How Much Does It Cost to Hire a San Diego Property Manager?

Hiring a San Diego property manager is going to cost a percentage of your rent every month. However, it’s one of the best investments you can make. When you partner with an experienced company, you know you’re getting professional leasing, management, and maintenance services. You won’t have to mediate disputes with tenants over rent and repairs. You’ll know there are licensed and professional vendors responding to maintenance needs. Ultimately, you will likely earn more and spend less on your rental property. 

The costs will vary and depend on how many properties are in your portfolio, what type of properties they are, and the type of services you expect from your property manager. 

There are a few costs you can plan for, however, and most management companies include them in their pricing structure. 

Fee Structures in America’s Finest City

Some companies charge a flat monthly rate to lease and manage your home while other companies will charge a percentage of the rent that’s collected every month. 

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 that cost-effective. 

Every property management company will have its own fee structure. Make sure you know exactly what you’re paying for and when you’re paying it. Look for any hidden costs and don’t work with property managers who aren’t transparent about their fees.

San Diego Tenant Placement Fees

Placement or leasing fees are common, but you must 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. 

What happens if you pay a leasing fee that’s equivalent to a month’s rent, and then the tenant leaves your property before the end of the lease term? What if that tenant is evicted or breaks the lease? Will you have to pay another placement fee to get a new tenant? 

Some companies will not charge a separate leasing fee but include it all in the management fee. This is another reminder that you must ask for specifics when it comes to what you’re paying and when. 

San Diego Property Management Fees

The monthly management fee that you pay should include everything from collecting rent to lease enforcement to tenant relationship management. Your property management company should remain  compliant with and informed about local, state, and federal laws. You can expect the cost to cover any correspondence, move-in and move-out inspections, and accounting reports. 

While 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 $100 from the plumber but $120 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. 

If you want to get the most value and best service for your San Diego rental property, be willing to communicate openly with the prospective property management companies you’re considering.