Preparing the Annual Property Budget
Believe it or not, budget season is right around the corner, and sound financial knowledge is essential to the success of each and every multifamily community. As a management professional, creating the annual property budget can be a daunting and overwhelming task. This course will breakdown the process of preparing the annual budget into an easy to follow step-by-step process so you can be prepared for budget season with confidence.
Alex will outline the purpose of the annual budget, describe the reports you’ll need to help make appropriate forecasts and share key metrics to consider before submitting your budget for review.
- Determine Ownership Objectives for the Property
Identify long-term ownership objectives, identify budget year property goals, and establish key property metrics.
- Build the Revenue Side of Your Budget
Establish rental revenue for the next budget year, determine commercial/retail rent, if applicable and establish other income potential for the next budget year.
- Build the Expense Side of Your Budget
Payroll, general administrative costs, advertising and marketing, utilities, repairs and maintenance, taxes and insurance.
- Prepare for the Budget Review
Check your bottom line and ensure that ownership goals have been met, back-up documentation to substantiate all budget assumptions, know your market, justify the need for each capital expenditure, and make final adjustments as needed.