Call Today 301.258.9750
Menu
< Back to Blog

The 411 On Budget Season

Attention property managers: whether you like it or not, budget season is here!

For property owners or managers, it’s that time of year when you  prepare for one of the most vital responsibilities you have, and that is preparing for your 2017 budget. Budgets are a key component of good management practice for your property, but before you can prepare, you must understand the basics about budget season.

First of all, what is budget season?

Budget season is the time of year when the homeowners associations (HOA) and Property Management Companies meet to establish the budget for the next year and plan for any projects up ahead in the next fiscal year.

What’s included in the budget?

Basically, there are three main components to the budget.

  1. Daily operation – First, you must figure out how much is needed for daily operations of the community. This includes electricity, water, grounds maintenance, management, insurance, and general building maintenance. These expenses can be figured out based on historical data, or they are contractual.
  2. Reserve funds – These funds are for meeting any future upkeep costs or unexpected costs that may come up. It’s basically a savings account that provides money for repairs and replacements that are needed throughout the year.
  3. Enhancements and improvements – This includes funds for any additions or enhancements to the existing property that community members want and are willing to contribute to. The community should give input to what kind of improvements they want and approve them before the budget is settled.

Budget Season is About Balance

The main goal of budget season is to develop a balanced system for allocating funds for the next year. How do you make it balanced? Well, there are two sides to the equation: the human side and the financial side. Your residents and prospective residents are highly important, and so are their needs. You have to maintain a good reputation and keep them satisfied. At the same time, making a profit is just as important. Every decision you make carries weight, and a price tag. It all comes down to your ability to earn a profit while protecting the integrity of the property. Both are equally vital when it comes to the success of your operation.

Do your homework before you settle on the budget. The development and implementation of a well-thought-out budget keeps your operation running to the best of its ability, and keeps you reputable, credible, and profitable!

Check out our next blog for tips and tricks for preparing your budget.

Testimonials
See what people
are saying about KEVCO.

“I became a KEVCO customer when I first started in Commercial Property Management over 15+ years ago. I have used them at every property that I have ever managed and even at my home for both window cleaning and pressure washing. They are responsive and professional, and their pricing is always competitive.”

D. Jamison
Vice President Property Management, Moore & Associates

“We are a real estate company, and use Kevco to wash windows, clean gutters and power wash for our clients getting their homes ready to place on the market. They are always at the property when they say they will be, do their job quickly, leave the property in excellent condition, are very professional, and…”

Amy King
Homeowner/Residential Real Estate Agent, King Real Estate

“I love KEVCO and call them every year for services. I have been using KEVCO for about 10 years to clean gutters and windows at our farm property. They are always prompt and exceptional in their work. I have recommended them to many people and will continue to do so.”

L. White
Clarksville, MD

“When I need home exterior cleaning services, Kevco is the company that I always call. They have cleaned my windows, gutters and pressure cleaned my patio and the other hardscape areas at my house for years. I recently thought that I would have to resurface my front steps as they appeared dirty. Kevco came over,…”

L. Galfond
Homeowner

More Testimonials
OSHA has updated their regulations, and you may be affected!

Learn more about how this can affect you and what KEVCO is doing about it.

learn more

Fill out a form for
your OSHA site assessment.

The information on this website is for informational purposes only; it is deemed accurate but not guaranteed. It does not constitute professional advice.
All information is subject to change at any time without notice. Contact us for complete details.

X