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

Reviewed by Brendan McKee, Managing Broker, DRE #01882732, on October 21, 2026.

Leasing only means a licensed professional prices, markets and screens for your San Diego rental, signs the lease and hands the tenancy back to you. Full management means the same professional keeps going after move-in: rent, repairs, renewals, notices and the deposit return. Leasing only fits an owner who lives nearby, has time and a repair network, and knows the local rules. Full management fits an owner who is far away, short on time, or renting a property under the City of San Diego's Tenant Protection Ordinance, where a mistake on a notice can void it.

Key takeaways

• Leasing only covers the work up to move-in. Everything after, including rent increases, entry notices and the deposit return, becomes your job.
• In the City of San Diego, just cause applies from the first day of a tenancy, so the lease and notices set up at leasing matter for years.
• Using a licensed agent to place a tenant removes the federal Fair Housing Act's small-owner exemption, so fair housing rules apply in full either way.
• Out-of-state owners: rent paid through a manager is subject to 7% California withholding; rent a tenant pays you directly is not withheld, but it is still taxable in California.

What each option covers

Agreements differ, so confirm in writing where the leasing engagement ends.

The setup a leasing agent should get right

The tenancy runs on the paperwork set up at leasing, so these San Diego details matter. As of October 2026:

• The City notice or exemption. In the City of San Diego, covered tenancies need the Tenant Protection Ordinance notice in at least 12-point font, given with the Housing Commission's Tenant Protection Guide (SDMC § 98.0705). A single-family home or condo can be exempt only if the owner qualifies and the exact exemption notice is given, and for tenancies begun or renewed on or after 1 Jan 2024 it must be in the lease (§ 98.0703(l)).
• The owner move-in clause. For City leases entered on or after 24 Jun 2023, an owner move-in termination is available only if the tenant agrees in writing or the lease expressly allows it (§ 98.0704(b)(1)(A)).
• The deposit. The cap is one month's rent, with a two-month exception for some small landlords that doesn't apply to service-member tenants (Civ. Code § 1950.5(c)).
• Move-in photos. Required for tenancies beginning on or after 1 Jul 2025 (Civ. Code § 1950.5(g)).
• The starting rent. As of October 2026, San Diego County is under a state of emergency after Tropical Storm Rachel, so Penal Code § 396 generally bars advertising or charging more than 10% above the pre-emergency rent, including at turnover, stated through 14 Nov 2026. Check whether it has been extended.

What you take on after move-in with leasing only

The day the tenant gets the keys, these rules become yours:

• 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 the date, approximate time and purpose, with 24 hours presumed reasonable, during normal business hours (Civ. Code § 1954).
• Rent increases. For covered units in San Diego County, increases from 1 Aug 2026 to 31 Jul 2027 are capped at 8.2% over 12 months, in no more than two steps (Civ. Code § 1947.12). For month-to-month tenancies, notice is 30 days for 10% or less and 90 days above that (Civ. Code § 827).
• Ending a tenancy. In the City, just cause is required from day one, and no-fault terminations carry relocation of two months' rent, or three months if the tenant is 62 or older or disabled (SDMC § 98.0706). A noncompliant notice is void (§ 98.0710).
• The City Rental Unit Business Tax, if the property is in the City of San Diego: generally due 1 Mar each year.
• The deposit return. Photos before and after repairs, an itemized statement and the balance within 21 days, returned electronically if the tenant paid electronically, unless you both agreed in writing on another method (Civ. Code § 1950.5).

Each step has a deadline or a required form. The San Diego Tenant Protection Ordinance guide covers the City rules.

Fair housing applies either way

The Fair Housing Act's exemption for a private owner of up to three single-family houses applies only when no broker or agent is used (42 U.S.C. § 3603(b)), so it is gone once an agent places your tenant. California law applies regardless, including its protection of source of income such as vouchers (Gov. Code § 12955(p)). With leasing only, the risk shows up later, when you approve a new roommate without the agent's written criteria. See fair housing and source of income.

Out-of-state owners: the withholding difference

Per FTB Pub 1017 (rev. 02/2026), tenants paying a nonresident owner directly don't withhold, but a property manager's payments to a nonresident owner are subject to 7% withholding, optional until payments exceed $1,500 in a calendar year. With leasing only, nothing is withheld, but you still owe California tax on the rent.

Which situations fit each option

Leasing only tends to fit when

• You live close enough to see the property and meet a vendor there.
• You have reliable trades and time to call them.
• The property is newer or recently updated, so repair calls should be rare.
• You know the City ordinance or your city's rules, or have counsel you can call.

Full management tends to fit when

• You live outside San Diego County, out of state, or expect to move.
• You don't have time or a vendor network for repair calls, including after hours.
• The property has several units, where notices, rent rolls and turnover multiply.
• The property is older or near the coast, where salt air brings regular upkeep.

If you're still deciding whether to hire anyone, see self-manage or hire a property manager in San Diego, and for the full task list, what a San Diego property manager does. McKee's leasing services page describes the leasing side, and the series hub is San Diego property management.

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 in San Diego?

Leasing only, sometimes called tenant placement, means a licensed agent prices and markets your rental, screens applicants, prepares the lease with the required state and local notices, and handles move-in. After that, you run the tenancy: rent, repairs, entry, renewals, any termination and the deposit return.

Is leasing only cheaper than full management?

Leasing only stops at move-in, so you pay for less of a professional's work. The trade is your time and the risk of a missed deadline or defective notice, which in the City of San Diego can void a termination. Compare written fee schedules; see San Diego property management fees.

Can I switch from leasing only to full management later?

Generally yes. Check the leasing agreement for terms about later management, and keep the records a manager will need: the signed lease and notices, move-in photos, the deposit record, and your rent ledger and increase history.

Who holds the security deposit with leasing only?

Usually you, once the agent hands over the tenancy; confirm it in the agreement. Whoever holds it owes the move-out photos, itemized statement and balance within 21 days, returned electronically if the tenant paid electronically (Civ. Code § 1950.5, as of October 2026).

Do I need a business tax certificate to rent out my house in San Diego?

In the City of San Diego, the Rental Unit Business Tax "is imposed annually upon anyone who owns, operates, or manages the rental of any residential real estate," including single-family homes and condos, and it is generally due 1 Mar. Outside the City of San Diego, check with your own city about any business license rules.

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

The right choice depends on the property, your distance and your time. McKee Properties has managed San Diego rentals since 1982 and offers a free, no-obligation rental analysis. Request your free rental analysis to see the likely rent.