How do you end the year well as a property manager?
At the end of the year, you would prefer to have completed all your renovation and maintenance work for the current year. Or at least instructed so that the budget is allocated in this year.
Then you don’t have to carry over budgets and projects into the new year and can start with a “clean” budget. You then get a new budget approved more easily and it saves a lot of administration in the new year.
At the end of the year, it is necessary to make the annual statement. This then also allows you to create the final “budget vs actuals” summary and share it with your client.
Tenants would prefer a service charge settlement as soon as possible.Unfortunately, that does not manage to be sent right at the end of the year. However, it is important to record which expenses belong in the service charge from the past year and close them.
How do you properly prepare for the new year?
Preparation of Multi-Year Maintenance Budget
What is particularly time-consuming in preparation for the new year is preparing new multi-year maintenance budgets for each building. The easiest way is to copy the old multi-year maintenance budget and then make adjustments to it for the new year.
It is important to know how the building is technically in shape now, what work has been completed in the past year and what will be carried forward from the old year to the new.
In addition, it is a good idea to check that your price assumptions in the multi-year maintenance budget match reality. How to do this is by comparing prices in the MJOB with quotes received in Proprli for similar projects.
Finally, it is a best practice to apply inflation in the MYAOB, especially for succeeding years. This is very topical today because of the high construction cost inflation in the past two years.
Once the MYOB is prepared, the next step is to get it approved with the owner. In Proprli, the owner himself can view the MYPOB and easily approve it, after which the MYPOB is “frozen. Frozen means no one can adjust numbers anymore. But you can still leave comments in each budget item for quality information.
In addition, you can also export the MJOB to Excel, including a nice layout. You can then always email these to clients the old-fashioned way.
Start New Year
Requesting Digital Quotes
The beginning of the year always sees many requests for quotes for all new renovation and maintenance work. Often this is done the old-fashioned way by sending a whole bunch of emails.
- Centralize all communication with contractors directly
- In addition, the platform also helps you send automatic reminders to contractors
- There is an automatic comparison of quotes and you can use the user-friendly approval application.
When there are several of the same types of maintenance work in your portfolio, but in different buildings, you can combine them into one project. This makes the project bigger and can save costs for your client through “economies of scale. This can occur in such things as new roof layers, elevator maintenance, painting, cleaning contracts, facade maintenance, window rubber replacement, and more.
In addition, combining projects can sometimes increase property managers’ compensation, as some clients have set “hurdles” for a project supervision fee.