What is the average fee for a property management company?

What Is the Average Fee for a Property Management Company?

If you’re a new or accidental landlord, one question that’s always top of mind is: How much is this going to cost me? Here are the answers, backed by data from the Inland Empire (Riverside and surrounding cities), and how WSR Real Estate compares.

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1. What is the typical monthly management fee?

This is the recurring fee property management companies charge to handle the day-to-day operations: rent collection, tenant communication, maintenance coordination, etc.

• Riverside = ~ 7-10%

• Corona = ~8-10%

  • Similar (~8–10%) in many full-service providers

• Chino = ~8-12%

  • Data is less specific, but Chino generally falls in line with Inland Empire norms of ~8-12% depending on services required

• Redlands and Loma Linda Property Management = ~10-12%

  • Slightly higher on average in smaller or more rural adjacent cities when full-service, often closer to 10-12% if a lot of value (maintenance, vendor coordination, etc.) is included

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2. What is the state-of-California average?

Across California, data shows:

• Management fees often run 6-10% of rent in many areas, depending on property type and level of service.

• For full service (including more extensive vendor coordination, 24/7 emergency response, etc.), the rate often creeps upward.

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3. Where does WSR Real Estate fall among these averages?

• WSR charges 8% of collected rents for full-service property management.

• That places Team Gibson @ WSR Real Estate just slightly below market for full-service in many Inland Empire cities (especially when those full service packages are including many add-on services).

• The value WSR delivers—through long tenant retention, transparent fees, no unexpected add-on for renewals or onboarding, etc.—makes this rate very competitive and appealing for landlords who want reliability and fewer headaches.

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4. What other fees should landlords expect?

• Tenant Placement / Leasing Fee

  • What Many Local Companies Charge:

    • Often 50-100% of one month’s rent or more in full service firms. Sometimes flat fee depending on market.

  • Team Gibson @ WSR Real Estate charges

    • $500 flat fee regardless of rent amount.

• Lease Renewal Fee

  • What Many Local Companies Charge

    • Many companies charge around $150-$300+ per renewal.

  • Team Gibson @ WSR Real Estate charges

    • WSR does not charge lease renewal fees.

• Setup / Onboarding Fee

  • What Many Local Companies Charge

    • Common in many management companies; can range from $200-$500 or more.

  • Team Gibson @ WSR Real Estate charges

    • WSR does not charge a setup or onboarding fee.

• Maintenance Markups / Vendor Fees

  • What Many Local Companies Charge

    • Some mark up contractor invoices, charge for coordinating, etc. Typical 5-10% markup or coordination fee in many areas.

  • Team Gibson @ WSR Real Estate charges

    • WSR uses in-house staff and outside contractors; contractors may pay a 10% marketing fee, but you are informed, and no hidden markup outside that arrangement.

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5. What factors cause variation in fees?

Several different elements affect how high or low fees can be:

1. Level of service included

• Basic (rent collection, tenant communication) vs. full service (maintenance, legal, emergency responses, inspections).

• More services → higher fees.
  

2. Property type and condition

• Single-family homes tend to cost more (as a percent) because turnover / maintenance burden can be higher relative to rent.

• Multi-unit properties sometimes get discounts due to economies of scale.
  

3. Location

• Cities like Riverside, Corona have more competition among PM companies → tends to push rates a bit lower.

• Smaller or more outlying cities may have fewer high-quality PMs, fewer vendors, more travel, etc., which can raise costs.
  

4. Tenant turnover & tenant retention

• If tenants stay longer, you avoid frequent placement/leasing costs.

• Team Gibson @ WSR Real Estate has many tenants staying 5-15 years, which lowers your turnover and costs.
  

5. Reputation, experience, and reliability

• Companies with long history or strong track records tend to charge more because owners are paying for less risk.

• Many of WSR's owner-clients have stayed for 10+ years; some over 20 years. That kind of longevity shows value, trust, and consistent performance.
  

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6. Case Studies

Here are a few mini case studies to see how this plays out in real-life scenarios:

Case Study A: Single-Family Home in Riverside

• Rent: $2,200/month

• Local PM quote: ~10% + $1,100 lease placement (i.e. if the property turns over annually)

• WSR: 8% of $2,200 = $176/month = $2,112/year; placement fee $500 when needed. Over a 5-year span with low turnover, WSR’s structure saves the owner several hundred to over a thousand dollars.
  

Case Study B: Duplex in Corona

• Rent total: $2,800 for both units ($1,400 each)

• Other full-service firms charge ~9-10% because of vendor coordination, etc.

• WSR charges 8% = $224/month, with placement fee $500 when needed. Because tenants stay long term, those placement fees are less frequent—thus lowering overall cost.
  

Case Study C: Smaller Portfolio Owner in Redlands / Loma Linda

• Owner has 5 single-family properties, average rent $2,500 each.

• If PM charges 10–12%, that’s $1,250-$1,500/month in management fees.

• With WSR at 8%, that’s $1,000/month—a savings of $250-$500 per month, multiplied over years. Add long-term clients and fewer unexpected fees = increased net ROI.
  

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7. What is “fair” vs. what is “cheap but risky”?

• Fair rate = reasonable percentage for full-service including maintenance coordination, screening, vendor markups if any, transparency in contracts, long-term stability.

• Cheap rate may seem appealing, but often comes with trade-offs: fewer included services, higher lease renewal or placement fees, low vendor quality, hidden markups, poor communication, etc.

• WSR aims to be fair: 8% of collected rent, flat placement fee of $500, no renewal or onboarding fees, transparency in maintenance. Because many clients have been with us for 10-20+ years, and many tenants stay 5-15 years, we clearly deliver value in a sustainable way.
  

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8. Bottom Line: What Should You Expect & What to Ask Before Signing

Here’s what to look for and what to ask:

1. Expect around 8-12% for a full-service property manager in Inland Empire cities when everything (maintenance, legal, vendor coordination) is included.

2. If you see lower (6-7%), check what’s excluded.

3. Ask directly:

   1. What is included in the monthly management fee vs what services incur extra fees?

   2. What is your tenant placement (leasing) fee?

   3. Are there lease renewal or setup/onboarding fees?

   4. How are maintenance costs handled—vendor markups? In-house?

   5. Contract terms: early termination, services differences, response times.

4. Always compare at least three local management companies while using the same property profile (rent amount, condition, amenities) so you can see apples to apples.

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9. How WSR Real Estate Compares

To summarize WSR’s model (which you can use as a benchmark):

• Monthly Management Fee: 8% of collected rents (slightly below what many full-service firms charge in Inland Empire, especially for high-service packages).

• Tenant Placement Fee: Flat $500.

• Lease Renewal Fee: None.

• Onboarding/Setup Fee: None.

• Maintenance / Vendor Coordination: Both in-house staff and outside vetted contractors; contractors may pay marketing fees, but there are no surprise markups.

• Early Termination Fee: Included in contract, but WSR has never enforced it. (if you are not happy we are not happy)

Couple that with WSR's track record: many tenants stay 5-15 years, many owners stay with WSR 10-20+ years. That demonstrates value, stability, and a relationship-focused business rather than just “low price.”

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If you use this as your benchmark, you’ll be well-positioned to evaluate management offers, understand what’s fair, and choose a property manager whose fees reflect their value—not just their bottom line.

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