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Jeff Larabee, Real Estate Pro in San Diego, CA

What is a standard lease-up fee in southern California? I manage properties but usually get paid out of rent collected.

Asked by Jeff Larabee, San Diego, CA Wed May 18, 2011

A lso, the out of area client might hire me to oversee repairs/rehab while in transition from tenant to tenant. What might I charge for that . . . a general contractor type fee of 12% of all work performed . . . or something like that? Seems like she might be better off just hiring me to manage the entire process at my rate of 10% of collected rents. Need advice. Thanks,

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Hello Mr. Larabee,

Your question is valid because you need to know the rates that other brokers charge for a particular service. That is called market research. Please be reminded that the question also opens up a possible racketeering price fixing statute violation if brokers discuss rates and fees that they charge and speak with each other about those rates and charges. Prosecutors say these conversations lead to a standardized rate instead of open market negotiated rate for services thereby fixing the rates.

There are serious ramifications to you and anyone who provides you specific information, even if they don't intend on fixing the prices by giving you information..

My suggestion is that you decide for yourself what your services are worth and negotiate those terms with the owner of the property. Market research into what your competition charges is legal and can be done by calling and asking the competitor's rates and then you come to your own conclusion what you want to charge. This form of research should be done prior to making you proposal to a potential client.

Good luck, stay clear of potential problems.
0 votes Thank Flag Link Wed May 18, 2011
Hey Jeff,
There is no standard lease up fee perse, but company by company will have different fees.
If we do a lease-up only (find and place a resident) and the owner handles it after that we charge a fee equal to the first months rent.
If we do full-management, our rate is 10% of the monthly rent, after charging a leasing fee (commission) for my staff of $150.00. Other companies throughout the area charge from $100.00 to $500.00 leasing fee.
As for charging for maintanance / rent ready work, under our full management contract it is part of our duties to solicit bids, evaluate and make recommendation to the client and charge a flat fee that generally doesn't exceed $30.00, if we can utilize basically one vendor but with multiple vendors we could collect up to $60.00 for the turnover. This fee covers our staff inspecting and signing off on the work prior to payment. Call me or email anytime if you have a question or concern. Additionally, I would love to talk with you regarding how we can assist each other in this marketplace, Chris
0 votes Thank Flag Link Wed May 18, 2011
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