Budget with the Best: How to Make Budget Season Smooth Sailing!
As real estate managers, the bane of our existence is often budget season. For those who are experienced managers, successfully budgeting to meet both our owners´ goals and our tenants´ needs in this economy is a challenge. And for those who are new to the budget process, simply determining how to begin can cause anxiety!
Here are a few tips to sail smoothly through your property´s budgets:
Understand your owners: If you don´t know what´s important to your owners, ask! Is the owner struggling with a high vacancy level? Is your owner a long-term holder of real estate? Each owners´ goals and philosophy will make a difference in your budgeting strategy.
Understand the documents: It´s critical to fully understand the leases at your property, as well as any underlying documents such as CC&Rs, before you begin budgeting. A good way to start is to abstract each of your leases (even if someone prior to you has already done so), so that you can become familiar with key clauses which may affect your budgets-and your strategy.
Understand your property: There´s no better time to keep your feet on the street than now! This means you should know your own property inside and out-the good, the bad, even the ugly. Know its strengths and weaknesses, and understand what will encourage a tenant to stay in their space and prospective tenants to consider your space. Make sure you also understand the strengths and weakness of the marketplace around your property.
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