What a San Diego Property Manager Does, Step by Step

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

A San Diego property manager runs your rental from pricing to move-out: setting the rent, preparing and marketing the home, screening applicants under fair housing law, writing a lease with the right local notices, collecting rent, handling repairs, renewing or ending the tenancy, and returning the deposit on time. You stay the owner and make the big decisions. The manager does the daily work and keeps the records, which matters more in the City of San Diego than in most places, because the City's tenant protection ordinance applies from the first day of a tenancy.

Key takeaways

• Managing a rental for someone else for pay requires a California real estate broker license (Bus. & Prof. Code § 10131(b)).
• Location decides the rulebook: the City of San Diego, Chula Vista and Imperial Beach have their own tenant protection ordinances, while the unincorporated County and most other cities follow state law.
• Screening must follow written criteria and California fair housing law, which protects source of income (including vouchers) and military or veteran status.
• For covered rentals in San Diego County, increases effective August 1, 2026 through July 31, 2027 are capped at 8.2%, and an emergency rule currently limits most increases to 10% (as of October 2026).
• Rent and deposits a manager collects belong in a broker trust account, and the deposit balance is due back within 21 days of move-out.

The work at a glance

Before the listing: pricing and preparation

The manager starts with what the home should rent for, based on comparable rentals adjusted for size, condition and features. The opening rent deserves care. If the home is covered by the state rent cap (Civ. Code § 1947.12, AB 1482), later increases are limited, while on a new tenancy the owner may set the initial rent (§ 1947.12(b)).

There is a time-sensitive limit right now. As of October 2026, San Diego County is under a state of emergency after Tropical Storm Rachel (proclaimed October 15, 2026), so Penal Code § 396 generally bars advertising, offering or charging rent more than 10% above the pre-emergency amount, including at turnover. That limit is stated through November 14, 2026; check whether it has been extended before you set a price.

Then comes a repair list that starts with legal minimums. Smoke alarms must work when a new tenancy begins (Health & Safety Code § 13113.7), carbon monoxide devices are required where there is a fuel-burning appliance, fireplace or attached garage (H&S § 17926), and leases entered into, amended or extended on or after January 1, 2026 need a working stove and, unless the tenant opts to supply one, a refrigerator (Civ. Code § 1941.1, AB 628). In the City of San Diego, the manager also confirms the annual Rental Unit Business Tax account, generally due March 1.

Marketing, showings and screening

The manager lists the home, runs showings and takes applications under statewide rules:

• Advertising. Gov. Code § 12955(c) bars ads stating a preference based on a protected trait, including source of income and veteran or military status. The federal exemption for a private owner of up to three single-family houses does not apply when a broker or manager rents the home (42 U.S.C. § 3603(b)).
• Screening fees. The fee can't exceed actual cost and is capped at $30 adjusted for inflation since 1998 (Civ. Code § 1950.6), about $60 to $66 in 2026 depending on the index used. The landlord must either review applications in the order received under written criteria or refund everyone not selected (AB 2493).
• Subsidy holders. With a government rent subsidy, an income standard must use the tenant's share of the rent, and the applicant may offer alternatives to a credit history (Gov. Code § 12955(o)).

Our guide to how tenant screening works for San Diego rentals covers criminal history and adverse action notices.

Lease signing and move-in

In the City of San Diego, every covered tenancy gets the Tenant Protections Ordinance notice in at least 12-point type, with the San Diego Housing Commission's Tenant Protection Guide (SDMC § 98.0705). An individually owned single-family home or condo can be exempt from the City's just cause rules only with the City's exact exemption notice, which must be in the lease for tenancies started or renewed on or after January 1, 2024 (SDMC § 98.0703(l)). The state exemption uses separate wording (Civ. Code § 1947.12(d)(5)). And for City leases entered on or after June 24, 2023, an owner move-in termination works only if the tenant agrees in writing or the lease expressly allows it (SDMC § 98.0704(b)(1)(A)). See the San Diego Tenant Protection Ordinance guide.

Statewide, the security deposit is generally capped at one month's rent, furnished or not (Civ. Code § 1950.5(c), AB 12). For tenancies beginning on or after July 1, 2025, the landlord must photograph the unit at or just before move-in (AB 2801). The lease also carries required disclosures such as the flood hazard notice (Gov. Code § 8589.45) and the bed bug notice (Civ. Code § 1954.603).

