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Budget Season: The Most Important Time of the Year

Written by Erin McTear, Assistant Property Manager

What’s one way to ensure you have a rough year as a property manager? Have a budget that doesn’t reflect what the property needs.

Budgets are like guide books that take you on a month-to-month journey for the entire year. Property managers live and contract based on numbers they received five months prior to the New Year starting. There’s nothing worse than having a large variance in the first month of the year, which you then have to explain in a report for the next 11 months.

When making budgets there are three basic steps to ensure your year runs smoothly.

  1. Make your wish list of everything you want to get completed at the property and know what the property can afford to do.
  2. Get bids from contractors for the work and make sure they’re willing to stick with their numbers for the following year.
  3. Check and recheck you have not missed any major services such as landscaping, irrigation and snow removal then budget for the correct amount of months.

Now, I do not believe there is ever a perfect budget. There are always contingencies that get reallocated due to catch basins staying clear or roof repairs holding, but the more information you can get, the easier your year will be. 

Erin McTear | Assistant Property Manager
Mid-America Real Estate-Michigan, Inc.
38500 Woodward Avenue, Suite 100 | Bloomfield Hills, MI  48304
Phone: 248.385.5022 | Fax: 248.839.5202 | Web Design
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