If you’re comparing property managers, you’re probably asking the right question: Are there any hidden or miscellaneous charges when hiring a property management company? The short answer is yes—many companies charge more than the monthly management fee.
The good news: with the right questions and a transparent partner, you can avoid surprises.
Below, the Los Angeles Property Management experts at TGN Property Management break down the most common add-on fees, what’s unique about managing property in LA, and how to protect your bottom line.
Common “hidden” or add-on property management feesEvery company structures fees differently.
Here are the charges you’ll commonly see — sometimes buried in fine print or spread across addenda.
- Account setup/onboarding fees: A one-time charge to open your account, gather documentation, and set up your owner portal. Ask what’s included and whether it covers compliance onboarding for Los Angeles.
- Leasing or tenant placement fee: Often a percentage of one month’s rent or a flat fee. Clarify whether the fee covers marketing, showings, screening, lease drafting, move-in inspection, keys/rekey, and compliance disclosures.
- Renewal fee: Charged when the tenant renews. Ask how the fee is calculated and what you receive (market rent analysis, renewal negotiation, updated disclosures, RSO compliance when applicable).
- Advertising and marketing costs: Premium listing upgrades, professional photography, video, or 3D walkthroughs may be extra. Some firms bundle these; others pass them through.
- Application and screening workflow: In California, the applicant often pays the screening fee up to the legal cap, but owners may be charged if fees are waived as a concession or for co-signers. Confirm who pays for background checks and any pet screening services.
- Inspections: Move-in/move-out reports, periodic interior inspections, drive-by checks, or compliance inspections can be billed per visit. Ask how often they occur, what they include (photos, condition ratings), and cost.
- Maintenance coordination and markups: Expect either a coordination fee or a percentage markup on vendor invoices, especially for small jobs. Clarify:
- Whether the company uses in-house maintenance or third-party vendors
- Any after-hours/emergency rate premiums
- If managers receive vendor rebates and how those are disclosed
- The approval threshold for repairs and when they will seek your authorization
- Notice posting and legal processing: Delivering 3-day notices, serving notices to enter, or coordinating legal filings often carry flat fees plus any third-party process server or attorney costs.
- Eviction coordination: Managers typically charge for coordinating unlawful detainers, court appearances, sheriff lockouts, and cash-for-keys. Legal fees and court costs are additional pass-throughs.
- City compliance and registration handling: In Los Angeles, you may encounter LA Housing Department (LAHD) registration, rent stabilization, and periodic inspection program fees. Managers may charge an administrative fee to file, track deadlines, and post required notices. Clarify what’s pass-through versus what’s a management charge.
- HOA liaison fees: If your property is in an HOA, ask whether there’s a monthly or per-incident charge for dealing with the association, violations, and architectural approvals.
- Utility and bill-pay fees: Some firms charge to set up utilities, pay recurring bills, or process one-off invoices. Ask if there’s a per-bill or monthly fee.
- Banking and payment processing: Non-sufficient funds (NSF) charges, ACH or credit card processing fees, and early disbursement fees can appear on statements.
- Owner portal/technology fees: A few providers bill for the portal, e-signature services, or digital document storage. Many include this in the base fee—confirm before signing.
- Year-end tax prep: Some managers charge to issue 1099s and provide year-end statements. Ask whether detailed cash flow reports and invoice copies are included.
- Insurance claim management: If a loss occurs, there may be a fee to coordinate with carriers, adjusters, and vendors.
- Reserve requirements: Most companies hold a maintenance reserve (for example, $250–$500 per unit). While not a fee, it affects cash flow; ask how and when this reserve is used and replenished.
- Cancellation/termination fees: If you end the agreement early, there may be a termination fee, reimbursement for leasing or marketing costs, or a buyout if the tenant was recently placed. Get the policy in writing.
- Pet program fees: Pet screening, pet rent administration, and inspections may carry per-pet charges or administrative fees.
- Rekey and compliance turns: California requires rekeying between tenancies. Clarify typical costs and whether key management is billed separately.
Los Angeles Specifics That Can Influence Fees
Managing rentals in LA brings local rules and costs that don’t always apply elsewhere. The Los Angeles Property Management experts at TGN Property Management recommend clarifying how your manager handles:
- Rent stabilization and local ordinances: Many properties fall under local rent stabilization rules. Registration, notices, allowable rent increases, relocation assistance calculations, and buyout agreement filings can require extra administrative work.
- City inspections and habitability: City-mandated inspections and habitability standards can generate periodic compliance checks. Ask whether inspection attendance, vendor coordination, and re-inspection scheduling have associated fees.
- Security deposit requirements: Some local rules for regulated units may require specific notices or interest tracking. Confirm whether any administrative charges apply for compliance.
- Fair housing and local tenant protections: Los Angeles has just-cause eviction requirements and anti-harassment rules. Make sure lease forms, notices, and procedures are up to date, and ask if there are fees for document updates or training.
How To Avoid Surprises: Questions To Ask Before You Sign
Transparency protects your returns.
Here’s a concise checklist to review with any prospective manager:
- Request a full, written fee schedule, including all addenda and a sample management agreement.
- Ask for a sample monthly owner statement and a sample vendor invoice showing any maintenance markup or coordination fee.
- Clarify who keeps late fees and application fees, and how lease renewal fees are calculated.
- Confirm the leasing package: what’s included in the tenant placement fee and what’s extra.
- Nail down repair approval thresholds, not-to-exceed limits, and after-hours emergency procedures and pricing.
- Ask whether the company receives vendor rebates, uses in-house maintenance, and how conflicts of interest are managed.
- Understand city compliance: who files registrations, posts notices, and attends inspections—and at what cost.
- Review the termination clause: notice required, early termination fees, and obligations if a tenant was recently placed.
- Verify year-end reporting, 1099 issuance, and whether there’s a fee.
- Confirm reserve amounts, timing of owner disbursements, and any banking or payment processing charges.
Signs Of A Transparent Property Manager
- Clear, upfront pricing on a single page with definitions of each fee
- Written repair authorization policies and itemized invoices with photos
- No surprise “technology” or “administrative” fees that aren’t tied to deliverables
- Proactive communication about LA-specific compliance deadlines and costs
- A conflict-of-interest policy for maintenance and vendor relationships
Why Work With TGN Property Management
As Los Angeles Property Management experts, TGN Property Management prioritizes clarity and alignment with your investment goals. Here’s what you can expect when you speak with our team:
- Transparent pricing: We provide a written fee schedule and walk you through what’s included before you sign.
- Local compliance expertise: Our team actively manages LA-specific requirements so you can stay ahead of registrations, notices, and inspections.
- Itemized maintenance: You receive detailed work orders and invoices, so you always know what you’re paying for.
- Owner-first communication: We set repair thresholds with you, provide market rent evaluations at renewal, and explain any pass-through city fees in plain language.
The Bottom Line
Yes, there can be hidden or miscellaneous fees when you hire a property management company—especially in a regulatory environment like Los Angeles. But “hidden” charges don’t have to be part of your experience. With the right questions and a partner who values transparency, you can forecast your costs, stay compliant, and protect your returns.If you’re ready for a straightforward conversation about fees and performance, contact TGN Property Management.
Our Los Angeles Property Management experts will send you a clear fee schedule, sample reports, and a step-by-step plan to optimize your rental—without surprises.