Choosing a Property Manager in Sonoma County: Fees, Licensing, Questions
A property manager in Santa Rosa or anywhere in Sonoma County finds and screens tenants, collects rent, handles repairs and keeps the rental compliant with state and local law. In California, anyone who does that for another owner in exchange for pay generally needs a real estate broker license from the Department of Real Estate (DRE), or must work under a licensed broker, and the rent and deposits they collect belong in a broker trust account. Beyond those basics, a good Sonoma County manager knows the state rent cap, the county’s own tenant ordinance for unincorporated areas, Santa Rosa’s source-of-income rule and the local limits on short-term rentals.
This guide is for absentee owners, new investors and anyone who has inherited a rental. It covers what managers do, the license and trust account rules, deposit limits, the local tenant rules a manager must follow, how fees are usually structured and the questions to ask before you sign. Because Diamond manages some rentals directly and refers other owners to partner managers, we’ve written it to help you compare any manager, including us. Treat it as general information, not legal advice; a California landlord-tenant attorney can review a management agreement or a specific tenancy issue.
What a property manager does
The work splits into leasing, money and the building. A full-service manager typically handles:
- Leasing: setting the asking rent, advertising, showings, applications, screening, lease preparation and move-in inspections with photos.
- Money: collecting rent and deposits, paying approved bills, holding reserves, and sending monthly owner statements and year-end tax forms.
- Maintenance: tenant repair requests, vendor scheduling, emergency response, turnover work between tenants and periodic inspections.
- Compliance: rent increase notices within legal limits, required disclosures, termination notices and filings, deposit accounting and fair housing in advertising and screening.
- Problems: late rent, lease violations, insurance claims after a fire or flood, and coordinating with an attorney if an eviction becomes necessary.
Some managers offer leasing only, or management without leasing. Know which you’re buying, because the fee and the liability that comes with it differ.
Who needs a license to manage rentals
Business and Professions Code section 10131(b) includes in the definition of a real estate broker anyone who, for compensation or the expectation of it, leases or rents, offers to lease or rent, solicits listings of places for rent, solicits prospective tenants, or collects rents from real property, for another or others. Managing someone else’s rental for a fee falls squarely within it.
The exceptions are narrow. An owner managing their own property isn’t acting for another. Section 10133 also exempts, for example, a corporation’s regular officer acting on the corporation’s own property without special compensation, and a person acting under a properly executed power of attorney from the owner. A business that uses an exemption to evade the licensing law loses it.
Before you hire anyone, look up the company and the individual on the DRE’s public license lookup, which searches by name or license number and links to disciplinary records. A manager who collects your rent without a license is a red flag, whatever the price.
Trust accounts: where your rent goes
Under Business and Professions Code section 10145, a broker who accepts money on behalf of others must deposit any funds not passed straight to the principal or into a neutral escrow into a trust account the broker maintains at a bank or recognized depository in California. The money stays there until it is paid out on instructions from the person entitled to it.
- Separate records. The broker must keep a separate record of every receipt and disbursement.
- Interest. Trust funds can go into an interest-bearing account only if the owner or principals ask, the account is insured and held by the broker as trustee, and no interest benefits the broker or any licensee.
- What to ask for. The name of the trust account bank, a monthly statement showing every dollar in and out, and how the manager reconciles the account.
Security deposits are the tenant’s money, held in trust. Ask where yours will sit and how the manager will hand them over if you change managers or sell.
Security deposit rules in 2026
California’s deposit statute, Civil Code section 1950.5, changed in 2024 and 2025, and a manager who hasn’t updated their forms can expose you to damages.
| Rule | What the statute says |
|---|---|
| Maximum deposit | One month’s rent, in addition to the first month’s rent, for deposits collected on or after July 1, 2024 |
| Small-landlord exception | Up to two months’ rent if the landlord is a natural person (which includes a settlor or beneficiary of a family trust) or an LLC whose members are all natural persons, with two or fewer residential rental properties holding four or fewer rental units altogether; not available when the tenant is a service member |
| Photos | Photos of the unit after the tenant leaves and after repairs or cleaning (from April 1, 2025), and at move-in for tenancies starting on or after July 1, 2025 |
| Return deadline | Within 21 days after the tenant moves out, with an itemized statement |
| Receipts | Copies of invoices or receipts for deductions, unless repair and cleaning deductions total $125 or less |
| Bad faith | Statutory damages of up to twice the deposit, plus actual damages |
When a rental is sold, the same section governs how deposits pass to the buyer; our guide to buying property with tenants walks through it.
