Tips to Get in the Best Budgeting Shape for Next Season

It always seems like we are waiting until the last possible minute to get in shape for summer – sometimes getting prepared for multifamily budgeting season feels the same way.  We may not be all the way to Budgeting season quite yet, but it is time to start to put together our plan. Sometimes we can be our own worst enemies, which is what makes budgeting so painful. But many pain points can be avoided. The beginning of budget season doesn’t have to be hard to swallow. Identifying and correcting processes that can help make property management budgeting feel more comfortable is the first step. Here are eight ways to make the season less painful: 1. Make preparation time count Poor preparation often results in a rocky budgeting process. Don’t expect to just sit down and knock out a budget without being aware of market conditions, including economic forecasts for your sub-market. Marketing, demographic, and economic changes impact leasing and retention and, in the end, profitability. Research prior to committing to revenue is critical. Corporations moving in and out of your market can have a substantial impact on the bottom line. 2. Set clear objectives and targets Ever try playing darts blindfolded? Just try to hit that bullseye (and watch people take cover). It’s important to provide clear objectives and targets for your budget preparers so they have direction. Ask questions like “What are the expectations for income growth and expense control?” Also, “Is the property under review for renovation and how will that impact income and expenses?” For novice budgeters, this is critical information. Written guidance, checklists with what is expected, and guidance on how to use your budgeting model are critical to success. 3. Property management budget training We work in an industry where turnover happens a lot. So, getting a good training plan in place ahead of time will make getting new employees up to speed o...