Key Takeaways
- Understanding Property Management Fees Is Essential for Budgeting and ROI - Property management costs typically depend on factors such as the property’s size, location, and the number of tenants. Most companies charge either a percentage of monthly rent or a flat rate. Knowing how these fees are structured helps landlords choose the right management plan for their financial goals.
- Professional Management Covers Comprehensive Services - From marketing and tenant screening to rent collection, maintenance, and legal compliance, a property management company handles the day-to-day operations that keep a rental running smoothly. These services not only save landlords time and stress but also ensure that properties remain profitable, compliant, and well-maintained.
- Experienced Property Managers Help Maximize Rental Success - By providing expert oversight, professional managers help landlords attract reliable tenants, reduce vacancies, and maintain strong cash flow. Their market knowledge, diligent screening, and commitment to regular maintenance ultimately protect the property’s value and enhance long-term investment returns.
Are you considering renting out your house and hiring an expert property manager to manage it? As a rental investor, you understand the amount of responsibilities that come with property ownership.
Thankfully, a property manager can help boost your ROI through renting to a high-quality resident, handling repairs promptly, ensuring legal compliance, and determining the right rental rate, among others.
But, how much does professional San Diego property management cost? This blog by 33 Property Management will explore what services are typically covered in management fees.
How do Fees Work?
Every property management company is different, therefore, it’s vital to look into all the services they offer and pricing plans. Generally speaking, management fees will come out of a percentage of the monthly rent.
The percentage will, however, depend on the size of the property, location, and number of tenants living in the building. Some companies will also charge a flat rate for a standard list of services with an option for add-ons.
Before hiring a property management company, make sure to assess your rental’s needs, investment goals, and budget. These will help you find a management partner that aligns with you.
Different Management Fees and Services Landlords Need To Be Aware Of
Here are some of the management fees and services that a professional company could offer:
Initial Setup
Most property management companies charge rental property owners this fee. The fee covers the administrative costs associated with establishing the management agreement.
In addition to paying a fee, you may also need to provide the property manager with the property’s ownership documents, insurance policy, and tax documents.
General Property Management Fee
This fee goes towards handling the day-to-day management responsibilities.
The activities include the following:
- Responding to requested repairs from residents.
- Inspecting the unit per the terms of the lease.
- Handling the back-and-forth communication with residents.
- Collecting rent and handling late payments.
- Filing taxes when that season comes.
- Drafting a proper rental agreement that abides by the federal, state, and local landlord-tenant laws.
- Enforcing all terms of the lease, such as imposing late rent fees.
- Evicting residents who fail to abide by the terms of the rental agreement.
Many professional property management companies will have a dedicated page listing all their general services. This will make it easy for you to know what kinds of services are in a standard management packages and what would be an added cost.
Advertising
The fee goes towards marketing a vacant rental unit in San Diego. Professional property managers will:
- Stage the home to ensure it looks its best.
- Take high-quality photos of the home.
- Write a detailed description of the property.
- Syndicate the ad to multiple platforms for maximum reach.
The ultimate goal is to ensure that the ad is seen by as many prospective residents as possible. This can help maximize the chances of landing the right resident in the shortest amount of time.
Resident Screening
A good property manager will help you land tenant who pay rent on time, respect the terms of the lease agreement and properly care of their rented premises.
They can achieve through a diligent and fair tenant screen process, which typically includes checking for proof of employment, pay stubs, previous landlord references, and credit reports.
Professional property management companies can ensure the screening as well as any other service offered aligns with local and federal Fair Housing Laws, further protecting your rental business.
Lease Renewal Oversight
Experienced property managers understand the benefit of keeping vacancy costs low for optimal ROI. As such, some property managers may also charge you the cost of re-signing a lease with a current resident.
The property manager will also ensure that the resident understands all their responsibilities under their lease before they can sign it. This is essential in minimizing potential conflicts and protecting cash flow.
Maintenance and Repairs
Regular rental maintenance is key to the success of your rental property. A property manager can help do this on your behalf.
This fee is usually seen a service charge for any repairs and maintenance work the property manager has handled. The fee can change depending on the exact nature of the maintenance work they are handling.
Property Inspections
The inspection fee goes towards ensuring the property remains fully compliant with all applicable health, safety, and building codes. Generally speaking, property managers usually inspect rental properties at 4 key points:
- When the resident is first moving in.
- After the seasons change.
- When driving by.
- After the resident moves out.
The goal is to ensure the rental unit remains safe and comfortable for residents for multiple lease renewals. These inspections also provide managers with an opportunity to ensure that tenants are respecting the terms of lease agreement and respectfully remind them of their responsibilities.
Bottom Line
When calculating the cost of professional property management you need to consider factors, such as the property’s location, square footage, and number of units, among others.
Every property management company and service plans are different, so it’s important to do thorough research to find one that aligns with your investment goals and budget.
If you own a rental property in San Diego and would like to get an accurate quote, look no further than 33 Property Management. With over 20 years of San Diego real estate experience, you can trust us to effetely manage your rental properties. Get in touch to get started!
