How Much do Property Management Companies Charge in Sacramento, CA?

How Much Do Property Management Companies Charge?

In the  world of real estate investment, navigating the costs associated with property management can feel like deciphering a complex puzzle. Property management companies play a crucial role in maintaining, marketing, and managing rental properties on behalf of landlords. 

However, understanding how these services are priced and what factors influence those prices is essential for both new and seasoned investors. This guide aims to demystify the often-confusing landscape of property management fees, offering insights into what you can expect and how to make informed decisions about your investment.


What Factors Influence the Cost of Property Management Services?

The cost of property management services is influenced by several key factors, including the location of the property, the size and condition of the building, the level of service required (e.g., full management vs. partial), and the market rates for such services in your area. Additionally, the complexity of tenant issues, the frequency of maintenance needs, and the property’s vacancy rate can also affect the overall cost.

Here at Sacramento PMG, we charge 8%-10%, depending on the level of service and how many properties you are looking to rent with us. We are a full-service property management company, and we don’t have any hidden fees. This flat monthly charge covers everything from inspections, getting bids for repairs, maintaining communication with the tenants, collecting rent and more! Find out by reaching out to George – 916-742-0030

Are There Any Upfront Fees for Hiring a Property Management Company?

Yes, many property management companies charge an upfront fee, often referred to as a setup or administrative fee. This fee typically ranges from $200 to $500 and covers the initial costs associated with setting up the property for management, such as creating lease agreements, conducting background checks on prospective tenants, and preparing property listings for marketing.

Here at SacramentoPMG, we don’t ask for any upfront fees. We have a business model where we take 50% of first month’s rent for placing a tenant in your rental property, and then we just have our flat monthly fee that covers everything else. You will find that by choosing SacramentoPMG – you are choosing a company that has integrity and every dollar counts! 


What Is the Average Monthly Fee for Property Management Services?

The average monthly fee for property management services can vary widely depending on the factors mentioned earlier. Generally, you might expect to pay anywhere from 5% to 10% of the gross rental income per month. For example, if your property generates $2,000 in rent each month, you could be looking at a monthly management fee ranging from $100 to $200.

Our fee ranges from 8%-10%, as we are a full service property management company. We do everything from finding tenants, routine inspections, tenant maintenance request management and more! Interested in learning more? Reach out to George- 916-742-0030

Do Property Management Companies Charge for Maintenance and Repairs?

Typically, property management companies will handle routine maintenance and repairs as part of their service package. However, they may pass along the actual costs of major repairs or replacements to the landlord. It’s important to clarify this in your agreement to avoid unexpected expenses.

Here at Sacramento PMG, we do not charge any fees on top for maintenance requests. We take multiple bids and help you find the best price – and project manage the job to ensure it is done properly. Get more for your investment by choosing Sacramento PMG! 


Are There Any Additional Fees I Should Be Aware Of?

Beyond the standard fees, property management companies may charge additional fees for services such as lease renewals, late payment processing, and legal services. Some companies may also charge a percentage of the collected rent as a commission. Always review the fee structure carefully to understand all potential costs.

Here at SacramentoPMG, our owners enjoy no extra fees! However, there are some tenant fees to be aware of. Based on the lease agreement, there might be late rent payment fees, or damage fees (outside of normal wear and tear). 


Can I Negotiate the Fees with a Property Management Company?

Negotiating fees is possible but depends on the company’s policies and the terms of your agreement. It’s generally a good idea to discuss your budget and expectations upfront to see if there’s room for negotiation.

Here at SacramentoPMG, we believe we find fair prices for our rentals, but we encourage tenants to reach out and offer a price for the rentals we have. This allows us to present multiple options to our owners. All vacancies are filled on a first come first served basis – as long as minimum requirements are met. 


Do I Still Pay Property Management Fees If My Property Is Vacant?

This varies by company policy. Some charge a reduced fee or no fee at all for vacant units, while others may require a minimum monthly fee regardless of occupancy status. It’s important to clarify this in your contract.

