Beginning of their story.
In 2002, Jim and Margaret Acosta purchased their first rental property. It would take until 2012 for them to purchase their second rental. Today, the Acosta’s have 7 properties, totally 11 units in total.
The Acosta’s chose to self-manage their rentals from 2002 until 2016. Until that point, their portfolio was small enough for them to effectively self-manage. In 2016, they made an effort to expand their portfolio with 3 more properties, 7 units.
Up until 2016, they were able to self-manage their 4 properties with little interference on life. However, retirement soon approached for Jim so they decided to accelerate into retirement by growing their real estate portfolio. Part of retirement also meant traveling, as they love spending time on their boat in the Pacific Northwest.
Heading into retirement, Jim and Margaret made a plan to grow their portfolio and then considered full-service property management so they could travel. In 2016, they began their search for property management companies.
‘We reached out to at least 25 firms. Heard back from probably 8’. During their interview process, they had a few requests. Most notably, can they pick the tenants or at least know who will be occupying their rentals. ‘Every single one said no. So now we had to go in blind and that made us a little nervous. Mostly for our multifamily properties because of the tenant pool they attract.’
Eventually, the Acosta’s finished interviewing and hired their first property management company. Everything started off fine. ‘It wasn’t until the 2nd year that issues started to arise. We noticed rent on 2 units were late, consistently. So we asked why. It turns out, one tenant was over two months late!’ Their property manager provided an excuse the tenant would get caught back up at end of the month. ‘They never did. Looking back, we think this was the manager’s attempt to buy time so they could find another replacement tenant.’
Their move to co-management.
After 2 property management companies in a 5 year span, the Acosta’s made the move to co-management in 2021.
‘We kept running into tenants with late payment tendancies. Eventually, we figured that our applicant criteria was a higher standard than either of the property management companies that we hired. That made us feel uncomfortable.’
The Acosta’s switched to co-management primarily for the ability to select tenants. Today, they continue to work with their co-manager Michelle Henderson. ‘It’s been great. We handle the leasing and tenant selection, Michelle handles the inspections for move-in’s and all the maintenance coordination.’
‘We’ve appreciated Burbz platform for making this even possible! Having a platform that let us control our biggest concerns has made us more comfortable with our portfolio. Even though we pay Michelle practically the same amount as our previous property manager’s, knowing we have final say over the tenant selection is worth every penny as that was our biggest concern and risks from before.’
The Acosta’s have delegated much of the monthly management but wanted to self-perform the tenant due diligence.
They work with Michelle Henderson.
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