Leasing Only or Full Management: Which Does Your Coronado Rental Need?

Leasing only means a licensed professional finds, screens and signs your tenant, then hands the keys and the tenancy back to you. Full management means the same professional keeps going: collecting rent, handling repairs, renewing the lease and returning the deposit. Leasing only fits an owner who lives nearby, has time and knows California's landlord rules. Full management fits an owner who is far away, deployed, short on time, or renting a home that needs regular attention.

Key takeaways

• Leasing only covers the work up to move-in. Everything after, including repairs, rent increases and the deposit return, becomes your job.
• The legal duties after move-in are real: entry notice, rent cap math, deposit photos and a 21-day deposit deadline.
• Using a licensed agent to rent the home means the federal Fair Housing Act's small-owner exemption doesn't apply, so fair housing rules apply in full either way.
• Out-of-state owners: rent paid through a property manager is generally subject to 7% California withholding; rent a tenant pays you directly is not withheld by the tenant, but the income is still taxable in California.
• Choose by situation: distance, time, the home's upkeep needs, and how comfortable you are with California's rules.

What each option covers

The split varies by agreement, so confirm in writing where the leasing engagement ends. Some leasing agreements stop at lease signing; others include the move-in inspection.

What you take on after move-in with leasing only

If you choose leasing only, you become the person responsible for the rules below the day the tenant gets the keys. As of October 2026:

• Rent collection. You must accept at least one form of payment that is neither cash nor electronic transfer, and you can't charge a fee for paying by check (Civ. Code § 1947.3).
• Entry. Non-emergency entry requires reasonable written notice, with 24 hours presumed reasonable, during normal business hours (Civ. Code § 1954).
• Safety devices. You must maintain smoke alarms and carbon monoxide devices and fix reported problems (H&S §§ 13113.7, 17926.1).
• Rent increases. If the home is covered by the state cap, increases effective August 1, 2026 through July 31, 2027 in San Diego County are limited to 8.2% over 12 months, in no more than two steps (Civ. Code § 1947.12). For a month-to-month tenancy, notice is 30 days for an increase of 10% or less and 90 days above that (Civ. Code § 827).
• Ending a tenancy. After 12 months, a covered tenancy can be ended only for a just cause stated in the notice, and a no-fault termination requires relocation assistance equal to one month's rent (Civ. Code § 1946.2).
• The deposit. At move-out, you photograph the unit before and after repairs, send an itemized statement and return the balance within 21 days, electronically if the tenant paid electronically (Civ. Code § 1950.5, AB 414). Bad-faith retention can cost up to twice the deposit.

None of this is unusual, but each step has a deadline or a form. If you want a professional to carry them, ask about leasing services and full management side by side.

Fair housing applies either way

Using a licensed agent to place your tenant matters for one federal rule. The Fair Housing Act exempts a private owner of up to three single-family houses only if the home is rented without a broker, agent or anyone in the business of renting (42 U.S.C. § 3603(b)). Once an agent places the tenant, that exemption is gone, and California's own law applies regardless: it protects source of income, including vouchers, and veteran or military status, among other traits (Gov. Code § 12955). That doesn't change much in practice if you follow written screening criteria, but it is a reason not to make informal decisions after the agent leaves, such as approving a new occupant without the written criteria.

Out-of-state owners: the withholding difference

California taxes nonresidents on rent from California property. FTB Pub 1017 (rev. 02/2026) says tenants are not required to withhold on rent paid directly to a nonresident owner, but payments from a property management company are subject to 7% withholding, optional on the first $1,500 in a calendar year. With leasing only, the tenant pays you directly, so there is no withholding at the source, but you still owe California tax on that rent. With full management, the manager handles the withholding. Neither is a reason to choose one option over the other; talk to your tax professional about the cash flow either way.

Which situations fit each option

Leasing only tends to fit when

• You live close enough to see the home and meet a vendor there.
• You have reliable plumbers, electricians and handymen, and time to call them.
• The home is newer or recently updated, so repair calls should be rare.
• You're comfortable with notice rules, rent cap math and deposit deadlines, or you have counsel you can call.
• It's a condo where the HOA handles exterior and common-area upkeep, and you know its leasing rules.

Full management tends to fit when

• You live out of the area, out of state, or are deployed or expecting PCS orders.
• You don't have the time or a vendor network for repair calls, including after-hours emergencies.
• The home is older or close to the water, where salt air brings regular upkeep. See coastal maintenance for Coronado rentals.
• You want one party responsible for compliance from listing to deposit return.
• You'd rather approve decisions than carry them out.

If you're still deciding whether to hire anyone at all, see self-managing vs. hiring a property manager in Coronado, and for the full list of tasks a manager carries, see what a Coronado property manager does. For how fees are usually structured for each option, read Coronado property management costs. More guides are in the Coronado Rental Guide.

This is general information, not legal or tax advice. Confirm the details for your situation with a California attorney or tax professional.

Frequently asked questions

What is leasing only property management?

Leasing only, sometimes called tenant placement, means a licensed agent prices and markets your home, screens applicants, prepares the lease and disclosures, and handles move-in. After that, you manage the tenancy yourself: rent collection, repairs, entry notices, renewals and the deposit return. Ask exactly where the engagement ends, because agreements differ.

Can I start with leasing only and switch to full management later?

Generally yes, but check the leasing agreement for any terms about later management, and make sure you keep the records a manager would need: the signed lease and disclosures, move-in photos, the deposit amount and how it was collected, and your rent ledger. Without move-in photos and a ledger, a manager taking over later starts at a disadvantage.

Who holds the security deposit with leasing only?

Usually the owner, once the agent hands over the tenancy, but confirm it in the leasing agreement. Whoever holds it is responsible for the return rules: an itemized statement and balance within 21 days of move-out, with photos and receipts, and electronic return if the tenant paid electronically (Civ. Code § 1950.5, as of October 2026).

Is leasing only cheaper than full management?

Leasing only usually involves a one-time fee rather than an ongoing one, so the direct cost is lower. The trade is your time and the risk of a missed deadline or notice after move-in. Compare the written fee schedules and count the hours you'd spend, then decide.

Do I need a Coronado business certificate to manage my own rental?

Not if you rent out one or two homes. Coronado's code says renting two or fewer residential dwelling units is not a business for certificate purposes and exempts those owners from the business certificate requirement (CMC §§ 13.10.030(C), 13.10.080(A), as of October 2026). Owners renting three or more residential units fall under the business certificate rules.

Next step: decide with your home's numbers in front of you

The right choice depends on your home, your distance and your time. McKee Properties has managed rentals from its Coronado office since 1989 and offers a free, no-obligation rental analysis. Request your rental analysis or call (619) 435-7780 to talk through which option fits.