Multifamily Dive’s Small Manager Spotlight series features local property managers who are tackling key issues faced by the industry nationwide.
Peter Jakel brings nearly twenty years of experience in multifamily housing, having previously worked at the once-renowned Archstone. His early career revolved around public relations, serving as a communications manager before advancing to Director at Archstone. Ultimately, he joined LinnellTaylor Marketing as vice president of strategy, navigating the complexities following a significant merger in 2013 between Equity Residential and AvalonBay Communities.
In 2021, Jakel took a significant step into the property management arena by founding PMI Aspire, a firm aimed at generating retirement income while addressing the multifamily housing needs in the Denver area. Within a short time, he developed a management portfolio that includes approximately 1,300 residential units across small multifamily and single-family homes, as well as over 2,000 housing association units throughout Denver and Boulder County.
“I started with zero doors,” Jakel shared in an interview. “I didn't have anything to manage. I built it to about 165 doors between one and two years. I did it on my own time — over nights and weekends.” His initial focus was on managing single-family rentals, which quickly expanded to include two 30-unit multifamily properties. His strategy involved acquiring existing businesses, including one in Lakewood, Colorado that specialized in managing housing associations and another small multifamily management firm in Longmont.
Jakel’s growth has continued through partnerships with special servicers, leading him to acquire properties primarily in the class C segment, although he’s now beginning to scale into class B properties as well. “At this point, I’m scaling up in class B, but right now, they're mostly class C,” he noted.
Challenges in Class C Properties
When discussing current challenges in class C properties, Jakel cited escalating vacancy rates. “Vacancy is high in class Cs right now, especially in Colorado where new builds are facing tough competition.” He sees many newer developments offering extensive concessions, which class C owners struggle to match due to their smaller portfolios. “Smaller owners can't afford to lose too much of the rent value, so many are being drawn away to these newer buildings,” he explained, highlighting aggressive strategies like offering numerous rental specials from competing properties.
Impact of Immigration Regulations
Another barrier facing certain markets in Colorado includes the direct impacts of Immigration and Customs Enforcement (ICE) actions, which Jakel acknowledged had affected occupancy levels. “ICE did have some impact, especially in certain neighborhoods where many communities reported substantial vacancy losses,” he said, pointing out the nuanced challenges that property managers face beyond basic economics.
Strategies for Property Rehabilitation
Jakel elaborated on how to rehabilitate challenged properties, emphasizing the importance of clear communication with owners regarding rental expectations and maintaining a strict budget for maintenance activities. “You need to manage your maintenance very carefully and approach expenses with discipline,” he stated. “Deferred maintenance might sometimes be necessary to ensure that owners can handle their other financial obligations.” Under Colorado laws, resident claims can trigger a greater need for responsiveness from property managers, he added.
Generating Demand in a Tough Market
To counteract struggles with occupancy, Jakel’s firms employ aggressive marketing tactics and substantial concessions. He taps into multiple platforms to enhance lead generation, from social media marketplaces to local marketing organizations. “You have to be very active from a marketing standpoint,” Jakel said, revealing that his staff includes bilingual members to engage effectively with diverse resident demographics, which he views as essential in the class C arena.
Future of Property Management Consolidation
Looking ahead, Jakel sees a trend toward consolidation in the property management sector, driven by the fact that many smaller firms are owned by aging proprietors looking for an exit strategy. He believes many smaller companies lack succession plans, creating ripe opportunities for acquisition. “Private equity firms are actively entering the mix, making the market ready for consolidation as owners seek efficiency in their operations,” he concluded.
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