Short answer: The true cost of property management is the monthly management fee plus every one-time and event-driven fee in the agreement: tenant placement, lease renewals, repair overhead, inspections, setup and eviction coordination. In the Sacramento area, published monthly fees run from flat amounts near $89 to 8% to 10% of rent.
By Gary Burmaster, Realtor and property manager at All Inclusive Realty Group. Updated October 25, 2026.
Most owners compare the monthly number and stop there. That is the line that shows up first in every quote, so it is the easiest to compare. It is also the least complete. The rest of the cost sits in the fee schedule, and it only shows up when something happens: a tenant moves out, a lease renews, a water heater fails, an inspection is due. This guide walks through every piece, shows the math on a sample rental, and ends with the questions that turn a quote into a real number.
What does a property management fee actually include?
The monthly management fee usually pays for the routine work: collecting rent, paying the property's recurring bills, answering tenant calls, coordinating repairs and sending you statements. At All Inclusive Realty Group, our published full-service fee is 8% to 10% of monthly rent, and it covers 24/7 maintenance coordination, rent collection with direct deposit to the owner, eviction coordination, legal compliance, and monthly and year-end financial reporting, with an owner portal for financials, work orders and documents. Owners receive direct deposits by the 10th of each month, with statements four times a month.
Read the included list line by line for any company you are considering. Two managers can both say "full service" and mean different things. One may include move-in inspections and online marketing in the monthly fee. Another may bill each of those separately.
What fees are charged on top of the monthly fee?
These are the fees that create the gap between the quote and the real cost. Expect to see some or all of them in any California management agreement:
- Tenant placement (leasing) fee. Charged when a new tenant signs. It is usually a share of one month's rent. Our published fee is 75% of the first month's rent for full-service clients and 100% of the first month's rent for leasing-only clients.
- Lease renewal fee. Charged when an existing tenant renews. Some companies include it, some charge a flat amount, and some charge a share of one month's rent. Our published renewal fee is 25% of one month's rent.
- Repair overhead or markup. Many managers add a percentage to vendor invoices for coordinating the work. At AIRG, our published maintenance markup varies by vendor, it is outlined in your management agreement before you sign, and every charge shows on your statement.
- Inspection fees. Some managers charge for periodic or move-out inspections. Ask how often they inspect and what each one costs.
- Setup or onboarding fee. A one-time charge to take over a property. Ours is waived for 3 or more units.
- Vacancy fee. A few managers charge while the property is empty. Our vacancy fee is $0, so you only pay the management fee when the property is occupied.
- Eviction coordination. Attorney fees are almost always billed to the owner. Some managers add their own fee for attending court and coordinating the case. Ours varies by case, with attorney fees billed separately.
How do I calculate the true yearly cost on my rental?
Use your own rent, your expected turnover and the published fees. Here is the math on a sample Sacramento home renting for $2,400 a month, using an 8% monthly fee and a 75% placement fee. The numbers are an illustration, not a quote.
| Cost item | How it is calculated | Year one |
|---|---|---|
| Monthly management | $2,400 x 8% x 12 months | $2,304 |
| Tenant placement | 75% of $2,400, once when a new tenant signs | $1,800 |
| Repair overhead | Your repair spend x the overhead rate in your agreement | Depends on repairs |
| Renewal | 25% of $2,400, in years the tenant renews instead of moving out | $600 when it applies |
| Vacancy fee | $0 at AIRG | $0 |
Two things change the picture over several years. First, placement fees only hit when a tenant turns over. A tenant who stays three years means one placement fee in three years, not three. Second, the cost of an empty month is often larger than any fee on the list. At $2,400 a month, every week a home sits empty costs about $558 in lost rent ($2,400 divided by 4.3 weeks). A manager who fills a home two weeks sooner can cover a large share of a year's fees in that one turnover.
Is a flat fee cheaper than a percentage fee?
On the monthly line, a flat fee is often cheaper for higher-rent homes, and a percentage fee is often cheaper for lower-rent homes. For example, Peak Residential publishes an $89 monthly management fee for a house on its own pricing page, and Ziprent publishes $150 per month per unit. A percentage fee moves with your rent, so it rises when rent rises.
The monthly line is still only one line. Flat-fee companies often publish separate fees for placement, renewals and inspections. Peak, for example, lists a placement fee of 40% of one month's rent, a $125 renewal and a $75 inspection for a house on the same page. Compare the full schedule, not the headline.
What costs do owners miss most often?
From managing Sacramento rentals for more than 20 years, these are the ones we see owners overlook when they compare quotes:
- Repair overhead on every invoice. On a year with a roof repair or an HVAC replacement, a percentage on repairs can outweigh the monthly fee. Ask for the rate in writing.
- Who pays for turnover work. Cleaning, paint and rekeying between tenants are usually owner costs. Ask what is included in getting a home rent-ready.
- Cancellation terms. Our agreement carries a 30 to 60 day cancellation notice. Some companies charge a fee to leave or require a longer term. Know the exit before you sign.
- Legal mistakes. In California a rent increase notice must give 30 days for an increase of 10% or less and 90 days for an increase over 10% (Civil Code 827), and many rentals fall under the AB 1482 rent cap (Civil Code 1947.12). A notice served wrong has to be served again, and the increase waits. That delay is a real cost even though no fee schedule lists it.
- Security deposit handling. California caps most deposits at one month's rent (AB 12, in Civil Code 1950.5) and requires an itemized statement within 21 days after the tenant moves out. Deductions that are not documented can be lost.
How do I compare two quotes side by side?
Ask each company for its full fee schedule and its management agreement, then fill in the same worksheet for both:
- Monthly fee in dollars at your current rent.
- Placement fee in dollars, and how often you expect a new tenant.
- Renewal fee in dollars.
- Repair overhead as a percentage, applied to a normal year of repairs on your property.
- Inspection, setup and vacancy fees.
- Cancellation notice and any fee to leave.
- What happens to your money: when rent reaches your account and how often you get statements.
Add the dollar amounts for a three-year period. That is the number to compare, and it usually tells a different story than the monthly fee alone.
Frequently asked questions
What is the average property management fee in Sacramento?
Published Sacramento-area fees cover two models. Flat-fee companies publish monthly amounts such as $89 for a house (Peak Residential) or $150 per unit (Ziprent). Percentage companies publish ranges such as 8% to 10% of rent (AIRG and Utopia Management). Your total also depends on placement, renewal and repair fees.
Is the tenant placement fee separate from the monthly fee?
Usually yes. Most managers charge placement once, when a new tenant signs a lease. At AIRG it is 75% of the first month's rent for full-service clients and 100% of the first month's rent for leasing-only clients.
Do property managers charge when the home is vacant?
Some do. AIRG's published vacancy fee is $0, so the management fee applies only while the property is occupied. Ask every company you interview whether they charge during vacancy.
Are repair markups normal?
Yes, many managers add an overhead or service percentage to vendor invoices for coordinating the work. The rate varies by company. At AIRG it is set in your management agreement and every charge appears on your statement.
Can I negotiate property management fees?
Often, especially with more than one property. AIRG publishes a portfolio discount for 5 or more units and waives setup for 3 or more units. Get any negotiated fee written into the agreement.
Want the real number for your rental? Start with what your home should rent for. Get a free rent check and a real person will reply the same business day with a rent figure based on comparable Sacramento rentals and the notice the law requires before you change it.
Fees for other companies were read from each company's own website on October 25, 2026 and can change. Confirm current fees directly with any company before you sign. This article is general information, not legal advice.
