When considering whether to hire a property manager, the cost of property management is a key concern. This article breaks down the types of fees you might encounter when hiring a property management company for residential units in Santa Cruz, California.
California real estate is renowned for its investment potential, with 44% of households being tenant-occupied. Rental properties are a popular choice for passive income among families and investors. However, while owning rental property is relatively straightforward, managing it can be daunting. Handling tenant issues 24/7, complying with local laws, managing leases, and collecting rent can be overwhelming for landlords.
To alleviate this, many property owners seek professional assistance. Although property management incurs costs, the time and effort saved can outweigh these expenses significantly.
If you’ve decided to hire a property management company, your first question might be, “How much does property management cost?”
Here, we explore the fees involved and what services they cover when hiring a property manager in Santa Cruz.
Typical Fees Charged by Property Management Companies
The table below provides a general overview of the common fees associated with property management in Santa Cruz:
Fee | Average Cost in California | Andren Homes Price |
Initial Setup Fee | $300-$500 | Free |
Property Management Fee | 7-10% of monthly rent | 7-8% of monthly rent |
Tenant Placement Fee | 50%-100% of one month’s rent | $595 |
Lease Renewal Fee | $150-$300 | $195 |
Maintenance Fee Markup | 2-10% of maintenance cost | None |
Annual Inspections | $100-$200 | $150 |
Eviction Fees | $600-$1200 | Up to $1200 covered |
Vacancy Fee | $50-$100 | None |
For more details, visit Andren Homes' services and pricing page.
Understanding Specific Fees
Initial Setup Fee
This one-time fee covers the paperwork and processes needed to establish your account. In Santa Cruz, companies might charge $300-$500 for this, but Andren Homes does not charge an initial setup fee.
Property Management Fee
The management fee is typically a flat percentage of the monthly rent, ranging from 7-10% in Santa Cruz. At Andren Homes, the fee is 7% for properties with 5-15 units and 8% for 1-4 units.
What’s Included?
Services usually cover rent collection, direct deposits, tenant maintenance support, customer service, accounting, property evaluations, and more.
Tenant Placement Fee
This fee covers the preparation and leasing of your property, including marketing and tenant screening. Andren Homes charges a flat fee of $595.
Miscellaneous Fees
Lease Renewal Fees: $150-$300, with Andren Homes charging $195.
Maintenance Fees: Some companies add a markup to maintenance costs, but Andren Homes does not.
Annual Inspection Fees: Usually $100-$200.
Eviction Fees: Costs can reach $1200, but Andren Homes covers this for tenants they placed.
Vacancy Fees: Rarely charged but could be $50-$100. Andren Homes does not charge this fee.
Conclusion
While the exact cost will vary based on the number of properties, you can expect to spend around $2,000 per year for property management in Santa Cruz. Each company’s unique services and expertise will play a role in choosing the right partner for managing your rental property.
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Logan Andren
Logan Andren is the founder and CEO of Andren Homes Property Management. Since launching the company, Logan and his dedicated team have simplified the rental property experience for numerous Santa Cruz homeowners. Their mission is to enhance the lives of their clients and community, focusing on providing exceptional service and fostering lasting relationships. DRE #02002055
Get in touch with us:
✆ : (831) 291-5043
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