Managing a property is difficult enough without running out of money six months into the fiscal year. As a property manager, how well you budget in the beginning determines whether repairs and upgrades are completed on schedule. It means the difference between happy tenants and tenants who complain to the property owner over water stains on the ceiling and parking lots that aren’t safely lit at night. The responsibility to budget well falls on you, as do the consequences of poor planning. Get out in front of the annual budget this year by using these three tips to help you plan for contingencies.
Budgeting Tip 1: Gather Your Financial Information Early
You’ll need the information to set an appropriate budget for those properties you manage. Documents include:
- Current Occupancy
- Current Rent
- Salary Information on Tenants
- TTM (Trailing Twelve Month) Financial Reports
- Vendor Contracts
Gather this information as early as possible and organize it well. Make sure members of your budgeting team have access to the information, too.
Budgeting Tip 2: Get Tenant Input
Your property tenants are VIPs where your job is concerned. It’s important to listen when they offer up ideas and solutions for property problems. Keep a running tally of improvements tenants have requested throughout the year, and arrange them in order of importance. For instance, replacing a leaky roof should take precedence over repaving the parking lot. Be sure to build the costs of vital repairs into the annual budget.
Budgeting Tip 3: Let Your Property Management Budgeting Software Do the Heavy Lifting
The right software makes every job easier, especially building annual budgets for the properties you manage. Make sure you’re using software that offers a built-in accounting feature. This will track the year’s expenditures, as well as income. Some property management software is capable of tracking nearby comps in the neighborhood, so you’ll know when it’s time to revise rental prices for incoming tenants. It’s important to know what your properties are worth and to set rent prices accordingly. Doing so will give you more funds to channel into next year’s budget.
Contact Perry Roofing Today
If you’re a property manager in need of a roofing contractor in Gainesville, Florida, add Perry Roofing to your list of approved vendors. Since 1976, we’ve proudly served commercial and residential property owners, providing top-notch roofing services in North-Central Florida. Call today, or visit our showroom in Gainesville, for more information.