This is the time of year when we are working on and submitted 2011 budgets for approval. If I have learned anything in my almost twenty years in property management it is to submit a budget that is as completely realistic as possible. Meeting the goals as defined in your budget is something that should be considered a requirement for all of us. It is very important that the budgets we submit accurately reflect the income and expenses that we can and will generate in the coming year. It is never a good idea to submit a budget that “low-balls” expenses as you will likely be over and have to provide an explanation every single month. Similarly, it is just as frustrating to submit a budget that reflects high numbers so that you are significantly underbudget every month.
The key is to be realistic, do your homework, be prepared for what you konw is going to happen, spend time reasonably considering what might happen and plan for it. Do your best to portray things as they really are, not the way people want them to be or “need” them to be.
By doing this, you are doing yourself and your owners a favor. Attainable goals that are actually met are much more gratifying then never knowing where you stand one month to the next!
Enjoy your budgeting!