Sonoma County tenant rules a manager must follow
Which rules apply depends on where the rental sits. Confirm the jurisdiction from the parcel record before anyone serves a notice.
| Location | Main tenant rules | What the manager has to do |
|---|---|---|
| Unincorporated Sonoma County | County Ordinance No. 6496 plus state law | Just cause from the start of the tenancy; relocation assistance on no-fault terminations; file termination notices with the county portal within three days |
| Santa Rosa | State law plus the city’s source-of-income ordinance | Accept housing vouchers on equal terms in screening and advertising; follow state rent cap and just cause rules |
| Petaluma | The city’s own tenant ordinance plus state law | Apply the city’s rules on top of state law |
| Other cities | State law, unless the city has adopted its own rules | Check the city code before serving notices |
The state rent cap and just cause
For units covered by the Tenant Protection Act (AB 1482), the Attorney General’s rent cap chart, updated July 16, 2026, lists Sonoma County among the counties without their own metro index, where the cap for increases starting between August 1, 2026 and July 31, 2027 is 8.6%. Coverage depends on the building’s age and ownership and on the exemption notices given. Our guides to AB 1482 for landlords and just cause eviction explain the details.
Ordinance 6496 in unincorporated areas
The Board of Supervisors adopted the Residential Tenancy Protections Ordinance on September 17, 2024 for unincorporated Sonoma County. For covered units, tenants have just cause protection from the first day rather than after the state’s waiting period. No-fault relocation assistance is the greater of HUD’s Fair Market Rent or the actual monthly rent.
For notices served from January 1, 2025, a landlord has three days after serving a termination notice to upload a copy to the county’s Tenant Protections Portal, and that applies even to units the state law doesn’t cover. The ordinance doesn’t cap rents. A manager who handles unincorporated rentals around Larkfield, Sebastopol’s outskirts or the Sonoma Valley should have a process for that portal; our Larkfield-Wikiup guide shows how the rules play out in one community.
Santa Rosa’s source-of-income rule
Santa Rosa City Code chapter 10-46 bars rental decisions based on a tenant’s source of income, including Section 8 and VASH vouchers. A landlord can’t refuse to rent, set different terms or apply an income standard that ignores the share of rent an assistance program pays. Screening criteria should be written and applied to every applicant the same way; our Santa Rosa investment property guide covers the city’s rules in more detail.
Short-term and vacation rentals
Most Sonoma County managers focus on long-term leases, partly because short-term rentals are tightly limited. In unincorporated areas, Permit Sonoma says a vacation rental needs a zoning permit, a certified vacation property manager and a vacation rental license, and vacation rentals are barred in the R1, R2 and R3 districts, on Williamson Act land and in accessory dwelling units. In Santa Rosa, whole-home rentals without a host are capped at 182 permits, which aren’t transferable, and the code says no new applications for them will be accepted.
If you want nightly income, hire a manager who handles vacation rentals specifically and can show the permit, the license and the transient occupancy tax account. Our post on vacation rental rules in Sonoma County has the details.
How property managers charge
Fees vary by firm, property type and the services included, so compare written fee schedules rather than headline numbers. The common categories are:
| Fee | What it usually covers | What to ask |
|---|---|---|
| Monthly management fee | Ongoing rent collection, accounting, tenant contact and routine maintenance coordination; often a percentage of rent collected or a flat amount | Is it charged on rent collected or rent due? Is there a minimum when the unit is vacant? |
| Leasing or placement fee | Marketing, showings, screening and lease signing for a new tenant | Is there a guarantee if the tenant leaves early? |
| Lease renewal fee | Renewing or extending an existing tenant’s lease | Does a rent increase notice count as a renewal? |
| Setup or onboarding fee | Taking over a property, files and deposits | Is it waived for a multi-unit portfolio? |
| Maintenance markup or coordination fee | A charge on top of vendor invoices, or for supervising larger projects | What’s the approval threshold for repairs without calling you? |
| Inspection, eviction or court fees | Periodic inspections, notice service, court appearances | Which are included and which are billed separately? |
| Termination fee | Ending the management agreement early | How much notice, and who keeps the tenant files? |
A low monthly fee with high add-on charges can cost more than a higher all-in fee. Run the total through your numbers with our rental property analysis guide.
Questions to ask before you sign
- What is the broker’s DRE license number, and who will actually manage my property day to day?
- Which bank holds the trust account, and will I get monthly statements and reconciliations?
- How many units does each manager handle, and what are your response times for emergencies?
