or a percentage of the rent that’s collected.
Management fees are paid every month, and they’re usually deducted from the rental income before it’s forwarded to you. In San Diego, you can expect to pay between 8 percent and 12 percent of your monthly rent, unless the company you choose uses a flat fee structure.
Additional Property Management Costs in San Diego
While the placement fees and management fees are common, there might also be additional costs that are not included in those charges. Discuss these things with your management company before you sign the agreement. For example, many property managers charge extra for maintenance coordination. For example, if your plumbing invoice is $400 from the plumber but $440 from the management company, it means you’re paying an upcharge for any repairs that need to be handled on your behalf. You’ll want to know if this is included in your management fee or if you pay extra when maintenance is needed.
Other random charges you might come across include lease renewal fees, inspection or walk-thru fees, and administrative fees. Some companies charge technology fees or service fees.
We believe in transparency, and we think our fees are competitive in the San Diego rental market. We’d be happy to tell you more about our rates. Contact us at Chase Pacific Property Management and Real Estate Services.
