If you’re already managing a budget, the challenge isn’t necessarily how to create one, it’s constant refinement – making sure it’s thorough, effective, and easy to stick to.
Our tips will help you keep improving your budgeting process, test long-held assumptions, avoid surprises, and keep your property management business running smoothly.
Get staff involved
Your team uses the tools and services you’re paying for, so who better to weigh in on what’s worth the cost?
For example, if a staff member is part of a professional organization that charges dues, ask them if they’re actively benefiting from it. They might tell you they haven’t attended an event in months, meaning that expense could be cut.or altered in some way, if your ROI doesn’t match previous years.
The same goes for software, office supplies, and outsourced services. Small savings add up fast when you’re eliminating things no one actually uses.
Audit your tech stack
Take a close look at the tech you’re using and ask yourself:
- Are you paying for features you don’t use?
- Do you have overlapping tools doing the same job?
- Are your monthly costs predictable or do they fluctuate with hidden fees?
Watch out for wasteful practices like multiple invoices in the same month or buried costs numerous line items. A tech audit could reveal where you’re overspending and where switching providers could save you money.
PayProp offers fair and transparent pricing – you get one invoice with one consistent total every month.
Set up an emergency maintenance fund
Urgent repairs like a broken HVAC system or burst pipe can’t wait.
Even if tenants cover repairs, having a fund dedicated to unexpected maintenance ensures you can act fast and find the pre-approved cash without the need for reimbursement.
Budget for growth
Growth is exciting, but it comes with costs. More doors under management could mean more software seats, more staff, and increased maintenance coordination.
Instead of scrambling to adjust your budget when growth happens, build these success expenses into your forecast, and partner with providers that enable growth with economies of scale. That way, when your business expands, your budget can handle it.
Find new revenue streams
Whether you need to cover rising costs or maximize profit, consider expanding your services to help balance your budget.
Many property managers successfully add extra income through landscaping and outdoor maintenance services and consulting services, for example. Many forward-looking PropTech providers enable growth by automating and integrating new real estate services into their platforms.
Budget with “pre-spent” revenue in mind
A common budgeting mistake is overestimating available cash.
If money is already spoken for, whether for tax obligations, software subscriptions, employee bonuses, treat it as if it’s already spent. This helps keep you from unintentionally stretching your budget too thin.
A smarter way to budget
Budgeting isn’t always fun, but it doesn’t have to be complicated. We hope these tips make it even easier!
