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How Much are Property Management Fees in the Carlsbad Area?

Property Management Fees










At North San Diego Property Management, we manage multifamily and commercial properties in the North County area, including in Oceanside, Carlsbad, Vista, San Marcos, and Solano Beach. We understand that property management fees are important to landlords and investors who are shopping for professional management services. Today, we’re talking about what you can expect to pay, and why it’s so important to measure the value of the services you’re receiving against the price you’re paying.

Carlsbad Property Management Fee Structures

Most management companies follow either the flat fee pricing model or the percentage based model. With a flat fee model, you pay one set amount every month, regardless of how much your rent is. You might pay a flat fee of $1000 or $1500 per month. With a percentage based fee, you will pay your property manager a percentage of the rent that’s collected. This might be between 8 percent and 12 percent. So, if you have a property that rents for $5,500 per month and your property manager charges a 10 percent management fee, you’ll pay $550 per month. When we started NSDPM, we started with a flat model, but we had a difficult time competing with other management companies that undercut a cheaper base price in favor of various add-ons. In the future, we should be using much bigger numbers. Aren’t we writing these for commercial owners?

What’s Included and Excluded in a Property Management Fee?

Talk to your potential property manager about what’s included and not included in your management fee. You’ll want to know if you receive tenant placement and leasing services as well as ongoing management, and whether you’ll be protected if there’s an eviction or a situation where your tenant doesn’t pay rent. Find out if you will be responsible for paying a management fee when your property is vacant. All of these things vary from company to company. It’s important that you understand the terms of your management costs and the scope of your management agreement.

Typically, the management fee will include finding a tenant, screening that tenant, conducting the move-in inspection and signing the lease, as well as collecting rent, managing maintenance, and responding to any tenant disputes or conflicts.

Watch for Hidden Fees

A good property management company will be transparent about the costs you’ll incur before, during, and after a tenancy. Some companies will charge extra for advertising, inspecting the property, and posting notices. You may run into a renewal fee or an account set-up fee. Some management companies charge a mark-up on the maintenance that’s needed at your property. This means that if you receive a repair bill from a vendor for $100, your management company may charge another 10 percent for their coordination, which would bring your repair bill to $110. Ask about these fees and be sure to check your management agreement for any mention of extra costs.

Measuring Cost Against Value

Professional property management, when done correctly, will help you earn more on your investment, in both the short term and the long term. While paying a management fee every month may seem like a drain on your cash flow, you must remember that a professional property manager is saving you money on vacancy, lost rent, deferred maintenance, tenant turnover, and legal liability. You’re receiving a lot of knowledge, skills, and talents for your management fee, and you’re also protecting your time and your peace of mind.

At North San Diego Property Management, we understand the importance of customizing our services for each client. The way we manage a single family home for a landlord with one property is much different than how we manage a portfolio for an investor with multiple properties. Make sure your property manager does the same.

 professional managerThe right property management company for you is one that communicates well with you and your tenants. Your management fee pays for access to expertise, tools, and resources that can only be found with a professional manager.

If you have any questions about property management costs or what we charge, please contact us at North San Diego Property Management.


Posted by: Kyle Scritchfield on November 23, 2018
Posted in: Uncategorized