Reviewed by Brendan McKee, Managing Broker, DRE #01882732, on October 20, 2026.

When you own a San Diego County rental from far away, maintenance runs on two documents: the lease and, if you hire a manager, the management agreement. The DRE trust account rules do not set a repair approval limit or emergency spending authority for property managers, so you set those in the contract. What California does regulate is the broker who holds your money: rents and deposits go into a trust account within three business days, each owner's ledger is reconciled at least monthly, and records are kept for three years (Business and Professions Code §§ 10145, 10148; 10 CCR §§ 2831 to 2832).

The short version

  • Managing someone else's rental for pay requires a DRE broker license, or a salesperson working under a broker (B&P § 10131(b)).
  • Approval limits and emergency authority come from your management agreement, not from state law. Pick your own figures.
  • The broker keeps your funds in a trust account and a separate ledger for you (B&P § 10145; 10 CCR § 2831.1).
  • Monthly owner statements are recommended in DRE guidance; write them into your contract.
  • Ask for invoices with every expense, and keep photos, vendor details and inspection reports in one place.
  • Keep your contact details current in the lease so tenants can reach someone who can act (Civil Code § 1962).

Put repair authority in writing

The Department of Real Estate's Reference Book says a management contract "should include the terms and period of the contract, the policies pertaining to the management of the premises, management fees, and the authority and powers that are given by the owner to the agent." DRE's quick guide for landlords hiring a manager adds: "Confirm that the contract clearly identifies how repairs are handled and expensed." Use that as a checklist for the maintenance terms:

  • Approval limit. A dollar amount above which the manager must ask you first. The law sets no figure; choose one that fits your property and reserves.
  • Emergency authority. What counts as an emergency (for example, an active leak or a gas smell) and what the manager may do without reaching you.
  • How you are reached. Phone, email and a backup contact, with your time zone noted.
  • Vendor choices. Whether the manager picks vendors, whether you may name your own, and how licenses are checked. See hiring contractors for rental repairs.
  • Markups and fees. DRE's quick guide says to "make sure the agreement explains any additional fees charged for markups, accounting, etc."
  • Related companies. The guide also says to "be wary if the property manager does not disclose all income sources from managing your property, including any ownership interest in maintenance or repair companies used."
  • Term and accounting. DRE's guide says to "be sure that the contract requires monthly accounting reports and has a clear termination date."

For a wider look at running a rental from a distance, see managing your Coronado rental from afar, which applies anywhere in the county.

What the law requires of a manager who holds your money

RuleSourceWhat it means for you
LicenseB&P § 10131(b)Collecting rent or leasing for others for pay is broker activity. DRE notes resident managers do not need a license
Trust accountB&P § 10145(a)(1)Your funds go into a trust account in a bank or recognized depository in California, unless placed in a neutral escrow or given to you
Deposit deadline10 CCR § 2832(a)No later than three business days after the broker or salesperson receives them
Records10 CCR §§ 2831, 2831.1A record of all trust funds plus a separate record for each owner showing deposits, disbursements and balance
Reconciliation10 CCR § 2831.2Owner ledgers reconciled with the trust record at least once a month (except months with no activity), with a record kept
Draining the account10 CCR § 2832.1Written consent of every owner of the funds before a disbursement that would drop the balance below what the broker owes all owners
ComminglingB&P § 10176(e); 10 CCR § 2835The broker may not mix your money with its own, with narrow exceptions
RetentionB&P § 10148(a)Trust records, canceled checks and related documents kept for three years, open to DRE audit

Two points are guidance, not statute. DRE's Reference Book "recommended" a monthly accounting and a detailed annual statement, and DRE's quick guide tells owners to "review all of the accountings that you receive" and to "be on the alert if the property manager does not send copies of invoices to show proof that expenses were incurred and paid." The trust account rules above call for a ledger and a monthly reconciliation, not a statement sent to you, so write the statement schedule into your agreement. You can check a manager's license with DRE at (877) 373-4542 or www.dre.ca.gov. More on licensing is on the property manager licensing page.

