Many owners who are considering professional property management want to know about the fees they can expect to pay, so I thought we would talk a little bit about that today. In San Francisco, most property management companies charge a percentage of the rent they collect as a management fee. The amount varies across the country and it also varies depending on the size and income of your property. At Gordon Property Management, my standard management fee is six percent of the monthly rent I collect on your behalf.
In addition to that monthly percentage, I also charge a leasing fee. The leasing fee is 50 percent of one month’s rent and it covers the costs associated with placing a tenant in your vacant property. Most property management companies in and around San Francisco will charge both a management fee and a leasing fee. The amount of those fees may vary from company to company.
Some management companies also charge a bunch of little fees for services that are not covered by your management or leasing fees. At Gordon Property Management, we do not have those extra fees. However, I do have a small annual fee of $75.00 per building. This is what I call my administrative and technology fee. This amount helps me keep up with all the new developments in the industry and technological advances so I can provide the most up to date service for the owners I work with.
There are also limited circumstances where additional fees are charged. For example, if I have to go to court or appear before the San Francisco Rent Board, there will often be a need to charge the owner for my time and effort. Very rarely I will charge an owner when I oversee major capital improvements. I don’t charge for this very often – it is more for exceptional items like massive deferred maintenance and I always discuss the fee with my clients before imposing a fee.
Basically, that’s it when it comes to property management fees. Make sure you have a good understanding about what you are paying and what services you are getting in exchange for that payment. If you have any questions about different fee structures, or if you are interested in professional property management in San Francisco, please contact us at Gordon Property Management, and we would happy to help you.