When it comes to San Diego property management fees, real estate investors can expect to pay either a flat fee or a percentage of the rent that’s collected. The fees vary based on the company you choose and the services you need for your investment properties.
RentSimpli is a full-service, San Diego property management company also serving Riverside Counties with a specialty focus in the Temecula Valley and Murrieta areas. We have worked with both flat fee and percentage-based pricing models, and we have found that the percentage-based property management fees generally seem to work better. Today, we’re explaining why and what we charge for our services.
Flat Fee vs. Percentage-Based Fees for Property Management in San Diego
A flat fee may sound like it’s easier for owners. You’ll know that you’re paying the same amount every month, regardless of whether your home rents for $1,000 or $4,000. That may be true, but you want your San Diego property management company to help you earn as much rent as possible on your investment property. There’s obviously more of an incentive to bring in the highest rents possible when compensation is tied to the amount you’re earning.
A percentage-based fee is more transparent for our owners and investors. You’ll see what was deducted from every rent payment, and you’ll know that this fee includes everything from leasing to management to maintenance with no mark-up.
All-Inclusive Fees vs. Additional Fees
When real estate investors pay a percentage of the collected rent for professional San Diego property management, they know that they’re paying a single commission on all the services they expect and receive from their property managers.
With a flat fee, you’re really only paying for the basics. It’s easy for property managers to add onto that flat fee with extra costs for things like:
- Leasing and screening tenants
- Advertising a property online
- Paperwork and administrative costs
- Account set-up fees and technology charges
- Property Inspection fees
- Mark ups on maintenance invoices
We have also seen additional fees when notices need to be filed, and extra costs for phone calls and correspondence.
Look for full-service management that comes with simplified pricing. While a flat fee may seem cheaper, it’s only going to add up to more costs if it’s not all-inclusive.
San Diego Property Management Fees at RentSimpli
Our fee structure at RentSimpli is pretty easy for our real estate investors and owners to follow. We charge a $600 marketing fee. This covers the costs of advertising your property with great pictures, online resources, and showing capabilities. We won’t take half or all of your first month’s rent just to cover the costs of placing a tenant. It’s a simple $600 fee to market your vacant property.
Then, we’ll charge six percent of the rent you earn for monthly management. We don’t charge anything extra when we have to coordinate maintenance, and there won’t be any other hidden fees or surprises when it’s time to receive your rent and review your statement.
This is what has worked well for our investors and owners in San Diego, La Mesa, El Cajon, Chula Vista, Santee, Rancho Bernardo, Escondido, Fallbrook, Temecula, Murrieta. If you have any additional questions about San Diego property management fees, please don’t hesitate to contact us at RentSimpli.