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Budget Season: How You Can Prepare

Fall is but a week away, which means it’s that time of year when property managers must gear up for budget season. As tedious and frustrating as it is, this is an imperative process and one of the biggest responsibilities you hold as a property manager.

A budget tells you where you are now, where you are going, and the progress you make along the way. It also tells you how much money you have coming in and out for you or anyone who may need it, and allows you to assess your current performance and make adjustments as necessary.

We know budget season is stressful. So, here are 5 key tips to help you prepare.

1. Research industry data.

Make sure to do your homework before diving in. Check out online databases, visit the library, or just try plain old Google to look for standard metrics for your industry. Review annual reports from market research firms to find data for standard income, expenditures, profit margins, and more. This will give you a broad idea of what you should aim for with your budget.

2. Review last year’s numbers.

Pull files and notes from the previous year or two’s budgets. This will allow you to review what you did well and what you could improve upon, and ultimately will help you make better decisions for the upcoming year.

3. Forecast for 2017.

Once you have some base numbers from your research and your previous budgets, you’ll need to forecast for the coming year. Think about:

  • What outside influences might affect the coming year
  • Whether or not your staff needs will be the same
  • Screening and training for new staff
  • Any incoming or outgoing tenants
  • Any updates or changes you want to make to the property
  • Is rent where it should be based on market averages, demand, and supply?
  • Will there be any technological updates?

There’s a ton to think about when forecasting for 2017, so it’s vital to start ASAP. Never assume that each year will be the same as the last. Times changes and as a property owner or manager, you have to keep up!

4. Don’t forget about regular maintenance & emergency situations.

While creating your budget this season, remember to consider maintenance costs. Not just your regular maintenance, like window cleaning, pressure washing, and parking garage cleaning, but also allocate funds for emergency situations. It’s all about planning ahead. In the DC metro area, the weather is incredibly unpredictable. By allocating money for emergency situations, say a major snowstorm, you are prepared for the unexpected and will keep costs down over the long-term.

5. Get multiple perspectives and inputs.

Probably the most important tip of all: talk to other property managers. You need input from other important individuals in your organization and others in the industry. They may have ideas to add, feedback on current numbers, or other input that will help you build a better budget. Allow your team time to plan and discuss and get as much input and as many perspectives as you can to build the most comprehensive budget you can.

Remember to allow enough time to review the budget multiple times before finalizing. Looking at it with brand new eyes can definitely help to create a functional, logical budget for the next year.

Budget season can be daunting, but if property managers take the time to prepare before hand, it can make the task as painless as possible. Contact KEVCO to learn more about exterior property maintenance tasks like window cleaning, pressure washing, and parking garage cleaning. We will work with you and design an exterior maintenance program to fit your needs, so you can feel comfortable and confident including them in your 2017 budget.

Call us today at (301) 258-9750 or use this form to reach out!

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“Just wanted to let you know that your crew did a great job (as per usual) on our windows. You really do have an exceptional workforce at KEVCO. Everyone is courteous, hardworking and very aware of their surroundings; the consummate professionals. You always make us look good in the eyes of our customers.”

Richard Hightower
Director Of Contract Operations, Didlake

“One of the easiest service companies to call on, KEVCO is #1 in quality of work and customer service! My windows sparkle and shine and I can always count on them to pressure clean my deck and never have an issue. Great job KEVCO!”

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“I recently had an important Broker function at my property and noticed that our windows were filthy and needed to be washed – I called KEVCO very last minute and they were still able to accommodate us – the clean windows made a HUGE difference and I was so appreciative – Thanks KEVCO for making…”

Susan Ruiz
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The information on this website is for informational purposes only; it is deemed accurate but not guaranteed. It does not constitute professional advice.
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