During the tenancy: rent, repairs and access

The manager collects rent, follows up on late payments and keeps the ledger. Landlords must accept at least one form of payment that is neither cash nor electronic transfer, with no fee for paying by check (Civ. Code § 1947.3). A broker must deposit rent collected for others into a trust account (Bus. & Prof. Code § 10145) within three business days (10 CCR § 2832). If you live outside California, rent paid to you through a manager is generally subject to 7% state withholding, optional until payments exceed $1,500 in a calendar year (FTB Pub 1017, rev. 02/2026).

For repairs, the manager sends a vendor and reports the cost. No state rule sets a repair approval limit, so put one in the management agreement, with a definition of an emergency. Non-emergency entry needs reasonable written notice, with 24 hours presumed reasonable, during normal business hours (Civ. Code § 1954).

Renewals, rent increases and ending a tenancy

Before a lease ends, the manager asks whether to renew, change the rent or re-let. For homes under 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). A month-to-month increase of 10% or less needs 30 days' written notice; above 10% needs 90 days (Civ. Code § 827). The emergency 10% limit applies to renewals too while it lasts.

Ending a tenancy depends on location:

• City of San Diego: just cause from the start of the tenancy. A no-fault termination requires two months' rent in relocation, or three months if the tenant is 62 or older or disabled (SDMC § 98.0706). A noncompliant notice is void (§ 98.0710).
• Chula Vista: just cause from day one, with its own relocation rules (CVMC 9.65).
• Imperial Beach: just cause after 12 months, with added relocation for some terminations in larger complexes (IBMC 9.90).
• Unincorporated County and other cities: state just cause after 12 months, with one month's relocation for no-fault terminations (Civ. Code § 1946.2).

Move-out, the deposit and your records

At move-out, the manager offers the tenant a pre-move-out inspection in writing, photographs the unit after the tenant leaves and again after repairs or cleaning, and sends an itemized statement with the balance within 21 calendar days (Civ. Code § 1950.5). If the tenant paid electronically, the balance generally goes back electronically (AB 414, effective January 1, 2026). The handbook's move-out process, step by step covers each notice.

Throughout, the manager sends statements showing rent collected, expenses paid and money sent to you. The manager reports rent paid over to you on Form 1099-MISC, with a $600 threshold for 2025 payments and $2,000 for 2026 payments. See trust accounts, owner statements and 1099s for how the money side works.

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

Weighing doing it yourself? Read self-manage or hire a property manager in San Diego, see how full-service San Diego property management works, and check the property manager licensing rules.

Frequently asked questions

What does a property manager do in San Diego?

A San Diego property manager prices and markets the rental, screens applicants under fair housing law, prepares a lease with the required state and local notices, collects rent into a trust account, coordinates repairs, handles renewals within the state rent cap, and manages move-out and the deposit return. Inside the City of San Diego, the manager also applies the Tenant Protections Ordinance, which requires just cause from the first day of a tenancy.

Does a property manager in San Diego need a license?

Yes. Under Business and Professions Code § 10131(b), anyone who, for pay and for another person, rents property, solicits tenants or collects rents needs a California real estate broker license or must work as a salesperson under a broker. Check the license on the Department of Real Estate's public license lookup (opens in a new tab) and confirm the status is active and the name matches the company you sign with.

Who holds the security deposit when a manager is involved?

Your management agreement decides whether the manager holds the deposit or passes it to you, and a broker who holds it must keep it in a trust account (Bus. & Prof. Code § 10145). Either way, the return rules are the same across California as of October 2026: an itemized statement and the balance within 21 days of move-out, with photos and receipts, and electronic return when the tenant paid electronically.

How much can a San Diego property manager raise the rent?

For homes covered by the state cap, increases effective August 1, 2026 through July 31, 2027 are limited to 8.2% over 12 months in San Diego County (Civ. Code § 1947.12). As of October 2026, the Tropical Storm Rachel emergency also triggers Penal Code § 396, which generally limits increases to 10% through November 14, 2026, and that limit can reach homes exempt from the state cap; check whether it has been extended.

Does the San Diego Tenant Protection Ordinance apply to my rental?

Only if the home is inside the City of San Diego and not exempt. It does not apply in Coronado, Chula Vista, National City, La Mesa or the unincorporated County, though Chula Vista and Imperial Beach have their own ordinances. City exemptions include housing with a certificate of occupancy issued within the previous 15 years and individually owned homes and condos whose leases carry the exact exemption notice; the San Diego Housing Commission (opens in a new tab) posts the tenant guide.

Next step: see what your home would rent for

Start with the numbers and rules for your specific home. McKee Properties has managed San Diego rentals since 1982, and it offers a free, no-obligation rental analysis. See what a free San Diego rental analysis covers.