When you compare property management companies in Contra Costa County, the monthly management fee is only one line item. Published rates vary widely — and the lowest headline percentage often comes with add-on leasing, renewal, setup, and coordination fees. Croskey publishes current plans on our property management pricing page (Core Peace of Mind at 8% and Total Hands-Off at 12%); this article explains what to ask about so you can compare proposals fairly.
Companies that charge a very low monthly management fee also have a lot of additional charges. You need to know what those additional fees are before you get excited about a low management fee. They might charge a fee to put a **tenant**in the property. This is often called a leasing fee or a placement fee. That might be 25 percent of a month’s rent, or 50 percent or even 100 percent of a month’s rent. Some companies will charge you six percent of a full year’s rent.
When you have a company with a low management fee, you should also look for mark ups on repairs and invoices against the property. They will add two percent to the invoice to cover supervising the improvements to your property.
Ask a property manager if they charge to serve Three Day Notices, if they charge for invoices, and if there is a fee to receive rent electronically. Some companies will charge a renewal fee. When a tenant’s lease expires, that tenant can leave, stay month to month or renew the lease. The process of renewal does take some work, so there might be a renewal fee. At Croskey Real Estate, we do not charge a renewal fee. We are happy to have tenants who want to stay and we don’t like having tenant turnover.
Another fee you might come across is the startup fee. That is basically a payment to get your file started and all your systems in place. We don’t charge this fee at Croskey Real Estate either.
Don’t confuse all these fees with your reserves. Reserves are in place to fund your trust account so there is money to take care of any problems you may have in the middle of the month. If something breaks between rent cycles, you want to know there are funds to cover the repair.
When you’re comparing management proposals, make sure you know what is included and what comes with an extra charge. For Croskey’s published Core Peace of Mind (8%) and Total Hands-Off (12%) plans, see our property management pricing page — or contact us with questions.
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