Property Management Fees California

Curious about rental property management fees? California landlords, you’ve come to the right place. We know what you’re thinking: property management involves a lot of work, and you’re wondering how much it would cost to get your time back.

That starts with understanding that there are many different types of fees. Some California companies offer flat-rate options that simplify budgeting and planning. However, most property managers charge a wide range of costs for their services. Working with companies like these makes it more challenging to determine the total monthly expenses.

In this TurboTenant guide, we’ll break down the average property management fees California landlords can expect when shopping for a property management company.

Common Costs 

 

Many companies charge the same property management fees. California landlords should know that these fees vary by location. From San Francisco to Sacramento and beyond, different cities have different average property management costs.

When you select a property management company, they’ll usually charge you an initial setup fee between $300–$500. Following that, a monthly management fee is applied, along with additional charges based on the services provided.

Here’s a breakdown of what landlords can expect to pay for property management fees (California-specific):

Monthly Management Fees

While some property management companies offer a flat fee, most charge landlords a percentage of the monthly rent. Monthly management packages vary by company, but they usually include day-to-day operations, including:

• Tenant communications
• Rent collection
• Lease management
• Administrative tasks
• Move-in/move-out checklists

Tenant Placement

Filling vacancies is one of a rental property manager’s most important responsibilities. Tenant placement service includes finding, screening, and securing a qualified tenant for your listing. Property managers handle the following:

• Advertising the listing
• Showing the property (tours and open houses)
• Conducting background checks
• Preparing the lease agreement

Property managers handle all renter communications, so you don’t have to worry about the back-and-forth. Tenant placement is typically charged as a percentage of the rent or as a flat fee.

Annual Inspection Costs

Inspecting your units once a year is a great way to catch developing wear and tear before it turns into a bigger issue. Inspection fees in California range from $100 to $200. Property managers take care of:

• Annual safety and unit condition inspection
• Move-in/move-out inspections
• City-mandated inspections

Maintenance

When maintenance is needed, property management companies hire a contractor for repairs and charge a markup fee on the vendor’s invoice. Common markup fees for maintenance typically range between 5% and 10%, although fees may vary by company. Property managers charge it because it compensates them for coordinating and overseeing the repair.

Lease Renewal

When an existing tenant decides to renew their lease in your unit, property managers typically charge a lease renewal fee. This charge may be a percentage of the rent, but in California, it’s usually a flat fee between $150 and $350. It covers the paperwork and any updates to the rental agreement.

Eviction Costs

No landlord wants to deal with evictions, but when they happen, having a property management company to handle the added tasks can come in handy. Most property managers charge a flat fee for evictions plus court costs. It pays for the time required to submit paperwork, attend court, and manage the eviction process.

Vacancy Charges

Although it’s technically the property management company’s responsibility to fill a vacancy, most property managers charge landlords a fee if a unit remains vacant. Vacancy fees typically range from $50 to $100 per month.

While this fee may seem like a head-scratcher, it covers the additional work required to manage a vacant unit. To maintain the rental property, the manager needs to:

• Monitor the property to make sure there aren’t any emergencies (like water leaks or security issues)
• Keep the property in a clean, well-maintained condition

Costs in Popular California Cities

Property location is a key factor determining property management fees. California landlords, here’s what rental property management prices look like across different cities in The Golden State.

San Francisco / Bay Area

• Monthly management: 6%–10% of the monthly rent
• Tenant placement: 50%–100% of one month’s rent
• Maintenance: 10%–15% of vendor cost
• Eviction: $500–$1,000 plus court costs

San Jose

• Monthly management: 7%–12% of the monthly rent
• Tenant placement: 50%–100% of one month’s rent
• Maintenance: 5%–10% of vendor cost
• Eviction: $500–$600 plus court costs

Sacramento

• Monthly management: 7%–10% of the monthly rent
• Tenant placement: 25%–100% of one month’s rent
• Maintenance: 5%–10% of vendor cost
• Eviction: $500 plus court costs

San Diego

• Monthly management: 8%–12% of the monthly rent
• Tenant placement: 50%–100% of one month’s rent
• Maintenance: 10%–15% of vendor cost
• Eviction: $500–$600 plus court costs

Los Angeles

• Monthly management: 8%–12% of the monthly rent
• Tenant placement: 50%–100% of one month’s rent
• Maintenance: 5%–15% of vendor cost
• Eviction: $500–$1,000 plus court costs

The Final Word

Hiring a property management company entails several costs. There’s a monthly management fee that’s usually based on the rent, plus additional charges depending on your provider and package. We hope this guide helps you understand what to expect when you hire a property manager in California.

Not sure you’re ready to take on the cost of property management fees? California landlords should consider self-managing their rental units with TurboTenant — for free.

Sign up to access landlord software that streamlines property management. It makes everything from listing marketing to tenant screening, rent collection, and maintenance fast and easy.

California Property Management Fees FAQs