How Much Do Property Management Companies Charge in San Francisco, CA?

Understanding Property Management Fees

Property management fees are charges that property owners pay to professional management companies for the maintenance and operation of their properties. These fees cover a variety of services including:

• Rent collection
• Tenant location and screening
• Property Marketing
• Maintenance and repair coordination
• Legal support

The cost of property management fees can be influenced by several factors:

• Location - A competitive market can often dictate higher fees.
• Property Size - Larger properties typically incur more substantial fees due to increased maintenance and operational responsibilities.
• Services Required - Extra services like comprehensive maintenance or legal support can increase the overall cost.

Types of Fees Charged by Property Management Companies

Property management companies typically charge a variety of fees for their services. Here's a brief overview:

• Setup Fees: These are initial charges for starting services with the company. They generally cover the cost of setting up your account and integrating your property into their management system.
• Monthly Management Fees: This is an ongoing monthly charge for the regular management of your property. It usually includes rent collection, tenant communication, and routine property inspections.
• Leasing or Placement Fees: These fees cover finding and placing new tenants in your property. It can include advertising costs, tenant screening, and lease preparation.
• Maintenance Fees: These are charges for the upkeep and repair your property. They can be fixed charges or based on the actual cost of repairs.
• Eviction Fees: If a tenant needs to be evicted, this fee covers the cost of the eviction process, including legal expenses.
• Early Termination Fees: If you decide to end your contract with the management company before the agreed period, you may be charged an early termination fee.

Each of these fees contributes to the overall property management company charge and may vary based on location, property size, and the specific services required.



Average Costs of Property Management in San Francisco

Setup Fees

In San Francisco, setup fees typically range from $0 to $500. This fee varies depending on the number of units being managed.

Monthly Management Fees

On average, property management companies in San Francisco charge between 4% to 12% of the monthly gross rent for this service. The exact percentage often hinges on the property size and the services included.

Leasing or Placement Fees

Generally, the leasing fee is equivalent to 50% to 100% of one month's rent. This fee covers the cost of finding and securing a new tenant.

Maintenance Fees

These fees often depend on the actual repair costs, but some companies may charge a fixed rate or a percentage of the repair cost.

Eviction Fees

If eviction becomes necessary, the process could cost anywhere from $500 to $1,000, depending on the complexity of the situation.

Early Termination Fees

This fee can range widely, but it often equals 2 to 3 months of the monthly management fee.

When compared to national averages, the property management fees in San Francisco tend to be on the higher end due to the city's competitive real estate market and high cost of living.