Which management company is actually cheaper: the one charging 6% or the one charging 8%? On the Peninsula, where a single month’s rent can run well into four figures, the answer depends on what sits behind each number, and it’s rarely the headline percentage alone.
Start With the Fee Types, Not the Rate
Most pricing combines several charges: a monthly management fee, usually a percentage of collected rent, plus a leasing fee for placing a tenant. Many companies add a lease renewal fee, an onboarding or setup fee, inspection fees, or a markup on maintenance invoices. Two companies can quote very different monthly percentages and still land close together once every charge is counted, or the reverse. Until you know which charges exist, you can’t compare anything.
Run the First-Year Math
Here’s a hypothetical, not any company’s actual pricing. On a $4,000 rental occupied all year, Company A charges 6% monthly plus a leasing fee equal to one month’s rent. That’s $2,880 in management fees plus $4,000, or $6,880 in year one. Company B charges 8% with no leasing fee, which comes to $3,840. The lower percentage turned out to be the more expensive company. In a year with no new tenant placement, though, Company A would cost $2,880 against Company B’s $3,840, so the comparison flips. Model both a turnover year and a no-turnover year before deciding.
Ask Every Company the Same Questions
Is there a markup on maintenance invoices, and how much? Is the management fee charged while the home is vacant? What does a lease renewal cost? Are inspections or year-end tax documents billed separately? What does it cost to leave? Getting identical answers in writing from each company is the only honest way to compare, since a verbal answer on a sales call is easy to forget and hard to enforce. Our owner FAQs page is a good place to see how we answer common questions about the process.
Weigh What the Fee Actually Buys
Price matters, but so does what comes with it: marketing quality, screening depth, maintenance response, and how clear the monthly statements are. A slightly higher total can be the better value if it means fewer vacancy days, since one extra week of vacancy on a $4,000 rental costs about $920 in lost rent. A fee schedule that looks like a bargain can quietly cost more than a higher one that fills units faster and keeps maintenance moving.
Putting the Numbers Side by Side
Build a simple table with each company’s charges in the same rows, then fill in a turnover year and a no-turnover year. Whichever company holds up best across both is usually the better fit. To see how a fee schedule reads when it’s laid out plainly, start with our San Mateo property management page.
