The cost of property management is an important consideration for many owners and landlords. Today, we’re talking about some of the common fees that property management companies charge in the San Diego area.
Property Management San Diego: Fee Structures
There are typically two fee structures for property management services. One is based on a limited service of tenant placement only. Usually, these fees range between 5 to 6 percent of the first month’s rent. The second type of fee structure is based on full service. These management fees are often between 8 and 10 percent of the monthly rent.
Property Management Cost: Additional Fees
On top of your base management fee, you may run across a few additional fees. You need to understand what they mean. These are the 9 most common property management fees you’ll find:
- Set Up Fee. Sometimes a fee is charged to set up your account in a property manager’s system.
- Management Fee. This is what we just talked about; it’s the monthly cost for the ongoing management of your property.
- Supervisory Fee. This might be charged if your property manager is overseeing a large repair project that’s outside of normal maintenance.
- Advertising Fee. Some companies keep their management fee low, then charge extra to run ads.
- Leasing Fee. This is a commission that’s paid once your property has been leased to a tenant.
- Lease Renewal Fee. It’s common to pay a fee for tenant retention.
- Maintenance Surcharge Fee. When a maintenance cost is charged to your property, some managers will get a percentage. So, on a $100 repair, they may keep 10 percent.
- Administrative Fee. This may also show up as a postage fee or an accounting fee.
- Cancellation Fee. Some property managers will charge you a cancellation fee when you want to get out of your contract.