To compare property management proposals, estimate what each would cost over a full year, not just the monthly management fee. Add leasing and renewal charges, recurring account fees, and any maintenance markup or coordination fee. Then ask what services each charge includes and when it applies. This gives you a more useful comparison than a low headline rate, and helps you budget for both an occupied year and a tenant turnover.

Build an Annual Cost Comparison

Start with a fee schedule from each company. For every charge, record the amount, what triggers it, how it is calculated, and whether it is recurring or one-time. If a proposal uses percentages, ask what amount the percentage applies to, such as rent collected, rent due, or a vendor invoice.

Use the same assumptions for every proposal. For example, compare one year with a continuously occupied unit, then a second scenario that includes one new lease. This makes leasing charges visible rather than burying them in a monthly estimate.

  • Ongoing management: Monthly flat fee or percentage, and the basis for calculating it.
  • Leasing: Marketing, tenant placement, or lease preparation charges, including whether they are separate.
  • Renewals: Any charge for preparing or signing a renewal, and whether it applies to every extension.
  • Maintenance: Vendor costs, in-house labor, coordination charges, markups, and approval thresholds.
  • Other services: Inspections, notices, accounting, or work after a management agreement ends.

Ask for vague phrases such as “as needed” or “additional services” to be explained in writing. California’s Department of Real Estate advises landlords to review the agreement, check how additional charges such as markups or accounting are handled, and understand how repairs are expensed.

Run the Numbers With a Hypothetical Example

Consider a made-up example, not a statement of typical Los Angeles pricing. Suppose a rental collects $2,400 per month, the management charge is 8% of collected rent, a new lease costs half a month’s rent, and a renewal costs $300. Add a $15 monthly account charge and a 10% markup on $3,000 of contractor work.

  • Management: $2,304 for 12 months at 8% of $28,800 collected.
  • New lease: $1,200, if the unit needs a new tenant that year.
  • Renewal: $300, if the agreement’s renewal charge applies.
  • Account charge: $180 for 12 months.
  • Maintenance markup: $300 on the assumed $3,000 of work.

In this example, the total is $4,284 before the underlying repair invoices. The actual annual total depends on the contract and what happens at the property. The point is to compare equivalent scenarios: an occupied year, a turnover year, and a year with a higher repair bill. Change the assumptions to fit your building and ask each company to confirm the calculation.

Clarify Maintenance Before Approving Work

A repair cost can include more than the contractor’s invoice. Ask whether the manager adds a markup, charges separately to coordinate a vendor, uses in-house maintenance labor, or receives compensation from an affiliated business. Find out whether estimates are provided before work begins, what dollar amount requires owner approval, and what happens in an emergency.

For each proposed charge, request a simple breakdown: work description, labor and materials, vendor invoice, management or coordination charge, and total amount billed to the owner. If you are unsure about a repair estimate, use these steps for checking a rental property vendor invoice to compare the approved scope with the final bill.

Also ask how the manager records credits, warranties, refunds, and repeat visits. A clear process helps you distinguish the cost of the repair from the cost of managing it, and makes it easier to review a residential property management service proposal on its actual scope rather than its headline rate.

Review the Agreement and Ask for a Written Answer

Before signing, compare the proposal with the management agreement and any fee addendum. Confirm the start date, cancellation terms, charges that continue after termination, and whether fees can change during the agreement. California’s Department of Real Estate recommends reading the agreement carefully and reviewing the accountings you receive. If a clause is unclear or a fee is disputed, consider asking a qualified California real estate attorney for advice.

Suave Management states that it does not charge setup or lease-renewal fees, and that its owner charges are the management and leasing fees. For contracting work, the company says it will communicate prices beforehand. Owners should still ask for the exact fee schedule and maintenance approval process for their property in writing, so expectations are clear before work or leasing begins.

Your next step: ask each manager to show the estimated annual total for the same three scenarios, then compare both the numbers and the services included. A transparent proposal should let you understand what you will pay, why you will pay it, and when you can expect the charge.