Budgeting for the property year-on-year basis is a standard process that commercial lease or retail property managers follow. This helps in tracking income and expenditure within the property and plan for the coming year. Budgeting also helps identify any change in trend within the market that may have an impact on the property and account for it accordingly. While a good budget can really help streamline property performance and operations, it can be time consuming and an arduous process especially if the size of property portfolio is huge and landlords’ requirements complex.
Out team of professionals at Springbord help with an effective budgeting that provides a wealth of information and insight into trends and shifts in business as well as industry, enabling you to drive superior operations. We prepare budgets aligned with your financial strategies and objectives related to lease, administration, renovations, improvements, and maintenance projects. We have a proven record of meeting expectations, goals and forecasts. Here’s what we consider while structuring property budget:
- Assess and estimate every lease within the tenancy mix and income for the property over the next financial year.
- Thoroughly review expenditure by evaluating financial history of the property over the last few years to get an insight into financial outcomes and expense escalations and factors driving those results.
- Gather useful information related to prevailing property market from valid sources to account for current market rental as well as change over the next year.
- Analyze tenancy mix and rental lease to better understand property performance and identify and account for seasonal changes subject to rental escalations and include assumptions as per lease occupancy.
- Also evaluate and make provisions for landlord expenses to be incurred for vacant premises including leasing commissions, legal costs, capital works and incentives.
- Once the budget is prepared, we even upload the information on appropriate software program or application based on client’s requirement.
To learn how we can support you in planning a profitable budget please get in touch with us and we will be happy to assist.