Property Management Budgets for the New Year
So as a property manager, how was 2014 for you? Was it a start strong/finish strong type of year? Was it flat? Were there all those peaks and valleys that make property management such an exciting career choice?
Whatever kind of 2014 you had, it’s time to put it in the books and look forward to 2015. Generally speaking, the economy is in good shape and demand for units, particularly luxury condos, is high. So what sort of budget are you thinking about for next year? Here are a few thoughts with regard to setting your 2015 caps and goals.
Increasing your budget: This is a logical choice if 2014 was a banner year for you and you’ve saved some discretionary funds, but it’s also not a bad idea if you had a flat or down year this year. It may stretch your finances, but attracting and keeping tenants is the name of the game, and if you want 2015 to be one for the record books, it might be worth investing a little extra for the coming year.
Maintaining your budget: If things are going well and you’ve got signed leases you can count on through the end of 2015, you’ll probably want to maintain the status quo. Stay mindful, though, especially in certain parts of the country, that Mother Nature can wreak havoc with your numbers, so you might want to increase just a bit, if only to have that cushion in place.
Decreasing your budget: If your spending was out of control this past year, now’s the time to rein it in. Cutting your numbers now can level you off in the long run, but be mindful that if your residents have come to expect a certain lifestyle and level of service, decreasing your budget can lead to disgruntled vacancies, which will just make a bad situation worse.
What’s your plan for 2015?
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