- Do you manage in unincorporated Sonoma County, and how do you handle Ordinance 6496 portal filings?
- Which rent increase, notice and deposit forms do you use, and when were they last updated?
- How do you screen applicants consistently under fair housing law and Santa Rosa’s source-of-income rule?
- What repair amount can you approve without me, and do you mark up vendor invoices?
- What insurance do you carry, and do you require me to name you as an additional insured?
- How does the agreement end, how much notice is required, and how are deposits and files handed over?
- Have you managed homes in a wildfire zone, and how do you handle defensible space and insurance inspections?
Diamond may refer you to partners we work with, including partner property managers; you’re free to choose any provider.
Self-manage, hire a manager, or sell
Owners with one nearby unit and time to answer calls often self-manage. Owners who live out of the area, hold several units, own in unincorporated areas with portal filings, or have little time for notices and turnovers usually come out ahead with a licensed manager. If the property no longer fits your plans, our guide to selling a rental property in California covers tenant-occupied sales and tax issues, and our Sonoma County multifamily guide covers buying more.
Questions people ask
Does a property manager need a real estate license in California?
Generally yes. Under Business and Professions Code section 10131(b), leasing, renting, finding tenants or collecting rents for another person for compensation is broker activity, so the manager needs a DRE broker license or must work under a licensed broker. Owners managing their own property don’t.
Where does a property manager keep my rent money?
In a broker trust account at a bank or recognized depository in California, under Business and Professions Code section 10145, until it’s paid out on your instructions. The broker must keep a separate record of every receipt and payment.
How much security deposit can I charge in Sonoma County?
Under Civil Code section 1950.5, generally one month’s rent for deposits taken on or after July 1, 2024. A small landlord who is a natural person (including through a family trust) or an LLC owned only by natural persons, with no more than two rental properties and four units, may charge up to two months, except to a service member.
What is the rent cap in Sonoma County for 2026 to 2027?
For units covered by AB 1482, 8.6% for increases starting between August 1, 2026 and July 31, 2027, per the Attorney General’s chart. Sonoma County’s Ordinance 6496 adds tenant protections in unincorporated areas but no separate rent cap.
What does Sonoma County’s Ordinance 6496 require of landlords?
In unincorporated areas it gives covered tenants just cause protection from the start of the tenancy, sets no-fault relocation payments at actual rent or HUD Fair Market Rent, whichever is higher, and requires termination notices served from January 1, 2025 to be filed on the county portal within three days.
How do property managers in Santa Rosa charge?
Most use a monthly management fee, either a percentage of rent collected or a flat amount, plus a leasing fee for new tenants and possible renewal, setup, maintenance, inspection and termination fees. Compare the full written fee schedule, not just the monthly rate.
Can a property manager run my Santa Rosa home as a vacation rental?
Probably not as a whole-home rental. Santa Rosa caps non-hosted rentals at 182 permits, which can’t be transferred, and isn’t taking new applications; hosted rentals, where the owner lives on site, are allowed citywide.
Does Diamond manage rental properties?
Yes, for some properties. For others, Diamond refers owners to partner property managers, depending on the property and what the owner needs. You’re free to choose any provider.
If you own a rental in Sonoma County, or you’re buying one, we can talk through whether to manage it yourself, have Diamond manage it, or work with one of our partner managers, and what the local rules mean for your numbers. See our investor services or contact us to start.
Sources & notes
- Justia: Business and Professions Code section 10131 (broker defined)
- Justia: Business and Professions Code section 10133 (exemptions)
- Justia: Business and Professions Code section 10145 (trust funds)
- California Department of Real Estate: Public license lookup
- Justia: Civil Code section 1950.5 (security deposits)
- California Attorney General: Rent cap chart (updated July 16, 2026)
- County of Sonoma: Ordinance No. 6496, Residential Tenancy Protections (September 17, 2024)
- County of Sonoma: Residential Tenancy Protections Ordinance, information for landlords
- GoCodebook (unofficial reproduction): Santa Rosa City Code chapter 10-46, Housing Anti-Discrimination Code
- GoCodebook (unofficial reproduction): Santa Rosa Zoning Code chapter 20-48, Short-Term Rentals
- Permit Sonoma: Vacation rentals
- City of Petaluma: Tenant rights
GoCodebook copies are unofficial reproductions of the Santa Rosa City Code; check the official code before relying on a section. County ordinance and Santa Rosa details match the sources cited on our Larkfield-Wikiup and Santa Rosa investment property pages.
Last reviewed October 2026 by Matthew Martinez.
