Defying Conventional Multifamily Management with Jim Rostel

Retire on Rentals Podcast: Defying Conventional Multifamily Management with Jim RostelEpisode Overview:In this engaging episode of Retire on Rentals, host Nicholas Cook sits down with Jim Rostel, COO of Anchor Northwest Property Group, to explore innovative approaches to real estate investing and multifamily property management. Jim shares his journey from mortgage lending to residential real estate and eventually to leading operations for a unique scattered-site multifamily portfolio. With candid insights into the challenges and opportunities in today’s market, Jim discusses Anchor’s unconventional management model, the impact of regulatory environments, and strategies for building wealth through rentals.Guest:Jim Rostel, Chief Operating Officer, Anchor Northwest Property GroupExtensive experience in real estate, from mortgage lending to property managementTransitioned from single-family to multifamily management, growing Anchor’s portfolio to 36 properties and over 2,200 unitsKey Topics Discussed:Jim’s Real Estate Journey (Timestamp: 3:00)Started in mortgage lending, moved to residential real estate in 2002Pivoted to property management post-2008 market crash, growing from one rental to nearly 100 homesJoined Anchor Northwest Property Group as a consultant, later becoming COO, focusing on multifamily propertiesLearning Property Management the Hard Way (Timestamp: 8:15)Advice for aspiring property managers: Work for a company to learn the trade before starting your ownReflects on the steep learning curve of entering property management without experienceHighlights the importance of hiring good people and navigating regulatory complexitiesAnchor’s Scattered-Site Multifamily Model (Timestamp: 14:30)Manages 36 properties (30–146 units each, averaging 70–75 units) without on-site staffUtilizes centralized operations with 25 maintenance vans, cleaners, and leasing agents moving between propertiesBenefits: Cost efficiency, specialized roles, and high employee retentionChallenges: Lack of on-site eyes requires robust communication and rapid response systemsBuilding vs. Buying: Anchor’s Strategy (Timestamp: 20:45)Anchor focuses on urban infill development, building new properties rather than acquiring existing onesOrigin story: Founder Dennis built the first property without bank financing, proving a no-parking model in bike-friendly PortlandGrowth from one property in 2011 to 36 by 2025, leveraging prime site selection and owner-operator modelNavigating Portland’s Regulatory Environment (Timestamp: 28:00)Discusses inclusionary zoning and rent control as barriers to new constructionPortland’s housing emergency (since 2015) has led to fewer permits and reduced supply, ranking the city 80th out of 81 marketsUnintended consequences: Smaller projects dominate, locking land into less dense usesConcerns about shifting homeless housing burdens to private operators without adequate supportTechnology and Property Management (Timestamp: 45:20)Emphasis on inward-facing AI for data analysis (e.g., identifying high-renewal units, optimizing operations)Skeptical of outward-facing AI (e.g., chatbots) due to preference for human interactionRejects self-guided tours for market-rate units, prioritizing personalized leasing to build value and match tenants to the right propertyOperational Insights and Challenges (Timestamp: 52:10)Maintenance as an amenity: Responds to work orders within 24 hours using centralized triageStandardizes materials (e.g., flooring, countertops) for efficiency, despite supply chain challengesShares lessons from crises like an ice storm flood and a fire, highlighting water damage as a bigger issue than fire in sprinklered buildingsLeadership and Industry Outlook (Timestamp: 1:02:00)Advice for leaders: Be self-aware, learn from mistakes, and listen to your teamOptimistic about 2025 multifamily occupancy rates and potential policy shifts under new Portland leadershipBullish on Portland’s long-term appeal due to its geography and quality of lifeMemorable Quotes:“Wanna get into property management, do it the right way. Go work for a company. Go learn the trade.” – Jim Rostel“We’re a sales organization. We’re here to drive revenue through renewals and leasing.” – Jim Rostel“Inclusionary zoning has been the single biggest driving factor preventing new construction.” – Jim Rostel“The value of AI is inward-looking, analyzing my data, giving me actionable information.” – Jim RostelFun Segment: Getting to Know Jim (Timestamp: 1:05:30)Dinner Guest: Would choose his late father to catch up on 35 years, with Jesus as a close secondWhiskey or Wine: Prefers wine for daily enjoyment but loves whiskey (favorites: Angel’s Envy, Redbreast, Macallan)Leadership Advice: Emphasizes self-awareness, learning from mistakes, and listening to build trustSponsor:Sleep Sound Property Management – Portland’s premier management company specializing in multifamily and residential ...