At Sacramento PMG, we do not charge a fee when your property is vacant. We are motivated to rent your property for a market-competitive rate and ensure we find you quality tenants that want to stay long term. 


Will I Receive a Breakdown of the Fees and Charges?

A reputable property management company should provide a detailed breakdown of all fees and charges in writing. This includes monthly management fees, any additional charges for services rendered, and itemized maintenance and repair costs.

This is exactly what you can find with us here at SacramentoPMG. Our rates are 100% transparent, and you will know where every dollar goes! 


Is There a Minimum Contract Length for Property Management Services?

Contract lengths can vary, with some companies requiring a minimum commitment of six months to one year. It’s important to read the fine print to understand the terms of your agreement.

SacramentoPMG offers different lengths of contracts based on client requests. There at 6-month leases available, 1 year leases available, and sometimes even longer upon request. 


Are There Different Pricing Options Available for Self-Managed Versus Full-Service Property Management?

Yes, pricing options can differ significantly based on the level of service required. Self-management options, where the owner handles most aspects of property management themselves but receives assistance from the company for specialized tasks, can be more cost-effective than full-service management.

We are a full-service management company, yet our fees are more competitive than our competitors. 


Will the Cost of Property Management Services Increase Over Time?

While some costs may increase due to inflation or changes in market conditions, it’s possible to negotiate fixed-rate contracts for a set period. Regularly reviewing your agreement and discussing any changes with your property manager can help manage unexpected increases.

Here at SacramentoPMG, you will not see increases in fees. Once you sign a contract with us as an owner, we will lock in that rate. However, in terms of tenant fees –  there are some increases that tenants can expect after their 1-year contract, and that will depend on the market-rates for rentals. 


How Can I Ensure That I Am Getting a Fair Price for Property Management Services?

Comparing quotes from multiple property management companies, understanding the services included in the fee, and negotiating terms that reflect the current market value can help ensure you’re getting a fair price. Additionally, seeking advice from industry professionals or associations can provide valuable insights.

Here at SacramentoPMG, we have a proven process to get you the most competitive rate for your rental property. See why Sacramento chooses SPMG! 


Can I Opt-Out of Certain Services to Lower the Overall Cost of Property Management?

Opting out of certain services can indeed lower costs, but it’s important to consider whether you have the time and expertise to handle those tasks yourself. Balancing convenience and cost-effectiveness is key.

Let’s have a conversation about this! We’re flexible. You can call George  at 916-742-0030


Are There Any Hidden Fees or Charges That May Not Be Included in the Initial Quote?

It’s important to ask about any potential hidden fees upfront. Reputable companies will be transparent about all costs, but it pays to be thorough in your questioning to avoid surprises later.

Here at Sacramento PMG, we do not add any hidden fees! Our contract will state so. 


Is It Common for Property Management Companies to Offer Discounts or Promotions?

Discounts or promotions can sometimes be offered, especially during slower periods or as incentives for long-term commitments. Asking about current offers or discounts can save money.

SacramentoPMG is a reputable company in Sacramento. Typically our fees stay consistent, but it is worth asking! Reach out to us through our contact form, call or email. 


How Can I Compare the Fees and Services of Different Property Management Companies?

Comparing fees and services involves researching multiple companies, considering the scope of services offered, reading reviews, and asking for detailed quotes. Consider the value of the services provided against the cost to determine the best fit for your property.


Are There Any Consequences for Terminating a Contract with a Property Management Company Before the Agreed-Upon End Date?

Termination policies vary by company, so it’s crucial to understand the terms of your agreement regarding early termination. Some companies may charge a penalty or require you to fulfill the remaining term of the contract. Always clarify this in advance.

Here at SacramentoPMG, there are no consequences for terminating an agreement on the owner side. We offer a one year contract, but we are flexible. We work each day to earn your trust! 

Navigating the costs associated with property management requires careful consideration and a clear understanding of the services being provided. By asking the right questions, comparing options, and negotiating terms, you can find a property management company that fits within your budget and meets your needs. Remember, transparency and communication are key to establishing a successful partnership with your property management team.