Records to keep from a distance

Build one folder (paper or digital) for each property:

  1. Vendor list. Name, trade, license number and phone for each regular vendor, with dates of the last service.
  2. Invoices and supporting papers. DRE's trust funds guide lists "invoices, escrow statements, billings, receipts" as supporting papers for disbursements. Ask for copies with each statement.
  3. Photos. Dated photos at move-in and move-out. For tenancies beginning on or after July 1, 2025, Civil Code § 1950.5(g) calls for photos immediately before or at the start of the tenancy, and since April 1, 2025, photos after the tenant leaves and before and after repairs or cleaning.
  4. Inspection reports. For buildings covered by SB 721, keep balcony reports for at least two inspection cycles (H&S § 17973(d)(1)); see SB 721 inspections.
  5. Repairs vs improvements. IRS Publication 527 advises keeping the costs of repairs and improvements separate; see repairs vs improvements.
  6. Lead disclosure. For pre-1978 housing, the signed lead disclosure is kept at least three years from the start of the lease, a duty that also binds your agent (40 CFR § 745.113(c)(1)).

More on what to keep is in keeping rental records.

Emergencies, insurance and keys

Emergencies. A landlord may enter without notice to respond to an emergency (Civil Code § 1954(e)). Make sure the tenant knows who to call: the lease must give the name, phone number and address of each person authorized to manage the property, and the information must be kept current (Civil Code § 1962(a)(1), (c)). See emergency repairs.

Insurance. Keep your insurer's claim line and policy number with the manager. The California Department of Insurance homeowners guide lists perils generally not covered by a homeowners policy, including "wear and tear or maintenance," "neglect," water damage from "seepage or leaks," and losses to a house vacant for 60 days or more. That guide covers homeowners policies, so read your own landlord policy for its terms. DRE's quick guide also suggests reviewing whether your policy covers fraud by a property manager.

Keys. The landlord must install and maintain an operable deadbolt on each main swinging entry door (Civil Code § 1941.3(a)(1)). Section 1941.3 does not itself require rekeying between tenants. Record who holds each key and when locks were last changed; see locks, keys and rekeying.

Military owners

If you are deploying or moving on orders, the deployment checklist for rental owners covers power of attorney, manager contacts and taxes. Set the approval limit and emergency contacts before you leave.

For owners

  • Write your approval limit and emergency rules into the management agreement.
  • Ask for invoices with every statement and read each statement when it arrives.
  • Plan a yearly budget from your property's own records; see budgeting for rental maintenance.
  • Schedule preventive visits with proper entry notice; see preventive maintenance checks and entry rules.
  • Update the lease contact details whenever the manager or your address changes.

Local rules

Cities, water districts and fire agencies in San Diego County add their own rules on permits, water use and brush clearing. Ask your manager to track the rules of your city's building department, the agency that sends your water bill and your local fire department, and to tell you before work that needs a permit.

Frequently asked questions

Does California set a repair spending limit for property managers?

The DRE trust account rules do not set a repair approval limit or emergency spending authority. Those terms come from your management agreement, and DRE's guidance says the contract should clearly identify how repairs are handled and expensed.

Is my property manager required to send monthly statements?

The trust account rules do not list one. DRE guidance recommends a monthly accounting and an annual statement, and the broker must keep a separate ledger for you and reconcile it at least monthly (10 CCR §§ 2831.1, 2831.2). Put the statement schedule in your contract.

How fast must a manager deposit my rent?

Funds received on your behalf must go to you, a neutral escrow or the broker's trust account no later than three business days after receipt (10 CCR § 2832(a)).

Can a property manager use a maintenance company it owns?

DRE's quick guide tells owners to be wary if a manager does not disclose income sources from managing the property, including any ownership interest in maintenance or repair companies used. Ask for that disclosure in writing.

Who can sign for me if I am deployed?

That depends on the authority you give before you leave. The deployment checklist explains military powers of attorney and other steps.

This is general information, not legal or tax advice. Rules change; confirm your situation with a California attorney, your local building or fire department, or a licensed professional.

McKee Properties manages rentals and runs an in-house maintenance division, Certified Property Maintenance; see maintenance services.

Sources

Verified October 19, 2026.

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