Renting out your house in San Diego can be a smart move—steady income, potential appreciation, and someone else paying down your mortgage.
But it’s not just “collect rent and walk away.”
Before you become a landlord in San Diego or North County (Carlsbad, Oceanside, Vista, San Marcos, Escondido), it’s critical to understand the real costs that come with renting out a property. Some are obvious (mortgage, taxes), others are hidden (vacancy, legal compliance, bigger repairs).
This guide breaks down the main costs of renting out your house, so you can build a realistic budget and decide whether to self-manage or work with a property manager like Palomar Oaks.
Three Types of Landlord Costs
When you rent out your house, most costs fall into three main buckets:
1. Upfront / one-time costs – to get the property rent-ready and leased.
2. Ongoing monthly or annual costs – the recurring expenses of owning and operating the rental.
3. Unexpected or “lumpy” costs – big items that don’t happen often but matter a lot when they do.
We’ll break each one down with a San Diego and North County lens.
1. Upfront Costs to Get Your Home Rent-Ready
These are the costs you’ll typically see before a tenant moves in.
a) Repairs and safety compliance
Before you list, you’ll likely spend on things like:
– Fixing leaks, broken locks, cracked tiles, and other obvious issues.
– Servicing or repairing HVAC systems.
– Bringing smoke and carbon monoxide detectors up to code.
The property must be safe and habitable, which usually means some upfront investment in repairs and safety items.
b) Cleaning and cosmetic improvements
A clean, fresh property rents faster and attracts better tenants. Common costs include:
– Professional deep cleaning of kitchens, bathrooms, appliances, and windows.
– Touch-up or full interior paint where needed.
– Carpet cleaning or flooring repairs or replacements.
These costs can range from a few hundred dollars to several thousand, depending on the property’s condition.
c) Photography and marketing
At minimum, budget for professional photos and any optional paid listing boosts or featured ads on rental platforms. High-quality visuals significantly impact how quickly you attract strong applicants.
d) Leasing / tenant placement fee (if using a manager)
If you hire a property management company just to place a tenant, expect a leasing fee, often in the range of a fraction to 100% of one month’s rent, depending on services and market. This typically covers advertising, showings, screening, lease preparation, and the move-in inspection.
2. Ongoing Monthly or Annual Costs
Once the tenant is in place, you’ll see regular operational costs.
a) Mortgage, property taxes, and insurance
– Mortgage payment (principal and interest).
– Property taxes (often included in your mortgage if impounded).
– Landlord or rental property insurance (different from standard homeowner’s coverage).
b) HOA dues (if applicable)
If your home is in an HOA or condo community, monthly or quarterly dues are a fixed cost you’ll carry regardless of tenancy.
c) Utilities and services
Decide who pays for utilities and services, and build that into your budget:
– Water, sewer, and trash.
– Gas and electric.
– Internet or cable (usually tenant responsibility, but sometimes included).
– Landscaping or pool service
If you include any utilities or services in the rent, factor that into your pricing and cash flow.
d) Maintenance and repairs
Even with a newer home, you’ll need an ongoing maintenance budget. This often covers plumbing and electrical issues, appliance repairs, minor roof and exterior fixes, and periodic cosmetic updates.
e) Property management fees (if you hire a manager)
If you choose full-service property management, expect a monthly management fee based on a percentage of collected rent or a flat fee, plus potential lease renewal or inspection fees depending on the company’s structure.
3. Hidden and “Lumpy” Costs Owners Often Forget
These don’t show up every month—but they’re very real and important to plan for.
a) Vacancy
Any time your property sits empty, you’re covering mortgage, taxes, insurance, and HOA with no rent coming in. Even in strong markets, plan for some vacancy between tenants and during slower seasons.
b) Turnover costs
When a tenant moves out, you’ll often need to repaint, clean carpets or replace flooring, complete a deep clean, and handle minor repairs from normal wear and tear. These costs tend to be higher than mid-lease repairs and are worth budgeting for.
c) Bigger capital expenses
Over time, you’ll likely face larger projects such as a new roof, exterior paint, HVAC replacement, or major plumbing or electrical work. These are part of the true long-term cost of owning the property.
d) Legal and compliance costs
Staying compliant with California landlord-tenant laws can involve updating your processes and documents as rules change, and occasionally consulting with a legal or compliance professional. This might include security deposit handling, required notices, inspections, and documentation.
4. DIY vs Property Manager: How Costs Shift
You’ll face most core ownership costs whether you self-manage or use a manager. The difference is in how you spend your time and how much risk you take on personally.
If you self-manage
You save:
– Monthly management fees
– Some leasing or renewal fees.
You take on:
– Advertising, showings, and tenant screening.
– Lease preparation and move-in/move-out documentation.
– Coordinating all repairs and maintenance.
– Rent collection and late rent follow-up.
– Handling tenant complaints and emergency calls.
– Keeping up with legal and compliance changes on your own
Your cost here is less in cash and more in time, stress, and the risk of costly mistakes.
If you use a property manager
You pay:
– A monthly management fee (usually a percentage of rent or flat fee)
– A monthly management fee (usually a percentage of rent or flat fee)
– Possible modest renewal or inspection fees, depending on the company.
You get:
– Professional marketing and tenant screening.
– Systems for rent collection and maintenance requests.
– Established vendor relationships and pricing.
– Inspections and documentation.
– Help staying compliant with California rules and local ordinances.
For many North County owners—especially those who don’t live nearby—this tradeoff is worth the cost.
5. Simple Budget Framework for San Diego Owners
A straightforward way to stress-test your numbers is to run them through a simple budget framework.
1. Estimate your realistic monthly rent based on local comps and a rent analysis.
2. Subtract your expected monthly costs, including:
– Mortgage (principal and interest)
– Property taxes and insurance
– HOA dues (if applicable)
– Utilities you’ll cover
– Average monthly maintenance reserve
– Property management fee (if using one)
– Vacancy allowance (for example, one month out of twelve per year)
What’s left is an estimate of your monthly cash flow. If that number is negative, ask whether you’re comfortable subsidizing the property in exchange for long-term appreciation and potential tax benefits, or whether selling or restructuring financing makes more sense for your goals
You can also pair this with a Rent vs Sell Calculator and other resources to compare holding the property versus selling it.
How Palomar Oaks Can Help You Navigate Costs and Management
Getting a clear picture of your costs is the first step. Making your rental as hands-off and predictable as possible over the long run is the real goal.
Palomar Oaks can help you:
– Provide a local rent and cost analysis for your property in North County San Diego.
– Advise on pre-rental improvements that actually impact rent, days-on-market, and longterm maintenance.
– Market your home across major rental channels with professional photos and listing copy.
– Screen tenants thoroughly and fairly, using consistent and compliant screening criteria.
– Handle leasing, move-in documentation, maintenance coordination, rent collection, inspections, and more.
If you’re unsure what your total costs would look like—or whether renting vs selling is the better path—starting with a conversation and analysis is often the easiest next step.
