March 21, 2022

Understanding Property Management Fees in Contra Costa County

Written by Wolfgang Croskey, Broker of Record, California DRE #01708438

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 bundled with add-on leasing, renewal, setup, and coordination charges. The goal of this guide is not to tell you a low fee is bad or a high fee is good. It is to help you compare proposals fairly, so the number you sign up for is the number you actually pay.

At a glance

  • The monthly management fee is one piece; leasing, renewal, setup, and markups can matter just as much.
  • A very low headline rate often signals more add-on fees, not a cheaper year.
  • Ask for every fee in writing before comparing companies side by side.
  • Croskey publishes flat plans (Core Peace of Mind at 8%, Total Hands-Off at 12%) with no renewal or setup fee.

The fees you should ask about

Most management proposals draw from the same menu. Knowing the menu makes comparison easy:

| Fee | What it is | What to ask | |---|---|---| | Monthly management | Usually a % of collected rent | Is it on rent due or rent collected? | | Leasing / placement | Charged to place a tenant | 25%, 50%, 100% of a month, or a flat fee? | | Renewal | Charged when a tenant re-signs | Is there one at all? (Croskey: no) | | Setup / onboarding | To open your file | Is it waived? (Croskey: yes) | | Maintenance markup | Added to vendor invoices | What %? Is it disclosed in the agreement? | | Ancillary | 3-day notices, e-pay, statements | Which everyday actions cost extra? |

Why the headline rate can mislead

Companies that advertise a very low monthly fee often make it up elsewhere. A leasing fee of a full month's rent, a renewal fee every year, and a markup on every repair invoice can quietly add up to more than a slightly higher flat rate with none of those charges.

A quick example. On a $2,600 rental, a "6%" company that also charges a full-month leasing fee and a 10% maintenance markup can easily cost more in a turnover year than an "8%" company that charges no leasing or renewal fee. The only way to know is to run the whole year, not the headline number. For what California law actually allows on repair charges, see Can Property Managers Charge for Maintenance?

Do not confuse fees with reserves

One thing that is not a fee: your reserve. Reserves fund your trust account so money is available if something breaks between rent cycles. That is your money working for your property, not a charge for a service. Keep it separate in your head when you compare proposals.

Two fair points of view on price

Here is where we try to be even-handed. A lower-fee, more self-service model can genuinely be the right fit for a hands-on owner who wants to stay closely involved and only needs the essentials. And a higher, all-inclusive flat fee can be the better value for an owner who wants fewer invoices, no surprise line items, and someone else carrying the day-to-day. Neither is the smart choice in the abstract. The smart choice is the one whose total annual cost, and level of involvement, matches how you actually want to own the property.

At Croskey, we chose flat, published plans with no renewal or setup fee because it makes that comparison honest, and because we would rather keep good tenants than profit from turnover. That is our model, not a verdict on everyone else's.

FAQ

What is a typical property management fee in Contra Costa County?

Monthly management commonly runs from roughly 6% to 12% of rent, but the all-in cost depends heavily on leasing, renewal, setup, and markup fees layered on top.

Is a lower management percentage always cheaper?

Not necessarily. A low monthly rate paired with a full-month leasing fee, annual renewal fees, and repair markups can cost more over a year than a higher flat rate with none of those.

Does Croskey charge a renewal or setup fee?

No. Croskey's Core Peace of Mind (8%) and Total Hands-Off (12%) plans include no renewal or setup fee.

What is a maintenance markup?

An added percentage on vendor invoices to cover coordinating the work. It is legal in California when it is clearly disclosed in your management agreement.

Compare the real number

To compare an apples-to-apples figure for your property, see Croskey's property management pricing or contact us and we will walk through a full-year estimate with you.

Give us a call. We will be glad to help.

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